On 23 September 2024, Singapore Exchange Regulation (SGX RegCo) announced1 the enhancement of the climate reporting rules byincorporating the IFRS Sustainability DisclosureStandards (IFRS SDS) issued by the InternationalSustainability Standards Board (ISSB) into the sustainability reporting regime, following the broad support from public respondents to the consultation paper2 released in March 2024.
The IFRS SDS are built based on the four pillars ofthe Task Force on Climate-related FinancialDisclosures (TCFD): Governance, Strategy, Risk Management, and Metrics and Targets. It contains two sustainability disclosure standards; IFRS S1 GeneralRequirements for Disclosure of Sustainability-relatedFinancial Information and IFRS S2 Climate-relatedDisclosures.
Calculating Scope 3 GHG emissions can be complex because it encompasses a wide range of indirect emissions that occur in a company’s value chain. Companies are strongly encouraged to have an early start, companies can navigate the complexities of Scope 3 GHG emissions reporting more effectively, through leveraging the methodologies of the GHG Protocol, understanding gaps and challenges and developing a suitable roadmap.
Based on the PwC’s Global Investor Survey 2023, 75% of respondents said that how companies manage sustainability-related risks and opportunities (including climate) is an important factor in their investment decision-making. Beyond that, investors want more details on the impact of company actions on the environment, and on society.
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