Singapore Sustainability Reporting: A Guide for the Aviation Sector

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Singapore has taken a structured and forward-looking approach to sustainability reporting, integrating global standards while tailoring them to national priorities. For businesses operating in Singapore, especially listed companies and large non-listed entities, sustainability reporting is no longer just a recommendation – it is becoming mandatory.

This guide covers:

What Is Singapore Sustainability Reporting?

Sustainability reporting in Singapore refers to the disclosure of material environmental, social and governance (ESG) factors by companies to inform investors and stakeholders about risks, opportunities and performance beyond financial metrics. These reports are designed to enhance corporate transparency, accountability and long-term value creation.

The framework is administered by the Singapore Exchange (SGX) and the Accounting and Corporate Regulatory Authority (ACRA).

It requires companies to publish annual sustainability reports that include:

  • Material ESG issues and how they are managed 1
  • Climate-related risks and opportunities 2
  • Policies, targets and performance indicators 3
  • Governance oversight of sustainability issues 4

Reports must align with recognised global frameworks, particularly the International Sustainability Standards Board (ISSB) IFRS S1 and S2 standards, and Task Force on Climate-related Financial Disclosures (TCFD) recommendations 5.

Is Sustainability Reporting Mandatory in Singapore?

Yes, sustainability reporting is mandatory in Singapore for SGX-listed companies and will soon extend to large non-listed entities. The phased implementation allows companies to build capacity while aligning with international disclosure expectations 6.

Singapore Sustainability Reporting Requirements

For SGX-Listed Companies:

  • FY2025: Climate-related disclosures aligned with ISSB standards become mandatory. Reports must include Scope 1 and Scope 2 greenhouse gas (GHG) emissions 7.
  • FY2026: Larger issuers are expected to begin reporting Scope 3 emissions, based on readiness and market capitalisation 8.
  • FY2027: External limited assurance is required for Scope 1 and Scope 2 emissions 9.

For Large Non-Listed Companies:

Defined as entities with revenue of at least SGD 1 billion and total assets of at least SGD 500 million 10.

  • FY2027: Must begin reporting on Scope 1 and Scope 2 emissions 11.
  • FY2029: Scope 3 disclosures and external assurance required 12.

Parent companies already reporting under aligned international standards may be exempt, and a transitional period is available to support alignment 13.

How to Prepare for Singapore Sustainability Reporting

  • Understand Applicable Frameworks: Familiarise with IFRS S1 and S2, TCFD, and existing frameworks like GRI or SASB 14.
  • Conduct Materiality Assessments: Identify key ESG issues most relevant to your business 15.
  • Collect and Analyse Data: Include emissions (Scopes 1, 2 and 3), policies and sustainability metrics 16.
  • Ensure Board Oversight: Integrate ESG strategy and governance at the board level 17.
  • Prepare and Publish Reports: Submit via SGXNet and publish online within five months of financial year-end 18.
  • Consider External Assurance: Voluntary in initial years, but builds stakeholder trust 19.

 

Singapore Sustainability Disclosure Compliance with PACE

Stay ahead of Singapore’s mandatory climate-related reporting requirements. PACE provides precise aircraft emissions calculations to help aviation stakeholders align with SGX and ACRA-aligned sustainability standards.
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SGX Sustainability Reporting Timeline

2024:

  • Listed Companies and Large Non-Listed Companies: Preparation phase
  • Aviation: Launch of the Singapore Sustainable Air Hub Blueprint 13, outlining strategic goals including emission targets, SAF uptake, and sustainable infrastructure.

2025:

  • Listed Companies: Mandatory Scope 1 and 2 reporting 7

2026:

  • Listed Companies: Larger issuers begin Scope 3 reporting 8
  • Aviation: Implementation of SAF usage requirement on all departing flights, with an initial target of 1% blend 14

2027:

  • Listed Companies: External assurance for Scope 1 & 2 9
  • Large Non-Listed Companies: Scope 1 and 2 disclosures begin 11

2029:

  • Large Non-Listed Companies: Scope 3 reporting and external assurance required 12

2030:

  • Aviation: Achieve a 20% reduction in domestic airport emissions compared to 2019 levels 15

2050:

  • Aviation: Fulfil commitment to net zero domestic and international aviation emissions, aligned with ICAO’s global climate targets 16

 

Singapore’s Sustainability Reporting Aviation Specific Information

Singapore’s aviation industry plays a pivotal role in the nation’s climate strategy.

The Civil Aviation Authority of Singapore (CAAS) has published the Singapore Sustainable Air Hub Blueprint, which outlines sector-specific reporting and emission targets:

  • Emission Targets: Reduce domestic emissions from airport operations by 20% from 2019 levels by 2030 15.
  • Sustainable Aviation Fuel (SAF): From 2026, all departing flights must use SAF, starting with a target of 1% and rising to 3–5% by 2030. A SAF levy and procurement mechanism will support uptake and price stability 14,16.
  • SAF Ecosystem: A central procurement model will aggregate demand and support regional SAF production 16.
  • Clean Energy Airport Operations: All new light airside vehicles will be electric from 2025, with full fleet conversion targeted by 2040. Rooftop solar and energy-efficient upgrades are also planned 18.
  • Waste to Energy Solutions: Changi Airport is assessing on-site waste-to-energy options to reduce emissions 19.
  • Air Traffic Management Improvements: Enhanced coordination and smart tools aim to reduce emissions by about 10% over five years 20.
  • International Alignment: The blueprint will serve as Singapore’s ICAO State Action Plan to support the global goal of net-zero aviation emissions by 2050 17.
  • Workforce and Collaboration: Includes training for aviation professionals and international collaboration on sustainability practices 17.

 

Conclusion

Singapore’s sustainability reporting framework sets a high standard for corporate transparency and climate accountability. For companies, particularly those in regulated sectors such as aviation, integrating mandatory ESG disclosures into core strategy is now essential.

Aligning with SGX and ISSB standards not only ensures compliance but also enhances resilience, investor confidence and long-term stakeholder trust.

For the latest updates, visit SGX Sustainability Reporting Resources  and ACRA’s ESG Overview

 

References

  1. Singapore Exchange. (2024). Practice Note 7.6: Sustainability Reporting Guide. https://rulebook.sgx.com/rulebook/practice-note-76-sustainability-reporting-guide
  2. Accounting and Corporate Regulatory Authority. (2024). Overview of Sustainability Reporting. https://www.acra.gov.sg/accountancy/sustainability-reporting/overview
  3. International Financial Reporting Standards Foundation. (2023). ISSB issues IFRS S1 and IFRS S2. https://www.ifrs.org/news-and-events/news/2023/06/issb-issues-ifrs-s1-and-ifrs-s2/
  4. ESG Today. (2024). Singapore to introduce mandatory climate reporting beginning 2025. https://www.esgtoday.com/singapore-to-introduce-mandatory-climate-reporting-beginning-2025/
  5. Workiva. (2024). Singapore mandatory climate reporting: Steps for compliance https://www.workiva.com/sg/blog/singapore-mandatory-climate-reporting-steps
  6. SGX. (2024). SGX Climate Disclosure Rules to incorporate IFRS Standards from FY2025. https://www.sgxgroup.com/media-centre/20240923-sgx-regco-start-incorporating-ifrs-sustainability-disclosure
  7. CAAS. (2024). Singapore Sustainable Air Hub Blueprint. https://www.caas.gov.sg/docs/default-source/docs—so/singapore-sustainable-air-hub-blueprint.pdf
  8. Latham & Watkins. (2024). Singapore Adopts ISSB Standards for Climate Disclosure. https://www.lw.com/thoughtLeadership/singapore-ifrs-climate-disclosure-2025
  9. ESG News. (2024). Singapore’s blueprint to achieve net zero aviation emissions by 2050*. https://esgnews.com/singapores-blueprint-to-achieve-net-zero-aviation-emissions-by-2050/
  10. Singapore Business Federation. (2024). Sustainability Reporting Obligations for Non-listed Entities. https://www.sbf.org.sg
  11. Allen & Gledhill. (2024). IFRS sustainability disclosure standards to be incorporated into SGX climate reporting rules from FY2025. https://www.allenandgledhill.com/sg/publication/articles/29209/
  12. Norton Rose Fulbright. (2024). 2025: A new year ahead for aviation environment and regulatory compliance. https://www.nortonrosefulbright.com/en-sg/knowledge/publications/7d8b2d01/
  13. CANSO. (2024). Launch of Singapore Sustainable Air Hub Blueprint. https://canso.org/launch-of-singapore-sustainable-air-hub-blueprint/
  14. SP Global. (2024). Singapore mandates SAF use for departing flights to introduce levy from 2026. https://www.spglobal.com/commodity-insights/en/news-research/latest-news/energy-transition/021924
  15. Sustainability Magazine. (2024). Inside Singapore’s ambitious sustainable aviation blueprint. https://sustainabilitymag.com/net-zero/inside-singapores-ambitious-sustainable-aviation-blueprint
  16. CAAS. (2024). Sustainable aviation fuel procurement framework. https://www.caas.gov.sg
  17. ICAO. (2024). State Action Plans on CO2 Emissions Reduction. https://www.icao.int/environmental-protection/Pages/StateActionPlans.aspx
  18. Ministry of Transport Singapore. (2024). Electric vehicle transition in airport ground operations. https://www.mot.gov.sg/news-centre
  19. Changi Airport Group. (2024). Environmental sustainability overview. https://www.changiairport.com/corporate/sustainability/environment.html
  20. Singapore Government. (2024). Green Plan 2030: Energy efficiency in infrastructure. https://www.greenplan.gov.sg
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