Despite hurdles, most SGX-listed companies have begun adopting global standards, seeing climate disclosures as a pathway to growth and investor confidence.
SINGAPORE — A shortage of skilled talent, limited data and high implementation costs are slowing the pace of climate reporting among companies listed on the Singapore Exchange, even as most firms acknowledge the strategic value of transparent sustainability disclosures, according to a new industry study released on Friday.
The research, conducted by Schneider Electric and supported by Singapore Exchange Regulation (SGX RegCo), highlights a tension facing Singapore’s corporate sector: strong momentum toward global climate standards, tempered by practical constraints on execution.
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Skills and Data Emerge as the Biggest Barriers
Among the 543 business executives surveyed — most of whom hold sustainability-related roles — internal skills gaps were cited as the single largest obstacle to adopting the International Sustainability Standards Board (ISSB) Sustainability Disclosure Standards. About 55 per cent of respondents pointed to a lack of in-house expertise.
High implementation costs followed closely, flagged by 52 per cent of respondents, while 43 per cent cited data gaps and 42 per cent highlighted limited expertise among external service providers.
The findings come five months after Singapore delayed mandatory climate disclosures for most listed companies by five years, pushing deadlines back to as late as 2030 from the original 2025 timeline, citing an industry-wide “readiness gap”.
Broad Uptake Despite Slower Pace
Even with these challenges, adoption is well under way. More than 90 per cent of respondents said they have already started work on implementing the ISSB standards, which were incorporated into SGX’s Sustainability Reporting Guide in 2025.
The survey sample included executives from companies across the exchange, which is home to major listed firms such as DBS Bank, CapitaLand, Jardine Matheson and Wilmar International.
More than half of those surveyed said adopting the ISSB standards would help attract investors, while others pointed to clearer sustainability benchmarks and reputational benefits.
Climate Reporting as a Source of New Business
Beyond compliance, many companies are beginning to see climate action as a driver of value creation. Six in 10 respondents said their organisations had identified new business opportunities in response to climate change, with some creating entirely new business segments.
More than half said they are pursuing partnerships or mergers and acquisitions with climate-focused companies to build internal expertise and expand their presence in emerging green markets.
Opportunity areas cited include renewable energy solutions, climate and digital technologies, infrastructure and urban planning, and green finance.
Digital Tools Underused but Gaining Ground
Digitalisation is increasingly viewed as a way to close reporting gaps, though adoption remains uneven. About half of respondents said they are taking an integrated approach to digital reporting, embedding tools such as digital tagging directly into financial systems.
At the same time, 7 per cent said they do not use any digital tools at all for sustainability reporting, pointing to significant room for improvement.
Investment patterns also reveal a narrow focus. Most companies prioritise physical infrastructure — such as solar panels and battery energy storage systems — to mitigate climate risk, while fewer are investing in digital solutions that could improve data quality and reporting efficiency.
The report’s authors pointed to research on European firms showing that early adopters of climate disclosure standards tend to build stronger internal systems, improve data quality and signal transparency and long-term thinking to investors. Companies that delay reporting until it becomes mandatory were more likely to issue generic disclosures and face what the study described as a negative cost-benefit trade-off.
“Our study shows that while businesses recognise the strategic value of standards, many are constrained by capability and data limitations,” said Yoon Young Kim, cluster president for Singapore and Brunei at Schneider Electric.
He added that companies should look beyond physical assets and consider how investments in digital and automated solutions can help manage climate risk while improving shareholder returns.
Regulators See Progress, Urge Quality
Eliza Tan, head of the Sustainable Development Office and IPO Admissions at SGX RegCo, said the findings were encouraging.
“We are heartened that more companies are looking at climate issues through the lenses of business opportunities and value creation,” she said. As firms continue adopting the ISSB standards and take advantage of training programmes developed by SGX RegCo and its partners, she added, gaps in climate-related disclosures can gradually be closed.
Ultimately, Tan said, investors are seeking disclosures that are robust, comparable and useful for decision-making.
The study suggests that while Singapore-listed companies are moving steadily toward global climate reporting norms, the transition will be incremental. Skills development, better data systems and targeted digital investment are likely to determine how quickly firms can move from basic compliance to strategic climate leadership.
For now, climate reporting in Singapore appears less like a box-ticking exercise and more like a work in progress — one that many companies believe could reshape how they grow, compete and attract capital in a low-carbon economy.
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