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Business Times
4 days ago
- Business
- Business Times
Transitioning to ISSB requirements is not a mere labelling change
THE recently released EY-CPA Australia report on the state of climate reporting in Singapore revealed that more than two-thirds of Singapore-listed companies are falling behind on upcoming reporting requirements for companies with financial year commencing on or after Jan 1, 2025. Under the Singapore Exchange's (SGX) road map for mandatory climate reporting, companies are expected to transition from the current Task Force on Climate-Related Financial Disclosures (TCFD) requirements to International Sustainability Standards Board (ISSB) requirements. Companies must understand that the change from TCFD to ISSB is not a straightforward labelling change. While all 11 TCFD disclosure elements are incorporated into the ISSB requirements, there are additional disclosures that companies need to make. For example, ISSB requires entities to provide an analysis of climate-related risks and opportunities across different time horizons, including their financial implications; disclose material information about the sustainability-related risks and opportunities that could reasonably be expected to affect their prospects; and make additional Scope 3 greenhouse gas (GHG) emissions disclosures. This last part on Scope 3 GHG reporting requirement is currently under further review by the SGX, and thus not mandatory. According to the EY-CPA Australia report, for their FY2024 climate reports, under the current TCFD requirements, Singapore companies are making an average of nine out of 11 disclosures, up from eight in the previous year. Eliza Tan, head of Sustainable Development Office at SGX Regulation, said: 'Companies have made progress, though they are still some ways from producing high-quality climate reports.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up However, a closer examination of the distribution reveals a notable gap between large versus small to medium-sized companies. Among the 62 large-cap companies – those with a market capitalisation of more than S$1 billion – 60 per cent made disclosures against all 11 TCFD recommendations. This contrasts with 35 per cent of 57 mid-cap companies – those with a market capitalisation between S$300 million and S$1 billion – and a much lower 25 per cent of 232 small-cap companies that did so. This is the same worrying picture shared by the Singapore Business Federation (SBF). In a survey of 40 companies earlier this year, only 4 per cent expressed confidence about meeting the deadline. SBF is lobbying for an extension for small and mid-cap companies, as well as improved guidance of the 'proportionality mechanisms' as allowed by the ISSB. Whether the deadline is extended, the road ahead is clearly challenging for many companies, but it is one that must be met head on. Today, stakeholders are demanding actionable, transparent plans that clearly articulate how these ambitions will be realised. This call for more credible and meaningful sustainability data and reporting is clearer and louder than ever – and will only intensify further. In fact, companies that continue to view climate reporting as a mere tickbox exercise will miss out on the opportunity to showcase how they are creating long-term value. Those who lead the charge will unlock new markets, attract customers and access innovative financing options. Conversely, those who lag behind may find themselves at a competitive disadvantage, excluded from strategic value chains. Beh Siew Kim, chief financial and sustainability officer at The Ascott, said: 'Those who act now will not only build future-ready businesses, but also drive the evolution of their industries.' To ensure the momentum for climate reporting is sustained, companies need to do three things. Understand the true exposure of climate-related impact to the business. It is important for companies to take a holistic approach to assessing the impact of climate-related risks and opportunities on the business. Without conducting an adequate assessment, companies may struggle to mitigate climate-related risks to which they are materially exposed. They may also miss out on opportunities, such as increased access to funding via sustainability-linked financing, grants and new revenue streams, leading to a potential loss of competitive edge to their peers. Develop a robust transition plan. With a comprehensive overview of the climate-related risks and opportunities, companies can customise an actionable transition plan, focused on material areas that allows for effective resource planning and allocation, crucial for ensuring a viable transition to a low to no-carbon economy. When communicated clearly, a transition plan demonstrates clarity in the company's vision and accountability for its commitments to its stakeholders, both internal and external. Equip members across different functions with sustainability knowledge. As sustainability reporting is largely a by-product of the company's strategy, plans and actions, a whole-of-organisation approach is key. Beyond the sustainability team, board members and employees should also possess a strong understanding of sustainability and key topics. This will help them recognise the implications of climate change on their roles, and encourage cross-functional collaboration to support the organisation's sustainability agenda. For Singapore's listed companies, closing this reporting gap can help maintain credibility and competitiveness on a global stage that demands climate accountability. This not only fulfils regulatory expectations, but also fosters trust among investors and customers, ultimately driving innovation and sustainable growth. Themin Suwardy is an associate professor of accounting (practice) and the associate provost for postgraduate professional education at Singapore Management University. Ken Ong is an assurance partner at EY. Some parts of this article were first published in EY Insights. The views reflected in this article are the views of the authors, and do not necessarily reflect the views of the university, the global EY organisation or its member firms.
Associated Press
31-07-2025
- Business
- Associated Press
G&A Institute Issues Updated Resource Paper on California's Climate Disclosure Laws
NEW YORK, July 31, 2025 /3BL/ - Governance & Accountability Institute (G&A), a leading sustainability consulting and research firm, has issued an updated Resource Paper on recent developments impacting California's new climate disclosure laws scheduled to take effect in 2026. The new Resource Paper, which is available for download here, is an update to G&A's January 2024 Resource Paper providing an initial overview of these laws. Key findings of the new Resource Paper include: workshopFAQ 'While there are still unanswered questions about California's new laws, it is essential for companies not to delay on the baseline preparations as these will take time,' said Louis Coppola, CEO & Co-Founder at G&A Institute. 'Among these preparations are conducting a greenhouse gas inventory for 2025 in accordance with the GHG Protocol, and following TCFD or ISSB frameworks to develop your climate-related risks and opportunities assessment to meet the reporting deadline for SB 261 of January 1, 2026.' Coppola added, 'G&A is available to help organizations that are in scope of these important regulations to prepare for meet reporting requirements and follow best practices.' About G&A Institute, Inc. Founded in 2006, Governance & Accountability Institute, Inc. (G&A) is a sustainability consulting and research firm headquartered in New York City. G&A helps corporate and investor clients recognize, understand, and develop winning strategies for sustainability and ESG issues to address stakeholder and shareholder concerns. G&A's proprietary, comprehensive full-suite process for sustainability reporting is designed to help organizations achieve sustainability leadership in their industry and sector and maximize return on investment for sustainability initiatives. Since 2011, G&A has been building and expanding a comprehensive database of corporate sustainability reporting data based on analysis of thousands of ESG and sustainability reports to help steer strategy for our clients and improve their disclosure and reporting. More information is available on our website at FOR MEDIA INQUIRIES & INTERVIEWS, CONTACTLouis D. CoppolaCEO & Co-Founder Governance & Accountability Institute, Inc. Tel 646.430.8230 ext 14 Email [email protected] Visit 3BL Media to see more multimedia and stories from Governance & Accountability Institute
Cision Canada
23-07-2025
- Business
- Cision Canada
PROREIT ANNOUNCES JULY 2025 DISTRIBUTION AND PUBLICATION OF ITS 2024 SUSTAINABILITY REPORT Français
MONTREAL, July 23, 2025 /CNW/ - PRO Real Estate Investment Trust ("PROREIT" or the "REIT") (TSX: announced today that a cash distribution of $0.0375 per trust unit of the REIT for the month of July 2025 ($0.45 on an annualized basis) will be payable on August 15, 2025 to unitholders of record as at July 31, 2025. In addition, PROREIT announced the publication of its 2024 Sustainability Report, which provides a comprehensive overview of the REIT's environmental, social and governance (ESG) priorities, progress and accomplishments. Select 2024 Sustainability Report Highlights Initial reporting of Scope 1 and Scope 2 greenhouse gas emissions, with 2023 established as baseline year 65% of the REIT's portfolio now tracked in ENERGY STAR ® Portfolio Manager Launch of the REIT's first tenant satisfaction survey to enhance tenant engagement and operational insights Task Force on Climate-related Financial Disclosures (TCFD) framework disclosed for the first time 75% of Trustees were independent at 2024 year-end; Chair of the Board is independent as of June 3, 2025. The 2024 Sustainability Report was prepared with references to recognized standards, including Sustainability Accounting Standards Board (SASB) Standards for the real estate industry and TCFD recommendations, in addition to relevant industry standards and benchmarks. The full report is available in the Sustainability section of PROREIT's website at PROREIT (TSX: is an unincorporated open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. Founded in 2013, PROREIT owns a portfolio of high-quality commercial real estate properties in Canada, with a strong industrial focus in robust secondary markets. For more information on PROREIT, please visit the website at:
Business Times
18-07-2025
- Business
- Business Times
Over two-thirds of SGX companies unprepared for new sustainability reporting standards: EY study
More than two in three Singapore-listed companies are less than prepared to meet climate-related disclosure requirements, according to a study from EY. The deadline to transition to the new IFRS Sustainability Standards Board (ISSB)-aligned climate disclosures will be at the end of FY2025, which could be as early as Dec 31 this year for some companies. Of the 359 companies publishing sustainability reports for the financial year ended Dec 31, 2024, 98 per cent had disclosures that met at least one of the 11 Task Force on Climate-related Financial Disclosures (TCFD) recommendations. The average stood at nine disclosures in FY2024, up from eight in FY2023. But since the end of FY2022, only 32 per cent have made disclosures against all 11 TCFD recommendations. While 60 per cent of the 62 large-cap companies surveyed did so, only 35 per cent of mid-cap and 25 per cent and small-cap companies did so. Companies with financial years ending on Dec 31 now have less than six months to ensure full preparedness for the transition. The ISSB standards are built upon the four core themes – namely, governance, strategy, risk management, and metrics and targets – of the TCFD recommendations, but demand more detailed information. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up As at the end of FY2024, only 14 per cent of companies examined were early adopters of the new ISSB standards and had considered them for their climate-related disclosures. Although there are no specific punitive measures for failure to transition to ISSB-aligned climate-related disclosures by the FY2025 deadline, companies may face penalties for failing to comply with listing rules, said EY in response to a query from The Business Times. However, the group noted that regulators will take into account any difficulties companies may face with the new reporting standards. Transition plans indicate climate resilience Of the companies publishing sustainability reports, just under half disclosed a semblance of a transition plan, up from 20 per cent in FY2023. Notably, only a third of companies that have set net-zero targets have disclosed such plans. A transition plan is a time-bound plan that details how a company's existing business model, operations and resources will change in response to climate-related changes and risks. 'Companies with a transition plan are more likely to exhibit better business resilience towards climate events,' said EY Nhan Quang. 'They would have assessed the related impacts and developed the necessary response.' The study also found that less than one in five of the companies linked sustainability-related performance to remuneration in FY2024. That figure was up from 15 per cent compared with the end of FY2023. Large-cap companies were overrepresented in this metric, with nearly 62 per cent integrating environmental, social and governance (ESG) considerations into their remuneration structure, compared with 23 per cent and 15 per cent for mid-cap and small-cap firms, respectively. 'Having sustainability-linked remuneration suggests accountability from the business to help ensure proper management of their exposure to climate-related risks,' said Quang.
Associated Press
07-07-2025
- Business
- Associated Press
Regulatory Spotlight: Navigating California's Climate Accountability Package (CCAP)
Passed in 2023, the Climate Corporate Data Accountability Act (SB 253) and the Climate-Related Financial Risk Act (SB 261) were viewed as groundbreaking legislation in the United States and around the world. Despite challenges to the legislation, changes in geopolitical pressures, and the latest from the European Union's Omnibus I package, California has remained steadfast in their commitment to ensuring companies consider and disclose climate-related matters starting in 2026. Understanding these regulations and their evolving timelines is crucial for compliance and strategic planning. Summarizing California's Key Climate Acts SB 253: The Climate Corporate Data Accountability Act This act mandates that public and private companies doing business in California with total annual revenues exceeding $1 billion USD report their greenhouse gas (GHG) emissions in accordance with the GHG Protocols. SB 261: The Climate-Related Financial Risk Act This act requires public and private companies doing business in California with total revenues exceeding $500 million USD to biennially disclose their climate-related financial risks. These disclosures must follow the Task Force on Climate-Related Financial Disclosures (TCFD) framework or its successors, such as the International Financial Reporting Standards (IFRS) Sustainability Standards, specifically 'IFRS S2". The key deadline for SB 261 is January 1, 2026. SB 219: Greenhouse gases: climate corporate accountability: climate-related financial risk This bill was introduced in September 2024, providing an extension for CARB to finalize and adopt the new rules for both SB 253 and SB 261 in July 2025. The bill also streamlines SB 253 reporting requirements for parent companies, removing the requirement for subsidiaries to file separate reports. Latest Developments and Global Influence On May 29, 2025, the California Air Resources Board (CARB) hosted a virtual workshop to discuss the implementation of SB 253 and SB 261, as well as the amendments under SB 219. During the workshop, State Senators Scott Weiner and Henry Stern acknowledged the global influence of similar disclosure regulations, such as the EU's Corporate Sustainability Reporting Directive (CSRD), but reiterated that the compliance deadlines for California's bills remain unchanged. CARB presented initial concepts regarding definitions for 'doing business in California,' 'revenue,' and 'corporate relationships'. However, CARB also indicated that more time is needed to finalize their proposed rules and that meeting the July 1 deadline presented in SB 219 would be unlikely. Instead, the rules package for SB 253 and SB 261 is now anticipated to be finalized by the end of the 2025 calendar year. In a similar fashion, on July 1, 2025, the European Financial Reporting Advisory Group (EFRAG) announced that they would also extend their public consultation period from the end of July through the end of September, extending the revision and simplification deadline of the European Sustainability Reporting Standards (ESRS) until November 30, 2025. It is yet to be seen if the delay for the updated ESRS will have further impact on the status of the California rules. A notable point from the workshop was CARB's reminder about a December 2024 Enforcement Notice: reporting entities will not be subject to penalties for incomplete disclosures related to SB 253, provided they demonstrate 'good faith efforts' to collect GHG emissions data. It's important to note that a similar Enforcement Notice has not been introduced for SB 261 at this time. The California rulemaking process is comprehensive, offering opportunities for public engagement and compliance reviews. CARB remains in the 'Pre-Rulemaking' stage and intends to continue public engagement before issuing proposed regulations. Once the proposed rules are ready, CARB will enter the 'Formal Rulemaking' status, with one year to finalize and adopt the rules into law. This means that the final rules might not be ready until late 2026. Preparing for Compliance: Actionable Steps Despite the delayed release of formal guidance materials, the statutory deadlines for these regulations remain in effect. Therefore, companies, especially those new to GHG emissions inventories and/or climate-related risk reporting, should begin preparations as soon as possible. Here are key areas your organization should focus on: Key Deadlines at a Glance: The evolving landscape of climate corporate accountability demands proactive engagement. Antea Group is here to help your organization navigate these complex regulations and build a resilient sustainability reporting framework. Is your company prepared for California's new climate disclosure mandates? Learn how Antea Group can support your compliance journey and enhance your sustainability reporting: Visit 3BL Media to see more multimedia and stories from Antea Group
