Sustainability Reporting: New Requirements for 2026

Sustainability reporting in Singapore is no longer a concern only for listed multinationals — by 2026, the requirements are reaching deeper into supply chains, and small and medium enterprises (SMEs) are increasingly being asked to measure and disclose their environmental impact. If your business sells to larger corporates, banks, or government buyers, you may already be feeling the pressure to produce credible emissions and ESG data. This guide breaks down what sustainability reporting actually involves, what is changing in 2026, and how Singapore SMEs can prepare without drowning in spreadsheets.

TL;DR — Key Takeaways

- All SGX-listed companies must report Scope 1 & 2 GHG emissions from FY2025. Full ISSB-aligned climate-related disclosures are required from STI constituent companies from FY2025; non-STI listed companies phase in from FY2028 (market cap ≥ S$1 billion) and FY2030 (below S$1 billion). Large non-listed companies (revenue ≥ S$1 billion and assets ≥ S$500 million) must comply from FY2027.

- Even if your SME is not directly mandated, Scope 3 reporting by your large customers means they will ask you for emissions data — making indirect compliance a near-term reality.

- Getting started with sustainability reporting involves upfront costs for carbon baseline measurement and software; these can be partially offset by grants like the Enterprise Sustainability Programme (ESP) and EDG.

- Getting your data systems organised early is the single biggest cost-saver — manual reporting is slow, error-prone, and hard to audit.

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What Is Sustainability Reporting and Why Does It Matter in 2026?

Sustainability reporting is the practice of measuring, disclosing, and managing a company's environmental, social, and governance (ESG) impacts — most prominently its greenhouse gas emissions. In Singapore, sustainability reporting is shifting from a voluntary "nice to have" to a structured compliance expectation driven by global standards and local regulation.

The big change is alignment with the International Sustainability Standards Board (ISSB) standards (IFRS S1 and S2). The Singapore Exchange (SGX) and the Accounting and Corporate Regulatory Authority (ACRA) have set out a phased roadmap: all listed companies must report Scope 1 and Scope 2 GHG emissions from FY2025, while full ISSB-aligned climate-related disclosures are mandated first for STI constituent companies from FY2025 — non-STI listed companies with market capitalisation of S$1 billion and above follow from FY2028, and smaller listed companies from FY2030. Large non-listed companies (annual revenue of at least S$1 billion and total assets of at least S$500 million) are expected to begin from around FY2027.

Definitive statement: Even if your SME falls below these thresholds, you are likely to be affected indirectly — because when large companies report their Scope 3 emissions (emissions from their supply chain), they need data from suppliers like you. In practice, this means sustainability reporting is becoming a condition of doing business with major buyers, banks, and government agencies well before any law directly names SMEs.

This mirrors a broader shift in the local business landscape covered in our Singapore tech industry trends for 2026 — where ESG data and AI-driven reporting are becoming standard operating expectations.

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What Are the New Sustainability Reporting Requirements for 2026?

The 2026 requirements centre on climate-related disclosures built around three categories of emissions and a standardised reporting framework. The headline rule: companies in scope must report Scope 1 and Scope 2 emissions first, with Scope 3 phased in over subsequent years.

Here is what the emissions scopes mean in plain terms:

• Scope 1 — Direct emissions: Fuel burned by company-owned vehicles, machinery, or generators.
• Scope 2 — Indirect energy emissions: Electricity your business purchases from the grid (a major one in Singapore, given air-conditioning and data loads).
• Scope 3 — Value chain emissions: Everything else — suppliers, business travel, logistics, and the use of your products. This is the hardest to measure and the reason SMEs get pulled into reporting.

Key data point: Across all sectors, Scope 3 accounts for around three-quarters (about 75%) of a company's total emissions on average, according to CDP — though the share varies widely by industry — which is exactly why large buyers cannot meet their own targets without supplier data. When your corporate client asks for a carbon figure on your invoice or in a procurement questionnaire, that request is a downstream effect of their Scope 3 obligations.

What Standards Should SMEs Follow?

For most Singapore SMEs, the practical starting point is the GHG Protocol (the global accounting standard underpinning ISSB) and the Simplified ESG Disclosure Guide (SGGuide) developed for SMEs by SGX, Enterprise Singapore, and partners. These give you a lighter, structured template rather than the full ISSB regime. Starting with a recognised framework also means your data will be accepted by banks offering green financing and by larger customers running supplier ESG audits.

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How Much Does Sustainability Reporting Cost for an SME?

For a typical Singapore SME, the first year of sustainability reporting involves meaningful upfront costs, depending on complexity, data availability, and whether you use consultants, software, or both. Ongoing annual costs usually fall once your baseline and data systems are established.

A realistic breakdown looks like this:

• Carbon baseline / first measurement: A material cost if outsourced to a consultant; scope and complexity determine the fee.
• Reporting / carbon accounting software: Annual subscription costs vary by platform and company size; pre-approved tools on the PSG list are a cost-efficient starting point.
• Internal staff time: Often the hidden cost — data gathering across utility bills, fuel receipts, travel logs, and supplier records.
• Assurance / verification (if externally required): An additional step when a buyer, lender, or certifier requests independent verification; costs vary widely by scope and provider.

Definitive statement: The biggest cost driver is not the report itself — it is the state of your underlying data. Businesses with utility bills, expense records, and supplier invoices scattered across email and paper spend far more time (and money) than those whose records are already digitised and centralised. This is why getting your back-office systems in order, including automating invoicing and record-keeping, pays off directly when reporting season arrives.

If you operate cloud infrastructure, your energy and emissions picture also ties into your hosting choices — our guide on cloud migration costs for Singapore SMEs is a useful companion when estimating Scope 2 and 3 impacts from IT.

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What Grants Can Help Singapore SMEs With Sustainability Reporting?

Singapore SMEs can tap several government schemes to offset the cost of sustainability reporting, carbon measurement, and ESG software. The most relevant are the Enterprise Sustainability Programme (ESP) and the Enterprise Development Grant (EDG), both administered by Enterprise Singapore.

• Enterprise Sustainability Programme (ESP): Designed specifically to help SMEs build sustainability capabilities. It supports training (including emissions and ESG courses) and projects to develop sustainability solutions, with funding support typically up to 70% of qualifying costs for eligible SMEs.
• Enterprise Development Grant (EDG): Supports larger transformation projects, including sustainability strategy and ESG systems implementation, with funding support of up to 70% of qualifying costs for eligible SMEs (the exact rate depends on the project type and applicable Budget 2026 enhancements). Note that under Budget 2026, EDG, PSG, and the Market Readiness Assistance (MRA) grant are being consolidated into a single scheme called EDGE, which Enterprise Singapore plans to launch in the second half of 2026; the existing grants remain available until then. Always confirm current rates and eligibility on the official Enterprise Singapore site before applying.
• Productivity Solutions Grant (PSG): Co-funds pre-approved digital tools — including some carbon and energy management software — at up to 50% of qualifying costs for SMEs (subject to a S$30,000 annual cap per company, as of April 2023). Always check the current PSG vendor list for sustainability-related solutions before purchasing.

Definitive statement: Combining grant support with the right software can cut the effective cost of getting reporting-ready by half or more — but most grants require approval before you commit to spending, so plan applications early rather than claiming retroactively.

For a broader view of where reporting fits among your other priorities, our digital transformation checklist for Singapore SMEs in 2026 maps out how compliance, data, and automation connect.

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How Should Your Business Prepare for Sustainability Reporting?

The most effective preparation is to treat sustainability reporting as a data problem first and a disclosure problem second. Businesses that digitise and centralise their operational data can produce reports in days rather than weeks, and can respond instantly when a customer sends an ESG questionnaire.

A practical roadmap to get started:

1. Map your data sources. Identify where your energy, fuel, travel, and supplier records live today. Most SMEs discover this data is fragmented across paper, email, and disconnected apps.
2. Establish a baseline. Measure Scope 1 and Scope 2 first — these are achievable with utility bills and fuel records. Tackle priority Scope 3 categories (like key suppliers and logistics) next.
3. Choose a framework and tool. Start with the GHG Protocol and an SME-friendly reporting template or carbon accounting platform.
4. Automate data capture. Connect utility, accounting, and procurement systems so emissions data updates continuously instead of being rebuilt manually each year.
5. Build a repeatable workflow. The first report is the hardest; the goal is a system that makes year two and three routine.

This is where digital tooling matters most. Adaptels builds custom digital solutions for Singapore SMEs — from dashboards that pull emissions data automatically out of your existing systems to internal tools that turn scattered records into audit-ready reports. Many businesses also pair sustainability reporting with AI tools and chatbots to handle the growing volume of supplier ESG questionnaires they now receive.

Don't Forget Data Protection

Sustainability reporting often means collecting and sharing data across your supply chain — which intersects with the Personal Data Protection Act (PDPA) when supplier or employee information is involved. As you build new data pipelines, make sure your compliance posture keeps pace. Tools like ComplyHQ offer AI-powered PDPA compliance support designed for Singapore SMEs, so your reporting systems don't create new privacy risks.

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The Bottom Line for Singapore SMEs

Sustainability reporting in 2026 is arriving for SMEs not through a single law, but through the supply chain — pushed down by listed companies, banks, and large buyers who now answer to ISSB-aligned rules. The businesses that prepare early, digitise their data, and tap grants like ESP, EDG, and PSG will turn a compliance burden into a competitive advantage: they win contracts, qualify for green financing, and respond to ESG requests in hours instead of weeks.

The forward-looking move is to stop treating ESG data as a once-a-year scramble and start building it into your everyday systems. Get the data foundation right, and sustainability reporting becomes just another report your business produces on demand.

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Sources & References

1. ACRA — Sustainability Reporting Requirements Timeline — Official phased timeline for climate-related disclosure obligations in Singapore.
2. ACRA — Extended Timelines for Climate Reporting Requirements (August 2025) — ACRA and SGX RegCo announcement of phased extensions for non-STI listed and non-listed companies.
3. SGX Group — Extended Timelines for Climate Reporting Requirements — Singapore Exchange's announcement on the revised climate reporting roadmap.
4. Enterprise Singapore — Enterprise Sustainability Programme — Grant support details for SMEs building sustainability capabilities.
5. Enterprise Singapore — SME Sustainability Reporting Programme — Dedicated support for non-listed SMEs developing their first sustainability reports.
6. Enterprise Singapore — Enterprise Development Grant (EDG) — Funding for SME transformation projects, including sustainability.
7. GoBusiness — Productivity Solutions Grant (PSG) — Co-funding for pre-approved digital and sustainability solutions.
8. CDP — Corporates' supply chain (Scope 3) emissions — CDP analysis showing Scope 3 averages around three-quarters of total corporate emissions (26× operational emissions on average).
9. Enterprise Singapore — Budget 2026 — Official details on enhanced grant support and the consolidation of EDG, PSG, and MRA into the new EDGE scheme (launching 2H 2026).