Introduction

Singapore’s Accounting and Corporate Regulatory Authority released draft Singapore Sustainability Disclosure Standards on July 27, 2026, opening a public consultation that runs through October 25, 2026. The draft is built around two standards mirrored on the ISSB framework, SFRS S1 and SFRS S2, and it proposes that only SFRS S2, covering climate related disclosures, becomes mandatory in this initial phase. Companies operating in Singapore now have a defined window to understand what the draft requires and to submit feedback before the standards are finalised.

Key Takeaways

• ACRA’s Interim Sustainability Standards Committee opened the consultation on the draft standards on July 27, 2026, with feedback accepted until October 25, 2026.
• The framework consists of SFRS S1, based on IFRS S1, and SFRS S2, based on IFRS S2.
• SFRS S2 is proposed as mandatory. SFRS S1 remains voluntary under the current draft.
• Scope 3 emissions reporting stays outside mandatory requirements for most companies, with Straits Times Index constituents the exception from 2026.
• The consultation arrives alongside new assurance capability building initiatives, including the Sustainability Assurance Body of Knowledge.

What Is the Singapore Sustainability Disclosure Standards Consultation?

ACRA’s Interim Sustainability Standards Committee launched the public consultation on the draft Singapore Sustainability Disclosure Standards on July 27, 2026, as confirmed on ACRA’s official sustainability reporting page. The consultation invites companies, investors, assurance providers, and professional bodies to submit feedback before the standards are finalised, with the window closing on October 25, 2026.

This is not Singapore’s first step toward mandatory climate reporting. ACRA and Singapore Exchange Regulation established a Sustainability Reporting Advisory Committee in 2022 to develop a phased roadmap for climate reporting and assurance. The draft standards released this week represent the next concrete milestone in that roadmap, giving companies a specific document to review rather than a general direction of travel.

For executives, the practical significance is straightforward. The consultation period is the last formal opportunity to shape how these standards will apply to your organisation before they take effect.

SFRS S1 and SFRS S2: The Two Standard Structure Explained

The draft Singapore Sustainability Disclosure Standards consist of two components, each modeled directly on the International Sustainability Standards Board framework:

• SFRS S1, General Requirements for Disclosure of Sustainability Related Financial Information, is based on IFRS S1.
• SFRS S2, Climate Related Disclosures, is based on IFRS S2.

This structure follows the same two-standard pattern the ISSB established globally, where one standard sets out general sustainability disclosure principles and the second addresses climate specifically. Singapore’s version keeps the naming and structure closely aligned with the ISSB originals, which supports comparability for multinational companies already reporting under IFRS S1 and S2 elsewhere.

The alignment is deliberate. Companies that have already built reporting processes around the ISSB standards in other markets should find the underlying disclosure architecture familiar, even where Singapore has adjusted which parts are mandatory.

Why Is SFRS S2 Mandatory While SFRS S1 Remains Voluntary?

ACRA’s Interim Sustainability Standards Committee has proposed that SFRS S2 become mandatory while SFRS S1 remains voluntary for now, a divergence from the pure ISSB framework. The consultation states this sequencing directly: given the urgency of climate change, mandatory reporting is scoped to climate disclosures first, with broader sustainability topics remaining voluntary in this initial phase.

This is a deliberate departure from jurisdictions that mandate both standards together. Singapore’s regulators have consistently prioritised climate disclosure since the original 2024 roadmap, and this draft extends that same logic to the new standards.

For companies, the practical takeaway breaks down as follows:

• Climate governance, strategy, risk management, and metrics under SFRS S2 need to be compliance ready first.
• Broader sustainability disclosures under SFRS S1, covering topics beyond climate, are not yet a mandatory obligation.
• SFRS S1 items can be planned on a longer timeline rather than treated as an immediate compliance priority.

Singapore’s SFRS S1/S2 Approach in Context

Singapore’s decision to mandate only the climate standard while leaving general sustainability disclosure voluntary reflects a broader pattern in how the city state has built its reporting regime. The same climate first logic shaped the original 2024 roadmap for listed and large non-listed companies, and it now shapes how the new draft standards are being introduced.

The draft also confirms that Scope 3 emissions reporting stays outside mandatory requirements for most companies. Under the existing roadmap, mandatory Scope 3 disclosure remains limited to Straits Times Index constituents beginning in 2026, while other companies continue on a voluntary basis for that category of emissions.

This sequencing means Singapore is asking companies to build climate governance and Scope 1 and Scope 2 reporting capability first, before broader sustainability topics and full value chain emissions become mandatory obligations.

How Does This Fit Singapore’s Phased Reporting Roadmap?

The draft standards sit inside a multi year timeline that ACRA and Singapore Exchange Regulation have been building since 2024, broken down by company category:

• Straits Times Index constituents: Scope 1 and Scope 2 reporting mandatory from financial year 2025, alongside the fullest set of ISSB based climate disclosure obligations, with external assurance required from financial year 2029.
• Non-STI listed companies, market cap at least $1 billion: Scope 1 and Scope 2 reporting from financial year 2025, with broader ISSB based climate disclosures following from financial year 2028, and external assurance from financial year 2029.
• Non-STI listed companies, market cap below $1 billion: Scope 1 and Scope 2 reporting from financial year 2025, with broader climate disclosures required from financial year 2030, and external assurance from financial year 2029.
• Large non-listed companies, defined as those with annual revenue of at least $1 billion and total assets of at least $500 million over two preceding financial years*: Scope 1 and Scope 2 reporting mandatory from financial year 2030, with external assurance required from financial year 2032.

The draft SFRS S1 and S2 standards do not reset this timeline. They give the reporting obligations already scheduled under this roadmap a formal disclosure standard to comply against.

Preparing for the Sustainability Assurance Body of Knowledge and Reporting Grant

ACRA paired the release of the draft standards with two supporting initiatives aimed at building capability ahead of the assurance deadlines built into the roadmap:

• The Sustainability Assurance Body of Knowledge, introduced to support the development of sustainability assurance skills across preparers and assurance providers.
• Singapore’s existing Sustainability Reporting Grant, designed to help companies cover the costs of preparing their initial sustainability reports.

Together, these initiatives signal that ACRA expects the multi year assurance timeline, running through financial year 2032 for large non-listed companies, to require sustained capability building rather than a single compliance push.

Companies preparing for these deadlines should treat the current consultation period as a planning window. The earlier that Scope 1 and Scope 2 data collection processes are audit ready, the less disruptive the assurance deadlines further down the roadmap will become.

Conclusion

Singapore’s draft Sustainability Disclosure Standards mark the next concrete step in a climate first reporting regime that has been building since 2024. SFRS S2 is set to become the mandatory climate disclosure standard, SFRS S1 remains voluntary for now, and the existing phased timeline through financial year 2032 continues to apply underneath these new standards. The consultation window closing October 25, 2026 is the last opportunity for companies, investors, and assurance providers to shape these requirements before they are finalised.

Executive teams should not wait for the consultation to close before acting. Reviewing current Scope 1 and Scope 2 data collection processes against the SFRS S2 draft, assessing where your company sits on the phased roadmap, and beginning supplier and internal data readiness work now will materially reduce the burden when assurance deadlines arrive.

Why Work with ASUENE Inc.?

ASUENE is a key player in carbon accounting, offering a comprehensive platform that measures, reduces, and reports emissions, including Scope 1-3. ASUENE serves over 56,000 clients worldwide, providing an all-in-one solution that integrates GHG accounting, ESG supply chain management, a Carbon Credit exchange platform, and third-party verification.

ASUENE supports companies in achieving net-zero goals through advanced technology, consulting services, and an extensive network.