Overview of SFRS-S1 & SFRS-S2
Introduced: September 23, 2024
Effective from: January 1, 2025
Last modified: N/A
Region(s): Singapore
About SFRS-S1 & SFRS-S2
Singapore has fully aligned its national ESG disclosure regime with the ISSB standards, adopting SFRS‑S1 (General) and SFRS‑S2 (Climate) as official sustainability reporting standards.
Spearheaded by the Accounting and Corporate Regulatory Authority (ACRA) and the Singapore Exchange (SGX), these new standards aim to raise the quality, consistency, and comparability of sustainability data—especially for investors, regulators, and international stakeholders.
The rules target both listed and large non-listed entities, and include mandatory climate disclosures and assurance, setting a new baseline for ESG accountability in the region.
Criteria for compliance
Mandatory for all SGX-listed companies and large non-listed companies that meet any two of the following:
- Total assets > S$500 million
- Revenue > S$700 million
- More than 1,000 employees
Compliance timelines
FY 2025
First reporting period under SFRS‑S1 and SFRS‑S2
2026 onward
Annual sustainability report due alongside financial filings
Disclosure requirements
SFRS‑S1 (General Disclosures)
- Double materiality assessment
- ESG governance structures
- Strategy, risk management, and performance metrics
- ESG-related targets and progress reporting
SFRS‑S2 (Climate Disclosures)
- Scope 1, 2, and material Scope 3 GHG emissions
- Scenario analysis and transition planning
- Climate-related risks and opportunities
Key obligations
- Sustainability reports must be filed annually in line with financial reports
- Reports must be board-approved and made publicly available
- Disclosure must follow ISSB-aligned formatting for comparability
Third-party assurance
Mandatory limited assurance on both SFRS‑S1 and SFRS‑S2 for FY 2025 disclosures. Higher-level assurance (reasonable assurance) not yet required but may follow as audit capacity grows.
Penalties for non-compliance
Financial penalties, public reprimands, or trading suspensions may be issued by ACRA or SGX for incomplete or noncompliant reports, plus significant reputational risk with investors and regulators.
