Less than 2 in 10 Singapore businesses prepared for mandatory climate assurance requirements: PwC Singapore’s study

• Only 17% of Singapore businesses surveyed* have obtained external assurance for sustainability reports, indicating early progress towards the FY2029 timeline for mandatory external assurance of Scope 1 and 2 GHG emissions
• 48% of smaller, non-STI companies continue to rely on manual spreadsheets for sustainability data collection, highlighting significant room for automation, streamlining and improved efficiency in sustainability reporting
• 65% of companies engage their finance departments either minimally or not at all in the sustainability reporting process; this is likely to shift as ISSB standards drive stronger alignment between sustainability and financial disclosures, emphasising the finance function’s role

For immediate release, SINGAPORE, 12 November 2025 – As the countdown to mandatory climate reporting assurance requirements for Financial Year 2029 (FY2029) continues, majority of Singapore businesses are still in early stages of sustainability assurance preparedness. The latest report, ‘Trust in transition: Building confidence in sustainability disclosures,’ published by PwC Singapore, with support from the Institute of Singapore Chartered Accountants (ISCA) and Singapore Exchange Regulation (SGX RegCo), reveals a wide range of maturity across the industry: only 17% of businesses surveyed have secured external assurance for their sustainability reports. Notably, only 7% of smaller, non-STI companies have obtained external assurance, lagging considerably behind STI constituents, which report a 57% assurance rate.

Conducted between August 14 and October 1, 2025—overlapping with the ACRA and SGX RegCo announcement of extended timelines for most climate reporting requirements on August 25, 2025—the report highlights key differences in climate reporting readiness between large and smaller businesses.

Said Lee Bing Yi, Financial Services Assurance, Sustainability and Climate Change Partner, PwC Singapore:

“With the extension of mandatory sustainability assurance timeline in Singapore, it is crucial that companies make good use of this time to build capacity towards credible reporting and assurance readiness. Our study noted that whilst larger companies are leading the way in sustainability assurance, the wider market still lags significantly, and there are notable gaps between large and smaller companies that need to be addressed. Encouragingly, assurance readiness assessments are gaining traction among Singapore businesses, with over eight in ten STI constituents and larger non-STI companies having either conducted or are considering assurance readiness assessments. This positively signals the growing recognition of assurance in building trust and the value in starting early."

When it comes to data management strategies, nearly half (48%) of smaller, non-STI companies continue to depend on manual spreadsheets for sustainability data collection, indicating an opportunity for companies to improve data accuracy and efficiency in current reporting practices through digitalisation efforts. Meanwhile, 67% of larger, non-STI constituents are using a mix of generic and ESG-specific systems for data collection and reporting. Among STI constituents, this figure rises to 86%. For companies adopting such systems, this shift may help mitigate risks associated with human error by enabling automated checks, audit trails, and standardised processes.

Mr Terence Lam, Director of Advocacy & Professional Standards at ISCA, said:

“There's a saying that you cannot audit quality into a company, or into a set of reports. Yet without assurance, quality becomes difficult to see and trust. The recent timeline extensions allow us to shift our focus from speed and volume toward reliable, decision-useful information. Achieving this demands stronger collaboration across functions, especially as the connection between sustainability and finance continues to deepen, and this requires capability across the ecosystem.

ISCA aims to build these capabilities through initiatives such as our Sustainability Professional Certification Programmes, with revised curriculum launching in early 2026 following alignment with ACRA's Sustainability Reporting Body of Knowledge."

The capability gap is further underscored by the varying levels of ESG training efforts across companies. While all STI constituents (100%) have integrated ESG topics into their employee learning programmes, less than half (44%) of smaller non-STI companies have taken similar steps, highlighting an uneven trajectory in developing sustainability expertise across Singapore businesses.

Across the board, the report also noted limited involvement of the finance function in sustainability report – an observation that is applicable to both large and smaller companies alike. 65% of companies surveyed engage their finance departments either minimally or not at all in the sustainability reporting process currently. However, this is expected to change with the adoption of ISSB standards, which highlight the need for closer alignment between sustainability and financial disclosures, thereby placing greater importance on the role of finance in integrated reporting efforts.

The report calls for companies to build assurance maturity across three key areas: process, systems, and people. Formalising governance over processes, investing in digitalisation efforts, and upskilling teams will be critical for companies to meet increasing regulatory and stakeholder expectations for transparent, high-quality sustainability disclosures.

For more information or to download the full report, please visit our webpage here.

*The distribution of company types analysed in the survey: Smaller, non-STI constituents, (market cap < S$1B); Small, non-listed company (Annual Revenue of <S$5M); Large, non-listed, ≥ (Annual Revenue S$1B, Total Assets ≥ S$500M); Large, non-STI constituents, (market cap ≥ S$1B); Medium, non-listed company (Annual Revenue >S$100M <S$1B); STI constituents.

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Notes to the editor

About the report

From 14 August 2025 to 1 October 2025, PwC collected a total of 116 responses to our survey, which was distributed to both listed and non-listed companies.

The first wave was from 14 August 2025 to 1 October 2025 from ISCA distribution.

The second wave was from 2 September 2025 to 1 October 2025 from the Singapore Exchange (SGX) survey distribution.

The dual-wave approach was implemented to expand reach and collect more comprehensive data across different distribution platforms.

Additionally, PwC issued an open invitation for survey participation to non-listed companies from 14 August 2025 to 1 October 2025.

The following chart reflects the distribution of respondents to our survey:

About PwC

At PwC, we help clients build trust and reinvent so they can turn complexity into competitive advantage. We’re a tech-forward, people-empowered network with more than 364,000 people in 136 countries and 137 territories. Across audit and assurance, tax and legal, deals and consulting, we help clients build, accelerate, and sustain momentum. Find out more at www.pwc.com.

About the Institute of Singapore Chartered Accountants (ISCA)

The Institute of Singapore Chartered Accountants (ISCA) is the national accountancy body of Singapore with over 40,000 ISCA members making their stride in businesses across industries in Singapore and around the world. ISCA members can be found in over 40 countries and members based out of Singapore are supported through 12 overseas chapters in 10 countries.

Established in 1963, ISCA is an advocate of the interests of the profession. Complementing its global mindset with Asian insights, ISCA leverages its regional expertise, knowledge, and networks with diverse stakeholders to contribute towards the advancement of the accountancy profession.

ISCA administers the Singapore Chartered Accountant Qualification programme and is the Designated Entity to confer the Chartered Accountant of Singapore – CA (Singapore) – designation.

ISCA is a member of Chartered Accountants Worldwide, a global family that brings together the members of leading institutes to create a community of over 1.8 million Chartered Accountants and students in more than 190 countries.

For more information, visit www.isca.org.sg.