Sustainability Reporting: Why does it matter to Singaporean businesses?

Sustainability reporting is becoming essential for businesses in Singapore. As a low-lying island state, Singapore is especially vulnerable to climate change risks—rising temperatures, heavier rainfall, and prolonged dry spells. These impacts can disrupt operations, supply chains, and access to vital resources like food, water, and energy.¹ This is why developing an ethical sustainability strategy is crucial for a Singapore-based business. 

Businesses are turning to sustainability reporting as a strategic tool to show how they address environmental and social challenges while staying aligned with evolving regulations. At the same time, it builds trust with stakeholders—whether they’re customers, partners, or investors—by demonstrating long-term responsibility.² By aligning with global sustainability goals, you can attract conscious investors, open up funding opportunities, and strengthen your brand in a competitive market.³ 

In this article, we’ll cover what sustainability reporting involves, who needs to do it, and how your business can benefit—from government support to sustainable logistics and shipping solutions through partners like DHL Express. 

What is ESG reporting?

ESG reporting—short for Environmental, Social, and Governance reporting—is a framework for disclosing a company’s impact on the environment, its social responsibilities, and governance practices. It offers transparency, helping you demonstrate corporate responsibility and align with global sustainability goals. By sharing ESG data, you build credibility with investors, regulators, and consumers, while making informed, long-term strategic decisions.

• GRI (Global Reporting Initiative)
• SASB (Sustainability Accounting Standards Board)
• TCFD (Task Force on Climate-related Financial Disclosures)

These frameworks are integral to compliance with ESG reporting standards set by regulatory bodies such as the Singapore Exchange (SGX), which plays a crucial role in shaping sustainability reporting standards in Singapore.

Is sustainability reporting mandatory for all businesses?

Sustainability reporting is not yet mandatory for all businesses in Singapore, but that’s changing. By 2025, the SGX will require all listed companies to provide climate-related disclosures aligned with TCFD standards. High-impact industries like energy, transport, and manufacturing are already facing increased scrutiny. ⁴

Currently, only listed companies in five prioritized sectors (e.g., financial and energy) must provide full climate-related disclosures. Starting this year, firms in materials, buildings, and transportation must comply, while others follow a "comply-or-explain" approach.⁵ For other businesses, particularly SMEs, voluntary reporting is encouraged. Starting now gives you a competitive edge, ensures regulatory readiness, and helps build stronger relationships with stakeholders.

Sustainability reporting requirements in Singapore

For companies that fall under mandatory reporting or choose to do so voluntarily, a standard sustainability report in Singapore typically includes:

• Environmental data: Carbon emissions, energy use, water consumption, etc.
• Social indicators: Employee well-being, diversity, and community engagement.
• Governance practices: Corporate ethics, risk management, and board diversity.

Key deadlines:

• Listed companies must start TCFD-aligned reporting by financial year 2025.⁶
• Climate disclosures will become mandatory for large non-listed companies by 2027.⁷

Government programs to support ESG compliance

If you’re looking for support in adopting sustainability reporting and green practices, the Singapore government offers several helpful programs:

• Enterprise Sustainability Program: This program offers training, advisory services, and project support to help SMEs develop sustainability capabilities and meet ESG reporting requirements.
• Sustainability Reporting Grant: SRG provides funding for Singapore-incorporated companies to develop their first ISSB-aligned sustainability report before mandatory climate-related disclosures kick in. The grant covers up to 30% of qualifying costs, capped at S$150,000.
• Singapore Green Plan 2030: The Green Plan outlines Singapore’s national roadmap for sustainability, encouraging businesses to adopt green practices that support the country’s long-term climate goals.

Additionally, businesses that invest in emission-reduction technologies may qualify for carbon tax rebates and other government incentives.⁸ In addition, companies investing in emissions-reduction technologies may be eligible for carbon tax rebates and other government incentives. These programs are designed to ease the transition, reduce reporting costs, and keep your business ahead of the curve.

Benefits of sustainability reporting in Singapore

Investing in sustainability reporting goes beyond compliance—it brings real, measurable business value. If you're wondering how to make your B2C business sustainable, ESG reporting is a practical place to start. Here's why:

• Improved brand trust among eco-conscious consumers and investors
• Cost savings through energy-efficient operations and waste reduction
• Stronger market positioning when tendering for contracts or partnerships
• Future regulatory preparedness to avoid disruptions down the line
• Access to green financing and government support schemes

By embedding sustainability into your reporting and operations, you not only demonstrate responsibility—you position your business for long-term growth and resilience in a competitive market.

The role of DHL Express in ESG reporting

As a global logistics leader, DHL Express is committed to advancing sustainable logistics through its GoGreen initiatives. By incorporating sustainable shipping solutions into your ESG reporting, you can take meaningful steps toward reducing your carbon footprint while ensuring operational efficiency. DHL’s green logistics solutions include:

• Sustainable Aviation Fuel (SAF): A solution that reduces emissions from air freight.
• Electric Vehicle (EV) Fleets: A cleaner alternative for last-mile delivery.
• Green Shipping Solutions: Available through DHL’s GoGreen Plus program, which provide carbon-neutral options for your shipments.

These solutions not only help you meet sustainability reporting standards but also enable your business to align with global climate goals—without compromising speed or reliability in international deliveries.

Embracing sustainability for growth and trust globally

Sustainability reporting isn’t just a regulatory obligation—it’s a critical strategy for future-ready businesses. Whether you’re a listed company facing upcoming compliance or an SME aiming to gain a competitive edge, adopting ESG reporting can fuel growth, enhance trust, and unlock valuable support from the government and partners like DHL Express. Ready to make sustainability part of your business strategy? Explore DHL’s GoGreen solutions or speak to a DHL Express expert today and discover how sustainable shipping can be a key part of your ESG journey.