What firms in Singapore need to know for ESG in 2026

With the Singapore Exchange mandating ISSB‑aligned reporting from FY2025, companies are expected to move beyond compliance toward decision‑useful disclosures that are integrated with strategy, risk management, and capital allocation. 

From FY2025, all SGX-listed companies are required to report Scope 1 and 2 greenhouse gas emissions, with Scope 3 becoming mandatory for Straits Times Index (STI) listed companies from FY2026. Boarder IFRS S2 climate-related disclosures are being phased in based on market capitalisation, while limited assurance will become mandatory from FY2029.

For listed companies that are yet subject to full climate reporting requirements, this period presents a critical opportunity to build readiness, by clarifying what ESG means for their business, strengthening governance and data foundations, and preparing for future requirements.

For financial institutions in Singapore, ESG goes beyond disclosure to how climate and environmental risks are governed, managed and embedded into day‑to‑day decision‑making.

The Monetary Authority of Singapore (MAS) expects financial institutions to integrate these risks into governance, risk management and business strategy, as set out in MAS’ Environmental Risk Management (ERM) Guidelines and the Guidelines on Environmental Risk Management – Transition Planning issued in March 2026.

Banks need clear accountability, risk‑proportionate transition planning, and robust data and processes to manage.

As infrastructure continues to expand, ESG is increasingly shaping how assets are planned, delivered and operated. Climate, sustainable development, nature, and biodiversity considerations are now integral to infrastructure decision-making, with sustainability shifting from a “good to have” to an expected business norm.

In practice, this means taking a structured, end‑to‑end approach across the infrastructure asset life cycle. Organisations are expected to understand and manage their emissions across Scope 1, 2, and 3 emissions, assess climate resilience through scenario analysis and identify credible decarbonisation and adaptation pathways aligned with long-term strategy.

ESG is reshaping the real estate sector across the full asset life cycle. For real estate owners, developers, REITs, and operators, sustainability is increasingly linked to asset value, occupier demand, portfolio resilience, and long term returns.

In Singapore, this shift is reinforced by national priorities under the Singapore Green Plan 2030 and the Singapore Green Building Masterplan (SGBMP) which are raising expectation for energy performance, carbon reduction, and resource efficiency across both new and existing buildings.

Today, energy efficient, low carbon, and well designed green buildings are increasingly expected by investors, tenants, and regulators alike. Real estate organisations are using ESG to reduce emissions, assess climate resilience through climate scenario analysis, and enhance occupant wellbeing, while protecting asset value and long-term returns. 

The COVID-19 pandemic reshaped the health and life sciences sector, accelerating innovation across care delivery, treatments and technologies.

As the industry continues to evolve, organisations need to refine their strategies to remain competitive and to protect and enhance long-term value. This includes identifying and activating both topline and bottom-line levers for value creation, while capturing synergies across increasingly complex health ecosystems.

Climate change is also increasingly recognised as a critical health and economic challenge. These pressures are intensifying demand on healthcare infrastructure, workforce capacity and care delivery models.

At the same time, opportunities are emerging to climate-focused treatments and technologies. Building climate resilience into health system strategies is becoming increasingly important.

Governments play a critical role in advancing sustainability transformation. Through policy, funding, procurement, and public investment, they shape ESG outcomes across the wider economy and society, while setting an inspiring vision for a sustainable future to support citizens in transitioning, mitigating risks, and adapting to change.

Governments are increasingly expected to lead by example in the adoption of sustainability standards. This requires strong governance, collaboration across diverse stakeholders, and the integration of sustainability data into existing governance and reporting frameworks.

When building these capabilities, organisations can draw on structured reference models such as the KPMG Target Operating Model (TOM) to inform how roles, processes, data, controls and technology come together to support effective governance and implementation.