Skills Gap, High Costs, and Poor Data Are Slowing Climate Reporting by Singapore Listed Firms

Wanting to do something and being able to do it are two different things. That is the situation many Singapore businesses find themselves in when it comes to climate reporting.

A new study by Schneider Electric, supported by Singapore Exchange Regulation, found that internal skills gaps are the single biggest barrier to adopting climate reporting standards, cited by 55 percent of business leaders surveyed. High costs ranked second at 52 percent, followed by data gaps at 43 percent and a lack of expertise among external service providers at 42 percent.

These aren't small hurdles. They are the practical, day-to-day challenges that stop businesses from making progress.

The findings come five months after Singapore delayed mandatory climate disclosures for most listed companies by 5 years, following regulators' acknowledgment of an industry-readiness gap and the push-back of reporting deadlines to 2030. The delay bought some breathing room, but it did not make the problem go away.

There is what gives some hope, though. Despite the obstacles, more than 90 percent of respondents said they have already begun adopting the ISSB sustainability disclosure standards. Six in ten said their organizations have identified new business opportunities through climate action, with some even creating new business segments as a result.

More than half are actively pursuing partnerships or mergers with climate-focused companies to build expertise and capture new opportunities in the sustainability space.

The message here is important for SMEs too. Larger listed firms are already moving, and as they report their Scope 3 emissions across supply chains, their suppliers and partners will feel the pressure. Getting your own climate data and capabilities in order now is not just good practice; it's essential. It is how you stay relevant to the businesses that rely on you.

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