Singapore companies to report more accurate emissions with launch of database

COMPANIES in Singapore will be better equipped to report their greenhouse gas emissions more accurately, with the launch of a registry that contains emission factors tailored to the city-state’s context.

Emission factors refer to the average rate at which a given activity releases greenhouse gases, and is an essential part of calculating a company’s carbon footprint.

Set up by the Singapore Business Federation (SBF), the registry’s database will be developed in phases. The initial set of data collected from various government agencies is to be ready by the end of the year, said the business association in a media release on Monday (Apr 15).

This first set of emission factors will be related to transportation, water, general waste and energy. New categories and activities will be developed and released based on industry consultations and demand. 

Currently, most Singapore businesses utilise emission factors from international sources such as the United States and United Kingdom for their sustainability and carbon emissions reporting, especially for Scope 3 emissions, which refer to indirect emissions arising from a company’s supply chain.

Scope 1 emissions refer to direct greenhouse-gas emissions which are released through activity at a facility level, while Scope 2 emissions refer to those released at the power station for the generation of electricity that a company consumes.

A NEWSLETTER FOR YOU

Friday, 12.30 pm

ESG Insights

An exclusive weekly report on the latest environmental, social and governance issues.

Sign Up

Climate reporting, which includes disclosures on greenhouse gas emissions, has been mandatory for listed companies in Singapore since 2022 under a phased approach. The requirement will be extended to large non-listed companies from their 2027 fiscal year, as announced by the Finance Ministry in February this year during its Committee of Supply debate in Parliament.

Sustainability and Environment Minister Grace Fu said that the registry, which was also developed in partnership with the Agency for Science, Technology and Research, PwC and Singtel, will help businesses in Singapore track and report their emissions more easily and accurately, thereby saving time and effort. “In turn, it will empower them to make informed sustainability decisions based on their environmental impact,” said Fu, who announced the launch of the registry at a Temasek-organised sustainability conference Ecosperity. She added that the idea of the registry emerged from government consultation sessions with businesses in 2022, where companies highlighted the difficulties presented in reporting Scope 3 emissions.

A recent business survey conducted by SBF found that six in 10 companies needed support in the form of access to funding for environmental, social and governance (ESG) transformation, improved clarity on ESG metrics for reporting, and access to technology for ESG tracking and measurement.