Singapore unveils a pioneering grant for sustainability reporting
Following the introduction of mandatory climate-related reporting for listed and large non-listed companies, the government of Singapore announced the launch of a pioneering Sustainability Reporting Grant, providing businesses with financial support covering up to 30% of the costs involved in the preparation of their first sustainability reports that are required to be provided starting from the financial year (FY) of 2025 for listed companies, and FY2027 for large non-listed companies.
While addressing climate change, Singapore is adhering to the regulations of Environmental, Social, and Governance (ESG) that serves as a framework largely used to assess a company’s environmental footprint, social contribution, and governance standards within the community.
The necessity for the Sustainability Reporting Grant arises from the increasing expenses involved in compliance with non-financial disclosure requirements globally. Studies conducted by the ERM Sustainability Institute reveal that the average amount spent by companies on climate-related disclosure is approximately $533M per year.
The Sustainability Reporting Grant aims to support large companies with annual revenues over $100M. They can apply for financial aid to defray up to 30% of the expenses involved in the preparation of their first sustainability disclosure. The grant is capped at S$150,000, which is equivalent to $112,000 USD. Given the growing transparency expectations in the global market, the government of Singapore adheres to support companies in releasing their sustainability reports. Small and medium-sized businesses (SMEs) are expected to receive funding support for up to 70% of the costs associated. The program is reportedly set to be launched later this year with additional support included.
On another hand, EnterpriseSG is launching initiatives to help students and mid-career professionals gain experience in sustainability reporting. By partnering with sustainability service providers, they will offer internships and attachments to build relevant skills. In the energy sector, the Energy Market Authority is collaborating with training organizations to create programs that address industry-identified clean energy skill gaps. Furthermore, to support the growth of Singapore's carbon services and trading ecosystem, EDB and EnterpriseSG are working with the National University of Singapore and Nanyang Technological University to develop training courses in carbon management, services, and trading. The goal of these initiatives is to build a skilled workforce capable of meeting the demands of sustainability and clean energy sectors.
With the program set to launch later this year, companies looking to expand into Singapore can rely on Bolster Group for expert guidance in navigating these new requirements and leveraging available financial aid.