CATEGORY: SPEECHES
Sue Lloyd, Vice-Chair of the International Sustainability Standards Board,
Lee White, Chief Executive Officer of the International Federation of Accountants,
Helge Muenkel, Chief Sustainability Officer of DBS
Distinguished guests,
Ladies and Gentlemen,
Welcome and Introduction
It gives me great pleasure to join you at ISSB’s inaugural Preparer Readiness training session. I understand this is the first session of its kind organised globally. I would like to thank the IFRS Foundation and the International Federation of Accountants, or IFAC, for choosing Singapore as the host country for this timely initiative to help organisations prepare for sustainability reporting using the ISSB Standards.
2. To all participants, thank you for making time to attend this training. Your presence reflects the strong commitment across our ecosystem to enhance sustainability reporting capabilities.
Singapore's commitment to climate action
3. Climate change is a pressing reality. Recent research shows that the world may not meet its Paris Agreement goal of limiting global warming to below 1.5°C by the end of this century1. Without timely policy action, the world could face significant consequences of rising temperatures.
4. Southeast Asia is amongst the most vulnerable regions threatened by climate change. By 2050, parts of Asia may face more severe heat waves and more extreme weather – from hurricanes to droughts2. These threats are real, and they will affect the way we live. Based on Singapore’s 3rd National Climate Change Study, we may see temperatures exceeding 35 degrees Celsius for up to 189 days a year by 20503. That is more than half a year of very hot days. We will also become more vulnerable to fluctuations in global food supply and prices as we import more than 90% of our food4.
5. We need to be prepared for the future and to stay resilient. That is why Singapore is committed to climate action. We recently submitted our 2035 Nationally Determined Contribution to the United Nations Framework Convention on Climate Change, targeting to reduce emissions to between 45 and 50 million tonnes of carbon dioxide equivalent by 20355. We also aim to reach net-zero by 2050 and to be a climate-resilient society.
Importance of Sustainability Reporting / Climate-Related Disclosures
6. As we build climate resilience, stakeholders are also demanding companies to act on climate change. According to the 2024 Global Climate Investing Survey conducted by Robeco, 62% of global investors consider climate change as a significant or central factor in their investment policy. For investors based in Asia-Pacific, this figure is higher at 79%6. For companies seeking to tap onto these opportunities, climate-related disclosures can provide a competitive edge in attracting investments.
7. Besides meeting stakeholders’ demands, climate-related disclosures can be a catalyst for meaningful change. When done right, these reports become powerful tools that help companies navigate risks. What makes these disclosures valuable is the accountability it creates. By measuring and disclosing emissions and plans to reduce them, companies are making commitments that translate into measurable targets and concrete actions.
8. Just as investors rely on audited financial statements, the credibility of climate-related disclosures is equally crucial. This is where an added layer of assurance on the information disclosed plays an important role as it provides stakeholders with the trust and certainty they need to make informed decisions, building market confidence. This in turn drives investment decisions, unlocking capital for sustainable initiatives.
9. As sustainability reporting preparers and assurance service providers, your role has never been more important. Every target you help to set, every report you prepare, every metric you verify – all these contribute to growing your company, as well as building a more sustainable and resilient future.
Launch of BOK
10. We understand that preparing sustainability reports is a challenging task that demands time and resources. Over the last few decades, multiple sustainability reporting standards were developed, creating a complex reporting landscape. However, the issuance of the ISSB Standards in 2023 has been a promising game-changer. It sets a global baseline for sustainability-related financial disclosures, consolidating various frameworks and providing that much needed consistency across the globe. It is notable that the adoption of the ISSB Standards is gaining momentum. In a recent survey conducted by the IFRS Foundation, nearly every jurisdiction surveyed – 47 out of 49 - has either already adopted the ISSB Standards or plans to adopt them7. With efforts to improve the interoperability of the ISSB Standards with the European Sustainability Reporting Standards and the Global Reporting Initiative Standards, the ISSB Standards will help companies streamline their sustainability reporting processes.
11. ACRA is fully committed to helping companies build capabilities in sustainability reporting. In 2023, the Green Skills Committee (GSC) was set up by the Ministry of Trade and Industry, in partnership with Skills Future Singapore, to drive the development of green skills in Singapore. Under the GSC, ACRA co-chaired the Sustainability Reporting and Assurance (SRA) sub-workgroup with Enterprise Singapore and City Developments Limited to look into the skills and training needed for companies to prepare climate and sustainability reports using international standards, and for assurance providers to audit greenhouse gas emissions disclosures.
12. Our industry engagements revealed a gap in the market – professionals need more than just basic sustainability courses. They need advanced, practical training to develop the specialist skills required to fully understand and apply the relevant sustainability reporting and assurance standards.
13. Today, I am pleased to announce the launch of ACRA’s Sustainability Reporting Body of Knowledge, or SR BOK. This document aims to guide training providers in designing specialist training programmes for professionals in the sustainability reporting field. The BOK outlines the key knowledge areas required for sustainability reporting, covering the relevant ISSB Standards as well as reporting requirements under the Greenhouse Gas Protocol. Each key knowledge area includes learning objectives, learning outcomes, and resources to help training providers develop their curriculum and learning materials.
14. The BOK has been validated by more than 50 key industry stakeholders. They include members of the Sustainability Reporting and Assurance sub-workgroup, company preparers, assurance providers, professional bodies, Institutes of Higher Learning and private training providers. Many of you are here today, and I would like to express our appreciation for your valuable input in shaping this initiative.
15. Following the launch of the BOK, our next step would be to work with training providers to align their existing programmes or new programmes with the BOK. We are also developing a similar BOK for sustainability assurance. With the BOK, training providers would be able to develop high quality programmes that not only prepare professionals for sustainability reporting but also meet the increasing market demands.
Conclusion
16. The quality of sustainability reporting ultimately depends on the capabilities of the people behind it. Whether you're a preparer, an assurance provider, or a training provider, each of you play a vital role in this ecosystem. With your commitment and our collective efforts, we can build a strong foundation for high-quality sustainability reporting in Singapore.
17. Thank you, and I wish you a fruitful training session ahead.
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1World Meteorological Organization. WMO confirms 2024 as warmest year on record at about 1.55 degrees Celsius above pre-industrial level. January 2025.
2McKinsey. Climate risk and response in Asia. November 2020.
3The Straits Times. Extreme rainfall, dry spells and stronger winds: How climate change could affect Singapore. May 2024.
4National Climate Change Secretariat. Impact Of Climate Change in Singapore.
5National Climate Change Secretariat. Singapore Submits 2035 Nationally Determined Contribution, February 2025.
6Robeco. 2024 Global Climate Investing Survey. May 2024.
7IFRS Foundation. National Standard-setters Newsletter - March 2025.
