UNGCNS Report Shows Singapore Firms Moving From Carbon Reporting to Emissions Reduction
SINGAPORE, September 2, 2026 : Singapore companies are beginning to show measurable progress in carbon reduction, but the country’s wider corporate sector still faces a major capability gap in climate reporting, emissions data management and Scope 3 readiness, according to findings from the Singapore Business Carbon Report 2025 by UN Global Compact Network Singapore.
The report, titled “Closing the Climate Reporting Gap: Overcoming Challenges”, is the fifth edition of the Singapore Business Carbon Report and is designed as a practical guide for companies at different stages of their carbon reporting journey. UNGCNS describes the report as a resource that gives businesses a clearer picture of where Singapore companies stand on carbon measurement and reporting.
The findings arrive at a pivotal moment for Singapore’s decarbonisation agenda. Singapore’s carbon tax has risen to S$45 per tonne for emissions year 2026, with a view to reaching S$50 to S$80 per tonne by 2030. The tax is part of Singapore’s broader mitigation framework, and covers a significant share of national greenhouse gas emissions alongside transport fuel excise duties.
For companies, this means carbon is no longer merely a sustainability disclosure item. It is becoming a financial, operational and governance issue.
Nearly Half of Participating Companies Cut Emissions
One of the strongest signals in the report is that many companies are moving from measurement to actual emissions reduction.
According to UNGCNS’ public summary of the report, 46.2% of participating companies achieved a reduction in absolute emissions or emissions intensity in 2025. Among repeat reporters, 51.7% reduced emissions year-on-year, and 81.1% of those companies achieved reductions of 5% or more.
This is significant because Singapore’s climate reporting agenda is increasingly shifting from whether companies can disclose emissions to whether reported data can drive operational decisions. Carbon reporting without reduction risks becoming a compliance exercise. The LowCarbonSG data suggests that companies which repeatedly measure and report emissions are more likely to identify reduction opportunities and act on them.
The report was developed through the LowCarbonSG programme, which has recorded 266 participating companies, 444 cumulative CERT submissions, 1,975 participants trained, and 5,839,357 tCO₂e of emissions to date, according to UNGCNS’ public report launch post.
The Carbon Tax Changes the Business Case
The report’s findings should be read against the backdrop of Singapore’s rising carbon price. From January 2026, the carbon tax increased to S$45 per tonne, almost double the previous rate, and the Government has indicated a pathway towards S$50 to S$80 per tonne by 2030.
For larger emitters directly covered by the carbon tax, the financial implications are clear. But the wider effect will spread through supply chains. Even companies not directly taxed may face higher energy, logistics, procurement or supplier costs. Customers, investors and multinational buyers are also likely to expect better emissions visibility from suppliers as climate reporting standards become more embedded in procurement and financing decisions.
This is where the Singapore Business Carbon Report’s benchmarking role becomes important. It gives companies a way to understand where they stand relative to peers and what practical steps others are taking to reduce emissions.
UNGCNS highlighted several company examples from the report: Yeo Hong Construction & Engineering delivered a 28% overall improvement across weighted emissions metrics in the year to June 2024; New Toyo International Holdings Aluminium achieved a 40.72% reduction in Scope 1 emissions since 2021; Far East Group cut grid electricity use by 39.4% between FY2023 and FY2024; and Hitachi Elevator Asia reduced total emissions by 21% between its base year and FY2025, alongside a 50% drop in electricity use over the same period.
The examples point to an important lesson for Singapore businesses: emissions reduction is often achieved through operational discipline, equipment upgrades, energy efficiency, solar deployment, better scheduling, electrification, and process optimisation, rather than through abstract net-zero claims.
Reporting Readiness Remains Uneven
The report also comes at a time when Singapore’s climate disclosure rules are being phased in. All listed companies will continue to report Scope 1 and Scope 2 greenhouse gas emissions from financial years commencing on or after 1 January 2025, while Straits Times Index constituents will lead on other ISSB-based climate-related disclosures from FY2025 and Scope 3 emissions from FY2026. ACRA and SGX RegCo extended timelines for most climate reporting and assurance requirements in August 2025 to give companies more time to build reporting capabilities.
That extension reflects a practical reality: many businesses are still building the systems, data processes and governance structures required for credible climate reporting.
A public post by a contributor to the report, citing interviews with Singapore Business Federation and SGX RegCo, noted that only 4% of around 40 Mainboard and Catalist-listed companies surveyed felt “very confident” of meeting the original ISSB timeline, while around 85% still relied on manual processes such as spreadsheets to track greenhouse gas emissions.
This is the core challenge captured by the report’s title. The climate reporting gap is not only a knowledge gap. It is a systems gap. Companies need data ownership, internal controls, audit trails, trained staff, technology tools, supplier engagement and board-level oversight.
For small and medium-sized enterprises, the challenge can be even sharper. During discussions around the report’s launch, participants raised practical questions such as where to begin when there is “no budget and no headcount for sustainability work,” and how smaller or less conventional businesses can identify concrete ways to contribute to carbon reduction.
Scope 3 Is the Next Frontier
The shift towards Scope 3 reporting will likely be one of the most difficult transitions for Singapore companies. Scope 1 and 2 emissions cover direct emissions and purchased energy. Scope 3 extends across value chains, including suppliers, logistics, product use, business travel, waste and other indirect categories. For companies with regional supply chains, Scope 3 reporting can be complex, data-intensive and dependent on suppliers that may themselves be early in their carbon accounting journey.
The Singapore Business Carbon Report includes guidance on the revised SGX and ACRA roadmap, timelines, scope requirements and alignment with ISSB standards, alongside a regional overview of climate disclosure requirements, carbon taxation, emissions trading systems and voluntary carbon markets across ASEAN and China.
This regional framing matters. Singapore companies rarely operate only within Singapore. Many have suppliers, customers, manufacturing partners or distribution networks across ASEAN and China. As climate disclosure, carbon tax, emissions trading and voluntary carbon market rules evolve across the region, the compliance and competitiveness implications will extend beyond domestic reporting requirements.
For Singapore to remain a regional sustainable business hub, companies will need to treat carbon data as part of business intelligence, not just sustainability reporting.
From Compliance to Decision-Useful Data
The report’s bigger message is that climate reporting must become decision-useful. That means carbon data should help companies identify where emissions are concentrated, where savings are possible, what investments should be prioritised, which suppliers carry transition risk, and how carbon costs could affect margins. This is especially important in Singapore, where energy costs, land constraints, import dependence and rising carbon pricing make decarbonisation a business planning issue.
The LowCarbonSG examples suggest that companies are making progress where they connect measurement with action. Energy efficiency, solar capacity, reduced generator use, lower refrigerant losses, building optimisation, regenerative technologies and fleet or process improvements are all practical pathways for emissions reduction.
But the report also points to a divide. Larger companies may have sustainability teams, investor pressure and board oversight. Smaller companies may face limited budget, limited manpower and uncertainty over what to measure first. Bridging that divide will be essential if Singapore’s climate reporting system is to move from regulatory compliance to economy-wide emissions reduction.
Recognition System Adds a Performance Signal
A notable development linked to the report is the introduction of a new three-tier recognition system under LowCarbonSG from 1 January 2026. UNGCNS said the system will recognise companies through Teal Blue for annual submissions, Silver for a 5% year-on-year reduction in either absolute emissions or emissions intensity, and Gold for a 5% reduction in both.
This is important because it shifts recognition from participation alone towards performance. Companies will not only be acknowledged for submitting data, but also for demonstrating measurable progress.
Such a system could help create market signals around credible climate action, especially for SMEs that need a way to communicate progress to customers, lenders and larger buyers. It may also encourage repeat reporting, which the data suggests is associated with stronger emissions reduction outcomes.
Singapore’s Carbon Reporting Moment
Singapore has spent the past several years building the policy architecture for decarbonisation: a rising carbon tax, mandatory climate reporting, ISSB-aligned disclosure requirements, green finance initiatives, carbon markets development and support programmes for businesses.
The Singapore Business Carbon Report 2025 shows that this architecture is beginning to translate into corporate action, but also that the transition is uneven. Some companies are already using carbon measurement to cut emissions and improve operations. Others are still struggling with the first steps of measurement, data collection and internal ownership.
For CarbonWire readers, the report is significant because it captures the next phase of Singapore’s climate transition. The question is no longer whether companies should measure emissions. It is whether they can build systems robust enough to report credibly, reduce consistently and respond to a rising carbon price.
The findings suggest three priorities for Singapore businesses.
First, carbon accounting needs to become routine, repeatable and governed, not an annual scramble. Second, emissions reduction must be linked to business operations, including energy use, equipment, logistics, procurement and supplier engagement. Third, climate reporting must be treated as preparation for a lower-carbon economy, not simply as compliance with disclosure rules.
Singapore’s climate reporting gap is real. But the latest data also shows that companies which measure consistently can begin to cut emissions meaningfully. The challenge now is to make that progress broader, faster and more credible across the economy.