Written By: SCAL Academy
Date: 13 June 2025
Topic: ESG & Sustainability
Sustainability reporting is rapidly becoming a business imperative in Singapore, particularly within the Built Environment and construction sectors. The Government’s Singapore Green Plan 2030 aims to "green 80 percent of buildings by gross floor area by 2030," while also encouraging Super Low Energy (SLE) developments for new and retrofitted buildings. Meanwhile, from financial year 2025, all companies listed on SGX will be required to report on Scope 1 and Scope 2 greenhouse gas emissions under updated climate disclosure rules.
For construction firms, developers and project teams, meeting these reporting requirements is not optional. It is vital to secure public and private tenders, satisfy regulatory obligations, and address increasing investor expectations. This guide will demystify sustainability reporting in Singapore’s built environment context, helping you understand what it involves, why it matters, and how to begin your sustainability reporting journey with assurance.
Definition
Sustainability reporting is the process of disclosing both qualitative and quantitative information about a company’s environmental, social, and governance (ESG) performance. It enables stakeholders such as investors, clients, and regulators to evaluate how organisations are managing non-financial risks and long-term impacts on society and the environment.
Purpose and Benefits
Builds transparency and trust with stakeholders by demonstrating accountability in ESG efforts.
Supports the identification of ESG risks and opportunities, aligning sustainability with business strategy.
Enhances access to capital, as investors increasingly favour companies with strong ESG performance and disclosures.
Regulatory Background in Singapore
Since 2016, all companies listed on the Singapore Exchange (SGX) have been required to publish sustainability reports, covering policies, practices, performance, material factors, and board oversight.
From financial year 2025, SGX-listed companies must disclose Scope 1 and Scope 2 greenhouse gas (GHG) emissions. Scope 3 emissions are expected to become mandatory in subsequent years.
Why It Matters for the Built Environment Sector
The built environment sector is one of Singapore’s largest contributors to carbon emissions and resource consumption. Sustainability reporting allows construction firms and developers to:
Comply with increasing regulatory requirements and tender criteria,
Access green financing and investor support,
Demonstrate commitment to responsible building and project governance.
Overview of Major Frameworks
Singapore's built environment sector commonly uses three key ESG reporting frameworks: GRI, IFRS S1/S2, and SASB.
Global Reporting Initiative (GRI) is a globally recognised standard for sustainability reporting. It focuses on broad ESG topics—such as emissions, human rights, and procurement—and is widely used by organisations of all sizes .
IFRS S1 and S2, issued by the International Sustainability Standards Board (ISSB), provide a consolidated baseline for sustainability disclosures. IFRS S1 covers general reporting requirements, while IFRS S2 addresses climate-specific metrics. These are aligned with emerging SGX regulatory requirements .
SASB (Sustainability Accounting Standards Board) offers sector-specific standards. For built environment professionals, SASB’s Construction & Engineering and Real Estate standards provide concise, financially material metrics such as energy, water, emissions, and workforce aspects .
|
Feature |
GRI |
IFRS S1/S2 |
SASB |
|
Scope |
Comprehensive ESG |
Baseline plus climate focus |
Financial-material, sector-targeted |
|
Best suited for |
Organisations seeking broad ESG impact |
Firms preparing for SGX/ISSB alignment |
Companies focusing on financial stakeholders |
|
Level of detail |
Extensive, narrative-driven |
Standardised metrics and disclosures |
Specific topic-focused disclosures |
|
Ease of implementation |
May require more effort and resources |
Structured but newer in the market |
Compact and efficient for specific sectors |
Which Framework to Use and When
For SMEs and first-time reporters, GRI’s modular structure is easier to adopt, especially if building stakeholder trust is a priority.
If you're preparing for SGX compliance, IFRS S1/S2 are essential since they align with mandatory disclosure requirements that start in FY 2025.
For firms aiming at investors, especially in real estate or construction, SASB offers a focused, cost-effective route to meeting investor expectations.
A materiality assessment determines which environmental, social, and governance issues matter most to your organisation and stakeholders. It ensures your ESG report focuses on the areas with the greatest potential impact.
Why It Matters in Construction and the Built Environment
Construction firms and real estate developers confront distinct ESG aspects such as carbon emissions, occupational health and safety, resource consumption, and supply chain impacts—particularly relating to materials and suppliers. A structured materiality assessment ensures your efforts and reporting align with both external stakeholder expectations and internal business priorities.
Step by Step Process
Stakeholder mapping
Identify and prioritise key stakeholders including clients, regulators, investors, contractors, residents, and community groups. For example, tender requirements may demand evidence of worker safety, which employees, government agencies, and clients will care deeply about.
List potential ESG topics
Begin with topics relevant to both global frameworks and local context. Typical issues include:
Scope 1, 2, and 3 emissions
Water and energy efficiency
Waste and material use
Workforce health and safety
Supply chain and procurement practices
Community engagement
Gather input (eg surveys or interviews)
Conduct surveys, interviews, or workshops with stakeholders—for instance, asking clients and contractors to rank priorities such as carbon reduction, safety protocols, or use of certified materials.
Score and prioritise issues
Use a simple scoring matrix (eg, impact vs concern) to plot each topic. For example, carbon emissions and worker safety often score high on both scales and should be reported first.
Review and validate
Share results with senior management and key stakeholders to confirm priorities. Make sure the final list reflects both regulatory requirements (eg SGX, BCA Green Mark) and operational realities.
Tips for Beginners
Focus on top 3–5 material topics
Choose issues where data is available or can be collected easily
Align the assessment with your chosen reporting framework (GRI, SASB, IFRS)
Document your method for transparency and future audits
Accurate GHG reporting is vital in the built environment sector, as it quantifies the carbon footprint of construction projects and building operations. It typically follows the three GHG Protocol scopes:
Scope 1: Direct Emissions
These are emissions from sources controlled by the organisation, such as fuel burned on-site (e.g., diesel generators), company-owned vehicles, and refrigerant leakage from HVAC systems.
Scope 2: Indirect Emissions from Energy Use
These emissions result from purchased electricity, steam, heat, or cooling. For example, when a construction site uses electricity for lighting and equipment, the resulting emissions are classified as Scope 2.
Scope 3: Indirect Value Chain Emissions
These include all other indirect emissions up and down the value chain. In construction, typical Scope 3 sources are embodied carbon in materials, transportation of supplies, waste disposal, business travel, and commuting.
Why These Scopes Matter in Construction
In Singapore, the built environment contributes over 20 percent of national GHG emissions, making Scope 1 to 3 tracking essential for climate action.
As a high-impact sector, addressing embodied carbon in materials—which can account for up to 75 percent of a building’s lifecycle emissions—is crucial to meaningful decarbonisation.
Common Data Sources and Tools
|
Scope |
Data Source |
Examples |
|
1 |
Fuel logs, site records |
Diesel, refrigerant use |
|
2 |
Utility bills, energy meters |
Electricity for lighting, machinery |
|
3 |
Supplier invoices, transport logs |
Material production, deliveries |
|
All scopes |
GHG Protocol standards, emission factors |
Standardised calculations for CO2e |
Many organisations begin with simpler spreadsheet-based tracking, while more mature firms may use software platforms or GHG calculators tailored to construction data.
Getting Started: Practical Steps
Scope your emissions to identify which categories to measure first
Gather data from fuels, utilities, procurement, and site activity
Apply appropriate emission factors using recognised sources (e.g., GHG Protocol)
Compile a simple inventory, tracking annual emissions by scope
Report publicly, aligning with chosen reporting frameworks
Starting ESG reporting in Singapore’s built environment sector brings several common hurdles. Recognising these early helps you build a more effective roadmap.
|
Challenge |
Why it matters |
Practical tip |
|
Data quality – 79 percent of Singapore leaders say ESG data collection is resource-intensive; 58 percent cite poor data quality. |
Inaccurate data undermines credibility. |
Start with core metrics and automate data capture where possible. |
|
Limited expertise |
SMEs may lack ESG specialists. |
Form cross-functional teams and leverage external training. |
|
Multiple frameworks |
Using several standards can confuse readers. |
Select one primary framework and map others as necessary. |
|
Greenwashing risk |
Selective or exaggerated claims can damage reputation. |
Seek assurance or peer review to verify disclosures. |
|
Scope 3 complexity |
Supplier data may be fragmented. |
Engage suppliers early and use standard emission factors. |
1. Data Quality and Collection
About 79% of Singapore business leaders report that collecting ESG data is resource-intensive. 58% highlighted poor data quality as a major challenge, with many relying on manual methods like spreadsheets (70%) and manual data entry (60%).
2. Lack of Standardised Processes and Expertise
ESG reporting often lacks the structured standards seen in financial accounting, leading to inconsistent information.
Many SMEs in construction lack sufficient in-house expertise and resources for ESG reporting, data governance, or tech integration.
3. Complexity of Frameworks
Navigating multiple frameworks (GRI, IFRS, SASB) is a major challenge. Around 85% of organisations report using more than one framework, which can complicate reporting and reduce comparability.
4. High Risk of Greenwashing
The lack of standardisation can enable selective disclosures or exaggeration of ESG performance, which raises concerns about greenwashing.
5. Governance, Risk Management and Assurance
Weak internal governance procedures—such as conflicts of interest or lack of audit oversight—can undermine report reliability and invite scrutiny .
6. Value Chain and Embodied Carbon Complexity
Tracking Scope 3 emissions such as embodied carbon in materials can be daunting. Data is often fragmented among suppliers and external partners .
Practical Tips to Overcome These Challenges
Start small: focus first on core topics and easily accessible data
Build cross-functional teams that include ESG champions and IT/data staff
Use standard templates, frameworks and tools to improve consistency
Seek expert advice or assurance to ensure credibility
Plan for gradual maturity, for example moving from Scope 1–2 to full Scope 3 reporting
To begin your sustainability reporting journey in Singapore’s built environment sector, follow this structured roadmap. It’s designed for clarity and ensures steady progress:
1. Secure Internal Buy In
Form a cross functional ESG team with membership from engineering, project management, finance, and compliance. Ensure senior level sponsorship. Internal alignment is key for efficient data collection and ongoing reporting.
2. Conduct a Materiality Assessment
Use the steps described in Section 4. Select 3–5 priority ESG topics, like carbon emissions, worker safety, or material sourcing to anchor your reporting content and framework decisions .
3. Select the Right Reporting Framework
Choose based on your organisational context and goals:
GRI for broad, stakeholder focused reporting
IFRS S1/S2 to meet upcoming SGX and ISSB disclosure requirements
SASB for financially material, sector specific reporting to investors
4. Begin Data Collection and Inventory
Collect Scope 1 and Scope 2 data first—using fuel logs, utility bills and site consumption.
Progressively gather Scope 3 data—coordinate with suppliers for embodied carbon and transport-related emissions.
Start with spreadsheets and upgrade to carbon accounting software or ESG platforms over time.
5. Draft Your First Report
Create a standalone or integrated sustainability report aligned to your chosen framework: cover governance, materiality, GHGs, workforce safety, and procurement.
Include quantitative KPIs versus narratives and visuals.
Consider limited assurance to improve credibility and meet stakeholder expectations.
6. Identify Quick Wins
Adopt better data capture tools, conduct staff training, and begin monitoring energy use or waste.
These early gains support momentum in your ESG journey.
7. Plan for Ongoing Improvement
In future report cycles, aim to:
Include Scope 3 metrics,
Set carbon reduction goals,
Obtain external assurance, and
Continue aligning with SGX S1/S2 and evolving BCA Green Mark updates.
As you follow each stage of this roadmap, the following SCAL Academy courses offer highly targeted support:
Kickstarting Your Sustainability Reporting Journey
Grasp ESG fundamentals, materiality, GHG basics, and global frameworks like GRI, IFRS, and SASB
focuse on hands on guidance for construction professionals, including materiality tools, GHG Protocol methods and KPI setting
Carbon Accounting and Reduction Strategies for Construction Sector
Dive deep into GHG inventory, setting reduction targets and embedding carbon strategy within operations
These modular SCAL Academy courses are designed to align with the steps in your roadmap, ensuring practical, localised support at each stage.
You now have a clear, practical roadmap for launching sustainability reporting in Singapore’s built environment sector. From securing internal buy-in, setting priorities through materiality assessments, selecting the most suitable reporting framework, to tracking GHG emissions and addressing common challenges, each step is structured to help you build credibility, meet regulatory demands, and position your company for long-term success.
Take the next step towards becoming a more responsible, competitive, and future-ready organisation.
For more information, please contact Mr Ben at 67939020 or email weikit@scal-academy.com.sg
“The training provided by SCAL’s experienced and knowledgeable trainers has equipped me with an excellent grasp of construction safety and allowed me to enhance worksite safety in Woh Hup”
