Only 22% of Singapore-listed companies make physical climate risk disclosures in detail: Report

Singapore-listed companies reveal only 22% of their physical climate risk disclosures in detail, according to an MSCI report published on September 15. While 98% of these companies mention physical climate risk, only 22% provide comprehensive details on how it impacts their business. Large and listed Singaporean entities must disclose key indicators of their business impact on the climate by fiscal year 2030.

The Accounting and Corporate Regulatory Authority proposed new Singapore Sustainability Disclosure Standards in July, soliciting public feedback until October 25. This move follows the mandate for Straits Times Index constituents to report Scope 3 greenhouse-gas emissions starting January 1, 2026.

Data from over 540 Singapore companies, 11,868 Asia-Pacific companies, and 25,346 global companies were surveyed between 2023 and 2025. In Hong Kong, 98% of 1,300 companies surveyed mentioned physical climate risk, with 32% disclosing details. MSCI analysts noted a 54 percentage point gap between generic and detailed disclosure, suggesting that many companies recognize physical climate risk but lack the understanding of their exposure and potential business impact.

About 900 MSCI ACWI Index constituents are categorized in the "higher-exposure, lower-preparedness" (Help) group, representing 37% of the global stock market benchmark that tracks large and mid-cap equities across 23 developed markets and 24 emerging markets. Within the Asia-Pacific, 378 companies fall under this category, with 26% of Singapore constituents and 32% of Hong Kong constituents in the Help group.

To adapt to these risks, companies require approximately US$5.6 billion in modelled investments, avoiding US$58.2 billion in losses. However, all Help companies in Singapore have at least one positively returning modelled adaptation, while 94% of Hong Kong firms do so.

Across the Asia-Pacific, 94% of companies have at least one modelled adaptation with a positive return. Energy, basic materials, and utility companies are most likely to substantively recognize physical climate risk before a material shock, while healthcare, consumer cyclical, and communication services are more likely to experience a shock first due to varying dependencies on physical hazards.

MSCI suggests that companies with fixed assets, weather-sensitive operations, or natural-resource dependencies face more direct and visible vulnerabilities, while indirect dependencies can be harder to identify in conventional risk assessments.