Advancing sustainability assurance for S-REITs

Building on our Trust in transition: Building confidence in sustainability disclosure report, this sector spotlight focuses on the Singapore Real Estate Investment Trust (S-REIT) sector. 

Despite climate reporting timeline extensions by Accounting and Corporate Regulatory Authority (ACRA) and Singapore Exchange Regulation (SGX RegCo), S-REITs must report their Scope 1 and Scope 2 greenhouse gas (GHG) emissions by FY2025. Mandatory external limited assurance has been deferred to FY2029.

This offers a critical window of opportunity for S-REITs to enhance their governance, systems, and controls ahead of forthcoming regulatory requirements.

Our study highlights that external assurance amongst S-REITs remains limited, alongside ongoing challenges in obtaining complete, audit-quality data, particularly where data relies on third parties such as tenants and service providers. This two-year extension therefore allows both S-REITs and the broader ecosystem to build assurance-ready capabilities.

Sustainability assurance is limited across the S‑REIT market

Only 15% of surveyed S-REITs have obtained external assurance, while 25% plan to do so.

However, greater investor scrutiny and S-REITs’ role in Singapore’s built-environment transition are increasing pressure for them to strengthen data quality and credibility.

Proportion of S-REITS who have obtained external assurance over sustainability-related information

Outsourced internal audit is the predominant approach for sustainability reviews among S‑REITs

Most sustainability reviews are conducted through outsourced Internal Audit (IA), reflecting resource and capacity constraints, and the need for independence and specialised skills.

Slightly over half of surveyed S-REITs indicated their reliance on outsourced IA, while 35% have in-house AI functions. Clear engagement between management and IA remains critical to turn findings into improvements.  

Opportunities remain to strengthen processes and improve efficiency

Half of surveyed S-REITs use ESG systems for data collection and reporting, with another quarter relying on generic systems and on spreadsheets only. System-based approaches help reduce errors and support greater data automation over time, with manual checks focused on verification (e.g., automated entry of electricity, waste, and water data into ESG system).

That said, reconciling landlord, tenant, and common-area data often requires manual effort. Spreadsheets can still be effective when supported by strong controls, such as locked formulas and mapped documentation.

Our findings also indicate that 90% of S-REITs are able to complete their data collection and reporting processes within four months of the financial year-end, in line with SGX RegCo requirements.

ESG training is common across S‑REITs but there is room for further strengthening

While ESG training is widely adopted, 72% of surveyed S-REITs indicated their neutrality or disagreement that existing ESG training programmes met their needs. This points to training that may be too generic or insufficiently tailored to reporting and assurance requirements.

This limitation is particularly evident for S-REITs with international portfolios, where sustainability data collected differ substantially from Singapore-centric assumptions and practices. As a result, generic local training may not address these complexities, underscoring the need for training providers to expand their offerings as assurance expectations intensify. 

Finance teams are engaged in sustainability reporting to a limited degree

Finance team involvement in sustainability reporting varies, with half of S-REITs reporting limited engagement and 30% indicating no involvement. This reflects centralised oversight, such as by the Chief Financial Officer, and lean S-REIT structures.

As ISSB standards take hold and emphasis grows on the connectivity between sustainability and financial reporting, finance teams are likely to play a more central role going forward.  

Readiness assessments are emerging as a strategic tool

With mandatory assurance on the horizon, readiness assessments are increasingly used to evaluate data, controls, and personnel for external review. 75% of surveyed S-REITs have conducted, or are preparing for, a readiness assessment, demonstrating the importance of phased improvements in building assurance maturity.

For S-REITs, readiness assessments also support stronger Global Real Estate Sustainability Benchmark (GRESB) certification evaluation, providing an added incentive for S-REITs pursuing or maintaining green certifications. 

As global capital markets place greater emphasis on ESG transparency, S-REITs that proactively pursue assurance and demonstrate strong GRESB performance can signal leadership and resilience. Early movers stand to gain a competitive edge by showcasing readiness for future regulatory mandates and alignment with international best practices. When S-REITs pursue sustainability reporting and assurance with a clear sense of purpose, this can become a strategic lever that enhances business value and strengthens long-term competitiveness.

About the survey

Drawing on responses from 20 S-REITs to a survey from 14 August 2025 to 1 October 2025 as part of the Trust in transition: Building confidence in sustainability disclosures report developed by PwC Singapore, SGX, and ISCA, this analysis identifies key elements that support reporting and the areas for improvement. These findings are presented in this sector spotlight, published by PwC Singapore with support from REITAS.

As of November 2025, there were a total of 38 S-REITs, according to REITAS1. The survey was distributed to all 38 S-REITs in operation at that time, with 20 responses received, representing a 53% response rate. Further analysis of the responses indicate that the respondents represent 48% of total S-REIT AUM (S$191.9 billion as of November 2025), and 45% of responses originated from REITs with market capitalisation above S$1 billion. This spread captures perspectives across both larger and smaller REITs.

It is important to note that the percentages and figures presented are based solely on survey responses and may not fully represent the full S-REITs landscape in Singapore.