Global trends and expectations surrounding corporate responsibility and transparency are emphasizing the importance of Environmental, Social and Governance (ESG) considerations in Asia Pacific. Much like their counterparts worldwide, corporations across the region are realizing the need to align with international ESG standards to maintain competitiveness. At the same time, investors are increasingly focused on identifying companies with strong ESG practices, in recognition of the reality that addressing sustainability challenges is essential for long-term success.
These factors have made ESG reporting fundamental for companies to attract international investments and contribute to the stability of the economy overall. Corporates are working to identify opportunities and better align strategies with business outcomes through more effective risk management reporting and advancing more quickly toward value creation.
While major global regulatory frameworks lead the way, the Asia Pacific region presents a more fragmented and challenging landscape. Nevertheless, change is occurring. Many countries are introducing ISSB standards and there are encouraging developments in the form of policies that directly impact corporate financial performance, such as carbon pricing.
This report aims to help ESG practitioners and professionals understand the evolution of sustainability reporting regulations and guidelines in Asia Pacific. As our research illustrates, the ongoing evolution of sustainability-related reporting systems in the region reflects the unique economic and social conditions of each market, leading to a diverse landscape.
We highly recommend that companies which are obliged to report in 2026 for the financial year 2025 start looking at the regulatory requirements now. The pure assessment of readiness and requirements to fulfill is an exercise that in our view requires a lot of time and resources.
Jan-Hendrik Gnandiger,
Global lead for ESG Reporting,
KPMG International
Evolution of sustainability reporting in Asia Pacific -Beyond the Horizon
A detailed view of sustainability reporting and assurance systems and trends across the Asia Pacific region.