There have been significant developments in the sustainable finance ecosystem across south-east Asia, Sustainable Fitch has said. In a new report – State of Play 2024: Key ESG Policy and Regulatory Developments in South-East Asia – the group highlighted that the importance of sustainability issues had surged, prompting organisations throughout the region to develop and adopt robust ESG policies and frameworks. Following the launch of the International Sustainability Standards Board’s standards for sustainability-related financial reporting, most south-east Asian countries are now planning to integrate those into their reporting regimes. Clear timelines have been established for listed companies, with some countries extending similar requirements to large non-listed firms. Though not an exhaustive review, the report offered an insight into some of the most impactful measures introduced. While initial efforts predominantly targeted climate mitigation, an emphasis on strategic climate adaptation is now growing – with the increased frequency and severity of extreme weather events prompting several governments and regulators to prioritise such measures. “The focus on addressing transition and transition-related issues has grown substantially over the last year,” said Sustainable Fitch. “Tackling decarbonisation and confronting the realities of climate change are becoming pivotal elements of national environmental strategies.” However, a common approach across the region has yet to emerge, reflecting diverse local priorities and circumstances, the report stressed.
