Tracking APAC ESG Corporate Disclosure Frameworks Against International Developments
Nov 16, 2023
The development of corporate sustainability disclosure frameworks is well underway in the Asia-Pacific (APAC) region, but these developments are taking place within individual markets with limited coordination. Although they are influenced by international standards, the diversity among regulators and standard setters introduces fragmentation, potentially confusing companies and escalating reporting burdens.
Unlike more comprehensive EU regulations, APAC frameworks vary in prescriptiveness, with some markets lacking mandatory disclosure requirements, comparable ESG topic coverage or third-party data assurance. While climate-change-related risk disclosures are gaining traction as a rapidly adopted mandatory element, the absence of standardized and harmonized frameworks may result in misaligned disclosures across markets, posing challenges for companies and investors in APAC, who may find themselves grappling with an increasingly complex regulatory landscape and diverse reporting metrics.
Commitments to TCFD-aligned climate disclosures in select APAC markets
Source: MSCI ESG Research, as of Oct. 25, 2023. Please refer to report for the full table.
- Yu Ishihara, Vice President, MSCI Research
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