Sustainability reporting in APAC evolves as corporates face gaps in progress

KPMG stressed the need for due diligence on supply chains for responsible reporting.

Sustainability reporting in Asia Pacific is evolving, though many corporates need to catch up on recent discussions and advancements in reporting practices, KPMG said.

In its report, KPMG emphasized the growing need for companies to conduct due diligence on sustainability issues across their supply chains to ensure responsible reporting practices.

In particular, China has introduced mandatory environmental disclosures while working to develop IFRS-aligned Corporate Sustainability Disclosure Standards.

Meanwhile, Hong Kong SAR is enhancing its ESG frameworks, with mandatory climate-related disclosures set to be phased in starting from 2025.

India is making significant strides by implementing robust sustainability frameworks that combine both voluntary and mandatory elements aligned with global benchmarks.

Furthermore, Australia has adopted a climate-first approach, introducing sustainability standards and carbon pricing initiatives to drive progress in the region, whilst Japan is gradually adopting ISSB-aligned standards.

Despite these efforts, KPMG noted challenges such as limited data availability, inadequate internal processes, and expertise gaps in ESG reporting.

Additionally, regulatory fragmentation and inconsistent standards across Asia Pacific further complicate compliance efforts for businesses operating in the region.