Sustainability in Asia Pacific

Biodiversity

Asia Pacific is rich in biodiversity found nowhere else on the planet. Nature loss in the region will negatively affect economic activities dependent on nature, with as much as 63% (US$19 trillion) of Asia Pacific’s GDP at risk according to Temasek (PDF).  ​ 

There is potential financial upside from taking up concerted business action to protect nature. Nature-positive development in Asia Pacific could unlock US$4.3 trillion of annual economic value and 232 million jobs by 2030 (PDF).

The “S” in ESG: Striving for a “just transition”​ 

Two-thirds of Asia Pacific’s workforce are employed informally and as a result, half are surviving on less than $5.50 a day (PDF). It is crucial for Asia Pacific to decarbonise while ensuring economic security and protecting the most vulnerable and marginalised groups.​ 

The pandemic has brought a much sharper focus on businesses’ social responsibility, and as we transition to a net zero economy, specific social and economic conditions need to be considered beyond environmental priorities.​ 

For Asia Pacific to achieve a just transition, this involves taking into account the most vulnerable communities, including small businesses, and workers suffering job losses.

Sustainable Finance

The Asia Investor Group on Climate Change estimated that the investment opportunity for Asia’s energy supply to achieve Net Zero is up to US$37 trillion cumulatively from 2020 to 2050 (PDF).​

The capital market, through a combination of incentives and deterrents, is in a unique position to drive meaningful change in sustainability practices in Asia Pacific. 

Building sustainable and resilient supply chains 

ESG concerns have led to increasing pressures for companies to clean up their supply chains and look deeply at the social, environment and community impacts these supply chains can have. Understanding these impacts can drive improvements to corporate strategy, day to day operations, the value being created in the supply chain, and the values of these supply chain. These all will ultimately have an impact in financial performance.

Building trust through quality ESG reporting

Transparency and accountability have long been the hallmark of investment decision-making. ​ 

To attract the right investment to support your ESG journey, the quality, accuracy and completeness of sustainability reporting must meet similar levels of transparency as financial reporting. 

Organisations are rising to the challenge. Close to 1,700 companies and organisations in Asia Pacific have signed up to support the Task Force on Climate-related Financial Disclosure (TCFD), accounting for almost half of its 3,400 global supporters (September 2022). In addition, more than 600 companies within the region have signed up to the Science Based Targets Initiative (SBTi). 

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