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APAC's Climate Transparency Journey — Uneven Progress
In line with global trends, there has been a steady increase in emissions-disclosure rates across the Asia-Pacific (APAC) region. Differing progress in the individual markets may however point to varying levels of preparedness for a low-carbon transition. Specific drivers of these differences may include company size, regulatory frameworks and levels of investor engagement.
To assess reporting rates, we analyzed disclosed Scope 1, 2 and 3 emissions of the MSCI AC Asia Pacific Investable Market Index (IMI) constituents. We found that across most markets (except Hong Kong and China), small- and mid-cap companies lagged their larger counterparts by more than 25%. In Australia and South Korea, this gap exceeded 50%. Mandatory climate disclosures could place a disproportionate burden on these smaller companies that are not already measuring and disclosing climate data.
We also found that emerging-market companies lagged developed-market peers. Divergent regulatory landscape may be one factor underpinning these differences. New Zealand has mandated climate-related disclosures with some alignment to the International Sustainability Standard Board (ISSB) standard.1 Australia has proposed detailed ISSB-aligned disclosure requirements.2 Comparable disclosure frameworks are expected to become mandatory in Singapore and Hong Kong in 2025, South Korea in 2026 and Taiwan and Japan in 2027.3
As regulations evolve, investor engagement could become a supplementary pressure. Listed companies may see growing demand for emissions disclosures as investors look to quantify climate-transition risks and opportunities in their portfolios.4
Corporate disclosure of Scope 1, 2 and 3 emissions in APAC markets (2021)
1 “Aotearoa New Zealand Climate Standards and IFRS Sustainability Disclosure Standards,” External Reporting Board, October 2023.
2 “Climate-related financial disclosure: exposure draft legislation — Policy Statement,” Australia Department of the Treasury, Jan. 12, 2024.
3 “Financial Services Agency Working Group on Sustainability Information Disclosure and Assurance,” Financial Service Agency, May 14, 2025.
“Consultation Paper on Sustainability Reporting: Enhancing Consistency and Comparability,” SGX Group, April 5, 2024.
“Exchange Publishes Conclusions on Climate Disclosure Requirements,” Hong Kong Exchange, April 19, 2024.
“The Financial Supervisory Commission releases the roadmap for Taiwan listed companies to align with IFRS Sustainability Disclosure Standards,” Financial Supervisory Commission Republic of China (Taiwan), August 17, 2023.
“Authorities Meet to Discuss ESG Disclosure Standards,” Financial Services Commission, Feb. 14, 2024.
4 Collective investor engagement such as Climate Action 100+ saw more than 80% of about 170 companies on the list disclosed emissions from Scope 1, 2 and 3 boundaries, based on our research.
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