APAC ESG Ratings Leaders and Upgrades in 2024

The Asia-Pacific (APAC) region significantly influences the global economy through dynamic growth, substantial economic scale and active participation in international trade. The region has become increasingly crucial in sustainable investment due to evolving regulatory frameworks, heightened investor engagement and rising corporate participation. We found substantial progress in companies’ management of their financially-material sustainability risk and opportunities across 13 APAC markets, driven by regulatory pressures, investor expectations, value-chain influences, issuer participation and alignment with global sustainability standards.

The share of companies classified as “leaders” increased notably from 9.1% in 2020 to 17.4% in 2024, while the percentage of “laggards” markedly declined. Interaction rates between companies and MSCI rose significantly, demonstrating growing corporate awareness and proactive engagement in sustainability issues. Developed markets like Japan and Australia remain leaders in sustainability, yet emerging markets such as China, Taiwan and South Korea are rapidly improving, showing robust momentum in rating upgrades.

MSCI ESG Ratings’ momentum for APAC companies

Data as of Dec. 31, 2024, based on the MSCI AC Asia Pacific Investable Market Index (IMI) (n=3,959). Source: MSCI ESG Research