SINGAPORE, October 1, 2024 – As regulatory requirements for Environmental, Social, and Governance (ESG) disclosures tighten across the Asia-Pacific (APAC) region, companies are scrambling to adopt effective reporting practices.
In an exclusive interview with CarbonWire, Benjamin Soh, Founder and Managing Director of ESGpedia, provided valuable insights into how APAC businesses can navigate the complex world of ESG reporting. With regulatory demands increasing and stakeholders calling for greater transparency, companies are turning to tech-driven solutions to not only comply but to gain a competitive edge in the sustainability race. As ESG reporting becomes more than just a regulatory requirement, businesses that lead the way will be best positioned to thrive in the new economic reality.
It’s clear that the trend toward comprehensive ESG reporting is rapidly gaining traction. Companies that fail to adapt risk both reputational damage and potential financial penalties.
Regulatory Push for ESG Compliance
Governments across APAC, from Singapore to Japan and Australia, are mandating stricter ESG reporting frameworks, driven by the global urgency to combat climate change and improve corporate transparency. Singapore has taken a leadership role with the Monetary Authority of Singapore (MAS) rolling out mandatory climate-related disclosures for financial institutions.
“Singapore’s regulatory approach is a strong indicator of where the region is heading,” said Benjamin Soh. “We’re seeing a major shift. ESG reporting is no longer a nice-to-have; it’s becoming a necessity for businesses that want to stay relevant and competitive.”
Countries across the region are moving quickly to implement disclosure requirements, with a strong focus on climate-related risks and carbon footprint accounting. Yet, for many firms, navigating the complexities of these regulations is proving to be a challenge.
Tech-Driven Solutions
As the demand for transparency rises, businesses are increasingly turning to technology platforms to help them manage their ESG data and streamline reporting processes. ESGpedia, a one-stop ESG data and technology platform that aggregates ESG data, is one of the solutions gaining traction among companies struggling to meet compliance demands.
“Firms are realizing they can’t rely on manual processes to gather and report data anymore. The volume of information they need to track—from emissions data to supply chain practices—is just too vast,” Soh explained. “Tech-driven solutions like ESGpedia not only automate these processes but also provide insights to help businesses improve their ESG performance.”
The need for robust data management systems is particularly pressing for multinational companies that operate across different regulatory environments. “Many of these firms are grappling with overlapping requirements. Technology helps them create a unified approach to ESG reporting, ensuring consistency and accuracy across markets,” he added.
ESG Reporting as a Competitive Advantage
While some companies still view ESG reporting as a compliance issue, others are beginning to see it as a key component of their broader corporate strategy. This shift in mindset is essential as stakeholders—investors, customers, and regulators alike—place increasing emphasis on sustainability.
“We’re witnessing a major transition,” Soh noted. “Firms are no longer just ticking boxes. They’re using ESG reporting to showcase their commitment to sustainability, which helps them stand out in the eyes of investors and consumers.”
He emphasized that businesses with a proactive approach to ESG reporting are better positioned to gain investor trust, attract talent, and even reduce operational risks. “In the long run, the companies that view ESG as integral to their strategy—not just a regulatory burden—will be the ones that thrive.”
Future of ESG Reporting in APAC
The ESG landscape in APAC is still evolving, with more stringent regulations expected in the coming years. As governments continue to ramp up pressure, companies that are quick to adapt will find themselves ahead of the curve.
“The regulatory landscape is going to get tougher, there’s no doubt about that,” said Soh. “The firms that stay agile and invest in the right technology will be the ones leading the charge. ESG reporting isn’t going away—it’s becoming an essential part of doing business.”
For businesses that have yet to fully embrace ESG practices, Soh’s message is clear: “The time to act is now. Companies that delay will find themselves playing catch-up in an increasingly regulated world.”