Through our latest Responsible Investment Pulse paper, understand how Asia is rapidly emerging as a pivotal arena for ESG regulatory innovation.
Across Asia, ESG regulation is shifting from voluntary practices to mandatory, market-specific disclosure regimes that reflect local contexts, while still aligning with global standards. This matters even more in Asia-Pacific, where ~75% of gross domestic product (GDP) comes from sectors that are moderately to heavily nature-dependent, putting climate and nature-related risks firmly on the regulatory agenda.
Key takeaways from the paper
Asia’s responsible investment market remains resilient, with sustainable investment inflows continuing in Q3 2025, and regulatory improvements strengthening disclosure and incentives, while rising public financing and de-risking mechanisms are accelerating investment in transition projects.
China: Asia’s green finance giant moves towards mandatory corporate disclosures for high polluting firms, with expansion to major stock indices by 2026. Hong Kong charges ahead in the race to go green, as the Hong Kong Monetary Authority (HKMA) publishes a taxonomy for the country.
Japan: strengthening standards amid slow progress, with the release of International Sustainability Standards Board (ISSB) aligned disclosures standards and the implementation of gender diversity targets and sectoral transition roadmaps.
India: regulation push builds momentum as the Business Responsibility and Sustainability Reporting (BRSR) has been made mandatory for top 1,000 listed companies, and a Draft Climate Finance Taxonomy has been published.
Singapore: innovating the region’s green finance playbook, as the Monetary Authority of Singapore (MAS) launches Finance for Net Zero (FiNZ) plan.
