Sustainability reporting in ASEAN is reaching a pivotal moment, driven by tightening regulations and growing investor demands. Frameworks such as the International Sustainability Standards Board (ISSB) and Global Reporting Initiative (GRI) are increasingly setting the standard for ESG disclosures worldwide. Yet many businesses in the region, especially those embedded in supply chains, are still grappling with how to keep pace with shifting expectations. Under growing scrutiny, vague commitments and inconsistent disclosures can be seen as greenwashing, eroding public trust and undermining investor confidence.
Why Ethics Matter as Much as Compliance
To move from intent to impact, companies must do more than comply. For ESG to drive lasting value, ethical leadership, transparency, and robust governance are essential. Ellie Wild, a member of The Institute of Chartered Accountants in England and Wales (ICAEW) and Sustainability Manager at Forvis Mazars, believes high-quality sustainability reporting starts with a strong ethical foundation — one that empowers professionals to identify, assess, and communicate risks with integrity.
“Balanced reporting is at the crux of building trust,” Wild states. “Companies must avoid the temptation to report only ESG opportunities, or to exaggerate their ESG maturity. Stakeholders expect a mixed picture, and the best way to build trust is transparent reporting of both current position and future goals.”
“ESG information should be subject to the same rigour as financial information. Regulatory frameworks contribute to fortifying the ESG control environment by mandating granular disclosure on governance and risk management processes. We are also seeing a critical shift towards assurance over ESG information. In some jurisdictions this is voluntary, while in others, such as Malaysia and Singapore, regulators have signalled a phased move toward mandatory assurance, with details currently under consultation.”
ASEAN’s Fragmented Landscape
While global frameworks offer consistency, ASEAN jurisdictions differ widely in how they interpret and implement ESG reporting. Some, like Malaysia, have taken bold steps to lead, including its National Sustainability Reporting Framework, aligning directly with ISSB’s IFRS S1 and S2. The framework introduces a phased rollout prioritising climate, with deferred Scope 3 disclosures aligned to Malaysia’s readiness.
This momentum has not gone unnoticed. Malaysia is currently the only ASEAN jurisdiction formally recognised by the IFRS Foundation for adopting ISSB standards with limited transition. Its regulatory leadership and regional influence make it a fitting host for the upcoming ICAEW ASEAN Sustainability Summit in November 2025 at the Securities Commission of Malaysia.
Taking place under the theme ASEAN RISING: The Net Zero Playbook, the summit aligns with Malaysia’s ASEAN 2025 Chairmanship focus on “Inclusivity and Sustainability” and will spotlight regional action on ethical governance, transparent reporting, sustainable finance, and climate resilience.
“The greatest challenge is creating structured processes for managing sustainability risks,” according to Wild. “ISSB requires companies to show how sustainability is integrated into strategy and governance. Those treating it as peripheral will struggle. Finance and risk teams should be trained in sustainability frameworks so they can embed accountability into processes and oversee risk management effectively. For SMEs, tools such as carbon calculators help ease the reporting burden by keeping emission factors up to date.”
From Frameworks to Practical Action
Even in relatively mature markets, many companies still grapple with overlapping regulations, evolving standards, and capacity constraints. To address these gaps, the ASEAN Sustainability Reporting Advocacy Collaborative (ASRAC) encourages jurisdictions to adopt ISSB as a global foundation while using a “building-blocks” approach that accommodates local policy objectives. ASRAC also advocates for proportionality and scalability so that ESG reporting remains feasible for the SMEs that populate the large majority of businesses across the region.
To support companies across the spectrum, the ASEAN Simplified ESG Disclosure Guide (ASEDG) combines ISSB, GRI, and local frameworks into 38 disclosures suited to different maturity levels. Complementing this, Capital Markets Malaysia also recently launched a greenhouse gas emissions calculator to help businesses measure Scope 1 and 2 emissions and make ESG reporting more practical.
ICAEW’s Role in Promoting Ethical ESG
ICAEW supports governance by equipping professionals with training, practical tools, and governance audits that strengthen internal ESG systems. It also promotes international best practices and collaborates with stakeholders across ASEAN to embed ethics into the heart of sustainability disclosures.
The ICAEW ASEAN Sustainability Summit will also create a springboard for long-term regional cooperation. Taking place on 4 and 5 November 2025 at the Securities Commission Malaysia in Kuala Lumpur and virtually, the summit aims to accelerate regional alignment and capacity-building in sustainability reporting. With ASEAN moving toward greater convergence, it presents an opportunity to align ambition with implementation, especially through practical guidance, peer learning, and scalable tools that can support businesses at every stage of their ESG journey.
For sustainability to advance meaningfully in ASEAN, frameworks must be underpinned by something deeper: trust, transparency, and ethical leadership.