ESGINAPACJurisdictionaloverviewonESGreporting,transitionplanningandgreenwashingThisisaninteractivepublicationPleaseusethebuttonsoneachpagetonavigateCONTENTSCONTENTSESGINAPAC2CONTENTSINTRODUCTION3KEYTHEMESANDOBSERVATIONSACROSSAPAC4JURISDICTIONALQ&A7GLOSSARY100INTRODUCTIONThispublicationwillhelpbusinessesunpackthecurrentESGregulatorylandscapein16APACjurisdictions(includingseparatingwhatismandatoryandwhatisnot)andgetasenseofthecommonalitiesanddirectionoftravelwithinAPACinrelationtothreekeythemes:ESGreporting,transitionplanningandgreenwashing.ThispublicationisacollaborationbetweenSlaughterandMayandleadingindependentlawfirmsinAPAC.AsthefirstBritishlawfirmtoopenanofficeinHongKongin1974,SlaughterandMayhasalong-standingpresenceinAPAC.Fornearlyhalfacentury,wehaveactedforourlocalandinternationalclientsonallelementsoftheirAPACmatters.WehavedevelopedcloseworkingrelationshipswithleadingindependentlawfirmsthroughoutAPACinordertodeliverseamlessfirstclasslegalservicesinmanycross-bordermatters.PleasekeepscrollingdowntoexploreoveralltrendsandobservationsacrossAPACforeachkeytheme,alongwithfurtherdetailedinformationonthe16APACjurisdictionscoveredinthispublication.LisaChung,PartnerSlaughterandMayESGINAPAC3INTRODUCTIONJURISDICTIONALQ&AESGREPORTINGREQUIREMENTSInvestors,assetmanagersandfinanciershavebeendemandingbetterqualityandcomparableESG-relateddisclosuresfromcorporatesassuchdisclosuresmayimpactontheircapitalallocationandriskassessment,aswellastheirownreportingobligations.ThishasbeenakeydriverforsomejurisdictionstomovetowardsmakingESGcorporatereportingmandatoryandmoredecision-useful.WeexplorebelowtheextenttowhichAPACjurisdictionsarefollowingsuitandtheextentofanyconvergencearoundthesustainabilityandclimate-relatedreportingstandards1oftheInternationalSustainabilityStandardsBoard(ISSB),whichwereissuedon26June2023.•Weobservearangeofreportingframeworksandstandards.Mostjurisdictions’reportingstandardshavetakenelementsofinternationalstandards,suchasTCFD,GRIandSASB.Jurisdictionswithmorebespokereportingrequirements(whicharenotheavilydrawnfrominternationalstandards)currentlyincludeCambodia,Indonesia,MyanmarandMainlandChina(althoughinpractice,manycompanieslistedinShanghaiandShenzhenpreparetheirdisclosureswithreferencetointernationalstandardsandframeworks).•Climate-relatedissuesareakeyfocusinmultiplejurisdictions,withjurisdictionsincludingHongKong,Japan,Malaysia,NewZealand,TaiwanandSingaporehavingincorporatedortakentheTCFDrecommendationsintoaccountintheirlocalreportingrequirementsorhavingannouncedplanstodoso.ObservationsacrossAPAC•AsubstantialmajorityofthecoveredjurisdictionshavelegalorregulatoryrequirementsinplaceforcompaniestomakecomprehensiveESG-relateddisclosuresonamandatoryorcomply-or-explainbasis,withmostjurisdictionsapplyingtheserequirementstolistedcompaniesand,insomecases,financialinstitutions.•SingaporeispotentiallygoingfurtherbyproposingtoapplyISSB-alignedclimate-relateddisclosurestolargernon-listedcompanies,whileAustraliaappliesmodernslaveryreportingrequirementstolargernon-listedcompanies.ThistrendisinlinewiththeEUapproachofapplyingcorporatesustainabilityreportingrequirementstolargerentitieswhetherlistedornot.•AsmallminorityofjurisdictionsapplyESG-relatedreportingobligationsonlytospecifiedentitiesorprojectswithlargerESGimpact(forexample,CambodiaandMyanmar).SouthKoreahasannounceditwill...