APAC is continuing its advancement of sustainable finance and climate action, although cautiously, according to a recent analysis by Flint Global.
This comes amid roll-backs of climate regulations, as ESG investing is now often viewed as ideological overreach following the return of the Trump administration in the US.
By 2025, Hong Kong, Indonesia, Singapore, and Thailand had all introduced sustainability disclosure frameworks seeking to meet the standards set by the International Sustainability Standards Board (ISSB). Singapore and Hong Kong also reaffirmed their ambitions as carbon trading hubs, while Malaysia, in its capacity as ASEAN Capital Markets Forum Chair, introduced an ESG disclosure guide for SMEs.
According to Flint Global, the intersection of climate, sustainability, and geopolitics is nowhere more evident than in Asia, where economies must balance energy security and affordability with rising climate vulnerability. They say that sectors such as agriculture, tourism, manufacturing, and infrastructure are exposed to extreme weather, water scarcity, and other climate-related risks.
Public-private partnerships and innovative finance mechanisms were revealed to be playing an increasingly important role in the region, where infrastructure needs and vulnerability to climate change overlap significantly.
As regulatory expectations for financial institutions tighten and investor demands become more sophisticated, they turn to rethinking their governance structures and developing tools to support credible transition finance. The focus is shifting from ambition to execution – turning sustainability commitments into measurable, actionable outcomes, Flint Global says.
