Scaling ESG Reporting in ASEAN: From Local Compliance to Global ESG Standards

The European Union has been drumming up several developments in its sustainability strategy. But the call for compliance and better corporate practices extends far beyond Europe, setting a global standard for transparency and accountability. For ASEAN companies, they create both opportunity and pressure in the best way possible today, driven by the environmental, social, and governance (ESG) developments and the international market. 

Local ESG frameworks provide a good starting point. However, global investors and regulators are asking for data that is consistent, comparable, and trustworthy beyond ASEAN countries. This is why businesses that limit their compliance efforts to the domestic level risk boxing themselves in. In the bigger picture, scaling up ESG reporting has the potential to become ASEAN’s advantage in global trade.

Local and Global Convergence Gaps in Sustainability Reporting

While ASEAN countries are building their own sustainability disclosure rules, these remain uneven and often hard to reconcile across borders. At the same time, global frameworks like the International Sustainability Standards Board (ISSB) and the EU’s Corporate Sustainability Reporting Directive (CSRD) are setting new baselines that increasingly determine their market access.

This concurrence of several different guidelines shows how standardised ESG reporting frameworks are needed to make it easier for companies to comply with local and global demands. For ASEAN businesses, this means scaling beyond domestic requirements and heading toward staying competitive in a global economy driven by sustainability. But this also challenges these nations to balance local reporting requirements with global expectations. Such is the case for the mining companies in the Philippines that must tailor their reports to the local Transparency Standards Mechanism (TSM) while also aligning with the UN’s Sustainable Development Goals (SDGs). 

The Global Shift Driving ASEAN Sustainability Reporting

CSRD’s Extra-Territorial Pull

The EU’s CSRD requires non-EU companies with €150 million in EU turnover or a major EU branch to file sustainability reports. ASEAN exporters in sectors like electronics, palm oil, and apparel must align with EU standards within three years. Even if not directly impacted, they’ll face pressure from European buyers who are already cascading disclosure requirements down their supply chains.

One of CSRD’s biggest shifts is the double materiality concept. In simple terms, companies must not only report how climate change or social risks affect their business but also how their operations affect communities and the environment. For example, a palm oil exporter in Malaysia will need to disclose how droughts or floods threaten production while also reporting how its plantations contribute to deforestation. This dual perspective is designed to give and advocate transparency for investors, regulators, and the public, giving them a clearer picture of long-term risks and impacts.   

While adapting to these rules adds to compliance costs, it also signals opportunity. Companies that meet European reporting standards can retain access to EU markets, attract more investors, and strengthen their standing as credible global suppliers. For ASEAN businesses, investing in stronger sustainable reporting today could be the key to staying relevant in tomorrow’s global economy

ISSB as the New Lingua Franca

While CSRD sets the tone in Europe, ISSB is laying down the global baseline. In 2023, it released the International Financial Reporting Standards (IFRS) S1 (general sustainability) and IFRS S2 (climate-related disclosures), which are designed to create a unified baseline for sustainability reporting. Unlike CSRD, the  ISSB standards are voluntary at the global level, but once regulators adopt them, they become binding locally.

For ASEAN businesses, the ISSB provides a standardised framework for ESG reporting, making it easier to engage with international investors and navigate multiple disclosure requirements. Over time, this framework, considered optional at first, will likely become mandatory as markets are expecting more consistent ESG reporting.

To keep that momentum, the International Organisation of Securities Commissions (IOSCO) endorsed the ISSB standards in 2023. IOSCO is the credible global association of regulators, representing 95% of global markets and covering 130 jurisdictions worldwide. Its backing simply tells regulators that the ISSB is reliable, comparable, and aligned with investor needs, pushing global adoption forward.

The entry of the EU’s CSRD and the ISSB’s global standards has two implications. First, ASEAN companies’ ties to European markets or investors will be directly required to comply. Second, even those outside the EU will face indirect pressure as disclosure demands cascade down the supply chain. This influences how ASEAN regulators approach their own reporting frameworks to global baselines.

ASEAN’s Emerging Regulatory Alignment with Global Standards 

Building on the global momentum, ASEAN regulators are progressively adapting international standards into their domestic frameworks. While each country’s approach reflects its regulatory maturity and market structure, there’s a clear trend of gradual alignment of ESG priorities and disclosures. The table below highlights these integrations of local to international benchmarks.

Barriers and Solutions for Implementing and Scaling ESG Reporting in ASEAN

The successful scaling of ESG in ASEAN depends on how barriers are tackled. ASEAN companies face unique ESG implementation challenges due to fragmented supply chains, rising compliance costs, assurance bottlenecks, and talent scarcity. This affects the scaling and alignment to greater global standards.

ESG Reporting Best Practices for ASEAN Companies

The same strategies that solve today’s reporting gaps also create the foundation for scaling ESG across markets. Once these basics are in place, companies can build on them with additional practices that dig deeper into governance, data quality improvements, and preparation for more complex global requirements.

Start with investor-relevant KPIs 

Investors want ESG metrics that actually matter to financial performance. That’s why starting with clear, investor-focused KPIs, such as climate risks and governance practices, makes reporting more credible and avoids theverload of raw reports and tables. ESG reporting software, like Presgo, supports this by using AI to verify data and delivering metrics in a clear, reliable, and investor-friendly flow.

Embed ESG into governance systems

Some ASEAN conglomerates now treat sustainability incidents the same way they handle anti-bribery or cybersecurity risks. A survey shows 61% of Singapore’s top legal and risk leaders see ESG disputes rising, nearly matching cybersecurity concerns at 65%, yet only 19% feel prepared. This demonstrates the need for ESG to be built into governance systems with the same weight as compliance and cyber risk to manage growing data demands.

Leverage regulatory sandboxes

Regulators are turning to sandbox-style pilots to ease the complexity of ESG reporting and prepare companies for scale. Singapore’s Greenprint and Malaysia’s MyDIGITAL are building pilot environments for carbon tracking, supply chain data, and disclosure platforms. There are also regional efforts like the ASEAN Taxonomy pilots that give technical backing for companies experimenting with global standards.

Phase in Scope 3 reporting through supplier portals

Petronas, Malaysia’s state energy firm, is working with its vendors to improve ESG disclosure through programmes like the Supplier Sustainability Hub. By adopting scorecards, practising double materiality, and staying updated with local regulations, Petronas is building broader supply chain visibility and future scope 3 reporting.  

Turn Local ESG Reporting into a Global Advantage with Presgo

The entire conversation of scaling ESG highly involves technology. ESG tech has advanced and is gaining the trust of ESG stakeholders. Both regulators and industry players are encouraging its use, with governments providing technology-focused funding and IT services, and private institutions backing these up. This support shows how much ESG software and digital tools are a practical way to raise the quality, scale, and credibility of ESG reporting. 

Systems need to be smarter and more advanced to keep up and, as the higher goal, to scale up.

Modern ESG platforms do more than automate reports. They bring speed, structure, accuracy, consistency, and foresight. With AI-driven validation, role-based governance, and scenario modelling, ESG reporting software becomes a source of business insights. For ASEAN companies, especially those tied to value chains, digital ESG tools bridge between fragmented local rules and the consistency demanded by the global market.

Presgo (formerly Convene ESG) is built for exactly these intentions.

• Verified Emissions Data: Accurate, audit-ready carbon data.
• Double Materiality Assessment: Helps prioritise financial, environmental, and social risks.
• Data Governance Portal: Keeps your ESG data accurate and easy to track.
• Disclosure and Report Builder: Automatically generates investor-ready, globally compliant reports.
• Goals and Performance Hub: Tracks key sustainability goals and KPIs.
• Risk and Resilience Navigator: Provides insights for long-term strategy.
• CSO-as-a-Service: Expert support for ESG planning and analysis.
• Supplier Sustainability Tracker: Gives you full visibility into your supply chain’s sustainability.

Its modular structure lets companies start with what they need and expand as reporting demands grow with them. This personalised approach and focused features help scale from local frameworks to global standards without rebuilding systems each time.

Scale up your ESG reporting. Book a demo of Presgo today!