Across Singapore, Malaysia, and Indonesia, Environmental, Social, and Governance (ESG) reporting has evolved from a voluntary initiative into a regulatory requirement. As investor scrutiny intensifies and sustainability regulations become more complex, understanding and applying the right ESG reporting frameworks is critical for companies aiming to stay competitive, compliant, and credible.
This article explores the key differences in ESG frameworks across the region and what companies need to know to align with today’s sustainability reporting standards.
How ESG Regulations Differ Across Singapore, Malaysia, and Indonesia
Singapore remains a regional leader in ESG disclosure and ESG compliance. The Singapore Exchange (SGX) mandates sustainability reporting on a “comply or explain” basis and, in 2024, formally adopted the ISSB Standards (IFRS S1 and S2) for climate and sustainability disclosures. This move strengthens ESG reporting standards and aligns with global best practices. Listed companies will progressively align with ISSB requirements, with mandatory reporting on Scope 1 and 2 greenhouse gas emissions and climate-related financial risks by 2025, showcasing Singapore’s commitment to enhancing ESG in Singapore.
Malaysia has taken similar steps. Bursa Malaysia is requiring listed issuers to adopt ISSB-aligned climate disclosures starting in 2025 on a phased basis. This includes a stronger emphasis on climate risk governance, emissions tracking, and structured sustainability frameworks, enhancing its earlier ESG policies.
In Indonesia, the Financial Services Authority (OJK) continues to drive ESG disclosure through its Sustainable Finance Roadmap, with growing alignment to global frameworks like ISSB. While not yet mandatory for all issuers, Indonesia’s regulatory landscape is evolving, with increased expectations for sustainability reporting in key sectors, reflecting the growing importance of ESG reporting across the region.
Choosing the Right Reporting Standards for Your ESG Journey
While ISSB now serves as the global baseline for ESG reporting standards, other frameworks remain highly relevant depending on your sector, geography, and stakeholder expectations. Here’s a list of major ESG frameworks and standards companies should be aware of:
- Global Reporting Initiative (GRI): Continues to be widely used for broader ESG impact disclosures, promoting transparency on economic, environmental, and social impacts.
- Sustainability Accounting Standards Board (SASB): Provides industry-specific guidance on financially material ESG factors, often used alongside ISSB standards to enhance ESG reporting processes.
- ISSB Standards (IFRS S1 and S2): Now the global baseline for sustainability and climate-related financial disclosures, focusing on governance, strategy, risk management, and metrics aligned to financial materiality.
Understanding the differences between ESG reporting frameworks is crucial for building a reporting strategy that’s both relevant and actionable.
How ESG Reporting Adds Value to Your Organisation
Implementing a robust ESG reporting approach has far-reaching benefits for corporate sustainability and sustainable investing:
- Enhanced Transparency and Trust: Consistent ESG reporting builds trust with investors, customers, regulators, and partners. Transparency not only improves your ESG rating but also attracts sustainable investors.
- Regulatory Compliance: Meeting both mandatory and voluntary ESG standards ensures you’re aligned with local and cross-border rules. Tools like ESG compliance software can help you meet ESG regulatory requirements efficiently.
- Risk Management: Through thorough ESG assessments, companies can identify and mitigate environmental and social risks before they escalate, protecting both reputation and revenue. This proactive approach is essential for developing a comprehensive ESG strategy.
- Competitive Advantage: Strong ESG company performance often correlates with stronger investor interest and customer engagement, giving leading companies a valuable market edge. Companies that excel in meeting ESG criteria and achieving their ESG goals often see improved financial performance and sustainability performance.
Tools and Expertise That Support Smarter Sustainability Reporting
To keep up with today’s fast-moving ESG landscape, companies need to go beyond manual reporting and leverage specialised ESG analysis tools and expert support. ESC supports organisations across Asia with practical, fit-for-purpose solutions at every stage of their ESG journey:
- Framework Selection: Guiding companies in choosing the most relevant ESG frameworks based on their sector, size, and geographic footprint, ensuring alignment with ESG regulatory requirements.
- Data Management: Deploying systems for structured data collection, ESG analytics, and high-quality reporting. These tools help companies manage and analyze their ESG data effectively, supporting informed decision-making.
- Stakeholder Engagement: Creating strategies to communicate ESG initiatives clearly and credibly, which is crucial for improving ESG ratings and attracting sustainable investors.
- Continuous Improvement: Offering insights and tools to support long-term improvement in ESG company performance and the achievement of ESG goals.
Turning ESG Requirements Into a Competitive Advantage
ESG reporting is a business requirement essential for meeting regulations, managing risks, and attracting investors. As ESG rules tighten across Singapore, Malaysia, and Indonesia, companies that align early and strategically will gain a clear advantage.
ESC brings deep regulatory knowledge, regional presence, and international expertise through our work with global investors, multinational corporations, listed companies, and financial institutions. From ISSB-aligned reporting to sector-specific ESG assessments, we help clients meet evolving requirements while strengthening credibility with stakeholders.
To take ESG reporting from obligation to opportunity, companies should consider:
- Investing in ESG training to build internal capabilities and foster informed decision-making.
- Adopting ESG tools that support compliance, reduce reporting burden, and improve accuracy—such as our ESG Assessment Tool, designed to help businesses identify gaps and track ESG readiness.
- Refreshing your ESG strategy regularly to reflect changing stakeholder expectations and sustainability frameworks.
- Partnering with ESG experts who bring regulatory insight and practical implementation support.
With the right guidance and the right tools, your ESG reporting can become a catalyst for long-term business value and sustainable growth. Start your ESG assessment today at esg.envirosc.com.