As a result, Asian businesses will face an increasing pressure to monitor sustainability issues of their own operations and those of their direct suppliers – and act if they find violations. The CEOs are very well aware of the need to address sustainability issues in their business plans:
- 60–69% of APAC companies in the region have made, or are progressing towards, a net-zero and/or carbon-neutral commitment. That puts them 9–13% ahead of global peers.
- 77% of Asia Pacific CEOs have had their sustainability approach independently assessed and validated. That is 11% more than global average.
- 43% of Asia Pacific CEOs have embedded emissions targets into their strategy. The global number is 6% lower.
- CEOs in China are the most ambitious. 53% include GHG emission targets in their strategy, and 46% into a compensation plan.
- Australia and India show strong interest in gender representation rates.
- The average ESG rating of APAC-listed companies recorded the faster growth over the last 3 years: 9 pp for the Hang Seng index, 8 pp for the ASX 200. In contrast, European STOXX 600 average rating, while still comfortably leading, grew by 4pp.