Published 24 May 2024
Updated 28 July 2026
This article has been updated in July 2026 to reflect the latest sustainability regulations and developments across Asia.
Sustainability Reporting Standards and Landscape
The Asia-Pacific region has witnessed a surge in adoption of ESG regulations in recent years, causing businesses to be cognizant of the growing importance of sustainable business practices and sustainability reporting standards. The release of the International Financial Reporting Standards’ (IFRS) inaugural International Sustainability Standards Board (ISSB Standards) in June of 2023 has placed renewed attention on the ESG regulatory landscape that hasn’t gone unnoticed.
In the APAC region, several nations have released local sustainability reporting standards that complements global initiatives like the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), and the Task Force on Climate-related Financial Disclosures (TCFD). In the Asia-Pacific region, these ESG frameworks are commonly used, albeit on different scales.
This article aims to provide an overview of the ESG regulatory and sustainability reporting landscape across each Asia-Pacific country, in 2026 and beyond.
European Union ESG Regulations causing major trickle-down effects for Businesses in Asia Pacific
Recent international ESG regulations from Europe have significant trickle-down implications for businesses across the Asia-Pacific region. A prime example is the European Union’s Carbon Border Adjustment Mechanism (CBAM), which aims to level the playing field between EU producers subject to carbon pricing and foreign producers who are not.
For businesses in the Asia-Pacific, regardless of size, this development necessitates a strategic reassessment of their production and supply chain processes to reduce emissions and carbon footprints. SMEs stand to benefit from aligning with such environmental standards, giving access to new markets and opportunities. For corporates, the CBAM underscores the importance of greening the supply chain not just as a matter of compliance, but as a strategic imperative to maintain competitiveness in the EU.
Australia
LISTED COMPANIES ARE MANDATED TO SUBMIT ANNUAL ESG REPORTS
ESG Frameworks
The Australian Accounting Standards Board (AASB) has issued Australian equivalents to ISSB standards. The current system relies on mandatory emissions reporting (NGER) and mandatory climate disclosures (AASB S2).
2026
Australia is transitioning toward mandatory climate-related financial disclosures aligned with the IFRS Foundation’s ISSB Standards. Building on the AASB’s 2023 exposure draft, the framework introduces phased reporting requirements for large and medium-sized entities, with implementation beginning in 2025.
Scope 3 emissions disclosures are included within the framework but are subject to transitional relief in the initial reporting periods to support readiness across value chains.
Implementation Timeline
- Group 1 (largest reporting entities, including many listed companies and financial institutions): Reporting starts FY2025 (from 1 Jan 2025), with full climate disclosures including phased Scope 3 and assurance.
- Group 2 (medium-sized reporting entities): Reporting becomes mandatory in FY2026 (from 1 Jul 2026 reporting periods).
- Group 3 (smaller reporting entities): Reporting starts FY2027 (from 1 Jul 2027 reporting periods).
Beyond 2026
Australia’s climate reporting regime will continue to expand through a phased implementation approach:
- Group 3 entities will commence mandatory climate-related reporting for annual periods beginning on or after 1 July 2027.
- Assurance requirements will gradually strengthen between 2028 and 2030.
- Australia targets a 43% reduction in greenhouse gas emissions from 2005 levels by 2030 and net zero emissions by 2050.
Carbon Tax
Resources
Ghim Li Group, a global textile and apparel manufacturer supplying apparel to global retailers and department stores, has adopted ESGpedia to streamline its data management and ESG reporting in accordance with the Australian Sustainability Reporting Standards (ASRS). Read the Customer Story here.
China
LISTED COMPANIES ARE MANDATED TO SUBMIT ANNUAL ESG REPORTS
ESG Reporting Frameworks
The Chinese Sustainability Disclosure Standards for Business Enterprises (CSDS), issued by the Ministry of Finance (MOF), has issued Chinese equivalents to ISSB standards, with mandatory implementation expected from April 2026.
2026
Since 2018, China has encouraged its listed companies to report ESG information as per Listed Company Governance Code. MOF’s Chinese Sustainability Disclosure Standards for Business Enterprises (CSDS) incorporates double materiality, requiring companies to assess not only how climate risks affect them financially, but also the impact of their operations on the climate. The rules mandate disclosure of direct Scope 1 emissions alongside supply chain Scope 2 and 3 emissions.
- Initial mandatory cohort (~450 companies): SSE 180, STAR 50, SZSE 100, and ChiNext constituents, dual-listed companies, and large state-owned enterprises are required to report from 30 April 2026, covering FY2025.
- Other listed companies: Sustainability reporting remains voluntary, with the Beijing Stock Exchange currently emphasising voluntary disclosures pending mandatory requirements at a later stage.
- Smaller listed companies, SMEs, and most non-listed entities remain outside the initial mandatory scope but are targeted for future expansion.
Beyond 2026
China aims to achieve full nationwide implementation of CSDS by 2030.
Phase 2 (2027–2029)
- Mandatory climate-related reporting expands to additional priority sectors.
- Independent assurance and verification requirements for quantitative sustainability disclosures are expected to be progressively implemented.
Phase 3 (2030)
- Sustainability reporting requirements expand to larger non-listed entities, SMEs and foreign-invested enterprises.
Carbon Tax
Instead of a carbon tax, China relies on the National Carbon Emissions Trading Scheme (ETS) as its central policy tool for pricing carbon and controlling greenhouse gas emissions.
Hong Kong
LISTED COMPANIES ARE MANDATED TO SUBMIT ANNUAL ESG REPORTS
ESG Reporting Frameworks
The Hong Kong Exchanges and Clearing (HKEX) has issued Hong Kong equivalents to ISSB standards. The current system relies on mandatory ESG reporting (ESG Code) and mandatory climate disclosures (HKFRS S1 and S2) for listed issuers, effective from financial years commencing 1 January 2025.
2026
The HKEX has issued Hong Kong equivalents to ISSB standards, known as the HKFRS S1 and S2, effective 1 August 2025. The current system relies on mandatory Scope 1 & 2 emissions reporting and mandatory climate disclosures in accordance with HKFRS S1 and S2 for all Main Board and GEM listed issuers for financial years commencing on or after 1 January 2025.
Scope 3 emissions disclosures are included within the framework but are subject to transitional relief in the initial reporting periods to support readiness across value chains.
- LargeCap issuers (HSCLI constituents): Comply-or-explain in 2025; full mandatory disclosures (including Scope 3, scenario analysis, and quantified financial impacts) from 1 January 2026, with first reports published in 2027.
- Main Board issuers (non-LargeCap): Mandatory Scope 1 & 2 reporting from 1 January 2025
- GEM issuers: Voluntary disclosure for 2025 financial years.
Beyond 2026
A 2027 market consultation on full adoption of HKFRS S1/S2 will inform the pathway toward mandatory compliance for large Publicly Accountable Entities (PAEs) from 1 January 2028. Non-listed SMEs remain outside the universal statutory mandate for now, though regulated sectors face sectoral requirements.
Issuers are urged to align their long-term strategies with Hong Kong’s 2050 carbon neutrality goal and China’s 2030/2060 targets as part of their broader climate transition planning.
Carbon Tax
Instead of a national carbon tax, issuers are encouraged (not required) to use internal carbon pricing to assess carbon costs and guide investments.
Resources
Hong Kong has established a Green and Sustainable Finance Cross-Agency Steering Group, a multi-regulator steering group co-lead by the Hong Kong Monetary Authority (HKMA), the HKEX, and the Hong Kong Securities and Futures Commission (SFC), to support education and best practice-sharing in Hong Kong’s ESG ecosystem.
ESGpedia supported the HKSAR Government and Innovation, Technology and industry Bureau as part of the Hong Kong Green Week, in an exciting line-up of ESG seminars and discussions, including being part of the Hong Kong Green Finance Summit 2024, hosting a Lunch Roundtable with GoImpact, and a GreenTech Seminar with IASE International Certifications Body. With the city’s push to enhance the region’s development in sustainability technology and green finance, ESGpedia has remained an active presence in Hong Kong’s sustainability space – most recently at ReThink HK 2025 and 2026.
Indonesia
LISTED COMPANIES ARE MANDATED TO SUBMIT ANNUAL ESG REPORTS
ESG Reporting Frameworks
The Pernyataan Standar Pengungkapan Keberlanjutan (PSPK) has issued Indonesian equivalents to ISSB standards. The current system relies on mandatory sustainability disclosures (PSPK), aligned with IFRS S1 and S2, ratified in July 2025.
2026
Building on the PSPK, aligned with IFRS S1 and S2, the framework introduces a three-stage mandatory rollout following an OJK public consultation in early 2026, with early adoption permitted throughout 2026.
- Group 1 (Main Board, New Economy Board, major commercial banks): mandatory reporting for FY2026 starting 1 January 2027.
- Group 2 (Development Board issuers, smaller financial institutions): mandatory reporting for FY2027 starting 1 January 2028.
- Group 3 (Special Monitoring Board issuers, asset managers): mandatory reporting for FY2028 starting 1 January 2029.
Scope 1 & 2 GHG emissions are mandatory under PSPK 2 (IFRS S2-aligned), with Group 1 entities required to have data systems ready by 1 January 2026 for FY2026 filings. Independent third-party assurance is required from 2026, with boards facing legal liability for reported figures.
Scope 3 emissions disclosures are included within the framework but are subject to phased relief for less-ready entities.
Beyond 2026
Indonesia’s sustainability reporting regime is expected to expand progressively:
- Mandatory climate disclosures in accordance with PSPK 2 apply from 2027 for in-scope entities, while broader sustainability disclosures in accordance with PSPK 1 remain voluntary through approximately 2027–2030.
- A National Waste Reduction and Extended Producer Responsibility (EPR) roadmap runs to 2029, with industry-wide ESG standardisation still pending.
Carbon Tax
Instead of a carbon tax, Indonesia operates a hybrid carbon pricing system that blends a cap-and-trade emissions trading scheme (ETS) with a fallback carbon levy, where emitters exceeding their sectoral cap must either purchase carbon credits or pay a carbon tax if credits are unavailable.
Resources
The IDX provides ESG-focused training, conducting numerous workshops to assist companies with their disclosures aligned with various international standards, including GRI and TCFD. Similarly, Modalku, Southeast Asia’s leading SME digital finance platform, has partnered with ESGpedia to leverage the platform in facilitating ESG disclosures and promoting sustainable financing options for MSMEs in Indonesia.
Japan
LISTED COMPANIES ARE MANDATED TO SUBMIT ANNUAL ESG REPORTS
ESG Reporting Frameworks
Japan is transitioning toward mandatory sustainability disclosures aligned with ISSB Standards. The Financial Services Agency (FSA) has finalised standards developed by the Sustainability Standards Board of Japan (SSBJ), with phased mandatory reporting for listed companies commencing from 2026.
2026
The framework incorporates IFRS S1 and IFRS S2 requirements while introducing certain Japan-specific accommodations. Sustainability disclosures will be integrated into Annual Securities Reports, and companies will be required to report Scope 1 and 2 greenhouse gas emissions. Scope 3 emissions disclosures are also required under the climate standard, although transitional relief allows certain complex disclosures to be submitted through amendment filings during the first two years of mandatory reporting.
- TSE Prime Market companies are encouraged to early adopt the SSBJ standards for financial years ending March 2026.
- Group 1 (market capitalisation of >¥3 trillion): Mandatory reporting begins for financial years ending March 2027.
- Group 2 (market capitalisation between ¥1 and ¥3 trillion): Mandatory reporting begins for financial years ending March 2028.
- Group 3 (market capitalisation between ¥500 billion and ¥1 trillion): Mandatory reporting begins for financial years ending March 2029.
Beyond 2026
Japan’s sustainability reporting regime will continue expanding through a phased implementation approach. Alongside these reporting developments, Japan will continue advancing its national decarbonisation strategy through the GX-ETS framework and broader Green Transformation (GX) initiatives.
Carbon Tax
Instead of a carbon tax, Japan relies on the GX Emissions Trading System (GX-ETS) as its primary carbon pricing mechanism. Under the scheme, participating companies face a carbon price floor of JPY 1,700 and a ceiling of JPY 4,300 per tonne of carbon dioxide during the first year of implementation.
Resources
The Japan Stock Exchange (JPX) has launched the JPX ESG Knowledge Hub website to share ESG resources, including guidebooks, seminars, and activities for listed companies and investors. Although Japan lacks distinct decision-making frameworks, it has produced domestic guidance like the “Guidance on Climate Change Information Activities to Promote Green Investment“, focusing on adopting TCFD recommendations for disclosure.
Malaysia
LISTED COMPANIES ARE MANDATED TO SUBMIT ANNUAL ESG REPORTS
ESG Reporting Frameworks
Malaysia’s National Sustainability Reporting Framework (NSRF), launched in September 2024, establishes the mandatory adoption of sustainability disclosure standards aligned with ISSB.
2026
Under the NSRF, climate-related disclosures, including greenhouse gas emissions reporting, are gradually becoming mandatory for listed companies based on market size. Scope 1 and Scope 2 emissions reporting are required for in-scope entities, while Scope 3 disclosures are being introduced progressively.
- Group 1 (Main Market issuers with market capitalisation of RM2 billion and above): Mandatory sustainability reporting commenced for annual periods beginning on or after 1 January 2025. Scope 1 and Scope 2 emissions reporting are mandatory. Full Scope 3 reporting required from January 2028.
- Group 2 (remaining Main Market issuers): Mandatory sustainability reporting begins for annual periods starting on or after 1 January 2026. Scope 1 and Scope 2 emissions reporting become mandatory. Full Scope 3 reporting required from January 2029.
- Group 3 (ACE Market issuers and large non-listed companies >RM2 billion for two consecutive years): Mandatory sustainability reporting begins for annual periods starting on or after 1 January 2027. Limited Scope 3 disclosures begin from 2027, with full Scope 3 reporting required from January 2030.
Beyond 2026
Malaysia’s sustainability reporting framework will continue expanding through 2030. External assurance requirements for Scope 1 and Scope 2 emissions are expected to apply from 2029, while full adoption of IFRS S1 and IFRS S2, together with mandatory Scope 3 reporting, will apply from 2030. These measures are intended to facilitate a smoother transition before full implementation.
Malaysia’s long-term sustainability targets include a 45% reduction in carbon intensity by 2030 compared to 2005 levels, achieving net-zero emissions by 2050, and increasing renewable energy capacity to approximately 70% of the national energy mix by 2050.
Carbon Tax
Malaysia has delayed its planned carbon tax originally set for 2026, amid Middle East-driven economic uncertainty. The proposed initial rate is, MYR 15 per tonne of carbon dioxide equivalent (CO₂e), which the government says it remains committed to rolling it out.
Resources
Bursa Malaysia offers a Sustainability Reporting Guide along with six toolkits designed to assist issuers in preparing their Sustainability Statement. Bursa Malaysia has also launched its ESG Reporting Platform, serving as a central hub for disclosures that adhere to the standardised format required by its updated sustainability reporting guidelines, which were implemented on September 26, 2022.
ESGpedia has also integrated the Simplified ESG Disclosure Guide (SEDG) by Capital Markets Malaysia (CMM), facilitating ESG reporting amongst Malaysian SMEs in supply chains. The ESGpedia team is today supporting numerous Malaysian corporates, SMEs, and financial institutions on ESG reporting, translating compliance into investor-ready data and a competitive edge – through industry engagements such as Navigating NSRF: Harnessing Technology to Unlock Scope 3 Transparency with Eco-Business, BuildXpo Malaysia 2026, and more.and more.
Philippines
LISTED COMPANIES ARE MANDATED TO SUBMIT ANNUAL ESG REPORTS
ESG Reporting Frameworks
The Securities and Exchange Commission (SEC) has adopted the Philippine Financial Reporting Standards on Sustainability Disclosures (PFRS S1 and S2) as local equivalents to ISSB Standards.
2026
As of 2023, Publicly Listed Companies (PLCs) in the Philippines with a public float of 50% or more must adhere to and submit annual ESG reports as mandated by the 2019 Securities and Exchange Commission (SEC) guidelines, aligned with GRI.
- Tier 1 (PLCs with market cap above PHP 50bn): mandatory reporting for FY2026, with first reports due in 2027.
- Tier 2 (PLCs with market cap PHP 3bn–50bn): mandatory reporting from FY2027, with first reports due in 2028.
- Tier 3 (PLCs at or below PHP 3bn and large non-listed entities with revenue above PHP 15bn): mandatory reporting from FY2028, with first reports due in 2029.
Scope 1 & 2 GHG emissions are mandatory under PFRS S2 for each tier from their respective start years. External limited assurance on Scope 1 & 2 becomes mandatory two years after each entity’s start year.
Scope 3 GHG emissions are subject to transitional relief in initial reporting cycles, with temporary exemptions on comparative data. Under the ASEAN Taxonomy, Scope 3 identification is required only where deemed relevant to the specific sector under assessment.
Beyond 2026
The Philippines’ sustainability reporting regime is expected to expand progressively beyond 2026, with mandatory requirements extending to non-listed entities and the broader financial sector over time.
- Large non-listed entities (LNLEs) with revenue above PHP 15bn will be required to comply with mandatory PFRS S1/S2 for fiscal years commencing on or after 1 January 2028, with first reports due in 2029.
- Non-listed banks will follow a BSP-led phased rollout: large banks with capital above PHP 50bn face mandatory reporting from FY2027 (first reports due 2028), while large banks at or below PHP 50bn threshold report from FY2028 (first reports due 2029).
Carbon Tax
Despite not having a levy on carbon emissions, the Finance Secretary of Philippines claims that the development of a carbon tax and emissions trading system (ETS) is a crucial step towards achieving a low-carbon economy. The Philippines has also signed an Article 6 Implementation Agreement with Singapore on carbon credits cooperation during ASEAN Climate Week in Manila in May 2026, creating a framework for cross-border carbon market activity.
Resources
ESGpedia is today supporting Philippines enterprises to achieve various ESG outcomes. Most recently, it convened Philippine business leaders to prepare for ISSB-aligned PFRS S1 and S2 sustainability disclosures, with the goal of helping organisations turn sustainability into a strategic business lever. Find out how Taisho Pharmaceuticals Philippines is doing exactly that with ESGpedia.
Singapore
LISTED COMPANIES ARE MANDATED TO SUBMIT ANNUAL ESG REPORTS
ESG Reporting Frameworks
Listed entities and financial institutions are expected to align their reporting with the IFRS Sustainability Disclosure Standards (IFRS S1 and S2) also known as ISSB Standards.
2026
The current system relies on mandatory climate disclosures and mandatory Scope 1 & 2 emissions reporting for all listed issuers for financial years commencing on or after 1 January 2025.
Scope 3 emissions disclosures are included within the framework but are subject to transitional relief in the initial reporting periods to support readiness across value chains.
- Scope 1 & 2 GHG emissions: Mandatory from FY2025 for all listed companies (STI + non-STI, regardless of market cap)
- Other ISSB-based CRD:
- STI constituents: mandatory from FY2025
- Non-STI, market cap ≥ S$1bn: mandatory from FY2028
- Non-STI, market cap < S$1bn: mandatory from FY2030
- Scope 3 GHG emissions:
- STI constituents: mandatory from FY2026
- Non-STI (both market cap tiers): voluntary until further notice
- External limited assurance (Scope 1 & 2): Deferred to FY2029 for all listed companies
- Large non-listed companies (NLCos):
- All ISSB-based CRD, including Scope 1 & 2: deferred to FY2030
- Scope 3: voluntary until further notice
External limited assurance (Scope 1 & 2): deferred to FY2032
Beyond 2026
Singapore’s climate reporting regime is expected to expand progressively beyond 2026, with mandatory requirements extending to non-listed companies and assurance standards strengthening over time.
- Large non-listed companies (NLCos) with revenue of at least S$1bn and assets of at least S$0.5bn will be required to report Scope 1 & 2 emissions from FY2030, with external limited assurance required from FY2032.
- Scope 3 reporting for NLCos remains voluntary, with ACRA committed to providing at least two years’ notice before any mandate takes effect.
- ACRA is reviewing the potential of mandatory climate reporting to smaller non-listed firms, while MAS Transition Planning Guidelines (TPG) supervisory expectations are set to take effect from September 2027.
- Singapore’s long-term targets remain anchored to the Green Plan 2030 initiatives and a national net-zero commitment by 2050.
Carbon Tax
Throughout 2026 to 2027, the rate will rise to S$45/tCO2e effective 1 January 2026. The government intends to reach a level of S$50–80/tCO2e by 2030.
Resources
Singapore SMEs can get up to 50% funding support through the Productivity Solutions Grant (PSG Grant) for the adoption of ESGpedia, a Pre-Approved Solution under IMDA’s SMEs Go Digital programme: https://esgpedia.io/productivity-solutions-grant/
Research by ESGpedia has shown that Singapore firms adopting sustainability win up to 15% more business tenders and slash operating costs by two-thirds.
The findings, drawn from ESGpedia’s work with more than 800 Singapore companies, come as Enterprise Singapore, through the Singapore Standards Council, rolls out a new national green-procurement framework, Technical Reference (TR) 149: 2026, and as the public sector moves to weigh sustainability criteria across all eligible tenders by 2028.
Today, ESGpedia enables companies to go beyond the TR 149 Essential tier and translate sustainability into measurable business outcomes. Read more for case study details with seven local firms, including Ghim Li Group, Northcroft Lim Consultants, LAUD Architects, SPIN Fans, Teo Garments, Pacific Logistics Group, and LBD Engineering.
South Korea
LISTED COMPANIES ARE MANDATED TO SUBMIT ANNUAL ESG REPORTS
ESG Reporting Frameworks
The Korean Sustainability Standards Board (KSSB) has issued Korean equivalents to ISSB standards (KSSB 1 and KSSB 2), finalised in February 2026 and built directly on the foundations of IFRS S1 and S2.
2026
KSSB Implementation Timeline:
- KOSPI-listed companies with consolidated assets of KRW 30 trillion or more: mandatory Scope 1 & 2 reporting from FY2027.
- KOSPI-listed companies with consolidated assets of KRW 10 trillion or more: mandatory Scope 1 & 2 reporting from FY2028.
- Scope 3 GHG emissions disclosures are included within the framework but are subject to transitional relief.
The Ministry of Environment has begun providing industry-specific calculation guidance to support readiness, including for the rechargeable battery industry to assist exporters in meeting international regulations such as the EU Battery Regulation.
Beyond 2026
South Korea’s climate reporting regime is expected to expand progressively beyond 2026, with mandatory requirements broadening across KOSPI-listed companies and long-term targets anchoring the national decarbonisation roadmap.
South Korea’s long-term roadmap is anchored in its Nationally Determined Contributions (NDCs): a 40% reduction in GHG emissions from 2018 levels by 2030, a 53–61% reduction by 2035 compared to 2018 levels, and national carbon neutrality by 2050.
Carbon Tax
There is no carbon levy in South Korea as of today. The primary carbon pricing tool is the Korea Emissions Trading System (K-ETS), though energy taxes currently serve as implicit carbon pricing.
Resources
When the ESG disclosure regulations are introduced, the government intends to offer incentives to businesses that pursue financing for their ESG reporting from state-owned banks and will also provide support for companies’ consulting related to ESG.
Thailand
LISTED COMPANIES ARE MANDATED TO SUBMIT ANNUAL ESG REPORTS
ESG Reporting Frameworks
The Securities and Exchange Commission Thailand (SEC) have issued Thai equivalents to ISSB standards. The current system relies on mandatory sustainability disclosures aligned with IFRS S1 and S2 for all SET-listed companies, with a climate-first reporting approach focusing initially on Scope 1 and Scope 2 GHG emissions.
2026
- SET50 constituents: Start disclosing IFRS S1 and S2 standards in 2027 for the annual reporting period of 2026, including Scope 1 & 2 emissions
- SET100 constituents: Start disclosing IFRS S1 and S2 standards in 2028 for the annual reporting period of 2027, including Scope 1 & 2 emissions
- Scope 3 GHG emissions: for the initial five years of reporting, entities would be permitted to not disclose Scope 3 greenhouse gas emissions.
Beyond 2026
Thailand’s sustainability reporting regime is expected to expand progressively beyond 2026, underpin by ambitious national climate targets.
- Carbon neutrality is targeted by 2050, with net-zero GHG emissions by 2065, as set out in Thailand’s Long-Term Low Emissions Development Strategy (LT-LEDS).
- In agriculture, Thailand aims to cut 5 Mt CO2e by 2030 through livestock waste management and climate-smart rice practices, alongside a 95% reduction in agricultural burning by 2030.
Carbon Tax
As of 2025, a tax of 200 THB per metric ton of CO2 equivalent has been implemented, integrated within the excise tax structure for oil and petroleum products.
Resources
The Stock Exchange of Thailand offers support through its Sustainable Business Development Center website, promoting exemplary practices.
Vietnam
LISTED COMPANIES ARE MANDATED TO SUBMIT ANNUAL ESG REPORTS
ESG Reporting Frameworks
Listed Companies are mandated to submit sustainability reports based on the latest circular and are increasingly encouraged to align with IFRS S1 and S2 as they seek to attract global capital.
2026
Since 2016, Vietnam has mandated ESG reporting for listed companies.
Scope 1 & 2 GHG Emissions reporting is mandatory under Circular No. Scope 1 & 2 GHG Emissions Reporting is mandatory under Circular No. 96/2020, requiring designated enterprises to include total Scope 1 and 2 emissions and reduction initiatives in annual reports. Of the 2,066 designated enterprises required to submit their first inventories by 31 March 2025, only approximately 300–400 had complied by late 2025, with fewer than 7% of top listed firms disclosing Scope 1 and 2 emissions as of 2023.
Scope 3 emissions disclosures remain largely voluntary but are subject to growing supply-chain pressure, with experts targeting the institutionalisation of mandatory Scope 3 standards by 2026.
Beyond 2026
Vietnam’s climate reporting regime is expected to expand progressively beyond 2026.
- The State Securities Commission (SSC) is amending Circular 96 to align domestic ESG disclosure rules directly with ISSB (IFRS S1 and S2) and GRI standards
- By the end of 2026, Vietnam will launch a pilot carbon credit exchange. Beyond this date, carbon pricing will be integrated into corporate disclosure frameworks, supported by a real-time National Environmental Database.
- The Corporate Governance Code 2026 establishes the “Comply or Explain” approach and recommends independent third-party verification for all sustainability disclosures to meet international benchmarks.
Carbon Tax
Vietnam does not currently have a carbon tax but is planning to mandate the measurement, reporting and verification of greenhouse gas emissions for industries including steel, cement, and aluminum by 2025.
Resources
In 2016, the State Securities Commission of Vietnam, in cooperation with the International Finance Corporation of World Bank Group, published an Environmental and Social Disclosure Guide, which is compiled based on the GRI G4 and encourages independent external assurance. ESGpedia is in partnership with Bamboo Capital Group to promote ESGpedia platform to support corporate sustainability and ESG reporting for businesses in Vietnam.
ESGpedia is also partnering with VietinBank to support businesses in Vietnam on their green transition journey, most recently co-hosting workshops in Hanoi and Ho Chi Minh on emissions reduction opportunities and access to sustainable financing.
Supporting Asia Pacific businesses with a One-Stop Sustainability Solution
Businesses in Asia Pacific can start early and future-proof against upcoming ESG regulations by leveraging digital ESG solutions and adopt sustainability reporting standards. The ESGpedia platform provides a centralised digital infrastructure for businesses at any maturity level in their sustainability journey, empowering them in ESG reporting in accordance with international and local frameworks, GHG emissions calculation and tracking, supply chain ESG, digital data management, and sustainable finance.
