May 7, 2024

Regulatory Overview: Sustainability-Related APAC Regulations

Over the past few years, we have seen rapid development toward a global reporting baseline on environmental, social, and governance (ESG) issues. As in other parts of the word, Asia Pacific (APAC) is seeing a rise in mandatory disclosure requirements, with regional specificity determining which companies are in scope for regulations and the level to which they must comply. Global regulators have leveraged the work of standard-setters, particularly the International Sustainability Standards Board (ISSB), an independent standard-setting body within the IFRS Foundation. We also see convergence around the adoption of the Task Force on Climate-related Financial Disclosures (TCFD), which is now managed by the ISSB. 

The ongoing maturity and clarity from regional regulators will likely accelerate GP requirements for their portfolio companies. Doing so ensures GPs have a more robust process that better informs their investment decisions, allows for measurements and tracking of meaningful environmental and social factors, and positions their portfolio companies for ongoing growth and a successful exit. 

Different countries and jurisdictions are at different stages of maturity in terms of engaging businesses and setting required disclosures. When developed in consultation with business, these disclosure requirements can reduce the reporting burden on companies. Recognizing that companies reporting on material ESG information are often managing competing requests, Novata collaborated with Franklin Templeton to produce an overview highlighting key disclosure developments with implications for private markets in Australia, China, Hong Kong, India, and Singapore. 

Download the paper for a closer look at regulatory developments in the APAC region.

Thanks to our partners Ben Meng PhD, Chairman of Asia Pacific and Executive Sponsor of Sustainability at Franklin Templeton, and Prash Odhavji, Vice President of Impact Investment at Franklin Templeton.