A new report reveals that Australia’s adoption of climate reporting requirements is part of a broader regional trend, with Asia-Pacific neighbours ramping up their sustainability efforts. 

Transparency is fast becoming a business essential, enabling companies to compete across borders in an increasingly interconnected economy.

The interactive report, published by RSM’s APAC ESG Hub – co-led by Catherine Bell, Partner, ESG & Climate Services, Australia, and Dennis Lee, Partner, Advisory & ESG Services, Singapore – highlights significant progress across Asia-Pacific. China, Taiwan, Singapore, Malaysia and Indonesia are among nine Asian nations rapidly introducing sustainability and climate reporting protocols, while Australia prioritises climate-first.

From 1 January 2025, Australian businesses face mandatory climate reporting requirements, enhancing transparency and accountability on climate risks, opportunities, governance, and strategy. Ms Bell reiterated the importance of these for maintaining global competitiveness. 

“For businesses operating cross-border, the complex compliance requirements across jurisdictions will be challenging,” she said. “However, companies must proactively address these to avoid being exposed, non-compliant, or uncompetitive.”

“China is particularly noteworthy, leading the energy transition with unprecedented deployment of renewable energy. However, like the rest of Asia, it is still contextualising the reporting aspects of its sustainability journey.”
Ms Bell believes Australia’s landmark move to mandate climate-related financial disclosures for public and private organisations will fundamentally reshape business management. The growing emphasis on “sustainability accountability” is driving businesses across the region to pivot their operations, procurement, and services accordingly.

“As climate and ESG credentials become increasingly critical in influencing consumer decisions and driving business investment, companies must rethink sustainability. It’s not just a cost of doing business but an essential part of business evolution,” she said.

The report also showcases forward-thinking ESG initiatives, such as those by West Australian company Atlas Pearls, which operates across the Indonesian archipelago. Atlas Pearls CEO Michael Ricci highlighted their commitment to supporting local communities through employment and development programs.

“Recognising our role as neighbours and key employers, we’ve embarked on an ESG and sustainability initiative to drive positive impact and safeguard our social licence to operate,” he said.

The report’s data showed a rise in Australian companies declaring net-zero targets between 2019-2023, followed by a decline in 2024. Projections suggest a further 15% decrease. Ms Bell attributed this to increased greenwashing litigation over the past 18 months, which has prompted many companies to quietly withdraw unsupported net-zero claims.

“RSM recommends companies disclosing green credentials and net-zero targets undertake robust assessments to ensure targets are realistic and achievable,” she advised.

Despite a pullback on net-zero targets, the report found more companies are disclosing their climate risks. This trend suggests a growing recognition of the time, cost, and need for detailed transition plans driven by mandatory reporting requirements.

“While ambition remains, there’s a pragmatic shift given the requirement to link emissions reduction targets to financials, including costs and how they may impact future cash flows, such as revenue,” Ms Bell explained.

Even with recent government changes in the US and a noticeable pullback by some US companies on climate and sustainability action, the drive towards sustainability accountability remains robust. The global momentum for transparency and responsible business practices continues to accelerate, underscoring the importance of adaptation for companies worldwide.

The report delivers a clear message: the transition to a sustainable future is accelerating rapidly.

“What took decades during the Industrial Revolution is now unfolding in just a few short years with the sustainability movement,” Ms Bell said.

“This is a multi-generational shift to a new economy. It’s a transformative opportunity for businesses to evolve and contribute to global climate progress. Those that adapt now will become the leaders of tomorrow.”

Read the full report and explore local case studies here.