More Work Needed to Promote Corporate Climate-Related Disclosure in Asia and the Pacific

ADBI News Release | 22 April 2024

Tokyo, Japan – Financial regulators and policy makers from 23 Asian Development Bank member countries participated in the Capacity Building Workshop on Corporate Climate Disclosure co-hosted by ADBI and ADB in Tokyo on 18-19 April 2024.

One of the components of the ADBI-ADB Asian Climate Finance Dialogue project, this capacity building workshop focused on key concepts of corporate climate-related information disclosure including climate risks, opportunities, and impacts on corporate financial performance and existing standards, primarily the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations and the International Sustainability Standards Board (ISSB) standards.

The workshop raised awareness and enhanced understanding on these issues through presentations and case studies by a diverse mix of experts from ADBI, the Institute for Global Environmental Strategies (IGES), the ISSB of the International Financial Reporting Standards (IFRS) Foundation, POSCO Research Institute, Japan Exchange Group, Inc. (JPX), Toyota Motor Corporation, FUJIFILM Holdings Corporation, and Japan Climate Leaders' Partnership.

ADBI’s Advisor for Sustainable Policies, Professor Sayuri Shirai highlighted the importance of monitoring and disclosing GHG emissions, including Scope 3 emissions, and how effective incentives and regulations are necessary to encourage private-sector investment and technological development to support a low-carbon transition. Adopting globally standardized disclosures such as ISSB standards allows companies and investors to standardize on a single, global baseline of sustainability disclosures, and provides a common language and interoperability for comparable, decision-useful disclosures that are designed to meet investor needs across global capital markets.

With countries at varying stages of adopting these standards, participants discussed the progress and challenges, important first steps to consider when designing regulations to support the disclosure process by companies, and the tracking of greenhouse gas emissions (Scope 1, Scope 2, and Scope 3). Moving forward, stronger collaboration across public and private sectors along with phased and tailored approaches for implementing climate-related reporting will be key. Results from a survey conducted by ADBI and ADB at the end of 2023 highlights financial regulators’ initiatives regarding corporate climate-related disclosures, link here.