Asia Pacific Capital Markets Hub 2024 - 2025

4.1 ESG PRACTICES IN THE MATURE REIT MARKETS

4.1.1 Regulatory Requirements and Standards for ESG Information Disclosure ESG Information Disclosure Regulations Are Becoming Increasingly Mandatory and Standardized Across Asia Markets ESG disclosure regulations in major Asia capital markets have been significantly strengthened in recent years in response to a growing global emphasis on sustainability. Many markets have explicitly required listed companies to publish ESG reports on a mandatory or semi-mandatory basis, and are gradually expanding the coverage of mandatory disclosures in phases, considering factors such as company size and industry characteristics.

Table 4: ESG Information Disclosure Regulations for Listed Companies in Major Asia Countries/Regions

Country/ Region

Authority Policy/

Required Disclosures

Year Issued

Mandatory

Regulation

From FY2025 onwards, all issuers must disclose climate-related information; from FY2026 onwards, sustainability reports must also disclose material ESG factors including policies and performance, targets, frameworks, and board statements. From FY2023 onwards, all listed companies’ annual reports must include a sustainability information disclosure section, including selected parts of governance, risk management and strategy, as well as metrics and targets. Some key indicators have been upgraded from “comply or explain” to mandatory disclosure (e.g., Scope 1 and Scope 2

Singapore Exchange Regulation Company (SGX RegCo)

Sustainability Reporting: Enhancing Consistency and Comparability Cabinet Office Ordinance on Disclosure of Corporate Information Environmental, Social and Governance Reporting Guide

Singapore

2024 Mandatory

Financial Services Agency (FSA)

Japan

2023 Mandatory*

Hong Kong Exchanges and Clearing

emissions); a dedicated climate information disclosure section is

Hong Kong (China)

2024 Mandatory

established, covering the four pillars of governance, strategy, risk management, and metrics and targets.

Limited (HKEX)

Source: Official websites of national/regional regulatory authorities *In Japan, currently there are both mandatory and voluntary sections of the ESG disclosure requirements. However, as early as the fiscal year ending March 2027, large-cap companies listed in the Prime Market of the Tokyo Stock Exchange (TSE) may be required to disclose additional information on Governance, Strategy, Risk Management, and Metrics and Targets in their annual reports.

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