ESG Under Pressure: Aligning Rights, Regulation and Compliance

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ESG Under Pressure: Aligning Rights, Regulation and Compliance

13:00 ICT | 19 March 2025

Overview

ESG – Environment, Social Governance, has grown in expanded in Asia over the last several years, with over 89% of leading Asian corporates filing ESG reports in 2022. Often the standard by which investors make investment decisions, this trend continues to take hold, as international disclosure and due diligence regulations look to ESG-risk mitigation strategies as an enabler of sustainable economic growth, and to signal of a company’s long-term financial success.

However, the growth of the ESG agenda is not without its challenges, as critics point out that the framework’s lack of definitive clarity has led to an array of divergent interpretations and approaches. This has provoked a vigorous debate on ESG’s current capacity to drive responsible business practices. Amidst this rapid evolution of standardization frameworks which raise critical questions about the practical implications of ESG regulation, and the ability of business to comply with latest guidance, and both regulation and compliance elements of the process in meaningfully engaging with stakeholders to achieve meaningful progress within this ambitious agenda.

Format

This speed panel will feature rapid discussions, with concise interventions from regulators, investors, banks, and businesses, designed to maximize engagement and actionable insights. Key topics include the impact of the changing regulatory environment on ESG risk assessment and disclosure processes, and whether the high ambitions set by regulators inadvertently hinder tangible progress by "real economy participants." Panelists will also address the alignment of diverse ESG taxonomies with real-world practices and explore ways to balance short-term compliance with long-term sustainability goals.

LEARN:

Understanding ESG Regulations in Asia: Explore how regulations across key Asian markets, such as China, Japan, India, and Southeast Asia, are shaping ESG reporting and the challenges businesses face in complying with these diverse frameworks.
The Tension Between Regulation and Compliance: Learn about the growing pressure businesses face in balancing regulatory requirements with practical implementation, especially in industries where compliance is a moving target.
Human Rights and Environmental Considerations: Understand the increasing importance of Human Rights Due Diligence (HRDD) and environmental regulations in the region, and how these impact business operations.
Why it matters for Asian businesses: Navigating regulatory tensions effectively allows businesses to mitigate compliance risks while also ensuring they meet investor and stakeholder expectations.

ENGAGE:

Navigating the Regulatory Landscape: Hear from regulators and financial institutions (FIs) about how regulatory tensions are impacting ESG reporting in Asia, and how businesses can balance compliance with performance.
Compliance Challenges in Diverse Markets: Explore the challenges of aligning with both global ESG standards and local regulations, particularly when they conflict or are in flux.
The Role of Stakeholder Engagement: Discuss how engaging with stakeholders—regulators, communities, investors, and civil society—can help businesses navigate these tensions and drive meaningful change.
Why it matters for Asian businesses: A proactive, engaged approach can help businesses identify emerging risks early and create more resilient, sustainable practices that align with both regulatory frameworks and stakeholder expectations.

CONNECT:

Regulators and FIs Collaborating with Businesses: Explore how businesses can collaborate with regulators and financial institutions to harmonize regulatory requirements and ensure compliance without stifling innovation or flexibility.
Balancing Compliance with Long-Term Goals: Discuss how businesses can maintain short-term compliance with regulations while striving for long-term sustainability and human rights goals, despite the pressures of regulatory demands.
Supply Chain Transparency in the Face of Regulatory Complexity: As Asian businesses increasingly face diverse local regulations, particularly around human rights and environmental impact, it’s crucial to ensure transparency and traceability across supply chains.
Why it matters for Asian businesses: Building strong, transparent relationships with regulators and stakeholders helps companies navigate regulatory complexities and enhance their competitive advantage.

SESSION SPEAKERS

EUGENE WONG

Chief Executive Officer, Sustainable Finance Institute Asia

Eugene Wong is the Chief Executive Officer of SFIA, an independent institute established to catalyse ideas on Sustainable Finance at the policy level in ASEAN, as well as propel action in support of those policy ideas. SFIA is dedicated to enhancing the three pillars of ASEAN’s sustainable finance ecosystem – ASEAN Taxonomy, Transition Finance Frameworks and Disclosures. SFIA is currently the Host of the ASEAN Taxonomy Board. In the transition finance space, SFIA has contributed to the development of both the versions of the ASEAN Transition Finance Guidance and is an observer of the ASIA Transition Finance Study Group. It has also provided input to the Asia GX Consortium.Eugene was previously the Managing Director, Corporate Finance & Investments of the Securities Commission Malaysia (“SC”). He also served as a member of the Audit Oversight Board in Malaysia and was an Adviser to the Malaysian Accounting Standards Board. He
oversaw the SC’s ASEAN related initiatives and was a Chair of the Deputies of ASEAN Capital Markets Forum and a Co-Chair of the ASEAN Working Committee on Capital Market Development.
Eugene is a Fellow of Chartered Accountants Australia and New Zealand, Fellow of CPA Australia and a Chartered Accountant of the Malaysian Institute of Accountants.

VERONICA ZUBIA

Just Transitions Specialist, UNEP FI

Verónica supports efforts to advance just transition finance in Latin America and the Caribbean as part of the Social and Human Rights Team at UNEP FI. She currently leads a project to develop a regional guide for banks and insurance companies on this issue. Specializing in just transition and business and human rights, she previously worked on the Responsible Business Conduct for Latin America and the Caribbean Project at the Office of the High Commissioner, as well as at the Chilean Ministry of Foreign Affairs. In these roles, she supported governments, business, civil society organizations, and other stakeholders to implement human rights due diligence and led the development of Chile’s first National Action Plan on Business and Human Rights, among other roles. She holds an MA in Human Rights from UCL.

CYNTHIA WANG

Associate Director, Business for Social Responsibility (BSR)

With over seven years of proven experience in sustainability, Cynthia advises global and Asia-Pacific companies on integrating human rights into core business strategies. She specializes in helping organizations develop comprehensive human rights policies and due diligence processes, supporting them in identifying and addressing human rights impacts through corporate assessments and on-site evaluations. Cynthia also leads the cross-industry Human Rights Working Group, collaborating with representatives from 20+ companies across Asia-Pacific to facilitate discussions on key learnings and challenges when mitigating and addressing identified human rights issues, and share best practices.

DISHA SHETTY

Associate, Sustainability, Tolaram

Disha plays a key role in advancing sustainability efforts at Tolaram. She leads the environmental working group, integrating sustainability into actionable outcomes. Her research spans a wide range of environmental and social topics from emissions management to employee welfare, all aligned with global best practices. Disha has previously conducted materiality assessments at Tolaram for 18+ business units and tailors sustainability efforts across diverse sectors such as infrastructure, industrials, consumer goods, fintech, and logistics. Her focus areas include GHG emissions, water, and energy. She also advocates for fair practices and safe work environments. A professionally trained Architect, Disha holds an MSc in Integrated Sustainable Design from NUS Singapore.