Deep Dive into Deloitte’s APAC Sustainability Report

The Deloitte Asia Pacific Centre for Regulatory Strategy (DAPCRS) has recently released its report, Global Sustainability Reporting Standards – Strategic Insights for Asia Pacific Corporations. 

The report is in response to the growing demands from investors, consumers and regulators for consistent and accurate sustainability disclosures.

In the past decade, environmental, social and governance (ESG) considerations have become crucial in the corporate world, driving a shift toward a green economy. 

While there is broad agreement on the need for these standards, regional differences exist in their implementation. 

Inside the Deloitte APAC sustainability report

The report maps out the evolving landscape of sustainability reporting standards across key Asia Pacific (APAC) jurisdictions and some of the most significant global developments. 

Unique regional adaptations and requirements are included to demonstrate how divergence across reporting standards might affect APAC company operations.

The report presents insights into how firms can lead in the sustainability and ESG sector via a robust step-by-step approach to implementing the requirements.

This includes:

Emergence of global standards: Three primary sustainability reporting standards have been developed:

• International standards: Established by the International Sustainability Standards Board (ISSB), these build upon the Task Force on Climate-related Financial Disclosures (TCFD) framework, focusing on governance, strategy, risk management and metrics
• European Union (EU) Corporate Sustainability Reporting Directive (CSRD): This directive mandates comprehensive sustainability reporting for companies operating within the EU
• US Securities and Exchange Commission (SEC) climate-related disclosure standards: These standards require US companies to disclose climate-related risks and opportunities.
  

Asia Pacific adoption: Many APAC jurisdictions are adopting variations of international standards, tailored to local market conditions

Challenges for APAC companies: Implementing these standards presents several challenges, including:

• Data management: Collecting and managing accurate ESG data across diverse operations
• Resource allocation: Investing in systems, processes and personnel to meet reporting requirements
• Strategic integration: Embedding ESG considerations into core business strategies and models

End-to-end disclosure approach: The report advocates for a comprehensive approach to sustainability disclosures, including:

• Materiality assessment: Identifying ESG issues that impact business performance
• Stakeholder engagement: Involving stakeholders to ensure transparency and relevance
• Continuous improvement: Regularly updating ESG practices and disclosures to reflect evolving standards and expectations

Strategic recommendations: To navigate the complex sustainability reporting landscape, APAC companies should:

• Stay informed: Keep in line of global and regional developments in ESG standards
• Enhance capabilities: Develop internal expertise and infrastructure for effective ESG reporting
• Align with strategy: Ensure that ESG initiatives are integrated into the overall business strategy to drive long-term value.

By actively tackling these challenges, APAC corporations can align with stakeholder expectations, adhere to evolving regulations and drive sustainable economic growth.

Sustainability in Deloitte 

Along with releasing the report for other companies to follow, Deloitte itself is committed to decarbonisation, renewables and sustainability. 

Deloitte is committed to reducing greenhouse gas (GHG) emissions by 90% by 2040 starting from 2019 – within the company and across supply chains.

The company is dedicated to sustainability by supporting world climate initiatives like:

• Renewable electricity (RE100): This is a global initiative bringing together the world’s most influential businesses committed to 100% renewable power
• Electric vehicle adoption (EV100): EV100 brings together companies from around the world committed to making electric transport the new normal by 2030
• Energy efficiency/productivity (EP100):Made up of growing group of energy-smart companies worldwide that are committed to doing more with less to improve their energy productivity
• Achieving 93% renewable electricity in 2024
• Increased electric and hybrid vehicle fleet from 39% to 50%.

Deloitte is also working with suppliers toward achieving its goal of having 67% of them, by emissions, set science-based targets by 2025.

Deloitte’s report highlights the critical role of sustainability reporting standards in driving transparency, accountability and long-term value creation across APAC corporations. 

As businesses navigate the complexities of ESG integration, adopting a strategic and comprehensive approach will not only ensure compliance with emerging global standards but also foster sustainable practices that benefit the planet and society. 

Deloitte’s own commitment to ambitious decarbonisation targets, renewable energy adoption and supplier collaboration exemplifies the leadership needed to transition towards a green economy. 

By aligning efforts with such principles, organisations can pave the way for a more sustainable future while meeting the demands of investors, consumers and regulators alike.

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