Regulatory Convergence and Divergence in ESG Reporting in the Indo‐Pacific Region

ABSTRACT

Environmental, social, and governance (ESG) reporting has evolved significantly globally over the past few decades. Many countries are now signatories to international agreements such as the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement, with increasing commitments to emissions reduction targets and the achievement of broader sustainability goals outlined in modern ESG reporting. The Indo‐Pacific is a fast‐growing economic powerhouse that will also face significant climate change challenges. This region is also increasingly demonstrating an important role in global geopolitics. This paper examines how four major economies in the Indo‐Pacific region, India, Japan, Thailand, and Australia, are responding to rising political and investor expectations for higher levels of climate change and sustainability reporting through ESG reporting mechanisms. Discussion highlights advances in sustainability performance assessment beyond western‐centric perspectives and reframes global ESG leadership in terms of a rapidly growing economic region's commitment to ESG reporting structures and sustainability leadership.