ASEAN-BAC Malaysia, in collaboration with key regional and international partners, has issued a landmark policy statement calling for a harmonised approach to sustainability reporting across ASEAN. The statement was unveiled last night at ASEAN Night, hosted by the Singapore Business Federation, marking a major step toward streamlined, practical, and globally aligned reporting standards for businesses across the region.
The ASEAN Sustainability Reporting Advocacy Collaborative (ASRAC) Statement — the first major output of the ASRAC initiative — aims to reduce duplication, lower compliance burdens, and ensure that sustainability disclosures are scalable for businesses of all sizes, particularly small and medium-sized enterprises (SMEs). It advocates for the adoption of the International Sustainability Standards Board (ISSB) framework as the global baseline, enhanced through a building-blocks approach to accommodate jurisdictional needs.
The statement is the result of a collaborative effort involving ASEAN-BAC Malaysia, the Association of Chartered Certified Accountants (ACCA), the Sustainable Finance Institute Asia (SFIA), and the Asia-Pacific Economic Cooperation Business Advisory Council (APEC-BAC) Malaysia. It is one of the twelve business priorities championed by ASEAN-BAC Malaysia during Malaysia’s ASEAN Chairmanship in 2025.
Speaking at the launch, Jukhee Hong, Executive Director of ASEAN-BAC Malaysia and Chair of ASRAC, emphasised the need for clear, consistent, and pragmatic reporting standards. “The ASRAC Statement reflects the collective position of the private sector on how standard-setters and regulators can address the challenges businesses face in meeting climate reporting requirements. By confronting the 3Cs — compliance, cost, and capacity — and advocating for scalable, proportionate disclosure requirements, we are urging a shift from reporting complexity to clarity,” she said.
Echoing this sentiment, Tan Sri Nazir Razak, Chairman of ASEAN-BAC Malaysia, described the initiative as a critical opportunity for the region. “We now have a unique opportunity to advocate how the future of sustainability reporting in our region should be shaped. ASRAC is precisely the kind of forward-looking advocacy initiative that ASEAN-BAC is proud to lead. It reflects the collective voice of the private sector and professional bodies on how reporting standards should evolve.”
The statement has also garnered support from ASEAN BAC Singapore and the Institute of Singapore Chartered Accountants (ISCA), who have become official signatories.
Pulkit Abrol, Director – Asia Pacific at ACCA, said the collaborative effort underscores ASEAN’s commitment to high-quality and relevant sustainability reporting. “Today’s finance leaders are stewards of people, planet, and prosperity. ACCA is proud to support this initiative, which reflects ASEAN’s shared commitment to practical, globally aligned reporting. The ASRAC Statement offers a timely call for alignment around ISSB standards, grounded in proportionality and global relevance.”
The Statement outlines practical steps for implementation, including working with finance ministries, capital market regulators, and international standard-setters; establishing a unified ESG data platform; and enhancing regional capacity-building through organisations like ACCA.
A supporting report prepared by ACCA is expected to be released at the end of July, further detailing the business insights and recommendations that shaped the ASRAC Statement.
With this initiative, ASEAN-BAC Malaysia and its partners are signalling a bold move toward a more cohesive, efficient, and business-friendly sustainability reporting ecosystem across Southeast Asia.