ASEAN Unites on Sustainability Reporting With New ASRAC Plan

The ASEAN Business Advisory Council (ASEAN-BAC) Malaysia and the Association of Chartered Certified Accountants (ACCA) have launched a joint regional statement aiming to harmonize sustainability reporting across Southeast Asia.

Unveiled during the ASEAN Conference in Singapore, the ASRAC Statement is the first outcome of the ASEAN Sustainability Reporting Advocacy Collaborative (ASRAC), co-led by ACCA, ASEAN-BAC Malaysia, the Sustainable Finance Institute Asia, and APEC-BAC Malaysia.

The policy statement calls for adopting the International Sustainability Standards Board (ISSB) standards as the global baseline for corporate sustainability disclosures.

It recommends a building-blocks approach to enable local jurisdictions to add contextual requirements while maintaining alignment with global norms.

The ASRAC Statement urges transition relief to minimize reporting overlaps from standards such as the European Sustainability Reporting Standards (ESRS).

It also stresses the need for proportionality in reporting—ensuring that small and medium enterprises (SMEs) can comply with ESG disclosure rules without excessive burden.

“Today’s finance leaders are stewards of people, planet and prosperity,” said Pulkit Abrol, ACCA Director for Asia Pacific.

“ACCA is proud to support this important initiative, which reflects ASEAN’s shared commitment to practical, high-quality sustainability reporting,” Abrol added.

He emphasized that aligning with ISSB standards would help safeguard ASEAN’s regional competitiveness while ensuring its voice is heard in shaping global disclosure frameworks.

ACCA has had a 90-year presence in Singapore and Malaysia, reflecting its longstanding support for the accounting profession across ASEAN.

Tan Sri Nazir Razak, Chair of ASEAN-BAC Malaysia, said the collaborative initiative gives ASEAN a chance “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,” he added.

Jukhee Hong, ASEAN-BAC Malaysia Executive Director and ASRAC Chair, said the effort responds to escalating costs, complex compliance issues, and limited sustainability reporting capacity.

“This initiative signals our intent to lead responsibly and pragmatically in the global sustainability agenda,” Hong said.

The statement outlines implementation pathways, including coordinated engagement with finance ministries, capital market regulators, and global standard-setters.

It also promotes the creation of a unified ESG data platform and regional capacity-building via trusted partners like ACCA.

The Institute of Singapore Chartered Accountants (ISCA) and ASEAN-BAC Singapore have endorsed the initiative, reflecting growing regional support.

ACCA and ASEAN-BAC view the ASRAC framework as a blueprint for enabling scalable, high-integrity sustainability disclosures across ASEAN economies.

The effort comes as businesses face rising pressure to meet ESG expectations while navigating fragmented standards and resource limitations.

Through ASRAC, ASEAN aims to bridge that gap by crafting a cohesive, scalable, and regionally responsive framework for sustainability reporting.