Asia is no longer following the global sustainability agenda. It is actively redefining it

Following recent discussions with leading bankers and stakeholders in the region, we drew several key insights that illustrate how Asia’s sustainable finance ecosystem is evolving with confidence and commercial purpose. Despite global macroeconomic pressures, the region continues to show resilience, investment momentum, and strategic clarity.

KEY HIGHLIGHTS INCLUDE:

📌 Sustainability as a strategic opportunity:
Companies across Asia, especially in India and China, increasingly view sustainability as a once-in-a-lifetime opportunity to leap ahead in both ESG terms and commercial competitiveness. It is seen as a way to capture new markets, reduce long-term risk, and enhance resilience.

📌 Strong investment flows:
India’s renewable energy sector attracted $14.5 billion in FY2022–23, according to the Council on Energy, Environment and Water (CEEW). This reflects how capital is flowing toward scalable, impact-driven solutions.

📌 ESG as value creation:
There is a fundamental shift in perception. ESG is no longer seen as a cost but as a source of long-term value.

According to McKinsey, companies with strong ESG propositions can experience a 10 to 20 percent increase in enterprise value. This is quickly becoming the commercial logic across Asia.


📌 Market-led momentum supported by policy:
While Europe advanced sustainability through regulation, Asia is adopting a more market-driven approach. Regulators are focusing on disclosure, data quality, and clear guidance rather than mandates, allowing companies to lead on innovation while still ensuring accountability.

📌 Sustainability built from the start:
In sectors with long manufacturing and asset life cycles, sustainability is being embedded at the design and infrastructure phase. Supply chains are being developed with ESG principles in mind, and impact is increasingly measured through science-based, KPI-linked structures.

📌 Executive accountability in action:
Samsung’s Sustainable Management Report 2023 demonstrates how ESG is tied directly to executive performance. The firm has integrated sustainability KPIs into compensation frameworks, aligning leadership incentives with long-term impact.

📌 The emergence of sustainability alpha:
This is not about ticking boxes. Sustainability is being treated as a lever for business growth, innovation, and returns.

The concept of sustainability alpha, using ESG to generate measurable outperformance, is gaining traction across Asian markets.

Asia is positioning itself not just to catch up, but to lead. With profitability and purpose aligned, the region is becoming a global reference point for how to scale sustainability with intent.

Please let us know your thoughts!