- Widespread ISSB Adoption: 13 APAC jurisdictions have adopted or drafted ISSB-aligned regulations set to roll out by 2025.
- Partial Disclosure Readiness: APAC companies excel in core ISSB metrics but lack comprehensive data on advanced metrics.
- Strategic Tools Available: LSEG offers solutions to help financial institutions align with ISSB standards and manage climate risks effectively.
The Asia-Pacific (APAC) region is accelerating its adoption of climate-related financial disclosure regulations aligned with the International Sustainability Standards Board (ISSB). With ISSB standards taking effect globally in January 2024, 13 APAC jurisdictions have already committed to ISSB-aligned regulations, which will phase in by 2025.
“The ISSB standards aim to standardize climate disclosures, helping financial institutions assess climate risks more effectively,” the report highlights.
APAC’s ISSB Readiness
APAC companies are the second most ISSB-ready globally, with a 15% average disclosure rate for core ISSB requirements. These include foundational metrics such as emissions data and basic climate risk disclosures. However, gaps remain in advanced metrics, including:
- Strategic Metrics: Transition plans and management measures.
- Financial Metrics: Climate-related financial exposure and capital allocation to sustainable solutions.
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Data and Tools to Bridge Gaps
The research leverages LSEG’s Climate Transition Data, which offers comprehensive datasets, advanced analytics, and estimated emissions models. Paired with the LSEG Sustainability Intelligence platform, these tools provide:
- Modules to Measure, Manage, and Report greenhouse gas (GHG) emissions.
- Resources to align climate reports with ISSB and GRI standards.
- Support for stock exchanges, banks, and corporates in managing sustainability efforts.
“LSEG’s platform equips companies to meet global climate disclosure requirements effectively,” the paper emphasizes.
Implications for Financial Institutions
Financial institutions must prepare for mandatory ISSB-aligned disclosures, which promote transparency and enable better risk assessment. By adopting LSEG tools, they can:
- Identify data points critical for transition finance strategies.
- Manage climate risks with investor-grade proprietary data.
- Align portfolios and investment strategies with global standards.
APAC’s adoption of ISSB standards marks a critical step toward standardized climate disclosures. While progress is notable, gaps in advanced metrics highlight the need for robust tools and data to ensure comprehensive compliance by 2025. LSEG’s solutions offer a pathway for organizations to navigate this evolving landscape effectively.
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