ISLAMABAD: Asia Pacific is emerging as a global leader in adopting sustainability reporting standards, but businesses and policymakers must move beyond regulatory compliance to translate sustainability commitments into economic resilience, investment and long-term business value, according to new research by ACCA (the Association of Chartered Certified Accountants).
Thank you for reading this post, don't forget to subscribe!The report, titled Asia Pacific Builds a Sustainable Future: Resilience in Economy, Environment and Society, reveals that more than 80% of ASEAN economies, measured by GDP, have adopted or plan to adopt standards issued by the International Sustainability Standards Board (ISSB). Including mainland China, economies that have adopted these standards represent approximately US$60 trillion, equivalent to 47% of global GDP.
The findings have particular significance for Pakistan, where economic recovery, climate resilience and the transition towards sustainable energy are increasingly interconnected. Pakistan’s economy recorded growth of 3.65% in FY2025-26, according to updated national accounts estimates, while its installed electricity generation capacity reached 49,651MW, including 7,319MW from solar net metering. This reflects the growing contribution of distributed renewable energy to the country’s power sector.
However, Pakistan’s energy transition continues to face major challenges, including financing constraints, grid integration, energy storage, project bankability and limited institutional capacity. The country also remains highly vulnerable to climate-related threats such as floods, extreme heat, water scarcity and glacial melt, which pose serious risks to agriculture, infrastructure, livelihoods and economic stability.
The ACCA report emphasizes that decarbonisation should not be viewed solely as an effort to reduce carbon emissions. It is equally important for strengthening energy security and economic resilience by helping businesses and governments manage fossil fuel price volatility, geopolitical disruptions and supply-chain uncertainties.
It further highlights that renewable energy generation and storage must be treated as strategic economic priorities, supported by appropriate investment and financing mechanisms to make projects commercially viable.
Sharath Martin, Senior Policy Consultant, ACCA Asia Pacific, said the focus of sustainability discussions needed to shift from disclosure requirements towards building resilient businesses and economies.
“What we heard consistently in our roundtables is that the narrative needs to change. This isn’t about disclosures per se, this is about making businesses more resilient. The same is true of decarbonisation. It cuts emissions, but it also protects businesses and economies from fossil fuel price volatility, rising costs and supply shocks,” he said.
The report also underscores the growing importance of sustainability disclosures in attracting investment and maintaining access to international markets. Pakistan has made progress in this area through the Securities and Exchange Commission of Pakistan’s phased adoption of IFRS Sustainability Disclosure Standards and the introduction of ESG disclosure guidelines.
Highlighting the economic consequences of climate change, the research identifies water scarcity and extreme heat as two of the defining risks of the century. It warns that, if left unaddressed, water- and heat-related risks could reduce GDP by 10–15% in lower-income countries by 2050. Floods alone accounted for more than half of the 7.2 billion people affected by disasters across Asia Pacific between 1970 and 2024.
Helen Brand OBE, Chief Executive of ACCA, observed that the Asia Pacific region was developing the foundations of sustainability reporting faster than any other part of the world. However, she cautioned that adopting reporting standards did not automatically translate into decarbonisation or meaningful progress on broader sustainability challenges.
The report calls on businesses to incorporate climate- and nature-related risks into corporate strategies, budgets and investment decisions. It also urges policymakers to mobilise sustainable finance, strengthen reporting and assurance capabilities, and accelerate investment in renewable energy.
The research draws on interviews, studies and roundtable discussions involving 44 finance and accountancy professionals and subject-matter experts.
The full report, Asia Pacific Builds a Sustainable Future: Resilience in Economy, Environment and Society, is available on the ACCA website:
