State of ISSB Regulations and Disclosures in APAC
LSEG market insights and solutions for enabling ISSB implementation
Following the two inaugural standards from the International Financial Reporting Standards (IFRS) Foundation’s International Sustainability Standards Board (ISSB) coming into effect in January 2024, many jurisdictions in the Asia-Pacific (APAC) region have started to adopt ISSB-aligned regulations, which will be implemented in stages from 2025 onwards.
This paper provides a comprehensive inventory of climate regulatory regimes in APAC and categorises them by their degree of ISSB alignment. Using LSEG’s climate dataset, it then gauges the ISSB readiness of APAC companies by analysing disclosure rates of data points that can be mapped to ISSB requirements. It finally introduces how LSEG Data & Analytics solutions can help financial institutions and corporates generate and use ISSB-aligned data in their climate transition efforts.
This report reveals:
19 APAC jurisdictions have climate-related financial disclosure regulations. Of those, 13 jurisdictions have either adopted ISSB-aligned regulations set to take effect in 2025 or released exposure drafts for localised ISSB standards.
APAC is the second most ISSB-ready region behind Europe, with overall ISSB disclosure rate of 15% on average. These relatively high average disclosure rates by APAC companies originate from their solid disclosures of core ISSB requirements, indicating a solid understanding of the basics of climate reporting.
The ISSB standards require disclosure of a variety of advanced metrics that remain mostly undisclosed by APAC companies such as strategic metrics (transition plan measures, management measures etc.) or financial metrics (financial exposure to climate risks, capital allocation to climate solutions etc.).
Data used in the paper
LSEG Climate Transition Data provides extensive climate data sets that enables investors to effectively manage climate risks, develop investment strategies, portfolios and advisory services that align with the global climate disclosure standards. The data set features reported climate data measures, advanced analytics and estimated emissions models, complemented by third-party climate data.
What does this research mean for the financial community
Climate-related financial disclosures, initially developed in the TCFD recommendations and now mandated by ISSB standards, aim to promote disclosure of information that can help financial institutions such as investors, lenders and insurance underwriters assess climate-related risks. By providing an overview of climate regulations and ISSB-related disclosure rates using investor-grade proprietary data, this paper aims to help financial institutions prepare for upcoming ISSB disclosures in the region and identify data points that best suit their transition finance strategy.
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