ESG Disclosure Rules for Key Regions

Question 1

USA

Answer 1

SEC Proposed Climate Disclosure Rule : Public companies may be required to disclose climate-related risks, governance and greenhouse gas emissions

Nasdaq Board Diversity Rule : Mandates disclosure of board diversity statistics

Question 2

EU

Answer 2

Corporate Sustainability Reporting Directive (CSRD) : Expands disclosure requirements for sustainability impacts, risks and opportunities across all ESG aspects

EU Taxonomy : Requires companies to report how their activities align with EU-defined sustainable criteria

SFDR (Sustainable Finance Disclosure Regulation) : Financial institutions must disclose ESG integration in their investment processes

Question 3

UK

Answer 3

TCFD Mandatory Disclosure : Large companies must report climate-related financial risks based on the Task Force on Climate-related Financial
Disclosures (TCFD) framework

Streamlined Energy and Carbon Reporting (SECR) : Requires disclosure of energy use, greenhouse gas emissions and energy efficiency actions

Question 4

HK

Answer 4

HKEX mandates ESG reporting, including climate disclosures aligned with TCFD

Question 5

Singapore

Answer 5

SGX requires sustainability reporting on material ESG issues and encourages TCFD alignment

Question 6

Japan

Answer 6

TSE requires large companies to disclose sustainability policies, with growing focus on climate risks

Question 7

China

Answer 7

Environmental Disclosure Mandate : Companies in high pollution industries must disclose emissions, compliance and environmental impact under the Environmental Information Disclosure Law (2022)

Encouraged ESG reporting for Listed Companies : The China Securities Regulatory Commission (CSRC) encourages listed companies to disclose ESG practices through voluntary CSF or Sustainability Reports with growing alignment to global frameworks like TCFD

Green Finance Transparency : Issuers of green bonds must report on the use of proceeds and environmental benefits according to the Green Bond Endorsed Projects Catalogue.

Question 8

ASEAN countries - Thailand, Vietnam, Malaysia

Answer 8

Mandatory ESG Disclosure for Listed Companies : Stock exchanges in TH, VN and MA require listed companies to report material sustainability issues, often aligned with global standards like GRI and influenced by TCFD for climate-related risks

Support for Green Finance : Governments promote green bonds and sustainable finance initiatives to align with national climate and sustainability goals

Focus on Governance : Strong emphasis on corporate governance practices, including board diversity, ethics and transparency