The ASEAN Business Advisory Council (ASEAN-BAC) Malaysia, the Association of Chartered Certified Accountants (ACCA), and their partners in the ASEAN Sustainability Reporting Advocacy Collaborative (ASRAC) have on Wednesday unveiled a landmark regional policy statement that charts a unified path forward for sustainability reporting across Southeast
Asia, grounded in international best practice and tailored to regional realities.

Launched at the ASEAN Conference hosted by the Singapore Business Federation, the ASRAC Statement is the first output of this collaborative initiative between ACCA, ASEAN-BAC
Malaysia, the Sustainable Finance Institute Asia (SFIA), and the Asia-Pacific Economic Cooperation Business Advisory Council (APEC-BAC) Malaysia, the duo said in a statement.

It is one of twelve business priorities being advanced by ASEAN-BAC Malaysia as part of Malaysia’s ASEAN Chairmanship in 2025.

Building on a report by ACCA which will be released at the end of July, the Statement offers recommendations to align ASEAN’s sustainability reporting with international standards while remaining responsive to local business and regulatory needs.

The ASRAC Statement calls for the adoption of the International Sustainability Standards Board (ISSB) standards as a global baseline, implemented through a building-blocks approach that enables jurisdictions to add local requirements without sacrificing global consistency.

It also advocates for transition relief to minimize the reporting burden from overlapping frameworks such as the European Sustainability Reporting Standards (ESRS) and emphasizes the importance of proportionality — ensuring that reporting frameworks remain practical and scalable for businesses of all sizes, especially small and medium-sized enterprises (SMEs).

“Today’s finance leaders are stewards of people, planet and prosperity. ACCA is proud to support this important initiative, which reflects ASEAN’s shared commitment to practical, high-quality sustainability reporting,

“The ASRAC Statement offers a timely call for alignment around ISSB standards, grounded in proportionality and global relevance,” said Pulkit Abrol, Director – Asia Pacific, ACCA.

As a knowledge partner to ASEAN-BAC, he said they are pleased to contribute to a path that safeguards regional competitiveness while ensuring ASEAN’s voice is heard in shaping the future of global disclosure frameworks.

“With a 90-year legacy in Singapore and Malaysia, ACCA has long supported the profession in ASEAN, making it a natural partner for regional initiatives like ASRAC，

”ACCA’s growing presence in ASEAN reflects our commitment to empowering the profession through capacity building, insights, and collaboration with platforms like ASEAN-BAC
to lead in sustainable business,” he added.

Nazir Razak, Chair of ASEAN-BAC Malaysia, said they now have a unique opportunity to advocate how the future of sustainability reporting in our region should be shaped.

“ASRAC is precisely the kind of forward-looking advocacy initiative that ASEAN-BAC is proud to lead,

“It reflects the collective voice of the private sector and professional bodies on how reporting standards should evolve,” he added.

Jukhee Hong, Executive Director, ASEAN-BAC Malaysia and Chair of ASRAC, added that ASRAC reflects the collective voice of ASEAN’s business community confronting escalating
costs, complex compliance requirements, and constrained capacity in sustainability reporting.

“This initiative signals our intent to lead responsibly and pragmatically in the global sustainability agenda by addressing the growing need for clarity, coherence, and capacity-building while making environmental, social, and governance (ESG) disclosure achievable for all ASEAN businesses, not a formidable challenge,” he added.

According to the statement, the Institute of Singapore Chartered Accountants (ISCA) and ASEAN-BAC Singapore have announced their support for the ASRAC initiative.

Their participation signals growing regional alignment and momentum.

The statement also outlines practical implementation pathways, including engagement with finance ministries, capital market regulators, and international standard-setters; support for a unified platform for ESG data; and capacity-building through trusted regional partners such as
ACCA.

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