Climate-Related Information Disclosure in Asia

reporter

Name Affiliation Title Koji Fukuda Long-term Expert (Chief Advisor), SPI-NDC Project, Japan International Cooperation Agency (JICA)

summary

Date: November 20, 2024

Organized by: Ministry of the Environment Co-sponsored by: Asian Development Bank (ADB), Japan International Cooperation Agency (JICA) SPI-NDC, Overseas Environmental Cooperation Center, Japan (OECC)

Name of venue (pavilion name)：Japan Pavilion

speaker

Name Affiliation Title Keiichiro Asao, Minister of the Environment, Japan Grace Hu, Minister of Sustainability and Environment, Singapore Tetsushi Sonobe, Director, Asian Development Bank Institute (ADBI) Makoto Kato, Director, Overseas Environmental Cooperation Center (OECC) Koji Fukuda, Long-term Expert, SPI-NDC Project, Japan International Cooperation Agency (JICA) (Chief Advisor) Luong Anh Huy, Director, Mitigation Division, Climate Change Department, Ministry of Natural Resources and Environment, Vietnam Rachel Esther, Director, Philippine Securities and Exchange Commission Gumutan Lemarante, Director Anna Maria Gonzalez, Director, Corporate Sustainability, Ayala Land Inc. Executive Officer and CPO, Asuene Corporation

Background and Objectives

Discuss with governments, donors, and the private sector incentives for contribution and engagement by SMEs as GHG emissions accounting reporting and climate-related information disclosure progresses in ASEAN

Contents

In his opening remarks, Mr. Asao, Minister of the Environment of Japan, and Mr. Fu, Minister of the Environment of Singapore, made opening remarks, noting that Singapore is making progress on this theme, with IFRS-compliant information disclosure starting in fiscal year 2025, and SME calculations underway, and digital tools under the domestic sustainability reporting program. In addition, he mentioned that digital tools are being developed under the domestic sustainer reporting program.

In the subsequent panel discussion, moderated by Mr. Fukuda, Chief Advisor to the JICA/SPI-NDC project, experiences and views were shared on three main issues.

Discussion Point 1: What are the challenges for SMEs in promoting climate change-related disclosure in ASEAN?

Discussion Point 2: What are the specific actions that can be taken to resolve the issue?

Discussion Point 3: Where should corporate climate change-related disclosure go?

With regard to the issue of Discussion Point 1, the SEC of the Philippines pointed out that, since 2019, domestic systems, forms, and online platforms for corporate GHG disclosure have been developed and disclosure by listed companies is progressing, but SMEs are still in the process of developing their own GHG disclosure. Similarly, Vietnam MONRE pointed out that GHG capture by large enterprises is leading the way with mandatory corporate GHG accounting and reporting, and that it needs to be gradually rolled out to SMEs, but that in many cases there is relatively insufficient awareness of GHG reductions and it is difficult to meet GHG disclosure requirements without outsourcing. The report also pointed out that in many cases it is difficult to meet GHG disclosure requirements without outsourcing. Asuene pointed out that there are issues related to internal human resource constraints, calculation costs, and data maintenance, and Ayala also pointed out human resource constraints.

Regarding measures to resolve Discussion Point 2, OECC mentioned investors’ requests, while ADBI emphasized automation of data collection required for calculations, ensuring a forum for knowledge sharing among stakeholders, and support by development finance institutions. In particular, DFIs could support companies in developing transition plans, and there is room for financial institutions to support portfolio decarbonization and SME scope 1 & 2 calculations. Asuene pointed out the simplification of reporting templates, digitalization, and harmonization and unification of standards.

The SEC expressed the view that, in the context of ASEAN, the region should establish “its own standards” in a manner appropriate to regional objectives. The SEC expressed the view that in the context of ASEAN, “own standards” should be established in a manner appropriate to regional objectives.

After the panel discussion,

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