1) What’s making headlines in green sustainable finance One of the most talked-about sustainability developments right now is how quickly ESG-linked financing  is shifting from broad commitments to hard, measurable performance targets . Across Asia-Pacific (including Hong Kong), lenders and investors are becoming more cautious about vague “ green ” positioning. As a result, sustainability-linked loans and bonds are increasingly written with clearer KPIs, stricter definitions,

Why nature risk is turning into a finance conversation in APAC This topic echoes a question a university student asked me during an ESG sharing session: beyond climate, what should we pay more attention to in 2026? Biodiversity and nature-related risk has moved beyond “ESG reporting” and into the practical mechanics of credit . In APAC, the link is especially direct: several economies depend heavily on land, water, fisheries, forestry, and agriculture, while rapid urban growt

Sustainability reporting has moved from a “nice-to-have” communications exercise to a board-level conversation about capital access, risk pricing, and strategic resilience. A timely new evidence base helps put numbers behind that shift. On 16 December 2025, GRI published a literature review titled From impact to income: How sustainability reporting affects the bottom line. Instead of relying on anecdotes, the report synthesizes findings from 30 peer‑reviewed empirical studies

With no doubt, Scope 3 has become the pressure point for many Asia-Pacific companies because the emissions sit outside your own operations , yet the consequences show up in tenders, customer scorecards, loan conversations, and reputational risk. Scope 3 Caterogies: the 15 essentials What used to be a “sustainability report” topic is now a commercial requirement: Buyers want product footprints and credible reduction progress. Banks and investors increasingly want transition ev

Introduction: From “ ESG as a report ” to “ ESG as a management system ” With 2025 behind us, what ESG and sustainability changes and requirements should we expect in 2026? By 2026, ESG in Asia is expected to move further away from being a communications exercise and closer to a daily management discipline that affects budgets, risk controls, product design, and talent strategy. For many organizations, the question will shift from “Do we have an ESG report?” to “Can we defend

The UK’s Transition Plan Taskforce (TPT) is a government‑backed initiative established in April 2022 to help organizations develop and disclose credible, consistent, and actionable climate transition plans . It was created by HM Treasury and is co‑chaired with the UK Financial Conduct Authority (FCA) . The TPT’s purpose is to ensure that entities operating in the United Kingdom—particularly financial institutions and publicly listed companies—can clearly demonstrate how th

What is AI‑Driven ESG Reporting? AI‑driven ESG reporting  refers to the use of artificial intelligence tools and algorithms  to collect, analyze, and present data related to a company’s Environmental, Social, and Governance (ESG)  performance. ESG reporting allows companies to communicate how responsibly they operate—for instance, their carbon emissions, labor practices, diversity policies, and transparency in leadership. When AI is involved, the process becomes faster, more

What is ESRS? ESRS stands for European Sustainability Reporting Standards. They are the mandatory ESG reporting standards that companies must use under the EU’s Corporate Sustainability Reporting Directive (CSRD) . ESRS define what sustainability information companies must disclose, how, and with what level of rigor , covering environmental, social, and governance (ESG) topics. Brief History of ESRS 1. Origins (2019–2022) ESRS emerged from the European Green Deal and the

1. What is the CSRD? The Corporate Sustainability Reporting Directive (CSRD) is a landmark piece of European Union legislation that fundamentally changes how companies report on sustainability. It replaces the older Non-Financial Reporting Directive (NFRD) , significantly expanding the scope, detail, and rigor of reporting requirements. Its primary goal is to put sustainability reporting on par with financial reporting , ensuring investors and stakeholders have access to co

Implied Temperature Rise (ITR) is a metric used in ESG and climate finance to estimate how much global temperatures would increase by 2100 if the whole economy behaved like a given company, portfolio, or investment . It translates emissions performance and climate targets into an easy‑to‑interpret temperature score (e.g., 1.5 °C, 2.7 °C, 4 °C). What ITR Represents ITR answers the simple question: “ If all companies followed the same emissions pathway as this one, what level

In ESG and sustainability, DNSH stands for " Do No Significant Harm ." It means that while pursuing a sustainability objective (such as reducing carbon emissions), an activity must not significantly harm other environmental or social goals. For example, a renewable energy project should not cause major harm to biodiversity or local communities. This principle is commonly used in EU Taxonomy and global sustainability reporting frameworks. Examples of significant harm In oppos

In ESG and sustainability, taxonomies refer to classification systems that define what counts as environmentally sustainable , socially responsible , or well‑governed economic activities. In simple terms: A taxonomy is a rulebook that tells investors which activities are truly “green” or “sustainable.” These taxonomies help: prevent greenwashing guide investors toward credible ESG investments create a common language for sustainability across markets support policy and r

Acute Climate Hazards Acute climate hazards are sudden, short‑term extreme weather events caused or intensified by climate change. They occur rapidly and can cause immediate damage. Examples: heatwaves, cyclones, flash floods, hurricanes, wildfires, storm surges. Chronic Climate Hazards Chronic climate hazards are long‑term, gradual climate‑related shifts that build up over time and progressively impact ecosystems, infrastructure, and economies. Examples: rising sea levels, l