ASEAN Guidelines on Corporate Sustainability Reporting

SyncFrame Explorer Database Entry #

Framework: ASEAN Guidelines on Corporate Sustainability Reporting

Description of Characteristics:

• Regional Guidance: The ASEAN Guidelines offer recommendations for companies in the Association of Southeast Asian Nations (ASEAN) region to improve their sustainability reporting practices.
• “Comply or Explain” Approach: The guidelines adopt a “comply or explain” approach, allowing companies flexibility while encouraging them to disclose their sustainability performance and explain any non-compliance.
• Focus on Materiality: The guidelines emphasize the disclosure of material ESG (environmental, social, and governance) factors that could impact a company’s financial performance and long-term value creation.
• Capacity Building: The guidelines aim to support companies in building their capacity for sustainability reporting, particularly for small and medium-sized enterprises (SMEs).

Targeted Audience:

• Companies in the ASEAN Region: The guidelines are primarily targeted towards listed companies and large companies in the ASEAN region, but they can also be used by SMEs and other organizations seeking to improve their sustainability reporting practices.
• Investors and Stakeholders: The guidelines aim to provide investors and other stakeholders with transparent and reliable information about the sustainability performance of companies in the ASEAN region.

Specific Criteria:

• Comply or Explain Components:
  • Sustainability statement in annual reports
  • Material EES risks and opportunities
  • Sustainability governance
  • Sustainability targets
• Recommended Disclosures:
  • Anti-corruption
  • Climate change and greenhouse gas emissions
  • Energy and water use
  • Waste management
  • Occupational health and safety
  • Labor practices
  • Community engagement
  • Product responsibility

Reporting Principles:

• Materiality: Companies should focus their reporting on material ESG factors that could affect their business and stakeholders.
• Stakeholder Inclusiveness: Engage with stakeholders to understand their concerns and expectations regarding sustainability.
• Comparability: Use recognized reporting frameworks and standards to enhance comparability with other companies.
• Balance: Provide a balanced view of both positive and negative aspects of the company’s sustainability performance.
• Accuracy and Reliability: Ensure that information is accurate, reliable, and verifiable.
• Clarity and Conciseness: Present information in a clear and concise manner.
• Timeliness: Publish sustainability reports regularly.

Reporting Process:

1. Identify Material ESG Factors: Conduct a materiality assessment to identify the most relevant ESG factors for the company.
2. Collect and Analyze Data: Gather and analyze data related to the identified material ESG factors.
3. Prepare Sustainability Report: Prepare the sustainability report in accordance with the ASEAN Guidelines, including disclosures on the four broad areas.
4. Publish Sustainability Report: Publish the sustainability report annually or biennially, depending on the company’s listing requirements.

Connections to Other Frameworks:

• Complementary to other ESG frameworks: The ASEAN Guidelines can be used in conjunction with other ESG frameworks, such as GRI and SASB, to provide a more comprehensive approach to sustainability reporting.
• Alignment with International Standards: The guidelines are aligned with international best practices and support the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

Challenges:

• Voluntary Adoption: While the guidelines are encouraged, they are not mandatory for all companies in the ASEAN region.
• Capacity Building: SMEs may face challenges in building the necessary capacity and resources for sustainability reporting.
• Comparability: The “comply or explain” approach can still lead to some inconsistencies in reporting across companies.

Compliance Guidance:

• ASEAN Guidelines on Corporate Sustainability Reporting: The official guidelines provide detailed information on the reporting requirements and recommendations.
• ASEAN CSR Network: The ASEAN CSR Network offers training programs and resources to support companies in implementing the guidelines.

Usability Evaluation:

• Level of Adoption: Adoption is increasing among companies in the ASEAN region, but it still varies across countries and industries.
• Ease of Use: The “comply or explain” approach provides some flexibility, but companies still need to understand and apply the guidelines.
• Focus Areas: Focuses on material ESG factors relevant to companies in the ASEAN region.
• Data Availability: Data availability can vary depending on the company’s industry and its existing ESG data management practices.

SyncFrame Compatibility:

• Alignment: SyncFrame’s focus on impact measurement, data-driven insights, materiality assessment, and stakeholder engagement aligns well with the objectives of the ASEAN Guidelines.
• Data Integration: SyncFrame can facilitate data collection and analysis for reporting in accordance with the guidelines.
• Expert Guidance: SyncFrame advisors can provide support in conducting materiality assessments and preparing sustainability reports that comply with the ASEAN Guidelines.

Reference Links/Resources:

• ASEAN Guidelines on Corporate Sustainability Reporting: https://www.globalreporting.org/standards/
• ASEAN CSR Network: https://www.asean-csr-network.org/

SyncFrame’s alignment with the ASEAN Guidelines, combined with its technological capabilities and expert support, can help organizations in the region enhance their sustainability reporting and contribute to a more sustainable future for ASEAN.

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