Effective reporting can accelerate Southeast Asia’s green transition

Southeast Asia stands at a critical crossroad where the need for sustainable economic growth meets the urgency to address climate change.

Incorporating corporate sustainability and green finance into public sector strategies is no longer a choice but a necessity for the region’s long-term prosperity and resilience.

According to ACCA, sustainability reporting and assurance are becoming core components of financial transparency and accountability – and public sector leadership in this area would be critical to set the direction and pace of adoption.

The global professional accounting body published a 2023 report on public sector sustainability assurance, highlighting both the progress made and remaining gaps in skills, governance and systems.

The report is one of those published by ACCA’s Sustainability Reporting Hub, a global knowledge platform that supports policymakers and businesses in navigating evolving sustainability disclosure standards and practices.

ACCA's Senior Subject Manager - Public Sector, Mark Johnson, highlighted the following priorities. These include:

1. Embedding sustainability in government budgeting, procurement, and investment to align public finances with climate goals;
2. Developing interoperable and comparable regional frameworks and standards that are compatible with ISSB principles;
3. Strengthening public sector expertise to manage climate action and sustainable development; and
4. Prioritising performance measurement based on environmental and social outcomes rather than inputs.

To subscribe to the GovInsider bulletin, click here.

Aligning national policy with international frameworks

A key takeaway from ACCA’s engagement with both global and regional bodies is that national level justifications are evolving to align with international standards like the International Sustainability Standards Board (ISSB).

Several ASEAN countries comprising over 80 per cent of regional GDP have publicly aligned themselves with ISSB adoption, with Singapore and Malaysia moving furthest along their national implementation roadmaps.

However, full adoption is a major undertaking likely to be staggered over multiple years given the transformation in skills and practices it requires.

As part of Malaysia’s 2025 ASEAN Chairmanship, ACCA and the ASEAN-Business Advisory Council Malaysia have recently entered a knowledge partnership to develop proposals for a single ASEAN sustainability reporting framework – an attempt to implement consistent and comparable sustainability disclosures across the region.

ACCA recently presented the findings at the ASEAN Finance Ministers and Central Bank Governors' meetings, highlighting the leadership role that key public institutions such as central banks and securities commissions must play in supporting an economy-wide transition to new standards.

Building public sector expertise

These transitions are taking place within the public sector itself, requiring institutions to build internal capacity and adapt their own practices.

Upon engaging with global and regional stakeholders, Johnson pointed to the importance of early skills development and cross-departmental collaboration in enabling effective public sector sustainability.

Public finance professionals are of particular importance given they play a critical role in mapping delivery chains, identifying bottlenecks, and supporting technology adoption that enhances operational processes without overwhelming systems, said Johnson.

To address the demand for sustainability expertise, ACCA launched a Professional Diploma in Sustainability for finance professionals late last year.

The diploma tackles crucial skills gaps including materiality assessment, sustainability reporting (ISSB, global reporting initiative (GRI)), sustainable finance principles, and verifying non-financial data.

It also helps learners incorporate sustainability into public financial management and strategic planning, thereby advancing national green transitions and the Sustainable Development Goals (SDGs), Johnson added.

"Investment in public sector finance teams is essential, ensuring officers are trained to both report and assure sustainability-related information. ACCA’s Virtual Public Sector Conferences have consistently highlighted this need,” he said.

Cross-department collaboration is key

“Sustainability reporting must not remain the responsibility of a single finance or environmental department — it must be embedded across public sector governance, finance, and operational teams,” said Johnson.

He stressed that public finance teams need to collaborate across government departments with policymakers.

This teamwork is crucial to assess if public services are truly achieving their goals and to promote proactive strategies that offer greater long-term public benefit.

Commenting on other key areas that ACCA sees the most pressing need for improvement within the ASEAN public sector, he pointed to the need to shift from short-term cost control to long-term strategic planning.

“Many public sector organisations still operate on annual budgeting cycles, which limit their ability to invest in initiatives that could sustainably enhance productivity.

“Moving towards multi-year budgeting would enable better planning and service redesign,” he explained.

He also noted that a pragmatic approach is essential for organisations that are just beginning their sustainability reporting journey, a pragmatic approach is essential.

“Our experience also demonstrates the value of starting with what information is available, strengthening data governance incrementally, and moving towards comprehensive sustainability reporting over time.”