Sustainability Counts III

Just yesterday, PwC, in collaboration with the National University of Singapore (NUS), released the third edition of Sustainability Counts. This sub-study looks at 129 listed companies within the financial sector across 14 jurisdictions in Asia Pacific (APAC), including Australia, Mainland China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam. This report covers both global and regional developments in sustainability reporting, insights from sustainability leaders, and other areas of interest.

Key Takeaways:
(1) Net-Zero Targets: Over half of the financial institutions surveyed have set net-zero targets, but many still lack detailed protocols like the SBTi to support them. Specifically, 17% of firms with net-zero targets use the SBTi’s Corporate Net Zero Standards, and 8% have had their targets validated by SBTi.

(2) Scenario Analysis Disclosure: While disclosure on scenario analysis remains low, it’s expected to rise as regulators tighten their expectations.

(3) Scenario Analysis Methods: Of the financial institutions disclosing their use of scenario analysis, most combine qualitative and quantitative approaches.

(4) Nature and Biodiversity Awareness: Awareness is growing, with nearly 50% of financial institutions now including a dedicated section on nature and biodiversity in their sustainability reports. However, engagement with emerging standards, like the Taskforce on Nature-related Financial Disclosures (TNFD), is still in its early stages.

(5) Double Materiality Approach: Among those companies identifying material ESG factors, 54% have adopted a double materiality approach in their sustainability reporting

(6) Cybersecurity Concerns: Cybersecurity remains a top priority, often taking precedence over more traditional ESG topics.

(7) External Assurance on the Rise: External assurance for sustainability reports is becoming more common. 64% of financial institutions sought external assurance, while 35% conducted internal assurance.

Source:

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