Islamabad, November 4, 2026: Asia Pacific is leading the global adoption of sustainability reporting standards, but businesses and policymakers must move beyond regulatory compliance and turn sustainability commitments into economic resilience, investment and long-term business value, according to new research by ACCA, the Association of Chartered Certified Accountants.
The ACCA report, titled Asia Pacific Builds a Sustainable Future: Resilience in Economy, Environment and Society, says more than 80 percent of ASEAN economies, measured by GDP, have adopted or plan to adopt standards issued by the International Sustainability Standards Board. Including Chinese mainland, economies that have adopted these standards represent around $60 trillion, or 47 percent of global GDP.
The findings carry particular relevance for Pakistan, where economic recovery and the energy transition are increasingly linked to climate resilience and sustainable investment. Pakistan’s economy recorded growth of 3.65 percent in FY2025-26, according to updated national accounts estimates. Installed electricity generation capacity reached 49,651MW, including 7,319MW from solar net metering, reflecting the growing role of distributed renewable energy.
However, the transition also presents major challenges, including financing constraints, grid integration, energy storage, project bankability and the need for stronger institutional capacity. Pakistan remains highly exposed to climate-related risks, including floods, extreme heat, water stress and glacial melt, with implications for agriculture, infrastructure, livelihoods and economic stability.
The ACCA report emphasises that decarbonisation is not only about reducing carbon emissions. It is also essential for energy security and economic resilience, helping businesses and governments manage fossil-fuel price volatility, geopolitical disruptions and supply-chain risks. Renewable energy generation and storage, it says, need to be treated as strategic economic priorities, backed by investment and financing mechanisms that make projects commercially viable.
Sharath Martin, Senior Policy Consultant, ACCA Asia Pacific, said: “What we heard consistently in our roundtables is that the narrative needs to change. This isn’t about disclosures per se, this is about making businesses more resilient. The same is true of decarbonisation. It cuts emissions, but it also protects businesses and economies from fossil fuel price volatility, rising costs and supply shocks.”
The report also highlights the growing importance of sustainability disclosures in attracting investment and maintaining access to international markets. Pakistan has taken steps in this direction through the Securities and Exchange Commission of Pakistan’s phased adoption of IFRS Sustainability Disclosure Standards and its subsequent ESG disclosure guidelines.
Water and extreme heat have been identified as potentially defining economic risks of this century. The report notes that, if left unaddressed, water and heat-related risks could reduce GDP by 10 to 15 percent in lower-income countries by 2050. Floods alone accounted for more than half of the 7.2 billion people affected by disasters across Asia Pacific between 1970 and 2024.
Helen Brand OBE, Chief Executive of ACCA, said the region was building the architecture of sustainability reporting faster than anywhere else. However, she said adopting standards was not the same as achieving decarbonisation or addressing wider sustainability challenges.
The report calls on businesses to integrate climate and nature-related risks into corporate strategy, budgets and investment decisions. It also urges policymakers to mobilise capital, strengthen reporting and assurance capacity, and accelerate renewable energy investment.
Asia Pacific Builds a Sustainable Future draws on research, interviews and roundtable discussions with 44 finance and accountancy professionals and subject experts. The full report is available on ACCA’s website at https://www.accaglobal.com/policy-and-insights/reports/2026/2026-asia-pacific-builds-a-sustainable-future.html
