Islamabad, November 4,2026: Asia Pacific is leading the global adoption of sustainability reporting standards, but businesses and policymakers must move beyond regulatory compliance to translate sustainability commitments into economic resilience, investment and long-term business value, according to new research by ACCA (the Association of Chartered Certified Accountants).
The report, Asia Pacific Builds a Sustainable Future: Resilience in Economy, Environment and Society, highlights the growing importance of sustainability reporting, renewable energy investment and climate resilience in strengthening economies and attracting international investment.
More than 80% of ASEAN economies, measured by GDP, have adopted or plan to adopt standards issued by the International Sustainability Standards Board (ISSB). Including mainland China, economies that have adopted the standards represent approximately $60 trillion, or 47% 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% in FY2025-26, according to updated national accounts estimates. Meanwhile, installed electricity generation capacity reached 49,651 megawatts, including 7,319 megawatts from solar net metering, reflecting the growing role of distributed renewable energy.
However, the transition faces significant challenges, including financing constraints, grid integration, energy storage, project bankability and the need for stronger institutional capacity.
Pakistan also remains highly exposed to climate-related risks, including floods, extreme heat, water stress and glacial melt, with serious implications for agriculture, infrastructure, livelihoods and economic stability.
The ACCA report emphasizes that decarbonisation is not simply 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 therefore need to be treated as strategic economic priorities, supported by investment and financing mechanisms that make projects commercially viable.
Sharath Martin, Senior Policy Consultant at ACCA Asia Pacific, said discussions with businesses and experts consistently highlighted the need to shift the sustainability narrative towards resilience.
“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,” he said.
Martin added that decarbonisation also protects businesses and economies from fossil-fuel price volatility, rising costs and supply shocks.
The report 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.
These developments are expected to support greater transparency and help businesses respond to the growing sustainability requirements of international investors and markets.
Water and extreme heat are identified in the report as potentially defining economic risks of the 21st century.
According to the research, water and heat-related risks could reduce GDP by 10–15% in lower-income countries by 2050 if left unaddressed.
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, but cautioned that 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 strategies, budgets and investment decisions.
It also urges policymakers to mobilise capital, strengthen reporting and assurance capacity, and accelerate investment in renewable energy.
The research draws on interviews and roundtable discussions with 44 finance and accountancy professionals and subject experts.
The full report, Asia Pacific Builds a Sustainable Future: Resilience in Economy, Environment and Society, is available on the ACCA website:
