The ASEAN Business Advisory Council (ASEAN-BAC) Malaysia, the Association of Chartered Certified Accountants (ACCA), along with their partners in ASEAN Sustainability Reporting Advocacy Collaborative (ASRAC), have announced a unified approach to sustainability reporting standards across Southeast Asia.

Initiated during the ASEAN Conference 2025, held  by the Singapore Business Federation, the ASRAC statement represents a collaborative effort between ACCA, ASEAN-BAC Malaysia, the Sustainable Finance Institute Asia (SFIA), and the Asia-Pacific Economic Cooperation Business Advisory Council (APEC-BAC) Malaysia.

This initiative is one of twelve business priorities set forth by ASEAN-BAC Malaysia in line with Malaysia’s ASEAN Chairmanship in 2025.

The statement builds on a forthcoming report by ACCA, due for release at the end of July 2025.

It proposes recommendations to harmonise ASEAN’s sustainability reporting with international standards while remaining adaptable to the specific needs of local businesses and regulatory frameworks.

The ASRAC statement advocates for the adoption of the International Sustainability Standards Board (ISSB) standards as a global foundation, utilising a building-blocks approach for jurisdictions to incorporate local requirements without compromising global uniformity.

Furthermore, the statement calls for measures to ease the transition and reduce the reporting burden from overlapping frameworks, such as the European Sustainability Reporting Standards (ESRS).

It stresses the need for proportionality, ensuring that reporting frameworks are practical and scalable, particularly for small and medium-sized enterprises (SMEs).

ACCA director – Asia Pacific Pulkit Abrol said: “ACCA is proud to support this important initiative, which reflects ASEAN’s shared commitment to practical, high-quality sustainability reporting. The ASRAC statement offers a timely call for alignment around ISSB standards, grounded in proportionality and global relevance.”

“As a knowledge partner to ASEAN-BAC, we are pleased to contribute to a path that safeguards regional competitiveness while ensuring ASEAN’s voice is heard in shaping the future of global disclosure frameworks. With a 90-year legacy in Singapore and Malaysia, ACCA has long supported the profession in ASEAN, making it a natural partner for regional initiatives like ASRAC. ACCA’s growing presence in ASEAN reflects our commitment to empowering the profession through capacity building, insights, and collaboration with platforms like ASEAN-BAC to lead in sustainable business.”

ASEAN-BAC Malaysia chair Tan Sri Nazir Razak said: “We now have a unique opportunity to advocate how the future of sustainability reporting in our region should be shaped. ASRAC is precisely the kind of forward-looking advocacy initiative that ASEAN-BAC is proud to lead. It reflects the collective voice of the private sector and professional bodies on how reporting standards should evolve.”

The Institute of Singapore Chartered Accountants (ISCA) and ASEAN-BAC Singapore have expressed their support for the ASRAC initiative, indicating an increasing regional consensus and momentum.

The statement also lays out practical implementation strategies, which include engaging with finance ministries, capital market regulators, and international standard-setters, supporting a unified platform for ESG data, and fostering capacity through regional partners like ACCA.

In June 2025, ACCA urged the European Commission to streamline the Sustainable Finance Disclosure Regulation to alleviate its reporting burdens.