ACCA Says Asia Pacific Ahead in Sustainability Reporting as Pakistan Faces Climate and Energy Pressures
Islamabad, November 4, 2026: Asia Pacific is moving faster than any other region in adopting sustainability reporting standards, but the real test lies in turning reporting frameworks into practical measures that strengthen economies, businesses and investment flows, according to new research by ACCA, the Association of Chartered Certified Accountants.
The ACCA report, Asia Pacific Builds a Sustainable Future: Resilience in Economy, Environment and Society, says more than 80 percent of ASEAN economies, measured by GDP, have either adopted or plan to adopt standards issued by the International Sustainability Standards Board (ISSB). Including the Chinese mainland, economies that have adopted these standards represent around US$60 trillion, or 47 percent of global GDP.
The findings are significant for Pakistan, where economic recovery, climate risks and the shift towards cleaner energy are increasingly linked. According to updated national accounts estimates, Pakistan’s economy grew by 3.65 percent in FY2025-26. At the same time, the country’s installed electricity generation capacity reached 49,651MW, including 7,319MW from solar net metering, showing the growing role of distributed renewable energy.
However, the report underlines that the transition to sustainable energy requires more than capacity addition. Pakistan faces challenges including financing constraints, grid integration, energy storage, project bankability and the need for stronger institutional capacity. The country also remains highly vulnerable to climate-related risks such as floods, extreme heat, water stress and glacial melt, with consequences for agriculture, infrastructure, livelihoods and overall economic stability.
ACCA said decarbonisation should not be viewed only as an emissions-reduction agenda. It is also central to energy security and economic resilience, especially for businesses and governments exposed to fossil-fuel price volatility, geopolitical disruptions and supply-chain pressures. Renewable energy generation and storage, the report said, need to be treated as strategic economic priorities and supported 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 points to the rising importance of sustainability disclosures in attracting investment and maintaining access to international markets. Pakistan has already 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 in the report as possible defining economic risks of this century. If left unaddressed, water and heat-related risks could reduce GDP by 10 to 15 percent in lower-income countries by 2050. The report also notes that floods 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 noted that adopting standards was not the same as achieving decarbonisation or resolving wider sustainability challenges.
ACCA has urged businesses to integrate climate and nature-related risks into corporate strategy, budgets and investment decisions. It has also called on policymakers to mobilise capital, strengthen reporting and assurance capacity, and speed up investment in renewable energy.
The report is based on research, interviews and roundtable discussions with 44 finance and accountancy professionals and subject experts. The full report is available at: https://www.accaglobal.com/policy-and-insights/reports/2026/2026-asia-pacific-builds-a-sustainable-future.html
