Forging a Sustainable Future: Key ESG and Green Procurement Developments in Asia, September 2025

As Asia accelerates its climate commitments and green finance growth, key developments in ESG (Environmental, Social, and Governance) strategies and sustainable procurement are shaping the region’s path to a greener economy in 2025.

Growing Momentum in Sustainable Finance and ESG Disclosure

Hong Kong is solidifying its position as a regional green finance hub. The sustainable debt market there continues to expand robustly, with a 15% year-on-year growth in green and sustainable debt issuance in early 2025 and a 61% increase in 2024 compared to the prior year. This surge is propelled by increasing private sector participation and international investor interest, particularly from Europe and the U.S. Efforts by institutions like the Hong Kong Monetary Authority to promote sustainable finance frameworks underpin this expansion, reinforcing Asia’s commitment to climate goals and capital market alignment with ESG principles. Companies are also accelerating compliance with evolving sustainability disclosure standards, with organizations like the Singapore Business Federation advocating for tailored reporting for smaller listed companies to facilitate smoother ESG integration.

Strategic Collaborations for Energy Transition and Climate Resilience

The region is witnessing landmark collaborations, such as the partnership between Singapore and the UK to drive clean energy transition and sustainable infrastructure development. Financial pledges and joint technical assistance initiatives aim to fast-track green projects and stimulate private sector involvement across Southeast Asia. Additionally, Singapore has entered into a carbon credit agreement with Thailand under the Paris Agreement framework, enhancing mechanisms for regional carbon mitigation and cross-border environmental cooperation.

Emerging Green Procurement Trends in the Supply Chain

Sustainable procurement is becoming a core strategic business pillar in Asia, with over 50% of global businesses adopting sustainable procurement policies that enhance supply chain resilience. Procurement experts foresee that by 2025, a vast majority of suppliers will need to demonstrate carbon neutrality credentials to be considered partners. Companies are leveraging AI and digital technologies to boost transparency and decision-making in procurement, enabling better supplier evaluation based on ESG criteria and driving innovation in waste reduction and resource efficiency.

Green procurement now strongly emphasizes sourcing materials that minimize environmental impact, supporting renewable energy use through agreements like Power Purchase Agreements (PPAs), and adhering to international standards such as ISO 14001 for environmental management. These initiatives collectively contribute to corporate sustainability goals and foster a circular economy mindset in business operations.

Hong Kong Green Week and Regional ESG Dialogues

Hong Kong’s flagship sustainability event, the second annual Green Week starting September 8, 2025, encapsulates the collaborative spirit of ESG advancement in Asia. It gathers policymakers, business leaders, and academics worldwide to address energy transformation, climate resiliency, and innovative climate technologies. This platform exemplifies the vibrant Asia-Pacific sustainable ecosystem and advances regional climate governance with “Eastern wisdom” and shared expertise.

In sum, September 2025 marks a pivotal moment as Asian economies deepen their ESG commitments, expand sustainable finance mechanisms, and champion green procurement innovations. These strides are integral to building resilient, low-carbon value chains and achieving global sustainability targets.