Trucost’s analysis of the Asia ex-Japan sample clearly indicates that investors in the region often lack the necessary information to make informed decisions with respect to carbon emissions, despite such emissions emerging as a business cost in key areas of the world. Given the global nature of many companies, and the global nature of the climate change problem, it is crucial for the scope and quality of emissions disclosures to improve. As a result, Asian investors now have a unique opportunity to assess responses from Asia’s carbon leaders and to work with laggards so that they better appreciate and understand the disclosure requirements of the investment community.
The report shows that none of the countries in the Asian ex-Japan sample are bound by Kyoto’s emission resource targets and there are few drivers for climate change reporting in the Asia ex-Japan region. Asian companies had a low response rate in comparison with other regions, with a significant number declining to participate. South Korea had the highest response rate – a likely reflection of the government’s proactive stance on addressing climate change.