Bridging the Gap: Have ASEAN Banks Caught Up on Climate Action?

Open Resource

Year Published

2025

Contributing Organizations

Asia Research & Engagement (ARE)

Type of Resource

Research/Insights Report

Languages

English

Relevant Topics

Core Topic

Climate & Transition Finance

Topic 2

Climate Policies & Frameworks

Topic 3

Climate Strategy & Capabilities

Target Audience

Advisors & Consultants

Governments & Policymakers

Financial Services Providers

Relevant Geography

Asia & the Pacific

Open Resource

Resource Description

This report assesses how 14 major banks across ASEAN are progressing on climate action.

Why This Matters

As Southeast Asia’s banks face growing regulatory and market pressure to decarbonize, this analysis highlights both progress and persistent gaps in the region’s financial transition.

Key Insights

Board-level oversight of sustainability has expanded significantly, with 11 banks now having dedicated sustainability committees and stronger disclosure aligned with TCFD.
While 11 banks have net-zero financed emissions targets, credibility varies, and restrictions on high-carbon sectors beyond coal are inconsistent.
Risk Management: Climate risk integration has matured, with seven banks conducting scenario analyses and most adopting PCAF standards.
Opportunity: Sustainable finance commitments are growing, but definitions and reporting frameworks differ widely across markets.

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