Climate action in Asia:

In Asia, many agencies and PR firms are proud to share their creative work for oil and gas clients. The cultural landscape is quite different to the West, where there is increasing scrutiny and stigma around fossil fuel campaigns, which leads many companies to try to hide their contracts or any conflicts of interest. 

Asian consumers tend to be quite loyal towards oil and gas companies, perhaps because fossil fuels have helped the development of many Asian countries. They have helped people without energy access, even as they have endangered our planet. Fossil fuel companies have worked hard to develop these positive associations and, as a result, climate solutions may look very different in the region.

Miseducation is Slowing Down Climate Progress

Although people in Asia have an interest in sustainability, research from Bain & Company shows that there is a gap between sustainable intent and action. 90% of consumers in Asia say they are willing to pay more for products that have a reduced impact on the environment, and even more for healthy products; however, sustainable packaged foods have a relatively small market share. Moreover, 15% of consumers don’t buy sustainable products because of a lack of information or because they don’t trust that sustainable claims are credible.

As this shows, misleading marketing is taking its toll, and people could benefit from more education about sustainability. 70% of consumers were unable to identify products with a lower carbon footprint, despite their education level or history of sustainable goods spending. For example, many believe that a single-use cotton bag is more sustainable than a single-use plastic bag, when the cotton bag is actually less sustainable as it is resource-intensive to produce and would have to be reused 131x to break even. It’s important to give people in Asia the tools and the resources they need to identify greenwashing, so they’re not manipulated by deceptive campaigns by polluters.

Asia’s Focus on Climate Disclosure Must Lead to Regulation

In Asian markets, the most common forms of intervention against greenwashing are a focus on raising awareness and issuing guidelines and recommendations for transparency. We’re seeing a significant increase in climate disclosure requirements, where sustainability reporting has become mandatory in several countries including India, Japan, South Korea, Hong Kong and Singapore, but there are less severe consequences for companies that greenwash. 

Gill Wilson, adjunct professor of sustainability marketing, IE Business School in Madrid told Eco Business that “businesses feel under pressure to communicate sustainability to stay competitive, but often lack the knowledge or skills to communicate sustainability credibly, leaving themselves open to greenwashing allegations.” We see this in the marketing industry, where agencies know they must say something but are not always willing to follow up with meaningful climate action.

Several legal and regulatory initiatives in Asia are setting a great example. In January 2023, South Korea became the first nation in East Asia to draft a law to fine companies up to $2300 for greenwashing. In February 2023, the Securities and Exchange Board of India (SEBI) released ESG reporting requirements and in December 2022, Japan proposed a law amendment requiring mandatory ESG disclosures for public companies. 

Due to increased scrutiny and surveillance, companies and governments are starting to become aware that they must implement sustainability regulations. Robeco’s 2023 Global Climate Survey shows that 57% of investors in APAC are concerned about political pressure and legal action if they do not act on climate change and other ESG issues, compared to 63% in Europe and 40% in North America. Businesses are starting to improve the quality of their climate disclosures and the conversation is moving forward to hold them accountable.