In recent years, discussions around Environmental, Social, and Governance (ESG) principles have expanded beyond large corporations, reaching small and medium-sized enterprises (SMEs). Last month, we looked at the mention of this concept on European business websites. This month we examine a few select countries within Asia to see how the concept is being adopted in the region.
To assess this, we analyzed web data from six key Asian markets—Japan (JP), South Korea (KR), India (IN), China (CN), Malaysia (MY), and Indonesia (ID). By measuring the frequency of ESG-related mentions across business websites, we can see how awareness has evolved from early 2023 to the end of 2024.
Making use of our comprehensive Search Engine data, we examined business and e-commerce websites across the aforementioned countries. Our analysis focused on the occurrence of ESG-related terms, including local translations, within the website content. This approach allowed us to gauge the level of engagement and awareness of ESG practices among SMEs in the region. The search terms included:
- China (CN): 环境、社会和公司治理 (Huánjìng, Shèhuì hé Gōngsī Zhìlǐ)
- Japan (JP): 環境・社会・ガバナンス (Kankyō, Shakai, Gabanansu)
- India (IN): Environmental, Social, and Governance (ESG) and पर्यावरण, सामाजिक और शासन (Paryavaran, Samajik aur Shasan)
- Indonesia (ID): Lingkungan, Sosial, dan Tata Kelola
- South Korea (KR): 환경, 사회 및 지배구조 (Hwangyeong, Sahoe mit Jibaegujo)
- Malaysia (MY): Alam Sekitar, Sosial dan Tadbir Urus
Figure 1 shows that across the region a slow but steady increase in the number of business websites mentioning ESG can be observed. Subsequently, we selected six countries based on the relatively high number of business and e-commerce websites available for analysis. Among these South Korea showed the most substantial growth, with mentions increasing by 171%, followed by India, Indonesia, and Malaysia with 125% growth (Figure 2) over the course of 24 months. Japan experienced a steady increase of 85%. China, although showing the slowest growth among the selected countries, still recorded a 36% rise at the end of 2024 compared to early 2023 with some fluctuations in between. Comparable to the European data, the countries with the lowest growth are, however, those with the highest absolute numbers, suggesting that these countries likely experienced higher growth in earlier years, with adoption slowing compared to other nations in the last two years.
The increasing mentions of ESG on business websites indicate that companies in Asia are slowly but steadily catch on to sustainable and responsible business practices. This shift is likely influenced by regional regulatory developments and a growing emphasis on sustainability. For instance, the Hong Kong Stock Exchange now requires listed companies to report ESG-related Key Performance Indicators, and the Singapore Exchange encourages boards to acknowledge ESG reporting requirements. These regulatory frameworks are likely influencing ESG integration.
However, challenges persist. SMEs often face difficulties in implementing ESG practices due to limited resources and expertise. Research by Statista highlighted that leading ESG implementation challenges for SMEs in the Asia-Pacific region include the perceived complexity of ESG frameworks.
The evolving role of ESG in Asian markets highlights the need for businesses—regardless of size—to stay informed and engaged with sustainability practices. SMEs that actively integrate ESG considerations into their business models stand to benefit from enhanced reputation, access to ESG-linked investment opportunities, and improved long-term resilience.
As regulatory frameworks continue to develop, we can expect greater ESG adoption across Asian SMEs in the coming years. Monitoring how this trend progresses will be crucial in understanding the broader impact of ESG on business landscapes across the region.
Source: dataprovider.com
