This report highlights:

• Market growth and investor flows: Total labelled sustainable bond issuance across SEA and the Greater Bay Area surpassed USD 300 billion between 2015 and mid-2025, with SEA distinguishing itself through a more diverse mix of instruments, including social and sustainability bonds. In the first half of 2025 alone, roughly six percentage points of global climate fund allocations shifted to Asia-Pacific, marking the first major reallocation of climate-themed capital to the region in more than seven years.
• Supportive policy momentum: Most SEA countries have stepped up climate-related policies, from Singapore’s rising carbon tax and mandatory disclosure regime for listed firms, to Malaysia’s requirement for Scope 1 and 2 greenhouse gas emissions reporting from 2025, extending to Scope 3 by 2027. These shifts are laying the foundation for mobilising climate-aligned investment at scale.
• Corporate demand accelerating: Survey results reveal that 75% of SEA organisations increased their sustainability investment in the past year, and 86% plan to expand further over the next five years. The vast majority (89%) see sustainability as highly important to their strategy, with most regarding it as a driver of opportunity and efficiency rather than simply a cost. However, barriers remain, particularly around upfront costs and limited internal awareness.
• Hong Kong’s role: The survey also found that SEA organisations increasingly look overseas for sustainable finance opportunities due to limited domestic options. This presents opportunities for Hong Kong to expand its sustainable finance products and services to meet regional demand. More than half of the respondents identified transition finance frameworks, high-integrity carbon markets, and regionally focused investment vehicles as priority areas where Hong Kong can play a leading role.