South-east Asian companies sharpen internal lens as ESG disputes rise

COMPANIES across South-east Asia have increasingly become more circumspect when dealing with their environmental, social and governance (ESG) practices. Part of the motivation for such internal precaution is to avoid litigation, say industry experts.

Janice Tay, partner at Wong & Partners, said that to this end, more companies are holding internal investigations to review actions led by their board of directors and individual employees. She added that she views this development as “interesting”, as it displays a level of raised awareness.

“Everyone is being held accountable, not just companies. We’re seeing countries, companies, directors, being held accountable and really being put to scrutiny”, she noted. The outcome of such investigations, depending on the severity of the wrongdoings detected, can result in minor warnings or even a board reshuffle.