ESG (Environmental, Social, and Governance) standards are in the limelight in Asia. ESG are used by investors to assess a company's sustainability and social impact. While environmental, social, and governance (ESG) was once considered a niche area of interest for investors, it has now become a critical consideration for companies looking to enter Asian markets. Here are three reasons why ESG is critical for Asian marketing and public relations strategies:

• ESG is an important component of brand image when going to Asia

To succeed in today's extremely competitive business climate, companies must differentiate themselves from their competitors. Building a strong brand image is one way to accomplish this. With that being said, ESG is certainly an essential part of that effort and increasingly important in the Asian markets. Customers, employees, and investors are progressively concerned about environmental, social, and governance (ESG) issues and are more likely to support companies that prioritise sustainability and social responsibility. According to an Accenture survey, 60% of Asian consumers said they would buy from a brand if it had a clear environmental or social purpose. Furthermore, according to a 2020 report by the Global Web Index, 45% of Asian consumers said they would pay more for sustainable products.

• ESG can assist in reducing risk in Asia

  Companies are exposed to a wide range of risks in today's globalised business environment, including reputational, legal, and financial risks. As governments are adapting into 2030 goals, there are also uncertainties when it comes to compliance.  Companies can mitigate some of these risks and protect their bottom line by prioritising ESG issues. Companies that place an emphasis on environmental sustainability in their marketing and public relations strategies, for example, are less likely to face fines for violating environmental regulations or to have their reputation harmed as a result of environmental accidents. Furthermore, companies that prioritise social responsibility are less likely to face labor disputes or disruptions in their supply chains.

• ESG is becoming more important to Asian investors

  As previously stated, ESG is an important consideration for investors. This trend is especially pronounced in Asia, what's more, many investors who are looking into Asian markets prioritise ESG issues when making sustainable investment decisions. According to the Hong Kong Investment Funds Association's 2020 survey, 73% of Hong Kong investors consider ESG factors when making investment decisions. This trend is expected to continue in the coming years as more investors recognise the value of ESG in assessing a company's long-term sustainability and social impact.

  To summarise, ESG is a crucial consideration for companies looking to enter Asian markets. Companies that place a premium on ESG issues can build a strong brand image, mitigate risks, and appeal to investors who value sustainability and social responsibility.   To learn more about our ESG consulting services in Asia, contact BuonX Consultancy today.     Resources: Accenture. (2020). From Me to We: The Rise of the Purpose-led Brand in Asia Pacific. Retrieved from https://www.accenture.com/_acnmedia/PDF-131/Accenture-From-Me-to-We-Report.pdf Global Web Index. (2020). Sustainable Brands Report. Retrieved from https://www.globalwebindex.com/reports/sustainable-brands Hong Kong Investment Funds Association. (2020). ESG Investing in Hong Kong: Shaping a Sustainable Future. Retrieved from https://www.hkifa.org.hk/FileUploads/Study/E/ESG%20Investing%20in%20Hong%20Kong%20-%20Shaping%20a%20Sustainable%20Future.pdf