Sustainability at the Crossroads: ESG Pathways in ASEAN’s Emerging Economies

Abstract

This conceptual paper critically examines the evolution and implementation of Environmental, Social and Governance (ESG) frameworks across selected ASEAN countries namely Malaysia, Indonesia, Vietnam and Thailand through a qualitative comparative analysis. The study aims to uncover the structural, institutional and policy-driven dynamics shaping ESG practices within the region, highlighting both progress and persistent challenges. Findings reveal Thailand as the regional frontrunner, driven by its integrated Bio-Circular-Green (BCG) Economy model that embeds sustainability into national policy and industry strategy. Malaysia and Indonesia possess relatively well-established regulatory frameworks, yet continue to face persistent challenges in enforcement, corporate readiness and stakeholder participation. Vietnam, on the other hand, demonstrates strong governmental commitment but slower adoption at the corporate level, largely due to limited institutional capacity and awareness. The comparative analysis underscores that ASEAN’s collective progress in advancing ESG principles depends on harmonizing regional standards, strengthening institutional capacity and enhancing corporate governance mechanisms. Common challenges across the region include insufficient technical expertise, inconsistent policy enforcement and high compliance costs, all of which continue to constrain the effective and widespread adoption of ESG practices. The paper argues that regional collaboration, knowledge sharing and capacity-building initiatives are essential to bridge the gap between policy and practice. Ultimately, the study contributes to a deeper understanding of ASEAN’s ESG trajectory and highlights the need for cohesive strategies to position the region as a sustainable and resilient economic bloc in the global landscape.