March 26, 2025
How ESG Communications Can Navigate Risks of Greenwashing Amid Southeast Asia’s Climate Crisis
The climate crisis is hitting Southeast Asia. With extreme weather events becoming more frequent, the region is bracing for months of higher-than-normal rainfall. Agriculture, tourism, and industrial output are already feeling the strain from a relentless series of storms. In a 2024 survey conducted by ISEAS - Yusof Ishak Institute, Southeast Asians consider floods (70.3%), heatwaves (51.8%), and landslides caused by heavy rainfall (49.8%) as the top three most severe consequences of climate change.
Close to 80% of Southeast Asians believe national governments hold the greatest responsibility for addressing climate change, followed by businesses at 55.9%.
For businesses, this isn’t just a wake-up call, it’s an urgent reminder to rethink their Environmental, Social, and Governance (ESG) strategies. Clear and credible ESG communication isn’t just about managing risks anymore; it’s about building trust. And trust is what consumers and investors are demanding in a world that’s more sceptical of corporate promises than ever.
Yet despite the growing need for transparency, some companies in Southeast Asia are pulling back on their ESG commitments. According to reports from Eco-Business and Bloomberg, there’s been a rise in ‘greenhushing,’ where businesses downplay their sustainability efforts to avoid backlash or accusations of hypocrisy.
At first glance, staying quiet might seem like the safer route. But it’s a gamble that could cost more than it saves. Greenhushing doesn’t just hide progress; it undermines the trust businesses need to thrive in an eco-conscious market.
Greenhushing doesn’t just hide progress; it undermines the trust businesses need to thrive in an eco-conscious market.
The vulnerabilities in Southeast Asia are all too clear. Take the 2024 floods in Malaysia, entire communities were evacuated, showcasing just how unprepared even major economies in the region are for the rising tide of climate disasters. Even Singapore, with its cutting-edge infrastructure, faces the dual challenge of mitigating environmental risks while maintaining its role as a global financial hub.
The stakes for businesses go beyond reputational damage. Extreme weather disrupts supply chains, destroys infrastructure, and halts operations. Sustainability can’t just be a nice-to-have Corporate Social Responsibility (CSR) initiative anymore; it needs to be at the core of every business strategy.
While ‘greenwashing’ has long been criticised, greenhushing is emerging as an equally damaging issue. When companies keep their ESG progress under wraps, they miss out on the chance to show stakeholders what they’re doing right. Worse, they fail the transparency test—a crucial factor for building consumer and investor confidence.
In Southeast Asia, where public trust in corporate accountability is still growing, silence isn’t golden. It could be a liability for brands.
Interestingly, compared to 2021, more respondents have a positive outlook on their governments' handling of climate change. This year, respondents from Singapore and Vietnam expressed the highest levels of approval, while those from the Philippines were the most critical, per ISEAS - Yusof Ishak Institute’s data.
For businesses in the region, this moment presents an opportunity. The market is shifting. Southeast Asia’s younger generations want to support brands that care about the planet, and investors are prioritising ESG performance in their decisions.
To stand out, companies need to be open about their sustainability journey. It’s not about being perfect, it’s about being honest. Share your wins, but also own up to areas that still need improvement.
Southeast Asia is one of the world’s most climate-vulnerable regions. But with that vulnerability comes the chance to lead. Businesses can show real commitment by integrating climate resilience into their ESG plans and working with local communities to adapt.
In cities like Jakarta and Manila, for example, companies can invest in sustainable supply chains, reduce carbon footprints, and support urban climate initiatives. These efforts don’t just protect communities, they help businesses earn trust from consumers and governments alike.
To stay ahead, businesses in Southeast Asia need to:
As the climate crisis reshapes Southeast Asia, businesses that step up with transparent and meaningful ESG strategies will be the ones that survive and thrive. Greenhushing might seem like an easy way to avoid criticism, but it risks alienating the very stakeholders who matter most.
The future belongs to companies that embrace bold action, communicate openly, and work to protect both their bottom line and the planet.
If you’re ready to lead the way in ESG communications, partnering with an experienced agency can help you navigate the complexities and stay ahead of the curve. Because in today’s world, doing the right thing isn’t just good business, it’s essential.