EHS & ESG trends in APAC

APAC continues to align its legislative efforts with the global pressure to tighten EHS and ESG regulations, primarily concerning the environment, worker health and safety, governance, and artificial intelligence. This article outlines the top regulatory trends in EHS and ESG across the Asia-Pacific region, with countries like India and Australia leading the way for a safer and more sustainable future. 

Watch the full webinar for an in-depth overview of the trends across Europe, the United States, and Asia-Pacific regions, from our Enhesa experts:  

• Rikke Vessia, Senior EHS and Sustainability Regulatory Consultant 

• Owais Talib Syed, EHS and Sustainability Regulatory Consultant 

• Jin Wang, Subject Matter Expert in Sustainability and ESG 

• Jordan Stone, our Regional Expert for the United States

EHS and ESG trends in the environment

Countries in the Asia-Pacific region have been accelerating regulatory efforts to promote more sustainable practices, with particular attention to advancing circular packaging initiatives and recyclability schemes. 

Here we summarize trending regulations in this sector across three APAC countries, as discussed in-depth by Jin Wang and Owais Talib Syed.
 

Recycling in Japan and South Korea 

Similar to Europe, there are increasing Extended Producer Schemes (EPR) obligations, especially on recycling requirements, in the APAC region. 

In South Korea, the Ministry of Environment has increased monetary recycling rates for a wide range of products and packaging materials, including: 

• Food packaging 

• Batteries 

• Tiles 

• Lubricating oils 

Some examples of the recycling rates are as follows: 

• Glass bottle: 0.758 

• Aluminum can: 0.813 

• Lubricating oil: 0.796 

• Lithium batteries: 0.463 

These rates, effective as of 1 January 2025, apply directly to the volume of products sold or imported, “creating clear compliance obligations for manufacturers as well as distributors,” says Jin. 

Meanwhile, in Japan, specified manufacturers and importers must meet the revised recycling ratios for containers and packaging. These updates targets, effective as of April 2025, are set by the competent ministry as part of Japan’s broader push toward a circular economy.
 

India’s EPR obligations 

At the end of 2024, India’s Ministry of Environment, Forest and Climate Change unveiled the draft Environmental Production Extended Producer Responsibility for Packaging and Sanitary Products Rules. 

The proposed rules aim to impose extended producer responsibility (EPR) on companies manufacturing or importing into India packaging made from paper, glass, or metal, as well as sanitary products. Applicable businesses would be required to manage the post-consumer waste through recycling and reuse policies, and proper disposal. 

The draft proposes to place recycling targets on producers, importers, and brand owners of packaging material and sanitary products. Additionally, minimum recycled content requirements could result in environmental compensation penalties and fines for non-compliance. 

This “marks a significant shift from the broader, but less targeted, Solid Waste Manage Rules 2016,” says Owais. 

If enacted into national law, these rules would take effect from 1 April 2026, mandating registration and compliance reporting via a centralized online portal.

EHS and ESG trends in worker health and safety

In the APAC region, both Japan and Taiwan are tightening their workplace chemical safety standards, prioritizing the health and wellbeing of employees. Alongside stricter exposure limits, many APAC countries are also advocating for better working conditions.
 

Exposure limits to harmful chemicals  

In April 2025, Japan’s Ministry of Health, Labor and Welfare (MHLW) proposed an amendment to update the country’s chemical exposure list. 

The MHLW includes 78 new substances in its revision, alongside revised classifications, to be enforced from October 2026. Companies handling any of the listed substances in an indoor workplace would be subject to chemical exposure limits and responsible for taking exposure reduction measures, record-keeping, and medical checkups for workers exposed over the limit. 

Taiwan has finalized similar amendments to its workplace exposure standards, effective from January 2027. These stricter limits will affect toluene, crystalline silica, and aluminum compounds, requiring companies to reassess their chemical management practices to enhance monitoring and ensure worker protection.
 

Better working conditions 

“Labor law reforms are also underway in the region to strengthen work protections and create better working conditions in general,” says Jin. 

South Korea released an amendment to their Labor Standards Act, proposing the extension of core labor protections such as working hours and leave entitlements to companies with four or fewer employees, which were previously exempt. 

Similarly in Japan, new obligations are coming into force to address workplace harassment and support workers undergoing medical treatment. By December 2026, companies must implement systems for worker consultation and take effective steps to prevent workplace harassment and retaliation. 

Thirdly, Singapore has recently adopted workplace equality measures with the publication of the country’s Workplace Fairness Act 2025 (commencement date to be announced). This Act will require companies with 25 or more employees to eliminate discrimination in employment decisions with regards to protected characteristics, such as: 

• Age 

• Nationality 

• Sex 

• Religion 

• Race 

• Marital status 

The Act also mandates that companies establish grievance handling procedures and prohibits retaliatory measures against employees who raise concerns with the proceedings. “This comprehensive framework signals a significant shift in Singapore’s employment landscape,” says Owais.

EHS and ESG trends in governance

Under the topic of governance, Owais Talib Syed explores India’s push to streamline ESG compliance and promote sustainable business practices with several amendments. In the Pacific, meanwhile, Australia is striving for similar ambitions.
 

ESG disclosures  

The Securities and Exchange Board of India recently amended its existing framework under the Listing Obligation and Disclosure Requirements regulations to introduce key changes to business responsibility and sustainability reporting (“BRSR”) requirements. 

It includes the option for applicable entities to choose between third-party assessments or assurance of their ESG disclosures under BRSR Core. The framework also mandates new disclosures on green credits and defers ESG reporting requirements for value chain partners under BRSR Core by one year, easing the compliance burden on smaller businesses. 

For the top 250 enlisted entities by market capitalization from the financial year 2025-2026, the ESG disclosures for value chain under BRSR Core have been made voluntary. The assessment and assurance for these disclosures has been made voluntary for the financial year 2026-2027.
 

Climate Finance Taxonomy  

India’s draft Climate Finance Taxonomy helps direct investments toward activities that support the country’s climate goals, including net zero by 2070.  

The taxonomy provides a structured framework with a hybrid approach to classify economic activities as either climate supportive or transition enabling. It initially focuses on five key sectors: 

1. Power  
2. Mobility 
3. Buildings 
4. Agriculture  
5. Water security 

It aims to attract both domestic and international green finance, prevent greenwashing, and ensure inclusivity for vulnerable communities.
 

Sustainable Finance Taxonomy 

Recently, Australia released its first sustainable finance taxonomy to provide a science-based framework to classify economic activities that contribute to climate change mitigation and broader environmental goals, such as the country’s net zero by 2050 ambition. It also aligns with the government’s sustainable finance roadmap. 

The taxonomy defines green and transition activities across key sectors: 

• Agriculture 

• Mining 

• Manufacturing 

• Energy 

• Buildings 

• Transport  

The taxonomy guides investment decisions to improve transparency and reduce greenwashing through its emissions threshold, lifecycle assessment, and decarbonization measures designed for voluntary use by financial institutions, corporate companies, and public entities.

EHS and ESG trends in artificial intelligence

As artificial intelligence (AI) becomes more frequent around the world, countries in APAC such as Hong Kong, Japan, Australia, and India are building regulatory safeguards into national legislation to monitor AI’s usage. 
 

Data centers  

Hong Kong is expanding its energy efficiency regulations to cover the rapidly-growing AI sector using data centers.  

In June 2025, the government published the Building Energy Efficiency (Amendment) Ordinance, which extends energy efficiency requirements to buildings or industrial spaces primarily used as data centers. 

New obligations will be implemented in two phases. From September 2025, data centers will be required to obtain a certificate of compliance registration, and from September 2026, they will have to conduct energy audits at a minimum of once every five years and display a copy of the energy audit form. 
 

Japanese AI bill 

Japan passed its first law regulating AI, “marking a major shift from its previous soft law approach,” says Jin.  

The bill lays the foundation for a national AI plan, introducing guiding principles for AI developers, providers, and users, such as cooperating with government investigations and aligning with national AI principles. This new AI bill also establishes an AI strategy center set to launch in summer 2025.  

Jin says “we can expect more detailed implementation rules and guidance to follow as Japan refines its approach to responsible AI development.”