Building Asia’s Pathway to Net Zero: Lessons from Business Leaders Across the Region
Aug 5th 2026
Asia is at the heart of the global economy and its transformation to net-zero. The continent generates more than one-third of global GDP, produces over half of all greenhouse gas emissions, and is one of the world’s fastest growing regions for science-based target-setting. The Science Based Targets initiative (SBTi) is expanding our presence in Asia, to enable more businesses to feel the benefits of decarbonization.
Following a week of discussions across India earlier this year, SBTi colleagues, including CEO David Kennedy and Chief Strategy & Transformation Officer Alex Kazaglis, recently met with business and climate leaders in China, Japan, and the Republic of Korea to identify challenges and opportunities in advancing corporate climate action.
China: Realizing the many business benefits of science-based targets
China is home to some of the world’s most carbon-intensive sectors and supply chains. Business leaders recognize this, and are increasingly seeking practical ways to strengthen competitiveness, manage transition risks, and succeed in global markets. In the panel discussions, bilateral meetings, and roundtable events we hosted, Chinese companies told us that setting science-based targets isn’t just good for the climate—it’s good for business.
Chinese businesses highlighted several benefits of science-based targets setting, which mirror those outlined in our Impact of Setting Science-Based Targets on Businesses report, including:
- Improved access to international markets and closer alignment with global best practices.
- Better alignment with domestic climate policies, and interoperability with domestic frameworks.
- Increased availability and quality of emissions data, especially for small- and medium-sized companies.
Given China’s central role in global supply chains, increased science-based target setting and the resulting data quality improvements could help companies across multiple regions address scope 3 challenges.
Chinese companies can find many translated resources on our website via a dedicated landing page.
Japan: The global leader in science-based target setting
Over 2,500 Japanese companies have validated science-based targets—that’s more than any other country worldwide.
As a global leader in corporate climate action, boosted by acknowledgement from government bodies, including the Ministry of the Environment of Japan (MOEJ) and the Tokyo Metropolitan Government, Japan has demonstrated how science-based target setting can become business as usual.
Businesses told us that they are navigating evolving expectations—domestically and internationally—around emissions management, sustainability reporting, and climate-related disclosures. As a result, they want alignment between the SBTi, regulations, disclosure frameworks, and sector-specific guidance.
There was broad support for the Corporate Net-Zero Standard Version 2.0, with particular focus on the greater range of options the Standard offers around implementation pathways, which gives companies the flexibility to pursue their targets in ways that make sense for their business while aligning with other frameworks and requirements. Companies also welcomed the best-efforts approach, transparent reporting on barriers to progress, and recognition of efforts to go above and beyond by investing early in carbon removal technologies that will be needed at scale by 2050.
Republic of Korea: Overcoming decarbonization challenges
The Republic of Korea is the eighth largest global economy and it is highly export-oriented. As home to many manufacturers in sectors including automotive, electronics, steel, shipbuilding, and chemicals, South Korea is a strategically important driver of corporate climate action.
Businesses told us about the importance of alignment with disclosure and reporting requirements. Having validated science-based targets will support South Korean companies to meet disclosure requirements. The SBTi requires annual reporting against targets, including through frameworks such as the International Sustainability Standards Board (ISSB) and Korean Sustainability Disclosure Standards (KSDS).
Discussions also touched on the difficulty of balancing emissions reductions while remaining competitive in high-emitting sectors, such as manufacturing. The SBTi recently launched multiple relevant engagement opportunities, including a call for evidence for high-emitting sectors. Businesses in South Korea and elsewhere are also invited to respond to our call for evidence for the forest, land, and agriculture (FLAG) sector and expression of interest for regional FLAG convenings—both of which will inform our work to develop version 2 of our FLAG Standard.
SBTi’s strategic focus on Asia
Choices made by businesses in Asia will have an impact worldwide—and the transformation to a net-zero global economy cannot succeed without them. The SBTi’s 2026-2030 strategy recognizes the significant potential of businesses across Asia to expand corporate climate action globally, and we are committed to working alongside these businesses to help turn the region’s growing climate ambition into action at scale.
We want to retain and expand our network of companies across Asia, deepen engagement through global supply chains, and strengthen representation across the region. We will be sharing more information about our plans in the coming months, and look forward to enabling more companies in China, Japan, the Republic of Korea and across Asia to feel the benefits of decarbonization.
