Background

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Against a wider backdrop, HREDD remains a global trend on market leverage and trade policy tools such as public procurement standards and subsidies, whose impact grows as more jurisdictions adopt similar measures. This momentum places businesses in East Asia and ASEAN under pressure to act quickly and strategically to remain competitive.

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Although different Asian countries adopt different regulatory pathways and ambitions, it is clear that Asia is not just responding to the global trends, it is defining and leading the trend that forms a recognisable Asia way to due diligence. This approach shares several unique and common features, such as flexibility to local contexts, strong links to national development and trade strategies, a step-by-step regulatory rollout and, importantly, strong alignment with international due diligence frameworks. 

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However, challenges remain. Awareness and comprehension of HREDD remain limited. While ESG-related reporting frameworks and disclosure standards have been developed mainly by stock exchanges, government guidance on HREDD that reflects the specific realities and needs of businesses in Asia remains insufficient. Small and medium-sized suppliers face the greatest challenges as many lack awareness of these global regulatory trends and have limited motivation or capacity to take action. Even when there is an intention to engage with ESG issues, they often lack the necessary resources and are unsure where to begin. To understand legal requirements and appropriately collect and report relevant data, enhanced cooperation is needed among governments, large and small enterprises, civil society, and experts.

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This session examines how East Asia and ASEAN are formulating and implementing their HREDD frameworks, identify commonalities and distinct factors that shape legal and policy developments, and reframe the current regulatory and implementation gap as an opportunity. Through examples of business cases, regulatory reforms, industry initiatives and stakeholder engagement, this session will foster a shared understanding among stakeholders and co-develop practical solutions to improve working conditions, strengthen remedy, enhance competitiveness and meet global standards while remain competitiveness.

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Key Objectives

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• A clear understanding of how mHREDD frameworks are evolving in East Asia and ASEAN, including national trade and development strategies, trade relations, and alignment with international standards

• Identification of the main regulatory gaps and challenges in business capacity, particularly on awareness, resources, infrastructure and data readiness

• Practical recommendations such as stakeholder engagement, regional alignment, capacity building and others to improve working conditions, strengthen remedy, and enhance competitiveness while meeting global standards

• Strong connections between businesses, governments and experts to continue collaborations for the development of due diligence practices in Asia

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Guiding Questions

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• How are East Asia and ASEAN formulating and implementing their HREDD frameworks, and what common and distinct features define the “Asia Way” in aligning with international standards while adapting to local contexts?

• What are the key regulatory and implementation gaps, particularly in awareness, resources, infrastructure, and data readiness, that hinder business, especially SMEs, from meeting evolving due diligence requirements?

• How can governments, businesses, and other stakeholders cooperate to strengthen business readiness, promote regional alignment, and turn these challenges into opportunities for sustainable growth and competitiveness?​

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Session Partners