The ESG strategy crossroads: Why southeast Asia’s renewable energy boom demands better storytelling

By Marielle Solano, Account Manager 

A recent industry survey reveals a sobering reality: nearly half of energy executives now believe Net Zero goals won’t be achieved until 2070 or later – a full two decades behind schedule. This crisis of confidence has sent shockwaves through investment circles, with ESG funds seeing record outflows in Western markets as stakeholders question whether sustainability commitments are merely greenwashed PR. 

Yet in this climate of skepticism, one region stands out as a beacon of opportunity: Southeast Asia (SEA).  

The state of energy affairs in SEA 

While ESG fatigue sets in elsewhere, Southeast Asia attracted US$8 billion in renewable energy investments in 2024, with foreign capital accounting for 70% of the total. The region’s solar capacity is projected to grow 300% by 2030, while Vietnam and the Philippines are fast becoming offshore wind hubs, signifying a clear response to some of the world’s most ambitious renewable adoption targets (Malaysia’s 70% clean energy by 2050 pledge and Thailand’s carbon neutrality roadmap). 

But there’s a catch: capital is becoming increasingly discerning. Our proprietary research shows how the energy sector is at a crossroads, caught in a relationship with ESG that’s seemingly fraught with contradictions: 

• 17% of energy professionals see ESG as a core strategic priority 

• Yet 21% consider it unimportant – the highest “not important at all” response across sectors 

• 43% lack adequate resources to communicate ESG effectively 

This polarization stems from genuine tension. For energy businesses, ESG is unavoidable in decarbonization, and it represents both opportunity and reputational risk.  

Why traditional ESG reporting is failing in Asia’s hot markets 

Global capital flowing into ASEAN renewables demands verified ESG metrics – yet only 37% of energy communicators feel fully resourced to provide them. Plus, while energy professionals are most passionate about ESG personally (more than their tech and finance peers), 22% still treat it as a “nice to have” in communications – a dangerous approach in a region scrutinizing green claims. 

The old playbook – cookie-cutter sustainability reports, boilerplate impact statements – is collapsing under new pressures. 

Investors want both visionary leadership and granular proof points. Most communications lean too far one way. Additionally, Southeast Asian projects face unique scrutiny after high-profile greenwashing cases. Philippine wind farms must now document not just emissions data but indigenous community partnerships; Indonesian solar ventures are quizzed on supply chain transparency beyond just panel efficiency. 

The new rules of ESG strategy 

For renewable energy companies competing in Southeast Asia’s booming market, three urgent shifts are needed to transform ESG communications from a risk to a competitive advantage. 

First, the glaring disconnect between strategic priorities and execution must be addressed. While 17% of energy professionals identify ESG as a core priority, 21% report lacking the internal support to act on it. The solution lies in crafting ASEAN-specific narratives that resonate at all organizational levels.  

Second, the sector’s commendable vigilance against greenwashing has created an unintended consequence: strategic silence. Energy companies’ caution (they’re the most guarded against inadvertent ESG-washing according to our data) often manifests as missed opportunities to showcase legitimate progress. This can be overcome through third-party validated case studies that transform skepticism into credibility.  

Finally, with 47% of professionals believing ESG as a concept will fade, future-proofing messaging is essential. Rather than relying on potentially transient ESG terminology, leading firms are anchoring communications in enduring energy transition outcomes. This means spotlighting measurable grid decarbonization rates, workforce upskilling investments, or technology transfer programs – concrete indicators that will remain relevant regardless of ESG’s nomenclature evolution. 

The path forward 

The question is no longer whether ESG matters, but who will communicate it well enough to win in this new era.

To capitalize on Southeast Asia’s green energy wave, companies must move beyond generic reporting and embrace a more nuanced, evidence-driven approach. This means: 

• Aligning leadership and resources to bridge the gap between ESG ambition and action, ensuring narratives are as robust as the projects they describe. 

• Replacing caution with credibility – leveraging third-party validation and regional success stories to demonstrate tangible impact. 

• Future-proofing messaging by focusing on enduring energy transition outcomes, rather than buzzwords that may fade. 

Those who can master a balance of these nuanced factors will secure capital, accelerate the energy transition, and position themselves as leaders in Southeast Asia’s clean energy future.  

Becoming a trusted voice leading the sustainable energy transition requires localized strategies. Start the conversation with our Singapore team today.  

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About the author

Marielle Solano is an Account Manager based in our Singapore office. With a strong passion for storytelling and strategic communications, she helps organisations craft compelling narratives, engage stakeholders, and deliver measurable reputation impact.

Key takeaways 

Why is strategic ESG storytelling critical for renewable energy companies?

With growing investor skepticism, clear ESG narratives prove credibility and help secure funding in competitive markets like Southeast Asia.

What’s the biggest communication gap for sustainable energy companies?

21% lack resources to communicate ESG progress effectively – despite 17% calling it a top priority – leading to missed funding opportunities and a “say-do gap” that undermines credibility in a region where investors demand verified, localized sustainability proof.

How can renewable energy firms improve their ESG strategy?

Use data-driven case studies, highlight technology leadership (e.g. solar/wind innovations), and align with global standards.