By Jessica Holman, Associate Director
Asia’s move towards mandatory ESG DD
Asia is emerging as a key region in the global movement towards mandatory ESG due diligence. Against a backdrop of rising geopolitical tensions, countries including South Korea, Japan, Thailand and Indonesia are accelerating efforts to introduce human rights and environmental due diligence (mHREDD) frameworks.
South Korea Leads the Way
South Korea has reintroduced a pioneering mHREDD bill in its National Assembly. If passed, this would be the first mandatory due diligence law in Asia, requiring large companies to identify, prevent, and address human rights and environmental risks across their supply chains.
The bill reflects growing global pressure for ethical trade and supply chain transparency, driven in part by US and EU forced labour import bans. South Korea’s vulnerabilities were recently exposed when the US banned imports from Taepyung Salt Farm over forced labour concerns — a stark reminder of the commercial and reputational risks businesses face.
Japan’s Shift Towards Formal Frameworks
Historically, Japan has relied on voluntary self-assessment tools such as supplier checklists. This often led to inefficiency and a lack of transparency. In response, Japan’s Ministry of Economy, Trade and Industry (METI) has issued new human rights supply chain guidelines and introduced industry-specific standards. For example, the Japanese Audit Standard for Textile Industry (JASTI) sets benchmarks to align textile and garment production with ILO conventions and domestic regulation.
Thailand and Indonesia Step Forward
Thailand is drafting a mandatory HREDD law alongside climate legislation on greenhouse gas reduction.
Indonesia is preparing a National Action Plan on Business and Human Rights to integrate international human rights obligations into national law.
These initiatives reflect a regional trend: Asia is increasingly aligning with global ESG standards while navigating complex geopolitical pressures.
Why It Matters
The next six months will be pivotal as these frameworks progress. For businesses operating in Asia, the message is clear: due diligence is no longer optional. Companies must prepare for stricter ESG compliance, ethical sourcing obligations, and transparent supply chains.
At Garancie, we are specialists in global due diligence. We help organisations navigate regulatory complexity, manage risk, and ensure compliance across diverse and challenging markets.
If your business is facing ESG or supply chain compliance challenges, get in touch — we’re here to help.
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