ESG as Strategic Advantage at ASEAN Summit 2025

The conversation between Shinta Widjaja Kamdani, CEO of Indonesian conglomerate Sintesa Group, and Sunny Verghese, Executive Director and Group CEO of Singapore-based Olam, marked a significant shift in how regional business leaders perceive ESG frameworks. Rather than treating environmental, social, and governance requirements as mere regulatory checkboxes, both executives emphasized the strategic value of embedding these principles into core business operations. Kamdani highlighted how Sintesa Group has moved beyond compliance, integrating ESG considerations into decision-making processes across their diverse portfolio of businesses.

Verghese, whose company Olam operates across multiple agricultural supply chains, provided concrete examples of how sustainability initiatives have translated into tangible business benefits. He detailed how Olam’s focus on sustainable sourcing and ethical supply chain management has not only reduced operational risks but also opened new market opportunities with global partners who prioritize responsible business practices. This approach demonstrates how ESG integration can create value beyond meeting regulatory requirements.

The discussion at the Bloomberg Business Summit ASEAN highlighted Southeast Asia’s unique position in the global sustainability landscape. Both executives emphasized that the region’s diverse economies, ranging from emerging markets to developed financial hubs, provide fertile ground for innovative ESG implementation. Kamdani pointed to Indonesia’s rich natural resources and growing consumer market as opportunities for sustainable business models that balance economic growth with environmental stewardship.

Verghese addressed how ASEAN companies can leverage their regional advantages to compete globally. He noted that Southeast Asian businesses often have closer connections to agricultural and manufacturing supply chains, allowing for more direct implementation of sustainable practices. This proximity to production sources enables companies like Olam to implement traceability systems and environmental standards more effectively than competitors operating through multiple intermediaries.

The conversation moderated by Avril Hong explored how regional collaboration through ASEAN mechanisms could amplify individual company efforts. Both leaders suggested that shared standards and best practices across Southeast Asia could create a competitive regional bloc that appeals to international investors and partners seeking comprehensive ESG compliance across their supply chains.

Beyond theoretical discussions, the summit conversation delved into practical strategies for ESG integration. Kamdani shared Sintesa Group’s approach of aligning sustainability goals with business unit performance metrics, ensuring that ESG considerations influence operational decisions at every level. This method transforms abstract principles into measurable outcomes that contribute directly to the company’s bottom line.

Verghese emphasized the importance of viewing ESG investments through a long-term lens. He explained how Olam’s sustainability initiatives, while requiring upfront investment, have generated returns through improved operational efficiency, enhanced brand reputation, and access to preferential financing. This long-term perspective helps companies avoid the trap of treating ESG as a cost center rather than a value driver.

The executives agreed that successful ESG transformation requires leadership commitment and organizational alignment. Both highlighted the importance of clear communication from the C-suite about why ESG matters strategically, not just compliance-wise. This top-down approach, combined with bottom-up implementation, creates a culture where sustainability becomes embedded in the company’s identity rather than being treated as an add-on program.

The final segment of the discussion focused on how ESG integration positions Southeast Asian companies for success in international markets. Kamdani noted that global investors and partners increasingly use ESG performance as a screening criterion, making strong sustainability credentials a competitive necessity. Companies that excel in this area can access capital more easily and form partnerships with leading global corporations.

Verghese pointed to consumer trends as another driver for ESG adoption. He observed that international consumers, particularly in developed markets, show growing preference for products from companies with demonstrated environmental and social responsibility. This shift creates opportunities for Southeast Asian exporters who can verify their sustainable practices through credible certification and transparent reporting.

The conversation concluded with both executives expressing optimism about Southeast Asia’s potential to become a global leader in sustainable business practices. By treating ESG as a strategic advantage rather than a compliance burden, companies in the region can not only improve their own performance but also contribute to solving broader environmental and social challenges while strengthening their position in the global marketplace.