Compliance is the Floor, Not the Ceiling: Resetting the ESG Ambition Curve
- Keeshendra Kandiah
- May 7
- 2 min read
Why companies must move beyond reporting checklists and start building sustainability strategies that drive long-term business value.

Across Southeast Asia, the ESG conversation has matured—on paper. Regulatory frameworks like Bursa Malaysia’s enhanced sustainability reporting guidelines and Bank Negara’s CCPT have raised the baseline for corporate disclosures. Yet, many companies remain anchored in a compliance mindset: ESG is treated as a reporting function, siloed from core strategy, and often managed reactively to satisfy annual submission timelines.
This approach risks leaving real value on the table. As investors, regulators, and customers demand more meaningful progress, the ESG ambition curve must evolve—fast.
ESG Fatigue is Real—But It’s a Symptom of Misalignment
When ESG is treated as a documentation exercise, internal teams quickly experience burnout. Sustainability officers spend more time chasing data than shaping direction. Business units see ESG as a distraction rather than a driver. And leadership teams struggle to connect reporting outputs to actual business risks or opportunities.
The problem isn’t the frameworks—it’s the framing.
Reframing ESG as Strategy, Not Compliance
At PulsePoint Asia, we believe ESG is most powerful when it becomes a decision-making lens. This shift requires asking:
How do ESG risks impact our revenue, cost, or reputation over time?
Where can ESG unlock innovation, investment, or operational efficiency?
What capabilities do we need to operationalise sustainability, not just report on it?
Compliance is simply the floor. It creates consistency. But competitive advantage lies in what sits above it: strategic clarity, forward planning, and integrated governance.
The ESG Ambition Curve: A Southeast Asian Reality Check
In our work with clients across Malaysia and the region, we’ve observed three tiers of ESG ambition:
Reactive Compliance: Focused on ticking boxes, often outsourced, with limited internal ownership.
Integrated Performance: ESG linked to core metrics like risk, cost, or productivity. Materiality drives focus.
Transformational Strategy: ESG is a lever for new growth, product development, and stakeholder trust. Often championed by the C-suite.
Most companies today are stuck between Levels 1 and 2. The opportunity—and risk—is in how fast they can climb that curve.
A Strategic Way Forward
To move up the ESG ambition curve, companies should start with three fundamental shifts:
Reposition ESG as a strategic issue Anchor sustainability in enterprise risk and growth planning, not just reporting timelines. | Use materiality to drive focus Prioritise what matters to your business model — not what’s trending or universally reported. | Build internal ownership Equip business units to act on ESG, not just supply data for it. Make it everyone’s responsibility. |
Sustainability isn’t a department. It’s a lens on how you run your business.
Let’s Continue the ConversationWhere is your organisation on the ESG ambition curve? If you’re ready to move from compliance to competitive edge, let’s explore how your sustainability strategy can deliver meaningful impact—and lasting value. |
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