Sceptics are aplenty. With investment returns failing to match expectations, ESG conversations have shifted. From the exuberant early days of the movement, pointed questions are now being asked. Is ESG undermining competitiveness? Is it foregoing company returns? Are increasing regulation taking a toll on operation? How should a company balance ESG goals with maintaining profitability?

These are valid questions that are increasingly being asked both within and outside corporate boardrooms. In Asia, however, these questions have always been a part of the conversation. Sure, there have been occasions when ESG was a marketing slogan, part of building brands. Corporate leaders in this region, however, have been clear-eyed from the get-go: ESG has to work and that it benefits the business in the long run.

As home to the fastest-growing economies, it is still a collection of emerging markets that face difficult livelihood vs loftiness tradeoffs, which are not as relevant as in the developed markets. Operating in a region such as Asia, the reality of addressing environmental and social issues with better governance are a daily occurrence.

In order to achieve better outcomes will require embracing best ESG practices. At a time of elevated concerns around geopolitics, and a growing tide to beef up defense spending as a result, ESG discussions are being sidelined. Yet, it is also an opportune time for Asia, providing a unique moment to articulate and elevate its position on the region’s ESG priorities that reflect the realities on the ground.

If the existential threat of climate change is going to be addressed, Asia needs to step up given that it is the most vulnerable and yet also the most consequential region. The region is also home to more than 50% of the world’s poor population, developmental work – addressing social issues – would be critical to building a sustainable future.

To address the multifaceted challenges ahead, corporate leaders in the region have pursued realistic strategies and scaling up where they made sense. In addition, some of the best companies have successfully aligned ESG with business strategy ensuring that ESG metrics complement financial goals.

Technology is also playing a part. It has been deployed to optimize resource allocation and drive efficiency. Its application has one end goal: improve both sustainability and profitability, which after all is what it’s all about in running businesses in the region and beyond.