Champions in corporate climate action can unlock significant growth and competitive advantage, according to the World Economic Forum’s Alliance of CEO Climate Leaders, which represents $4 trillion in revenues and 12 million employees in more than 130 companies.6 Between 2019 and 2023, its members reduced aggregate emissions by 12% while delivering revenue growth of 20%.7 Asian economies have the potential to transform industry responses to climate challenges and drive the decarbonization of value chains. On one hand, the region is heavily exposed to nature and climate risks, making it one of the planet’s most vulnerable locations in terms of climate change. For instance, in Viet Nam, approximately 80% of the country’s GDP is generated in coastal lowlands, which are highly susceptible to flooding and other climate impacts.8 Decisive action could help Asia avoid up to $780 billion in annual GDP losses by 2050 as a result of climate shocks.9 In other words, the region can convert passive risk into a net-positive growth driver. On the other hand, countries in the region are poised to leapfrog into state-of-the-art innovations through investment, policy and technological breakthroughs, such as emerging Asia-led regional improvements in energy transition readiness, with the support of considerable investment and robust regulations. For example, China’s clean-energy sectors contributed $1.9 trillion to the country’s economy overall, just above 10% of total GDP and accounting for 26% of all GDP growth in 2024.10 Additionally, proactively preparing for the emerging policy tools that could potentially impact the region’s industrial development, such as the EU’s Carbon Border Adjustment Mechanism, could protect as much as 12% of export revenues.11 In short, proactive decarbonization not only keeps companies within the red lines but also opens the door to resilience in low-carbon growth. 1.1 Asia stands to gain from climate action Asia emerged as a key driver of growth for science-based climate target setting, as evidenced by a 134% increase in the number of validated companies in the region from the end of 2023 to the end of the second quarter of 2025. China recorded the fastest growth rate over this 18-month period, with the number of companies with science- based targets growing by 228%.121.2 The evolving roles of Asian businesses 0 20 40 60 80 100 120 140Asia Latin America and the Caribbean Global Europe North America Middle East Oceania Africa+134% 1,228 2,874 +97% 4,205 8,282 +83% 2,264 4,140 +78% 523 933+99% 73 1 45 +64% 72 118+71% 14 24 +55% 31 48Growth in cumulative companies with Science Based Targets initiative (SBTi) targets between the end of 2023 and the end of the second quarter of 2025, by regionFIGURE 2 Source: Science Based Targets initiative (SBTi).$1.5 trillion was contributed to China’s economy in 2024 by its clean- energy sectors. Accelerating Value Chain Decarbonization for Corporate Growth: Perspectives from Asia 6

Accelerating Value Chain Decarbonization for Corporate Growth Perspectives from Asia 2025