ESG site selection in Asia: when location decides the risk

Published in Site Selection Magazine | By Arunrat Chumroentaweesup and Kay Khaing Htun, Tractus

ESG site selection in Asia is no longer about commitments on paper. Carbon pricing now covers around 23% of global greenhouse gas emissions, governments collected roughly US$104 billion in carbon revenues in 2023, and the EU’s Carbon Border Adjustment Mechanism is fully implemented in 2026. For capital-intensive investors in the region, ESG has moved from a soft preference to a factor that eliminates sites before cost modelling begins.

In their latest piece for Site Selection Magazine, Tractus’ Arunrat Chumroentaweesup and Kay Khaing Htun set out how grid carbon intensity, renewable procurement options and physical climate exposure are now embedded in a facility’s long-term financial profile from day one. The article walks through three live engagements: a renewable integration call in Vietnam, an emissions and off-gas screen across more than 1,100 Southeast Asian industrial zones, and a six-country advanced materials search where ESG reshaped the shortlist after risk adjustment.

It also includes a structural ESG comparison across Thailand, Vietnam and Malaysia, covering disclosure alignment with the ISSB baseline, carbon market development, industrial zone governance and climate exposure.