Are you a business owner looking to make a positive impact on the environment? In Southeast Asia, countries like Malaysia and Singapore are introducing regulations that encourage companies to report on their Environmental, Social, and Governance (ESG) performance, including carbon emissions. But where and how do you even begin? In this article, we’ll take you through the practicalities of carbon reporting. By measuring and tracking your emissions, you can identify areas for improvement and take action towards a more sustainable future. So, let’s get started!
Did you know that Southeast Asia is one of the most vulnerable regions to climate change? The burning of fossil fuels has resulted in the continuous increase in carbon dioxide emissions, leading to rising temperatures, more frequent droughts, floods and storms. These changes will have a significant impact on food security and living standards, exacerbating the already critical situation. It’s time for businesses in the region to step up and take urgent action to reduce their carbon footprint.
Carbon Reporting Regulations in Malaysia and Singapore
Carbon reporting in Southeast Asia is gaining importance in the past years. In Malaysia, Bursa Malaysia has introduced sustainability disclosure requirements effective in 2023, making it mandatory for all listed companies to disclose their climate-related risks and opportunities, and their strategies for managing these risks and opportunities. The disclosure should also include environmental, social, and governance issues such as diversity and inclusion, employee relations, and supply chain management.
Similarly, over in Singapore, companies listed on the Singapore Exchange (SGX) must report their sustainability practices as part of their annual reports. This includes key sustainability risks and opportunities, targets, and progress made towards achieving sustainability goals.
Aim to increase transparency, accountability, and stakeholder engagement, and to facilitate the transition to a more sustainable economy through sustainability reporting.
What is Carbon Reporting
Carbon reporting is the process of measuring and tracking greenhouse gas emissions that a company produces through its activities. It is the fundamental step towards developing your organization’s sustainability strategy.
Greenhouse gas emissions are categorized into three primary scopes:
- Scope 1 – Direct emissions from sources owned or controlled by the company, such as on-site fuel combustion.
- Scope 2 – Indirect emissions from the consumption of purchased electricity, heat, and steam.
- Scope 3 – Indirect emissions that result from sources not controlled nor owned by the company, such as emissions from the production of purchased goods and services.
Carbon Reporting
Carbon reporting can be done at the organizational level or the product level. Organizational reporting accounts for all emissions from the company’s operations, while product-level reporting covers emissions throughout the entire lifecycle of the product, from raw material extraction to disposal.
The step is to do perform a ‘baselining’ exercise. Company collects data on greenhouse gas emissions like utility bills such as electricity bill, fuel consumption records, transportation data, and waste disposal records. After collecting data on emissions, the total emissions for each scope is calculated and used as the reference to measure changes in emissions. The Greenhouse Gas Protocol is a widely accepted framework used to calculate emissions and provides guidance and a standardized methodology for companies to measure and report their greenhouse gas emissions. If needed, companies can also seek further guidance and assistance from sustainability consultants or carbon reporting experts to ensure accuracy and compliance.
Beyond compliance, carbon reporting has several benefits for businesses, including cost savings, improved reputation, and increased stakeholder trust. By tracking and reducing emissions, companies can identify areas of inefficiency and waste, leading to potential cost savings. Additionally, sustainable business practices are becoming increasingly important to consumers, investors, and other stakeholders, and reporting on sustainability can help companies build trust and improve their reputation. In conclusion, it’s time for businesses in Southeast Asia to take urgent action and reduce their carbon footprint. Carbon reporting is an essential tool for measuring and tracking emissions, and it can help companies develop a sustainable strategy that not only benefits the environment but also their bottom line.
