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1、Accelerating Asias Advantage:A Guide to Corporate Climate ActionW H I T E P A P E RA P R I L 2 0 2 3In collaboration with Boston Consulting Group and SAPImages:Getty Images,Unsplash 2023 World Economic Forum.All rights reserved.No part of this publication may be reproduced or transmitted in any form

2、 or by any means,including photocopying and recording,or by any information storage and retrieval system.Disclaimer This document is published by the World Economic Forum as a contribution to a project,insight area or interaction.The findings,interpretations and conclusions expressed herein are a re

3、sult of a collaborative process facilitated and endorsed by the World Economic Forum but whose results do not necessarily represent the views of the World Economic Forum,nor the entirety of its Members,Partners or other stakeholders.ContentsForeword 3Executive summary 41 The battle for net zero will

4、 be won or lost in Asia 51.1 Asia represents the worlds biggest opportunity 7 for positive climate results 1.2 The current response to the climate challenge is inadequate 71.3 Change wont be easy as key challenges remain at both regional and corporate levels 81.4 Asia has much to lose in a climate e

5、mergency 102 Its time to adapt to whats to come and mitigate its effects 112.1 Adapting to a warmer world 112.2 Mitigating the rate of change 132.3 A single approach will yield great opportunities 132.4 Energizing a just transition 153 The corporate climate framework 203.1 What to do first:immediate

6、 actions 213.2 What good looks like:Zuellig Pharma drives impact through 22 transparent targets 3.3 Enabling transformation in the medium term 243.4 What good looks like:City Developments Limited invests to address emissions across the value chain 263.5 Unlocking new growth 273.6 What good looks lik

7、e:Olam combines digital transformation 28 and climate action 4 Follow your ambitions with committed actions 30Contributors 31Endnotes 32ContentsAccelerating Asias Advantage:A Guide to Corporate Climate Action2ForewordThe past 12 months were slated to be a year of sustainability action.The 2022 Unite

8、d Nations Climate Change Conference(COP27)in Egypt saw a breakthrough in funding for the loss and damage climate change has wrought.New legislation in the United States and Australia raised hopes and fuelled further climate investment.While these developments are welcome,the current trajectory on cl

9、imate action is still insufficient.Abiding by existing policies and strategies only serves to maintain a status quo that is harmful to our planet.Asia represents the worlds biggest opportunity to make tangible change.The size of Asian populations and economies,together with the regions enormous grow

10、th potential,offers great upsides for climate action.Businesses across Asia need to be at the forefront of the drive towards climate action.Corporate entities,whether private or state-owned,are responsible for an overwhelming share,some 51%,of global emissions and bear a strong responsibility for ac

11、celerating climate action efforts.Alongside bold policy development from governments,businesses can play a critical role in mitigating climate impact while also boosting their own competitive advantage.This report,prepared jointly by the World Economic Forum,Boston Consulting Group and SAP,provides

12、a business perspective on climate action.The findings of this report are based on first-and third-party quantitative and qualitative research from across Asia.We conducted interviews with a range of senior executives from leading Asian companies across sectors from energy to transport and from indus

13、trial sectors to agriculture.Our analysis was supplemented by additional research from a range of sources,including the International Energy Agency(IEA),Climate Watch,the UN Intergovernmental Panel on Climate Change and the World Bank,in addition to previous work undertaken by Boston Consulting Grou

14、p and SAP.The ambitions,commitments and promises we hear regularly are meaningful only if combined with allied actions,both today and tomorrow.Businesses must plan their corporate climate action framework across three key phases.First,they must take immediate action to measure benchmarks,set targets

15、 and introduce emission reduction solutions.Second,they must mobilize resources and accelerate ecosystem collaboration.And third,they should begin to unlock growth within their value chain and beyond.We live in an age of urgency,and Asia is a region that will decide the success of global climate act

16、ion efforts.Only by committing to bold and immediate change can Asian businesses and their leaders contribute to a brighter future for our planet and better lives for our people.Gim Huay Neo Managing Director,Centre for Nature and Climate,World Economic ForumPaul Marriott President Asia Pacific&Japa

17、n,SAPNeeraj Aggarwal Chairman Asia Pacific,Boston Consulting GroupAccelerating Asias Advantage:A Guide to Corporate Climate ActionApril 2023Accelerating Asias Advantage:A Guide to Corporate Climate Action3Executive summaryThe success of climate action in corporate Asia will have an exponential influ

18、ence on the worlds net-zero transition.The need for climate action has never been better understood.But now is the time for action.Asias companies face considerable risk from climate change but also have one of the most significant opportunities to realize economic benefits.Asia represents the bigge

19、st opportunity for global climate action.In addition to being the driving engine of global economic growth,Asia also produces the biggest share(51%)of contemporary global emissions.Yet the policy and corporate response in Asia is not currently proportional to the risk the region poses.Realizing this

20、 opportunity requires managing unique challenges.Asias enormous diversity and complexity means there can be no single solution to climate change.The region contains some of the worlds fastest-growing economies,leading to increasing demand for more,lower-cost energy.Yet Asia has more to lose than mos

21、t.Even beyond the terrible potential impact on peoples lives,Asia is economically vulnerable to climate change,with 26%of GDP predicted to be at risk if temperatures increase by 3.2C.And the countries that are the least able to deal with disaster are most at risk,as recent climate events have shown.

22、Adaptation and mitigation must be pursued with equal force and urgency.The goal of reducing global temperatures through climate mitigation remains critical.But leaders must also acknowledge that a warmer world is inevitable,and adapt to its demands.A focus on adaptation should not minimize efforts o

23、r investment to mitigate climate change but complement its aims.The report is a guide to corporate climate action.Businesses across Asia,in every industry,have a fundamental responsibility to act and will have to adapt to new realities while simultaneously contributing to a broader net-zero transiti

24、on.Using the examples of some of Asias leading organizations,the report provides a framework to guide businesses on immediate,medium-term and transformational steps.The business case for climate action is clear.Organizations that ignore or hedge their strategies gamble their ethics,revenues and comp

25、etitive advantage.Its time for leaders to make bold change for the good of their businesses,and the world.We are in a life-or-death struggle for our own safety today and our survival tomorrow.There is no time for pointing fingers or twiddling thumbs Every government,every business,every investor,eve

26、ry institution must step up with concrete climate actions for net zero.Antnio Guterres,UN Secretary-General,October 2022Accelerating Asias Advantage:A Guide to Corporate Climate Action4The battle for net zero will be won or lost in Asia 1Despite the increasing threat of climate risk,there are reason

27、s to be optimistic.The world is set to miss the 1.5C target outlined in the Paris Agreement.1 There is close to a 50/50 chance that global communities will breach this temperature threshold in the next five years,2 bringing an increased threat of climate risks such as extreme weather events and risi

28、ng sea levels.But there remain grounds for optimism.Developed countries such as the United States and Australia have passed long-hoped-for legislation committing to a more sustainable future,and the worlds biggest annual carbon emitter,China,has recorded falling emissions in recent months.3 Yet sign

29、ificantly more needs to be done,and quickly.The worlds success or failure in achieving its shared climate goals will be critically dependent on the performance of countries and companies in Asia.As a region,Asia is responsible for 51%of annual global greenhouse gas(GHG)emissions,with China,India,Jap

30、an,Indonesia and South Korea together accounting for 43%of the overall total(Figure 1).The Asia-Pacific region is responsible for 50%of annual global GHG emissionsFIGURE 1Percentage of worlds CO2 emissions010%1020%20%+North AmericaEuropeMiddle EastAfricaEurasiaAsia-PacificSouth America16%16%3%11%4%5

31、%51%6%Source:Climate Watch;BCG AnalysisAccelerating Asias Advantage:A Guide to Corporate Climate Action5The scale of emissions extends across industries.Asia alone is responsible for more than half of annual emissions in major industries electricity,manufacturing,industry and land use.4But the impac

32、t of Asias climate response shouldnt be considered in a vacuum.Asian climate action has a direct impact on the health of the whole planet.Asian economies including China,South Korea,Indonesia,Malaysia and Japan play a significant role in global supply chains.That results in large interregional flows

33、 of embedded CO2 emissions(Figure 2).Asias prominence in global supply chains has a significant effect on emissions flows FIGURE 2South Korea29.360.3Japan20.457.874.169.4136.180.1RegionsOutgoing(Mt)Incoming(Mt)61.215.60.517.95.025.6Outgoing(Mt)Incoming(Mt)ASEANChinaRoWNew ZealandAustraliaAustraliaNe

34、w ZealandRest of the world(RoW)ChinaASEAN JapanSouth KoreaOUT:5.0IN:25.6OUT:0.5IN:17.9OUT:61.2IN:15.6OUT:136.1IN:80.1OUT:74.1IN:69.4OUT:20.4IN 57.8OUT:29.3IN:60.3Source:Springer Nature,2022Note:Largest interregional flows of carbon in trade in 2021,measured in millions of metric tons CO2 equivalent;

35、Mt=millions of metric tonsAccelerating Asias Advantage:A Guide to Corporate Climate Action6The scale of opportunity in Asia cannot be understated.The region is home to almost 60%of the worlds population,5 accounts for 53%of primary energy consumption6 and generates 45%of global gross domestic produc

36、t.7Asia is responsible for more than half(53%)of the reduction needed to achieve the International Energy Agency(IEA)s Sustainable Development Scenario by 2050,including 88%of the required reduction in global coal emissions.8The region has not yet realized its full economic potential.Driven by China

37、,India and rapidly developing economies in South-East Asia,Asia is expected to see gross domestic product(GDP)growth at rates well above the global average.9Yet despite its lead in population and economic growth,Asia lags in per capita development across GDP,energy consumption and GHGs.10 Any increa

38、ses in these areas will further affect climate and make the change required harder to resolve.1.1 Asia represents the worlds biggest opportunity for positive climate results1.2 The current response to the climate challenge is inadequate Regional decarbonization rates highlight the need for actionFIG

39、URE 3Regional decarbonization ratesEmissions/GDP change,%CAGR for the period201020202015202020102015-2.9%-3.5%-2.2%-2.5%-3.2%-1.8%1.6%1.1%2.1%2.7%0.4%5.0%1.3%3.2%-0.5%2.3%3.9%0.6%-0.7%-1.5%0.1%Worldwide accelerationafter 2014 Paris alignmentWorldEUUSChinaIndiaSEARoAPRelative decoupling of emissions

40、from GDP in developed countriesAP region needs to accelerate decoupling and turn the trendThe global action required to limit climate change to 1.5C is currently insufficient.The rate of decarbonization between 2015 and 2020 stood at just-1.5%globally this trajectory would lead to at least a 3C incr

41、ease in temperatures by 2030(Figure 3).Decarbonization rates of 6%are needed to limit warming to 2C,and of 16%for the target of 1.5C by 2030.Asias decarbonization rate remains significantly below the worlds average and isnt expected to improve in the near future.Assessment of the regions existing na

42、tional policies and commitments implies that carbon intensity will remain at the same level for the next decade,with acceleration of decarbonization happening only after 2030.The same analysis predicts an increase in renewable energy as a share of the energy mix of just 5%by 2030,while energy supply

43、 is expected to grow by 18%.Note:CAGR=compound annual growth rate;SEA=South-East Asia;RoAP=rest of Asia-PacificSource:Climate Watch Historical GHG Emissions Data,BCG analysisAccelerating Asias Advantage:A Guide to Corporate Climate Action7At a corporate level,there has been an encouraging accelerati

44、on in the number and scale of commitments,as well as in reporting on climate action initiatives.In 2021,3,879 companies in Asia disclosed their climate targets and emissions through the Carbon Disclosure Project(CDP)a 29%increase year-on-year.However,only around 900 of those companies had adopted sc

45、ience-based targets,and just 300(8%)had net-zero targets.There is also work to be done to turn commitments into action,with only 38%of companies reporting that they are following a specific low-carbon transition plan.111.3 Change wont be easy as key challenges remain at both regional and corporate l

46、evelsAt a macro level,there can be no single approach for success in Asia,given the regions complexity and diversity.Asia is home to 49 countries and 2,300 languages and there are significant differences in key industries,natural resources and economic considerations within individual countries,let

47、alone across borders.Strategies must be tailored for each country,taking into account demographic and socioeconomic circumstances as well as the current maturity of climate action development.Balancing macro priorities will be a challenge.Asia contains several fast-growing economies that are likely

48、to see increasing demand for low-cost and abundant energy as they develop.Gaps in access to that energy must be balanced with the clean energy transition to ensure equitable growth.This transformation requires significant investment regions such as South-East Asia and India need to double their clea

49、n energy investments to even meet their Stated Policies Scenario(STEPS)goals(Figure 4).12Clean energy funding needs new impetus even to reach stated goalsFIGURE 4Clean energy investment by region as a share of GDP,20152030Clean energy investment in South-East AsiaEurasiaMENASub-Saharan AfricaIndiaSo

50、uth-East AsiaLow-emission fuels2Efficiency and end-useClean electricity3Share of clean40%4%2%6%8%20162018202020262030 SDS1010050150100%$B(2020)50%0%2015201620172018201920202021ESTEPS20262030+123SDS1 SDS refers to the IEAs Sustainable Development Scenario;2 Low-emissions fuels include modern solid,li

51、quid and gaseous bioenergy,low-carbon hydrogen and hydrogen-based fuels that do not emit any CO2 from fossil fuels directly when used and also emit very little when being produced;3 Clean electricity includes low-carbon generation,power infrastructure grids and batteries;4“Share of clean”=clean ener

52、gy investment as a share of total energy investment.Investment is measured as ongoing capital spending in energy-supply capacity(fuel production and clean electricity)and incremental capital spending above a baseline for energy end-use and efficiency sectors(in buildings,transport and industry)Sourc

53、e:IEA,South-East Asia Energy Outlook 2022:https:/www.iea.org/reports/southeast-asia-energy-outlook-2022Accelerating Asias Advantage:A Guide to Corporate Climate Action8Meanwhile,corporate Asia is making slow progress.Today,50%of Asian businesses believe that addressing environmental issues will be m

54、aterial to business results within the next five years.13But there remain both external and internal barriers to corporate progress.Externally,major policy development has largely stalled14 and there are still no standardized global reporting formats,nor a global carbon price.While consumer interest

55、 in environmentally responsible goods is strong,higher pricing and lower availability of sustainable goods has hindered adoption.15Internally,key obstacles including strategy alignment,data use and access to resources are still being tackled.Uncertainty is the top critical barrier for businesses,tho

56、ugh 42%of South-East Asian businesses say lack of environmental strategy is holding them back,while 33%point towards lack of funding(Figure 5).16Another unique aspect of corporate Asia is the prevalence of family-run businesses.As many as 300 of the 500 largest companies by revenue in India are fami

57、ly-owned and operated.This offers a unique challenge and opportunity for climate action.Data is critical to benchmark climate action and set targets,yet 59%of South-East Asian businesses are not completely satisfied with their ability to accurately measure their environmental impact:20%of South-East

58、 Asian companies rely solely upon assumptions and estimates to assess the environmental impact of their supply chain.The barriers to corporate climate action varyFIGURE 5Uncertainty caused by COVID-19 pandemicTimingStakeholderindifferenceNo business caseCapability gapsNo barriersCustomer indifferenc

59、eLack of support from senior managementInability to get partners/suppliers to actNot a business priorityOrganizational resistanceActions not requested by partnersNot necessary as competitors arent taking actionLack of fundingDoubtful about ability to measure impact on environmentLack of necessary ex

60、pertiseUnclear how to embed sustainability into business processes and IT systemsUnclear how potential actions would align with organizational strategyLack of environmental impact strategyDont know where to startLack of necessary expertiseWe have had no specific barriers49%27%21%20%18%17%17%12%33%24

61、%29%27%22%42%9%32%8%Note:South-East Asia(N=580),percentage who chose a barrier anywhere in their top 5Source:SAPAccelerating Asias Advantage:A Guide to Corporate Climate Action91.4 Asia has much to lose in a climate emergencyThe worrying fact is that,even if the 1.5C targets set in the Paris Agreeme

62、nt are achieved,Asia will still bear the brunt of more and more extreme weather events,as well as a shift in its broader climate.At 1.5C,Asian countries will still have to deal with as many as 60 million people affected by coastal flooding every year,a risk of long-term degradation to 70%of coral re

63、efs through bleaching,around 5%lower crop yields and a 1.8 times increase in heatwaves.17However,the worlds current trajectory is to see a 4C increase by 2100.The results of such warming are unconscionable severe food crises,an 8.2%increase in heatwaves and the potential flooding of a number of capi

64、tal cities.In Asia,rising sea levels are already a threat.Almost 12%of South-East Asias population is even now at risk of displacement,18 and big urban metropolises are in real jeopardy.Jakarta is the fastest-sinking city in the world,while central Tokyo,Manila and Bangkok are all at extreme risk of

65、 floods.19The most significant effect of climate change will be on peoples livesBOX 1The biggest and most important impact of climate change will be to peoples lives and livelihoods.Even today,there is evidence that at least 85%of the global population has experienced weather events made worse by cl

66、imate change.20 That number will only grow.While those impacts are disturbing,this report is primarily focused on corporate action and,as such,the economic and organizational impacts.Asias exposure to climate risk makes the region particularly vulnerable.While global temperature rises will affect ec

67、onomies in every corner of the globe,Asia is in extreme danger.Based on a severe increase of 3.2C,Asia is projected to see a reduction in GDP of more than 26%,trailing only the Middle East and Africa(-27%).In fact,South-East Asia fares even worse,with an expected hit of 37%by far the worst-affected

68、region around the globe(Figure 6).It is past the time for economies in the region to take notice.Four South-East Asian nations Myanmar,the Philippines,Viet Nam and Thailand are among the top 10 countries most affected by climate change in the past 20 years.21The potential GDP impact could cause even

69、 further pain.Consider the effect that the projected 46%drop in GDP could have on Singapore or Malaysia,a 43%GDP drop on Thailand or a 39%GDP drop on Indonesia.22Global temperature rises will negatively affect GDP in all regions by mid-centuryFIGURE 6Well below 2C increaseParis target3.2C increaseSe

70、vere cases2.0C increase2.6C increaseThe likely range of global temperature gainsWorldOECDNorth AmericaSouth AmericaEuropeMiddle East and AfricaAsia-PacificDeveloped AsiaASEANOceania-21%-33%-12%-12%Simulating for economic loss impacts from rising temperatures in%GDP,relative to a world without climat

71、e change(0C)-4.2-11-13.9-18.1-3.1-7.6-8.1-10.6-3.1-6.9-7.4-9.5-4.1-10.8-13-17-2.8-7.7-8-10.5-4.7-14-21.5-27.6-5.5-14.9-20.4-26.5-3.3-9.5-11.7-15.4-4.2-17-29-37.4-4.3-11.2-12.3-16.3Source:Swiss Re Institute,The Economics of Climate Change:No Action Not an Option,2021:https:/ Asias Advantage:A Guide t

72、o Corporate Climate Action10Its time to adapt to whats to come and mitigate its effects2The solution to the climate challenge is to create a strategy that acknowledges the reality faced while also working to significantly slow the pace of global warming.Achieving this goal requires two equally criti

73、cal strategies adaptation and mitigation.2.1 Adapting to a warmer worldAdaptation is not an alternative to a redoubled effort to stop climate change,but an essential complement to it.Failing to lead and act on adaptation will result in a huge economic and human toll.Global Commission on Adaptation23

74、Adaptation as a concept concedes that the world will continue to warm,even if every target and goal that has been set is met.It recognizes that changes will need to be made to deal with the results of that warmer world.A focus on adaptation does not concede that the battle to mitigate the effects of

75、 climate change has been lost.Instead,the effects of a changing climate have to be understood and managed today,while activity is increased to mitigate change in the future.Adaptation must be considered locally as the impacts of climate change are nuanced and particular to the country-specific conte

76、xt(Figure 7).This requires primarily local activations focused on short-term reductions in risk and investments in system and infrastructure resilience,with similarly local benefits.In particular,differences in the reliance on food systems,the level of vulnerability to disasters and existing adaptat

77、ion planning must be taken into account.Accelerating Asias Advantage:A Guide to Corporate Climate Action11Adaptation costs differ markedly across countriesPotential returns(10-year benefit over a five-year investment period)FIGURE 7FIGURE 8MalaysiaNegligible initiativesAdaption cost,billion dollars

78、per annum1201910ChinaFocused on already-visibleeffects,e.g.drought and flood impacts on food securityIndiaUncoordinated and led by local governments in vulnerable areasIndonesiaFocused on infrastructure,e.g.moving capital from Jakarta to KalimantanAgricultureInfrastructure Disaster planningHealth12.

79、0%20.0%36.7%7.0%10.0%71.0%1.4%43.4%18.5%0.0%73.0%7.0%12.0%1.0%72.0%15.0%Early-warning systemsInfrastructure resilienceAgri and food securityProtecting mangrovesWater management9x4x4x5x6xThe benefits of adaptation are clear,from mitigating future risk and avoiding loss,to direct economic and socioeco

80、nomic benefits.Over the course of a decade,potential returns tally up to a 9x return on early-warning systems,a 4x return on infrastructure resilience and a 5x return on agriculture and food security(Figure 8).Source:Global Center on Adaptation,State and Trends in Adaptation Report 2020:https:/gca.o

81、rg/reports/state-and-trends-in-adaptation-report-2020;World Resources Institute;BCG analysisSource:World Bank Group,Economics of Adaptation to Climate Change Study,The Cost to Developing Countries of Adapting to Climate Change,2019:https:/documents.worldbank.org/en/publication/documents-reports/docu

82、mentdetail/667701468177537886/the-costs-to-developing-countries-of-adapting-to-climate-change-new-methods-and-estimates-the-global-report-of-the-economics-of-adaptation-to-climate-chang;Channel News Asia,NDR,It Could Cost$100 Billion to Protect Singapore Against Rising Sea Levels,2019;BCG Analysis12

83、Accelerating Asias Advantage:A Guide to Corporate Climate Action2.2 Mitigating the rate of change2.3 A single approach will yield great opportunities While adaptation is important,it is also crucial to slow and ultimately reduce the rate of global temperature rises.Climate mitigation is a better-und

84、erstood strategy,based on tackling global issues through worldwide coordination and action.Climate mitigation focuses primarily on investing in decarbonization,slowing GHG emissions and removing existing GHGs from the atmosphere.Asia is expected to lead the way when it comes to clean energy investme

85、nt activity over the next decade,with opportunities to increase the small installation bases of both solar and wind infrastructure(Figure 9).Investment in energy infrastructure will be needed in most countries,as well as in building projects to offset the rapid expansion of urban living,in transport

86、 to assist in the growth in population mobility and even in agriculture and forestry in countries with big farming industries.Energy leads key mitigation costs,but investment is needed in a variety of areasFIGURE 9Malaysia227119912ChinaIndiaIndonesiaEnergyIndustryAgri/forestry Others1BuildingTranspo

87、rt48.0%2.0%50.0%32.0%32.0%5.0%4.0%25.0%37.0%5.0%2.0%5.0%49.0%70.0%1.0%29.0%3.0%2.0%Many adaptation and mitigation options can help address climate change,but no single option is sufficient by itself.Effective implementation needs integrated responses that link mitigation and adaptation.Intergovernme

88、ntal Panel on Climate ChangeIt is not possible to adapt without mitigation or to mitigate climate change without adaptation.The two strategies must be pursued simultaneously and soon.Yet it is important to recognize that these activities will require significant investment by nations and businesses,

89、both in terms of capital investment and of opportunity cost.For example,countries will need to balance funding for climate action alongside competing agendas and national priorities such as big infrastructure projects,transport programmes or even social campaigns.It would be a mistake to consider cl

90、imate adaptation and mitigation only through a cost lens,however.New opportunities,revenue streams and jobs will emerge as industries evolve to deal with changing environmental focuses.In addition,the move from carbon-intensive practices to more efficient ways of working will see a value transition

91、in a range of key industries(Figure 10).1 Covers miscellaneous sources such as fewer fugitive emissions from mining,less landfilling,etc.Source:Burchardt,Jens,The Economic Case for Combating Climate Change,BCG,27 September 2018:https:/ analysisAccelerating Asias Advantage:A Guide to Corporate Climat

92、e Action13The evolution of industries will see a value shift towards low-carbon practicesAdaptation and mitigation will spur a boom in climate revenues and new jobs:the top 10 opportunities in AsiaFIGURE 10FIGURE 11Losing valueFossil fuel extraction and generationICE manufacturing and servicingLow-E

93、E and low-resilience buildersLow-EE and low-resilience producersLow-resilience agriculture,smallholdersRenewables manufacture and generationEV manufacturing,infrastructure and mobility servicesRetrofitting low-EE stock,high-EE buildersHigh-EE and high-resilience producersHigh-resilience agriculture,

94、large producersEnergyTransportConstructionIndustryAgricultureGaining value177Size of business opportunity in 2030$billions,1 2019 valuesFood,land and ocean useInfrastructure and built environmentEnergy and extractivesBusiness opportunityExpansion of nature-positive renewables321275265258233210198164

95、1622,26117,8537,30321,12829,5224,71324,5287,8724,74715,291542133,499Circular economy automotiveEnergy efficiency in buildingsOrganic food and beveragesReducing food loss and waste in the value chainDiversified vegetables and fruitsWaste managementCircular economy appliancesReducing consumer food was

96、teResource recoveryTop 10 opportunitiesSize of incremental annual opportunity in APAC 2030:$billions1Total APAC jobs by 2030:1,000sThere are already significant opportunities for businesses involved in adaptation and mitigation.Consider the incremental revenue opportunity that could be available by

97、2030 from activities such as the expansion of renewable power,energy efficiency in buildings and greater circularity in producing industries.The total opportunity is enormous,with revenues of approximately$4.3 trillion available for Asian businesses to claim representing a 43%share of the total glob

98、al opportunity(Figure 11).The story is the same when considering job growth.More than half(58%)of the 395 million new jobs predicted to be required to service new revenue opportunities will be situated in Asia across food,land and ocean industries,infrastructure and the built environment,and energy

99、and extractives.241 Based on estimated savings or project market sizing in each area.These represent revenue opportunities that are incremental to business-as-usual scenarios.Where available,the range is estimated based on analysis of multiple sourcesSource:Literature review;market research;expert i

100、nterviews;Temasek,the World Economic Forum and AlphaBeta,New Nature Economy:Asias Next Wave:Risks,Opportunities and Financing for a Nature-Positive Economy,September 2021:https:/www.ecosperity.sg/content/dam/ecosperity-aem/en/reports/new-nature-economy-asia-low-res-pages.pdfNote:ICE=internal combust

101、ion engine;EE=energy efficiency;EV=electric vehicle Source:BCG analysisAccelerating Asias Advantage:A Guide to Corporate Climate Action142.4 Energizing a just transitionThe energy transition is a critical focus of both adaptation and mitigation strategies.but it brings with it significant ongoing ch

102、allenges.Only through a move to renewable energy sources can the world meet the net-zero challenge.Yet increasing the share of renewable and environmentally sound energy is taking time.Asia has to balance the transformation of its energy mix with the ability to provide secure,affordable energy to gr

103、owing economies a so-called“just transition”.A just transition is vital to address both mitigation and adaptation through fair and inclusive action,ensuring that no community is left behind and inspiring essential buy-in from nations and citizens at different levels of the socioeconomic spectrum aro

104、und the world.A growing region needs energy.In fact,Asia represents almost two-thirds of projected growth in global energy demand,taking into account India(26%),China(22%)and South-East Asia(12%).25 It is concerning that demand is likely to be largely made up of fossil fuels in the near term.Asia is

105、 expected to see an increase in energy demand of 18%by 2030 according to the International Energy Agencys Stated Policy Scenarios,a granular,sector-by-sector look at existing energy policies and measures as well as those that are under development.Yet even fully implementing current policies will se

106、e an increase of only 5%for renewables share of the energy mix,far below the 12%increase required to achieve key development targets(Figure 12).Asia must increase the proportion of renewables in its energy mixFIGURE 12Stated policy scenarioSustainable development scenarioAP regions energy mix(%of to

107、tal energy supply)AP regions energy mix(%of total energy supply)RenewablesTraditional use of biomassNuclearNatural gasOilCoal202020302050202020302050259,217306,551335,443259,217276,060264,97947.7%41.1%24.5%12.5%15.0%26.2%10.0%4.4%11.4%23.8%47.7%35.1%23.3%14.3%5.1%22.1%55.3%9.3%11.7%12.5%11.2%6.1%14.

108、8%22.2%29.5%23.8%11.4%10.0%4.4%2.8%2.6%4.2%1.1%2.8%18%9%Making the transition to renewables will require focus and conscious action.To achieve the IEAs Sustainable Development Scenario goals,global coal emissions must drop by 88%of which 88%must come from Asia and oil emissions by 65%with 20%of the

109、reductions coming from Asia.Renewables are on the brink of becoming an affordable option in Asia,but they have not yet overtaken the cost-competitiveness of fossil fuels.Historically,there has been a premium of more than 25%on renewables in countries such as Indonesia,Japan and Malaysia.Yet over tim

110、e price differences will shrink,with renewables predicted to become 23%cheaper than fossil fuels by 2030.26 Significant net-zero pledges by influential nations such as Malaysia,Indonesia and Thailand will further spur this journey.Source:IEA,World Energy Outlook 2021;BCG analysisAccelerating Asias A

111、dvantage:A Guide to Corporate Climate Action15State-owned enterprises(SOEs)will play a major role in delivering this change in South-East Asia.Indonesian oil and gas operator Pertamina is an SOE that is exploring more climate-friendly operating practices to drive sustainable growth and mitigate the

112、environmental impacts of its operations.This reflects a wider regional trend for some energy players seeking to mitigate their impact on the climate while also responding to evolving regulatory,consumer and investor expectations.Pertamina has developed a comprehensive sustainable strategy that encom

113、passes ten key areas of sustainability focus.The strategy outlines Pertaminas commitment to sustainable development and highlights the importance of reducing GHGs,promoting biodiversity,accelerating new and renewable energy capacity,and fostering social responsibility and corporate ethics.To further

114、 underscore its commitment to sustainability,Pertamina has established a dedicated Sustainability Committee to oversee its sustainability policies and programmes.The committee comprises senior executives responsible for setting and monitoring the companys sustainability targets,as well as overseeing

115、 the implementation of the sustainability policy.At the corporate level,in 2022 Pertamina made a concerted effort to embed sustainable practices into the core of its operations through the adoption of 16 environmental,social and governance(ESG)initiatives and a roadmap towards its goal of achieving

116、net-zero emissions by 2060.Pertaminas Net Zero Roadmap consist of two pillars.The first is the decarbonization of business through energy efficiency,green power generation,loss reduction and the use of low-or zero-carbon fuel in fleets.The second pillar is new green business building,through activel

117、y investing in diversifying operations to include new green energy opportunities such as biofuels,large-scale renewables,electric vehicle(EV)charging and swapping,blue and green hydrogen,nature-based solutions,carbon capture,utilization and storage(CCUS),carbon offsetting and carbon market business.

118、These efforts contributed to Pertaminas ESG risk rating from the Sustainalytics Institute improving from 46.1 to 22.1,placing it second globally in the Integrated Oil and Gas subcategory and improving its CDP Climate Score from D to B in 2022.By the end of 2022,Pertamina had reduced its production o

119、f CO2e GHGs by around 7.9 million metric tons of(a reduction of over 31%)based on its 2010 baseline.Some regions are already reaping the rewards of championing sustainable transitions(Figure 13).While policy and regulation have driven up the cost of solar and wind in Indonesia,if those restraints fe

120、ll to the global average,the levelized cost of electricity(LCOE)of solar would be around 40%lower than fossil fuels.27 This is just one example of how a well-managed,just transition can help shield Asia from energy volatility as well as boost decarbonization.Malaysian SOE Tenaga Nasional Berhad(TNB)

121、has also set objectives to transform the national energy outlook through accelerating its sustainable transition journey.It has committed to expanding renewable energy capacity as a share of its total energy mix from 14%to 66%by 2035 as part of its net-zero vision.This will form a critical contribut

122、ion to Malaysias Renewable Energy Roadmap,which aims to have renewable energy form 40%of generation capacity by the same year.A well-managed just transition can help shield Asia from energy volatility as well as boosting decarbonization.Accelerating Asias Advantage:A Guide to Corporate Climate Actio

123、n16The vast scale of the energy transition promises great benefits FIGURE 13ConventionalRenewablesTotal installed capacity(GW)XX New climate target,reliable and ambitious 5-year RE plans;limited JVs with international players Market remains relatively closed and regulated with very competitive local

124、 CAPEX business and several regional complexities 10th Basic Plan target switches gear to prioritize nuclear over RE following the change of government Progressive development of hydrogen and hybrid plants with high investment creating business opportunities for international playersSouth Korea20222

125、0302,5653,80455%43%45%57%2022203014115981%73%19%27%Growth in RE primarily driven by solar(as part of the Power Development Plan 2020)Issued regulations to offer 5GW Renewable PPA FiT scheme via auctions in 20222030 2nd round of renewable energy auction will offer 11GW RE over 20232026,primarily sola

126、r,wind and biomass Potential for mini-hydro,government push to attract foreign investors;connections with local teams needed to manage socio-environmental concernsPhilippines20222030586979%74%21%26%20222030292474%65%26%35%Long-term growth expected in solar and offshore wind driven by economic growth

127、 despite short-term policy uncertainty(delay of PDP8)Rising role of LNG in ensuring energy security for Viet Nam Grid capacity and connection issues remain a deterrent Retirement of large conventional(coal)plants driving investment in low-cost large-scale wind and solar plants State governments prov

128、iding long-term contracts through reverse auctions in order to meet state-level renewable energy targets Setting up of hydrogen hub to anticipate growing demands from Japan,South Korea and TaiwanAustralia202220307912443%50%57%50%202220301029955%44%45%56%Increasing push by government.to increase RE s

129、hare in generation mix to 20%by 2025(from 5%in 2020)and even extend to 4050%by 2030 through new NEP Focus on solar through Large Scale Solar(LSS)programme an attractive proposition for international players Promising green hydrogen proposition in SarawakChinaThailandViet NamMalaysia Subsided coal in

130、 Indonesia pushed RE agenda on back-foot Solar could be the most competitive RE(especially in remote areas),but plenty of challengesIndonesia20222030394677%69%23%31%20222030819585%82%15%18%TNB engaged a structured transition process to set sustainability as a core part of its business.It integrated

131、climate action into its corporate governance strategy and aligned its organizational structure,introducing sustainability disclosure and reporting,and setting aside capital committed to investing in green innovation(Figure 14).To assess its progress towards net-zero operations by 2050,TNB initiated

132、assessment of emissions across Scope 1 and 2,with further assessment of Scope 328 value-chain emissions as it works towards achieving Science Based Targets Initiative(SBTi)accreditation.29 It has identified levers to achieve full decarbonization within its existing value chain,with accompanying grow

133、th impact analysis,including transition to solar and hydroelectric production,wind power and green hydrogen in energy generation.TNB has invested heavily in global renewable energy businesses through its TNB Renewables subsidiary to both expand its generating footprint and to spur knowledge transfer

134、.It is also investing in smart and automated grid and distribution technologies to achieve efficiency and demand savings,and introducing new products and services enabled by digitalization in energy retail.It is further investing in value chain expansion,including EV charging infrastructure and e-mo

135、bility services.Note:RE=renewable energy;JVs=joint ventures;LNG=liquefied natural gas Source:IRENA;industry reports;desktop research;BCG case experience;BCG analysisAccelerating Asias Advantage:A Guide to Corporate Climate Action17A planned sustainability roadmap for Tenaga Nasional Berhad FIGURE 14

136、20162019Sustainability at the core Established Sustainability Development Committee(SDC)and published first sustainability report Commenced carbon footprint assessment Sustainability reporting and disclosure according to international standardsEnabling the change:Established of the TNB Green Energy

137、Development Fund Green innovation launched entity to promote self-generation from solar energy20202022Set net-zero targets and developed comprehensive climate pathways to achieve net zero by 2050 Analysed key implications of existing ESG plans and current performance Modelled long-term scenarios and

138、 signposts to evaluate climate implications Defined the 2050 vision across value chain to develop future business caseLevers to address full decarbonization and growth impact:Funding the journey,i.e.integrated financial model and financing options by asset class Assessed governance and organizationa

139、l model,processes(e.g.internal carbon price)to deliver on outcomes2022+Strategize collaboration across value chain Power generation:national energy modelling using PLEXOS;asset-level fleet decarbonization Grid and distribution network:variable renewable energy(VRE);electrification;distributed energy

140、 resources Power retail:decarbonization impact;“Beyond kWh”opportunities reinforced by digitalizationDrive new green businesses:Build domestic and international large-scale renewables(e.g.solar,wind,hydro)Set up new green technologies,bined cycle gas turbines(CCGTs)with CCUS;CCGTs with green H2;nucl

141、ear small modular reactor(SMR)Development of green H2 hubThere are complexities that come along with the delivery of a just transition,and these must be managed carefully to ensure that necessary transformation takes place without negatively affecting the most vulnerable communities.South-East Asia

142、faces many challenges in this regard,with wide regional socioeconomic stratification,diverse communities,geographical barriers and rapid growth reliant on high-intensity industries(Figure 15).Efforts must be carefully focused on managing job redistribution,as roles in traditional legacy sectors such

143、 as oil and gas and mining are being disrupted.This not only triggers the need for appropriate job transition support but also has major repercussions for state revenue and the consequent investment capabilities of governments.Mining and coal alone contributed an estimated 5%of Indonesias total GDP

144、in 2019.30Protecting at-risk groups and communities is another critical challenge,with efforts to compensate or redistribute opportunities for vulnerable communities.Mining,for example,often takes place in rural areas where it represents a significant share of socioeconomic opportunities.A just tran

145、sition must include relevant support for the poorest 40%of communities,which are also suffering from rising costs and losses as a result of climate change impacts,and mitigation and adaptation efforts.This can include dedicated financial aid and investment in adaptation that take this into account.F

146、unding the transition itself remains a key challenge,with only 30%of annual climate funding thus far channelled into emerging and developing markets.A landmark agreement at the COP27 climate summit to establish a historic loss and damage fund offers positive movement in this direction.Managing the i

147、mpact on natural systems will form a further element of a just transition in South-East Asia a region of rich biodiversity that is intrinsically linked to the well-being of local communities.Analysis reveals that protecting this marine and terrestrial biodiversity could deliver benefits of$2.19 tril

148、lion31 a year through job creation and nature-linked socioeconomic opportunities.Source:Tenaga Nasional Berhad sustainability reports A just transition must include support for the poorest 40%of communities,which are also suffering from rising costs and losses as a result of climate change impacts.1

149、8Accelerating Asias Advantage:A Guide to Corporate Climate ActionSome of the complexities of a just transitionFIGURE 15Afforestation for carbon creditsReduce fossil fuelsAllocate climate fundingCO2 tax to raise climate fundsPrices rise,affectinglow-income communitiesGovernmentBusinessCommunityAdapt

150、to rising sea levelsGovernmentWorkersSeawalls built to protect against sea-level rise have an adverse impact on the marine ecosystemTemporary job creation for seawall and land reclamation projects produce changes in marine ecosystem that affect livelihood of fishing communityConstruct a hydropower p

151、lantAgricultural land converted to forest for carbon credits projectLoss of agricultural jobsUpskilling or reskilling required for farmersConstruction of hydropower plant for clean energyNew jobs and investmentIncreased flooding riskLoss of biodiversity as a result of floodingImpact on livelihoods f

152、rom water contamination and decline in fisheriesReduction in agricultural exports and associated tax revenuesAble to buy offsets to help meet non-zero targetsSafeguarding local communities and businesses leads to higher tax burden to fund seawall constructionLoss of jobs from coal phase-out mitigate

153、d by implementing solarSolar leads to deforestationDeforestation affects livelihoods and removes carbon sinkLess pollution and fewer carbon emissionsSolar jobs boost economyBusinessCommunityCommunityWorkersCommunityCommunityBusinessWorkersWorkersNation and governmentCO2Source:BCG analysisAcceleratin

154、g Asias Advantage:A Guide to Corporate Climate Action19The corporate climate framework3Corporate entities are responsible for an overwhelming proportion of global emissions,so its essential for businesses to accelerate their climate action efforts.However,non-strategic,piecemeal solutions will not l

155、ead to the type or scale of change required.A corporate climate action framework outlines the actions leaders can take immediately and in the mid-term,as well as actions to enable long-term growth through climate action.These steps dont have to be executed in sequence in fact,companies identified as

156、 pioneers of the best practices have often invested in different levers in parallel(Figure 16).The corporate climate action frameworkFIGURE 16 Take immediate actions Enable transformation Unlock new growthABC1Make climate action a CEO priority Ground your climate ambition in the companys purpose,dem

157、onstrating coherence to all stakeholders2Understand climate risks and opportunities Understand your climate risks and plan an adaption programme in line with company strategy3Set clear decarbonization targets and specify milestones Baseline your historic and future emissions across the value chain u

158、sing data and AI-enabled enterprise technology Set your ambition and emissions-reduction targets on all scopes4Implement cost-efficient solutions to tackle emissions Identify and size emissions-reduction levers Deploy levers at scale8Develop new capabilitiesFoster new capabilities in adjacent busine

159、sses and enter new green markets Downstream expansion:include low-emission,value-add businesses to your end segments7Expand existing value chainsAcquire new capabilities to reduce carbon footprint of existing value chains Technology:undertake early adoption of high-impact tech(CCU,H2,BECCS,etc.)Digi

160、tal:unlock full potential of digital IoT and AI solutions6Accelerate collaboration across the business environmentBeyond individual actions,accelerate ecosystem collaboration Bring scale to address external barriers and foster collaboration to tackle Scope 3 emissions Spread short-term disadvantages

161、 from still-unclear business cases and bear risks of developing unproven technologies5Mobilize organization and resources Anchor climate action in corporate governance and strategy Commit and prioritize company resources to deliver against ambition and targets Engage,disclose and communicate climate

162、 actionSource:BCG and SAPAccelerating Asias Advantage:A Guide to Corporate Climate Action203.1 What to do first:immediate actions1 Make climate action a CEO priorityThe first action for organizations to take is the most fundamental.Environmental and sustainability goals must become a foundational pa

163、rt of the business and,as such,must be inherently grounded in an organizations purpose and led by the CEO.Thats not as simple as changing the words in a stated mission or purpose,but it requires clear,coherent and consistent communication of climate ambition through top management,external statement

164、s and internal strategies and policies.2 Understand climate risks and opportunitiesIts a clich but nonetheless true that businesses can manage only what they can measure.Organizations must understand the scope and scale of their climate risks and opportunities before planning their adaptation and mi

165、tigation programmes in line with their company strategy.To do this,businesses should pull data from a wide array of sources,including proprietary and public sources,and use it to prepare a variety of plans.Its critical to recognize that no scenario is certain,so running simulations and stress-testin

166、g hypotheses for multiple different futures is necessary,as is prioritizing risks based on climate exposure and ranking key opportunities for action.These climate strategies should be openly and widely communicated to stakeholders.3 Set clear decarbonization targets and specify milestonesWhatever an

167、 organizations climate action maturity,it should be clearly setting and measuring targets and milestones for decarbonization based on both its unique circumstances and industry standards.Baselining historic and future emissions across the value chain can be achieved by using data and AI-enabled ente

168、rprise technology.For organizations just starting out on this journey,it could be as simple as beginning to measure emissions at a high level,as well as setting a long-term ambition aligned to peers or a short-term target with limited scope.As maturity increases,organizations can increase the accura

169、cy,granularity and exhaustiveness of measurement across Scopes 1 and 2 and part of Scope 3.Targets can be increased in line with this development,and ambitions aligned to science-based targets(SBT).Best-practice organizations should be targeting full carbon accounting across their businesses and usi

170、ng the data to inform their decision-making.Long-term ambitions should align to an SBT of 1.5C,include a detailed roadmap to achieve that ambition and include emissions across their full value chain(Figure 17).SingTels climate action evolutionFIGURE 17FY2015Climate change identified in Singtel Group

171、s stakeholder engagement and materiality reviewFY2016Life-cycle assessment(LCA)performed to advise on material environmental issues in companys extended value chainFY2018First company in Asia(ex-Japan)to commit and have carbon reduction targets approved by SBTiFY2020Only SEA company that committed t

172、o Business Ambition 1.5C Campaign and net-zero emissions by 2050Source:SingTelAccelerating Asias Advantage:A Guide to Corporate Climate Action214 Implement cost-efficient solutions to tackle emissionsOnce a strategy is in place,its time to put the data and insights to use.Businesses can identify emi

173、ssions-reduction opportunities and begin to implement them.Start with“low-hanging fruit”and plan next steps and longer-term levers that require technological or business-model change.By classifying and prioritizing solutions based on competitive advantage,such as reducing costs or differentiating pr

174、oducts,businesses can focus on getting the biggest return on investment.Levers can then be deployed at scale.Examples of best practices include infrastructure company Keppel Land saving$383,000 per annum through green and eco-design technologies,or Bangchak Corporation realizing an additional$26 mil

175、lion of EBITDA(earnings before interest,taxes,depreciation and amortization)through new biofuel products.3.2 What good looks like:Zuellig Pharma drives impact through transparent targetsThe mission of Zuellig Pharma,one of the largest healthcare services groups in Asia,is to make healthcare more acc

176、essible to the communities it serves.It provides world-class distribution,digital and commercial services to support the growing healthcare needs in the region.The company,which was started 100 years ago,has grown to become a$15 billion-plus business covering 16 markets with more than 13,000 employe

177、es,serving more than 350,000 medical facilities and working with 500+clients,including the top 20 pharmaceutical companies in the world.Zuellig Pharmas decarbonization journey is founded on transparency and external validation.Its general disclosure and key sustainability metrics,including its GHG e

178、missions data,are verified by Bureau Veritas.Reducing its environmental impact is a significant part of Zuellig Pharmas mission as it seeks to secure the well-being of future generations.Mitigating climate change is key to that overarching effort.First,the business clearly aligned its purpose with c

179、limate action,working on twin ambitions to make healthcare more affordable while becoming a sustainable organization.As a key player in the pharmaceutical supply chain,Zuellig Pharma recognizes its potential to play a significant role in addressing the climate crisis through decisive action.It is co

180、mmitted to reducing its GHG emissions and increasing its energy efficiency.To hold itself accountable,it committed to the Science Based Targets initiative(SBTi)in 2021 and worked with an external consultant to set science-based targets aligned to a 1.5C scenario,as well as to develop a carbon-reduct

181、ion roadmap.Its near-term targets were validated by the SBTi in 2022.These targets include reducing its Scope 1 and 2 emissions by 42%and its Scope 3 emissions by 25%from the base year of 2020.In addition,Zuellig Pharma aims for its own operations to be carbon neutral by 2030 and has also committed

182、to obtain 30%of its energy from on-site renewable resources by the same year.While offsets might be necessary to achieve these targets,the companys primary focus is on reducing its emissions.It has mapped out and will be looking at further opportunities to reduce its energy consumption,improve its e

183、nergy efficiency,increase the use of renewable energy and work with its suppliers to reduce its material value chain emissions.The companys approach is based on a granular understanding of its emissions and an eight-year carbon reduction investment plan built around selected initiatives with the sup

184、port of external consultants.Zuellig Pharma next invested in understanding its climate impact.As part of its GHG assessment,it has screened all Scope 3 categories listed by the GHG Protocol to identify those relevant to its activities,with both upstream and downstream emissions being tracked.It was

185、able to identify that 65%of its total emissions came from upstream transportation and distribution,while Accelerating Asias Advantage:A Guide to Corporate Climate Action22Zuellig Pharma is reaping the rewards of climate actionFIGURE 18GHG emissions(tCO2e)7%242,791226,14220202021Source:Zuellig Pharma

186、 sustainability report more than 80%of its energy consumption came from electricity use in its facilities.It also identified commuting as another opportunity,generating 8%of total emissions.This data is being used to drive targeted incremental improvements.A few examples include:moving most of its r

187、egional services from on-premise hosting to cloud-based Microsoft Azure data centres,which is up to 93%more energy efficient and up to 98%more carbon efficient than on-premises solutions;opening its first LEED(Leadership in Energy and Environment Design)-certified warehouse,supplied by 10,000 square

188、 metres of solar panels;and piloting an exclusively solar-powered transportation fleet estimated to be able to generate more than 1.5 mkWh(million kilowatt-hours)of clean energy per year,equivalent to 1,156 metric tons of CO2 and 375,000 litres of diesel saved,if scaled up nationwide.The positive re

189、sults have been clear.Zuellig Pharma has reported a 7%reduction in overall carbon emissions,including 4 million kWh of energy savings(Figure 18).More than 5%of its energy is now sourced from certified renewable sources,providing a reduction of 14.7 million metric tons of emissions.There was a 75%inc

190、rease in renewable energy use,powering operations in Taiwan,Vietnam,Malaysia and the Philippines with self-generated solar-power,and there was a 20%reduction in waste,with 551 metric tons attributed to recycling programmes.These achievements are being recognized by the community.Zuellig Pharma first

191、 received a Gold certification from sustainability ratings specialist EcoVadis in 2021 for its focus on sustainability management.It then received an EcoVadis Platinum award in 2021 and again in 2022,placing it in the top 1%of all assessed companies worldwide.Accelerating Asias Advantage:A Guide to

192、Corporate Climate Action233.3 Enabling transformation in the medium term5 Mobilize organization and resourcesThe next step towards climate action maturity is to embed sustainability throughout the organization,from the top down.This demands a systemic approach.At a leadership level,organizations mus

193、t anchor their climate action strategy in corporate governance.Steering committees for sustainability should advise the board and executive committee to ensure that climate is embedded in strategic decision-making.Actions such as setting internal carbon prices,including climate risk in new business

194、cases and communicating climate targets and milestones are critical.At GoTo,our sustainability function serves as a crucial part of company-wide risk management and decision-making.This builds GoTos institutional capacity to understand what is material to each business line,what are the shifts neede

195、d to credibly respond and how it contributes to each Three Zero by 2030 roadmap.This ensures sustainability is truly integrated into each and every team in GoTo,and helps the entire company collectively work towards the same goals.Tana Sullivan,Chief Sustainability Officer,GoTo GroupSembcorp embeds

196、climate action into governanceBOX 2Singapores Sembcorp provides a good example of embedding climate into governance,creating sustainability and climate change committees reporting to the board,and setting ESG performance incentives for senior executives.The organization uses risk-based scenario anal

197、ysis in investment decisions and is moving to achieve reduced emissions by transforming its portfolio from fossil fuels to green energy,and growing renewable capacity.But action without investment is doomed to fail.Organizations must commit and prioritize company resources to deliver against climate

198、 targets.That means not only securing funds but also aligning targets to performance,allocating money to training and identifying and promoting core centres of expertise(Figure 19).Indorama Ventures,a global chemical company headquartered in Thailand,issued a THB10 billion($262 million)triple-tranch

199、e sustainability-linked bond(SLB)in 2021,aligned with internationally accepted standards including those of the International Capital Markets Association and the Loan Market Association.The SLB is linked to an independently verified assessment of Indorama Ventures performance in reducing GHG emissio

200、ns-intensity by 10%by 2025(from a 2020 base),32 increasing recycling of certain plastic inputs to 750,000 metric tons per year by 2025,and achieving 25%renewable electricity consumption by 2030.24Accelerating Asias Advantage:A Guide to Corporate Climate ActionSecuring financial and organizational cl

201、imate resourcesClimate action requires collaboration across the systemFIGURE 19FIGURE 2001FundingSafeguard dedicated budgets04ExpertiseSet up climate centres of expertise to design policies and support scale-up02Management objectivesClimate targets embedded in performance management03Talent contribu

202、tionTrain teams to clarify stakes and individual contributionsSuppliersAddress Scope 3 Include climate action in supplier evaluation Push for disclosure(especially detailed baseline)Support their decarbonization journey(e.g.co-development,expertise-sharing)RegulatorAdvocate sectoral needs Be explici

203、t on policy changes needed to create a level playing field Provide transparency on consequences of insufficient changesCompetitorsCollaborate on climate Develop sector methodologies and metrics Implement simultaneously“first-mover disadvantage”levers Scale abatement technologiesInvestorsCollaborate

204、on climate Showcase climate action as value-creation driver Disclose decarbonization targets,actions,progress and barriersCustomersEnlist in climate journey Educate through communication campaigns Push for disclosure(especially detailed baseline)Support their decarbonization journey(e.g.co-developme

205、nt,expertise-sharing)International organizationsFacilitate broader mobilization Learn from the best-in-class Get expertise on specific levers(e.g.NCS)Those principles and programmes have to be clearly and consistently communicated to major internal and external stakeholders.Climate action communicat

206、ion can be a tricky subject,with accusations of greenwashing rife.Climate communication must first and foremost be credible supported by tangible action,feasible targets and verified results and plans.But it must also be consistent and comprehensive,tailored to an organizations business and inspirin

207、g enough to express why the actions taken should matter.And the actions must be focused on corralling decision-makers and stakeholders around a singular ambition.6 Accelerate collaboration across the business environmentClimate action cannot be taken alone.Organizational responses to climate must go

208、 beyond individual action;they should serve not just to accelerate business but also lead to collaboration across the business environment(Figure 20).Businesses must understand the climate impact of both their upstream and downstream stakeholders,from suppliers,customers and competitors to regulator

209、s and investors.Source:BCG and SAPSource:BCG and SAPAccelerating Asias Advantage:A Guide to Corporate Climate Action25SATS drives a core commitment to sustainabilityBOX 3Singaporean aviation services company SATS is using its position in a carbon-intensive business environment to drive a core commit

210、ment to sustainability.The organization has focused on creating a resilient supply chain by including environmental criteria in its supplier code of conduct,and measuring supplier ESG performance.It has also run sustainability training for its customers and reduced plastic consumption for every Sing

211、apore Airlines customer by 80%.3.4 What good looks like:City Developments Limited invests to address emissions across the value chainCity Development Limited(CDL)is one of the worlds largest real estate companies,with a network spanning 143 locations in 28 countries and regions.Based in Singapore,CD

212、L has 60 years of experience developing homes and buildings,as well as running hotel chains around the world.CDL has long focused on sustainable growth,understanding the real estate industrys position as a significant cause of global emissions.It has embedded climate action into its governance,intro

213、ducing its climate change policy in 2015 and committing to reduce its carbon emissions by a quarter by 2030.It is also the first real estate developer in Singapore to join the World Green Building Councils Net Zero Carbon Buildings Commitment.The company has also funded,completed and publicized clim

214、ate change studies for five countries(Singapore,China,the UK,the US and New Zealand)for the real estate industry based on 1.5C,2C and 4C scenarios.33It has focused on investment across design,procurement and operations of its real estate assets.In terms of design,CDL has not only looked towards pass

215、ive strategies to reduce heat gain but also introduced new innovations such as integrated photovoltaics,which convert light into energy.It is using recycled concrete aggregates and washed copper slag to replace aggregates for concrete production in its construction.It is also upgrading high-consumpt

216、ion assets such as lifts or chillers,replacing them with lower-energy modernized versions.Through dedicated tracking,monitoring and improvements in energy efficiency,CDL has achieved cost savings of more than SGD$38 million from reduced energy expenses across all managed properties since 2012.34This

217、 leadership is being shared across the country and across industries.CDL is among the pioneering firms included in the first 87 companies who support the Business Ambition for 1.5C campaign in Singapore.35 CDL has long focused on sustainable growth,understanding the real estate industrys position as

218、 a significant cause of global emissions.Accelerating Asias Advantage:A Guide to Corporate Climate Action26City Development Limited reduced emissions at a granular levelFIGURE 21GHG emissions per m2 leased area201620222030-24%-63%CDL has been widely recognized for its climate progress.The company ha

219、s driven a 24%reduction in CO2 emissions-intensity per unit net-lettable floor area since 2016,and has secured more than$3 billion in sustainable financing over the past five years(Figure 21)For those achievements,CDL has been ranked top real estate firm by Corporate Knights36 and has maintained Dou

220、ble As in CDP for climate change(since 2018)and water security(since 2019)as well as being awarded CDP Supplier Engagement Leader for the third consecutive year.3.5 Unlocking new growth7 Expand existing value chainsBusinesses across Asia should view climate action not only as a means of reducing har

221、mful activity but also as a way to create new value,spur new revenue streams and unlock new growth.First,businesses can do this within their existing value chains,though these opportunities are often unique to each industry and organization.However,by segmenting components of the core value chain,bu

222、sinesses can apply new ideas and innovation to each area to create new opportunities.A good example is GoTo Group,a digital business in Indonesia comprising on-demand,e-commerce and financial services through the Gojek,Tokopedia and GoTo Financial platforms.The company has begun to integrate sustain

223、ability across its organization and ecosystem through its Three Zeros(zero emissions,zero waste and zero barriers)by 2030 commitments.For instance,as part of its zero emissions roadmap,GoTo is making strategic operational shifts across its business lines as well as facilitating credible,tested solut

224、ions for the millions of partners across its business.The company has begun to switch its two-wheel vehicles in Indonesia to low-emission alternatives.It also aims to transition to a 100%EV fleet by 2030,and has established Electrum a joint venture with energy company PT Karya Baru TBS to accelerate

225、 the development of the countrys EV ecosystem.For its fleet operations,it is integrating AI-enabled software to improve efficiency through smarter allocation of drivers.8 Develop new capabilitiesClimate action also offers organizations the potential to explore emerging solutions and new business mod

226、els,transforming what was once a fundamental challenge into an engine for new growth(Figure 22).Businesses will need to assess the relevant opportunities based on the timeframes within which they are able to work and the proximity to their core business.Source:City Development Limited sustainability

227、 reportAccelerating Asias Advantage:A Guide to Corporate Climate Action27Turning climate challenges into business opportunitiesFIGURE 22FeasibilityProximity to core businessNewNear-termLong-termAdjustmentCoreE.g.explore potential investments and entry strategies in carbon value chain(via alliances,J

228、Vs)E.g.bioproducts in high carbon cost economy:substitute fossil products(e.g.bioplastic,green building materials)E.g.explore potential plays in BECCS to become a carbon-neutral energy supplierE.g.explore other negative-emission technologies,build biomass/waste trading businessE.g.implement avoided

229、deforestation to build nucleus carbon offset portfolioE.g.plan and execute reforestation projects,lean into sustainable forestry and agriculture practices3 Apply exisiting capabilities in non-core areas2 Develop new capabilities in adjacent businesses1 Acquire new capabilities to tap into new high-g

230、rowth themesTerrascope,backed by Olam Ventures and built with support from BCG X Ventures,is one example.The platform enables businesses to measure and manage their carbon footprint with precision.Using machine learning to process,analyse and visualize emissions data in simple dashboards,it allows f

231、or informed decisions regarding emissions reduction and identification of opportunities for sustainable growth.Since its launch less than a year ago,Terrascope has worked with large enterprises across 12 industries and measured more than 350 million metric tons of emissions.3.6 What good looks like:

232、Olam combines digital transformation and climate action Headquartered in Singapore,Olam is one of the worlds leading food and agribusinesses,supplying food,ingredients,feedstuffs and fibre to more than 20,000 customers across 60 countries worldwide.Through its purpose to“Re-imagine Global Agricultur

233、e and Food Systems”it aims to address many challenges involved in meeting the needs of a growing global population,while achieving positive impacts for farming communities,the planet and Olams stakeholders.The company has been involved in climate action for several years and has been reporting to th

234、e CDP since 2017.It has committed to SBTi targets,including for its Scope 3 emissions,and has pledged to support the Business Ambition for 1.5C campaign.In making climate action a top priority,Olam has committed to reach net-zero emissions by 2050.With its customer and partners,it continues to make

235、progress on addressing its climate impacts,protecting ecosystems and biodiversity,enhancing water stewardship,reducing food loss and waste,and regenerating soil.It is focused on reducing its carbon footprint and,in line with the SBTi FLAG(Forest,Land and Agriculture)guidelines released in 2022,is So

236、urce:Company websites;BCG analysisNote:JVs=joint ventures;BECCS=bioenergy with carbon capture and storageAccelerating Asias Advantage:A Guide to Corporate Climate Action28developing its near-term targets,segmented into FLAG and non-FLAG.To support the development of the upcoming GHG Protocol Land Se

237、ctor and Removal Guidance,Olam participated in a pilot study coordinated by the World Business Council for Sustainable Development(WBCSD)to refine the accounting methods for stored carbon in biogenic products(such as wood),removal activities implemented at the supply shed level,and land use change.O

238、lam also collaborated with 14 of the worlds largest agri-commodity traders to develop the Agriculture Sector Roadmap to 1.5C,launched at COP27 in November 2022,towards reducing emissions related to land-use change and supporting forest-positive sector transformation.The roadmap will strengthen proce

239、sses and collaboration for more transparent and forest-positive supply chains.The company is transforming its business and supply chains to decarbonize and mitigate the impact of a changing climate.To achieve this,it has been working with Terrascope an enterprise-grade,end-to-end,smart carbon measur

240、ement and management SaaS(software-as-a-service)platform to measures its carbon footprint across three Scopes direct emissions from owned or controlled sources(Scope 1),indirect emissions from purchased energy(Scope 2)and indirect emissions that occur in the value chain(Scope 3).Olam is also working

241、 to reduce emissions in its third-party supply chains that are associated with farming practices and support climate resilience.The approach focuses on four areas:Adaptation:helping farmers adapt to the impacts of climate change by improving their skills to implement better farming practices,and the

242、ir access to technology such as irrigation equipment and higher-yielding,climate-resilient seed varieties.Resilience:enabling farmers to increase their household incomes by promoting crop diversification,as well as other income opportunities such as beekeeping.Additionally,Olam is strengthening loca

243、l farmer cooperatives,improving access to savings and loans facilities,and crop insurance.Regeneration:through improved crop rotation,composting,mulching,soil erosion control,integrated soil fertility management and integrated pest management,helping farmers to regenerate their soils and ecosystems.

244、Reduction:reducing emissions by sequestering carbon in soils and trees through regenerative agriculture,agroforestry and reforestation initiatives;reducing post-harvest loss from improper processing,drying and storage;and reducing methane emissions from rice farming through better water management p

245、ractices.To reduce methane emissions from rice production,Olam has introduced climate-smart agriculture practices such as AWD(alternate wetting and drying),laser land levelling,site-specific nutrient management,and better straw and stubble management.Building on successes with rice farmers in Thaila

246、nd since 2018,the initiative has expanded to Viet Nam,India and,now,Nigeria.Improving soil is fundamental to meeting climate and biodiversity goals.To identify hotspot areas,in 2022,Olam harnessed geospatial tools and looked at indicators for soil moisture,NDVI(Normalised Difference Vegetation Index

247、),soil organic carbon,fire incidence and canopy cover loss across the five-year period from 2016 to 2021.These will be followed by ground-level studies in identified hotspot areas and developing context-specific regenerative agriculture.Olam is helping smallholder farmers implement practices to redu

248、ce post-harvest losses,which,in turn,reduce emissions and increase farmers sales.In 2022,it assessed the baseline across rice,quinoa,sesame and other crops in a dozen supply chains around the world,and is now piloting adapted technology,such as improved storage bags,simple moisture tests and modifie

249、d scythes,to reduce losses.Olam is also at the forefront of integrating digital applications with climate action.The company introduced its AtSource application,a sustainability insights platform giving customers rich data,advanced footprinting and granular traceability across agricultural supply ch

250、ains.It also launched the Olam Farmer Information System,which uses GPS and survey data,providing farmers with better insights and reporting about their farm holdings.29Accelerating Asias Advantage:A Guide to Corporate Climate ActionFollow your ambitions with committed actions4Asia will be central t

251、o the worlds decarbonization response.Unmitigated climate change is the biggest threat facing the world.The global economy could lose more than 18%of current GDP if no action on climate change is taken.And the impact would be significantly higher in Asia,at almost 26%.Asia drives not only global eco

252、nomic growth,but global emissions,too.And,while progress is being made to mitigate and adapt,the response from government and business is not meeting the challenge today.The expansion of the Asian middle class has undoubtedly improved quality of life in the region.Policy-makers and corporations must

253、 serve these people who are expected to consume larger amounts of energy,products and services as they become more prosperous.Balancing climate impact while providing the energy and infrastructure for the Asian continent to develop requires an investment of trillions of dollars each year.This level

254、of investment cannot be achieved through public capital alone.The choice for businesses is stark their organizational future is dependent on the action they take and investments they make today to realize climate outcomes.It is clear that Asian businesses face varied challenges and opportunities.The

255、 solutions they implement must be tailored to meet those variables.It is thus vital to create uniquely Asian climate action to meet broader,global demands.Leaders should not feel that climate action is solely concerned with existential warnings of doom.There are clear opportunities for organizations

256、 to boost brand perception,tap new markets and customers via innovative business models,and drive competitive advantage within and beyond existing value chains.This requires more than making pledges on the world stage and stating net-zero ambitions at summits,though these actions are important.It de

257、mands a strategic transformation based on clear immediate,medium-and long-term actions.It is time for Asian corporate leaders to make bold changes for the good of their businesses and the region.Action is needed to make pledges a reality.Accelerating Asias Advantage:A Guide to Corporate Climate Acti

258、on30ContributorsBoston Consulting GroupAndrey Berdichevskiy Partner&Associate DirectorArtak Mikaelyan ConsultantMarc Schmidt Managing Director&PartnerMai Vu AssociateSAPApoorv Bhatnagar Regional Head of Value Advisory,South-East AsiaAbhinav Singhal Vice-President and Head of Strategy,Asia Pacific&Ja

259、panPaul Thompson Head of Content Strategy,Asia-Pacific&JapanAcknowledgementsNeeraj Aggarwal Managing Director&Senior Partner,Chair,Asia-Pacific,Boston Consulting GroupClara Chung Head of Business Engagement Asia-Pacific,World Economic ForumMichel Frdeau Managing Director and Senior Partner,Boston Co

260、nsulting Group Ramya Krishnaswamy Head of Institutional Communities and ESG Initiative,and Member of the Executive Committee,World Economic ForumJoo-Ok Lee Head of Regional Agenda Asia-Pacific,and Member of the Executive Committee,World Economic ForumPaul Martin Marriott President,SAP Asia-Pacific&J

261、apan,SAPGim Huay Neo Managing Director,Centre for Nature and Climate,World Economic ForumCornelius Pieper Managing Director and Senior Partner,Boston Consulting Group Daniel Schmid Chief Sustainability Officer,SAPDave Sivaprasad Managing Director&Partner,SEA Climate and Sustainability Lead,Boston Co

262、nsulting Group Sebastian Steinhaeuser Chief Strategy Officer,SAPPim Valdre Head of Climate Ambition Initiatives,World Economic ForumProductionStudio MikoLaurence Denmark Creative DirectorSophie Ebbage DesignerOliver Turner DesignerAstra ContentAlison Moore EditorAccelerating Asias Advantage:A Guide

263、to Corporate Climate Action311.World Meteorological Organization,WMO Global Annual to Decadal Climate Update 20222026:https:/library.wmo.int/doc_num.php?explnum_id=11175#:text=The%20annual%20mean%20global%20near,over%20years%201850%2D1900.2.Ibid.3.Myllyvirta,Lauri,Analysis:Chinas CO2 Emissions Fall

264、by Record 8%in Second Quarter of 2022,CarbonBrief,1 September 2022:https:/www.carbonbrief.org/analysis-chinas-co2-emissions-fall-by-record-8-in-second-quarter-of-2022.4.Climate Watch,Historical GHG Emissions Data:https:/www.climatewatchdata.org/ghg-emissions;BCG analysis.5.Statista,Distribution of t

265、he Global Population 2022,by Continent:https:/ analysis.6.Our World in Data(OWID)Energy Datasets:https:/ analysis.7.World Economics,The Future is Asian,4 April 2023:https:/ analysis.8.International Energy Agency(IEA),World Energy Outlook 2021,October 2021:https:/www.iea.org/reports/world-energy-outl

266、ook-2021.9.International Energy Agency(IEA),World Energy Outlook 2022,November 2022:https:/ Growth,Our World in Data(OWID):https:/ourworldindata.org/economic-growth;BCG analysis.11.CDP,Despite Growing Awareness of Climate Risks,Just 8%of Companies in Asia Pacific Region Have Committed to Net-Zero Ta

267、rgets,31 March 2022:https:/ Energy Agency(IEA),Southeast Asia Energy Outlook 2022:https:/www.iea.org/reports/southeast-asia-energy-outlook-2022.13.SAP,Does Your Business Have a Talent for Sustainability?:https:/ Inadequate Climate Pledges and Other Climate Change Stories You Need to Read This Week,W

268、orld Economic Forum,24 October 2022:https:/www.weforum.org/agenda/2022/10/climate-pledges-and-other-climate-change-stories-24-october.15.Nash,Vishnu and Agrawal,Rajat,Barriers to Consumer Adoption of Sustainable Products an Empirical Analysis,Social Responsibility Journal:https:/doi.org/10.1108/SRJ-

269、12-2020-0495.16.SAP,Does Your Business Have a Talent for Sustainability?:https:/ Intergovernmental Panel on Climate Change(IPCC),Global Warming of 1.5C:https:/www.ipcc.ch/sr15;Saeed,Fahad,Schleussner,Carl-Friedrich and Ashfaq,Moetasim,Deadly Heat Stress to Become Commonplace Across South Asia Alread

270、y at 1.5C of Global Warming,Geophysical Research Letters,48(7),16 April 2021:https:/ analysis.18.UN Intergovernmental Panel on Climate Change(IPCC),Special Report on the Ocean and Cryosphere in a Changing Climate:https:/www.ipcc.ch/srocc/;https:/data.worldbank.org/topic/climateknowledgeportal.worldb

271、ank.org;BCG analysis.19.Gardner,Dinah and Greenpeace East Asia,Five Facts about Sea-Level Rise in Asia That Will Surprise You,Greenpeace,1 July 2021:https:/www.greenpeace.org/eastasia/blog/6679/five-facts-about-sea-level-rise-in-asia-that-will-surprise-you.20.Timsit,Annabelle and Kaplan,Sarah,At Lea

272、st 85 Percent of the Worlds Population Has Been Affected by Human-Induced Climate Change,New Study Shows,The Washington Post,11 October 2021:https:/ Bank,Climate Change Knowledge Portal:https:/climateknowledgeportal.worldbank.org.22.Swiss Re Institute,The Economics of Climate Change:No Action Not an

273、 Option,April 2021:https:/ Commission on Adaptation,Adapt Now:A Global Call for Leadership on Climate Resilience:https:/gca.org/wp-content/uploads/2019/09/GlobalCommission_Report_FINAL.pdf.24.Temasek,the World Economic Forum and AlphaBeta,New Nature Economy:Asias Next Wave:Risks,Opportunities,and Fi

274、nancing for a Nature-Positive Economy,2021:https:/ Energy Agency(IEA),Energy Security in ASEAN+6,July 2019:https:/www.iea.org/reports/energy-security-in-asean6.26.Wood Mackenzie,Asia Pacific Solar PV Market Outlook 2021,June 2021.EndnotesAccelerating Asias Advantage:A Guide to Corporate Climate Acti

275、on3227.International Energy Agency(IEA),South-East Asia Energy Outlook 2022:https:/ Is the Difference Between Scope 1,2 and 3 Emissions,and What Are Companies Doing to Cut All Three?,World Economic Forum,20 September 2022:https:/www.weforum.org/agenda/2022/09/scope-emissions-climate-greenhouse-busin

276、ess/.29.Science Based Targets,Ambitious,Corporate Climate Action:https:/sciencebasedtargets.org/.30.Extractive Industries Transparency Initiatives,Indonesia 2019-2020 EITI Report,March 2022:https:/eiti.org/documents/indonesia-2019-2020-eiti-report.31.Academy of Sciences Malaysia,The Nexus of Biodive

277、rsity Conservation and Sustainable Socioeconomic Development in South-East Asia:https:/www.akademisains.gov.my/asm-publication/nexus-of-biodiversity.32.DNV,Indorama Ventures Public Company Limited Sustainability Linked Finance Framework:Second Party Opinion Scope and Objectives:https:/ Developments

278、Limited,Climate Change and Emissions Reduction:https:/ Developments Limited,Integrated Sustainability Report 2023:Zero in on Positive Impact,1 January 31 December 2022:https:/ Based Targets,Business Ambition for 1.5C:https:/sciencebasedtargets.org/business-ambition-for-1-5c/.36.Corporate Knights,The

279、 100 Most Sustainable Corporations of 2022,19 January 2022:https:/ Asias Advantage:A Guide to Corporate Climate Action33World Economic Forum9193 route de la CapiteCH-1223 Cologny/GenevaSwitzerland Tel.:+41(0)22 869 1212Fax:+41(0)22 786 2744contactweforum.orgwww.weforum.orgThe World Economic Forum,committed to improving the state of the world,is the International Organization for Public-Private Cooperation.The Forum engages the foremost political,business and other leaders of society to shape global,regional and industry agendas.