Companies in the Asia-Pacific region are making significant progress when it comes to their net-zero commitments and disclosures on greenhouse gas emissions. A recent report from PwC analyzed the efforts of over 700 companies in 14 Asia-Pacific countries, shedding light on the region’s sustainability landscape.
The global concern over the climate crisis has pushed countries worldwide to set concrete goals for reducing emissions. The Paris Agreement, for example, aims for a 45% reduction in emissions by 2030 and net zero by 2050. Many countries have implemented legislation to pressure private enterprises to align with these goals, and the Asia-Pacific region seems to be responding positively.
According to the PwC report, a majority of countries in the Asia-Pacific region have already established net-zero goals. In fact, 53% of companies across the region have disclosed net-zero targets, showing a notable increase from the previous year. However, there is a disparity among countries, with Australia leading the way in terms of the percentage of companies with set targets, followed by Japan, South Korea, Malaysia, and Thailand.
Setting a net-zero commitment is a crucial step for companies on the path towards sustainability. Not only does it create pressure for action within a specified timeframe, but it also enhances stakeholder trust and competitiveness. However, the report highlights a gap between ambition and action, emphasizing the need for concrete, verified steps towards achieving these goals.
One key aspect of sustainability is addressing scope 3 emissions, which are indirect greenhouse gas emissions occurring within a company’s value chain. These emissions, which include those from suppliers, transportation, and product use, are challenging to control but essential for comprehensive sustainability efforts. The report shows a slight increase in the disclosure of scope 1, 2, and 3 emissions, indicating progress in this area.
Moreover, the importance of aligning net-zero targets with internationally recognized standards, such as those set by the Science Based Targets initiative (SBTi), cannot be overstated. Companies with science-based targets verified by SBTi have a structured and credible framework for action on sustainability, aligning their goals with scientific consensus on climate change.
While the Asia-Pacific region has made strides in sustainability efforts, there is still room for improvement. Enhancing climate risk quantification, comprehensiveness in scope 3 emissions reporting, and overall transparency are areas where companies can further strengthen their sustainability initiatives. As the region faces significant threats from climate change, building robust sustainability practices is crucial for long-term resilience and environmental stewardship.
In conclusion, the progress made by companies in the Asia-Pacific region towards net-zero commitments and greenhouse gas emissions disclosures is commendable. By continuing to prioritize sustainability, aligning with international standards, and bridging the gap between ambition and action, companies can contribute significantly to global efforts to combat climate change and build a more sustainable future.
