Having trouble reading this email? View it in your browser.
In the fight against climate change, the world has reached a tipping point. More and more companies are waking up to the opportunities of a zero-carbon economy. Within last year, a rapid growth of major players in oil and gas, automotive, airlines and other businesses with a traditionally high carbon emission have committed to rapid decarbonisation.
More than 50% of countries, states and cities amounting more than 50% of global GDP have set targets to achieve net zero by 2050. Countries are taking steps to introduce policy interventions directed at businesses including:
| • | bans and phaseouts of pollution activities |
| • | fossil fuel subsidy reforms |
| • | carbon tax and tax reforms |
| • | new product and fuel standards |
| • | mandatory ESG and climate risk disclosure |
With regulation evolving hand-in-hand with investor pressure, businesses are required to move towards net-zero economy in one form or another, as governments move to deliver on their commitments and as shareholders and customers increase their demands for such action.
What are the benefits of net-zero economy on businesses?
Increase Productivity, Profitability and Lowering Operational Costs
Companies can aim to improve their resource productivity by increasing energy efficiency. Energy-smart companies that committed to use energy more productively will be able to lower their GHG, reduce energy costs and cleaner production.
Greater Innovation & New Markets
Net-zero economy spur innovation, inspiring new products and services which are less carbon intensive or which enable carbon reduction that help to develop new market.
Enhance Supply Chains & Efficiency
Companies that committed to reduce emission often enhance the resilience of their supply chains, improve processes, reduce raw material inputs and lower energy consumption
Access to Capital
Investors and financial institutions continue to demand more disclosure on sustainability reporting and assess carbon risks in portfolios. Companies with positive emission reporting benefits from greater transparency and enhanced reputation that attracts capital investment
Award and Monitise Carbon Credits
For some companies, the immediate reduction of the emission is not economically viable. Therefore, they can purchase carbon credits to comply with the emission cap set by authorities. For companies that achieve the carbon offsets (reducing the emissions of greenhouse gases) are usually rewarded with additional carbon credits. The sale of credit surpluses may be used to subsidize future projects for the reduction of emissions.
What are the risks of a high emission business?
| • | Physical risks, for example the operational impacts of extreme weather events, or supply shortages caused by water scarcity |
| • | Transition risks which arise from society’s response to climate change, such as changes in technologies, markets and regulation that can increase business costs, undermine the viability of existing products or services, or affect asset values |
| • | Potential liability for emitting greenhouse gases (GHG) with the increasing global compliances and regulations |
Start Your Climate Action by Setting Emission Reduction Target!
Learn more from our international experts and get your business ready towards net-zero economy.
Click here to download the detailed program.
Mark your Calendar
Connect with us to get the latest news & update by: