23 May 2025
On 15 and 16 August, we, together with our Global Compact Network Philippines (GCNP) colleagues, were delighted to host 2 webinars where we had six UN Global Compact (UNGC) member companies from around Asia to share their Science Based Targets initiative (SBTi) and decarbonisation journey with other Asia-based members.
These sessions were part of the Climate Ambition Accelerator programme which aims to help participants deepen their skills and knowledge in carbon accounting, carbon management and setting science-based emissions reduction targets.
In these webinars, we are grateful to our guest speakers for sharing their insights:
These six members have set science-based targets (SBTs) and have, or are in the process of, getting their targets validated by the SBTi. Coming from diverse sectors such as telecommunications, guest amenities, agriculture, textiles and packaging, we have recapped the key takeaways and interesting insights shared by our speakers:
Having gone through the process of setting SBTs themselves, our speakers agreed that setting SBTs aligned with the SBTi is something applicable and relevant to companies of all sizes. The SBTi process can be relatively easier for SME companies, as the data needed for SMEs to account for their emissions and set the SBTs is not as huge compared to larger companies like MNCs. In addition, the SBTi also has a more streamlined route for SMEs to get their targets validated, to make it more accessible for SMEs to set SBTs.
All our speakers shared the strong business case for setting SBTs, in particular, due to expectations from sustainability-conscious clients. For example, for our speakers’ companies, many of their clients are listed companies who have their own climate targets, including their own SBT and that of reducing their supply chain emissions. Hence, there is a strong incentive for these companies to set SBTs themselves, so as to continue standing in good stead with their clients.
In fact, for clients who have their own scope 3 emissions reduction target aligned with the SBTi, they would then have to set a target of getting a proportion of their suppliers setting their own SBT. For example, for MAS’ SBT on scope 3 emissions, they have committed that 85% of their suppliers by spend covering Purchased Good & Services will have SBTs by 2025.
Aside, setting SBTs was also seen as crucial for business resilience. This is especially pertinent for sectors, such as food and agriculture, that are more prone to suffer directly from climate change impacts. For example, both Airlangga (ANJ) and Krishna (Talawakelle Tea Estates) shared that reduced crop yields will result if climate change continues, directly impacting their earnings, and hence this has made it more imperative for them to set SBTs and adopt their own climate adaptation and mitigation measures. Besides physical risks, there are also financial risks such as carbon taxes that have further motivated companies to set their own SBTs.
Several of our speakers shared that scope 3 emissions contribute the bulk of their carbon footprint. (Scope 3 emissions refer to emissions found in the value chain.) Thus, they emphasized that engaging their suppliers and subsidiaries were key in helping them to reduce their scope 3 emissions. This involved meeting and educating their suppliers on their SBT and decarbonisation strategy, and in some cases, even supporting their suppliers with setting their own SBT.
Beyond setting targets, Dhanujie (MAS) shared their collaboration with their suppliers in procuring recycled materials to reduce the carbon impact of their textile products.
Maria (Dutch Bangla Pack Limited) also highlighted their collaboration with other factories to recycle 100% of their process wastage, producing post-industrial resin for reuse in their production line. This sustainable practice has played a significant role in lowering their environmental impact. Where the solutions were not yet available, Gabriel (GUAVA) shared it was then all the more important to work with their clients to co-create the sustainable products to make a positive impact on the environment. It also involves ongoing engagement with their clients to ensure that sustainability remains a core focus throughout the product’s lifecycle.
On the ground, Hui Mien (Singtel) and Krishna (Talawakelle Tea Estates) also shared the importance of explaining the decarbonisation initiatives ‘in the same language’ as the operational staff, to help them understand the benefits of incorporating the decarbonisation measures from their lens. In engaging employees on decarbonisation, Singtel shared that two main barriers that companies often face were a) staff’s lack of knowledge and b) competing priorities, and if a company can resolve these, it would better help engage their employees and get internal buy-in for implementing the sustainability measures.
Many of the speakers pointed to renewable energy as one of the main solutions in helping their companies decarbonise. This included installing solar panels on their premises, solar Power Purchase Agreements where their facilities were not suited for solar, and purchasing renewable energy certificates (RECs).
For our speakers whose companies are based in the wider Asia region outside of Singapore, their companies were able to utilize a wider range of alternative energy sources: this included converting their diesel-powered boilers to biomass-powered ones and using hydro-generated electricity.
In all, the broad areas that the speakers looked at for their decarbonisation initiatives centered around: reducing energy use where possible, improving energy efficiency and procuring renewable energy, which other companies can look at as well.
Besides education and to garner internal support for the company’s decarbonisation initiatives, some of our speakers have found it helpful to integrate some sustainability outcomes into their managers’ KPIs (key performance indicators), to foster ownership of the company’s decarbonisation goals. For example, Dhanujie (MAS) shared that for each division, they had appointed a head who is responsible for the division’s climate targets, while Airlangga (ANJ) shared that they include some sustainability-related KPI for most staff, including their operational-level staff, which has helped made decarbonisation a collective effort for the whole organization.
Interestingly, while the webinar was centered around decarbonisation, speakers also brought up the importance of building a strong social compact with their employees, as part of their social sustainability goals. To motivate staff members to rally behind sustainability initiatives such as SBTi, Gabriel (GUAVA) shared that it is important for leadership to role model sustainable practices in daily interactions. Not only does this ensure staff’s wellbeing, this also translates to a better job satisfaction rate which, it seems, can have the added benefit of garnering staff’s buy-in more easily for the decarbonisation measures that the company seeks to implement.