Extreme weather events have dominated the headlines this summer. The heatwave in Japan, where record-breaking temperatures sent thousands of people to hospital with heat stroke; the wildfires raging across California, Greece and Sweden fuelled by months of unusually dry conditions; the severe flooding in Kerala, India, that has claimed 350 lives and displaced more than a million people. Scientists warn that these catastrophic events are a sign of things to come if we do not drastically cut greenhouse gas (GHG) emissions.
Two years ago, world governments signed the landmark Paris Agreement and accelerated the global transition towards a low carbon economy. To avoid dangerous climate change, we must keep global temperature rise "well below" 2 degrees Celsius from pre-industrial levels. But there is a huge gap between current policies and pledges and the emissions reductions needed to achieve this target (scientists give us a 5% chance). Businesses can expect increasing pressure from regulators to curb emissions through mechanisms such as carbon taxes and stricter emissions and efficiency standards.
One way that businesses can prepare for policy changes is to ensure their GHG emissions reductions targets are "science-based", meaning that they are based in climate science and in line with the level of decarbonisation required to achieve the 2-degree scenario. Since it was launched in 2014, over 400 companies have made commitments under the Science Based Targets initiative (SBTi), a collaboration between CDP, the United Nations Global Compact (UNGC), World Resources Institute (WRI), and the World Wide Fund for Nature (WWF), and an initiative of the We Mean Business Coalition. The SBTi aims to make science-based target setting standard business practice by 2020, and provides companies with resources, case studies and training workshops to reduce barriers for adoption. SBTi also assesses and validates the targets.
Whilst many Asian companies are still getting to grips with GHG accounting and disclosure, there are several leading companies that have developed comprehensive approaches to addressing climate change risks. Singapore listed company City Developments Limited (CDL), was the first developer in Singapore to set a science-based target. Using the SBTi's Sectoral Decarbonisation Approach, CDL raised its carbon emissions intensity reduction target from 25% to 38% by 2030 against 2007 levels, to align with the reductions needed to achieve the 2-degree pathway.
CDL was also a pioneer in adopting the TCFD recommendations, and embarked on a scenario analysis in early 2018 to inform its climate change strategy. Climate scenario analysis requires companies to consider different possible futures using pre-determined assumptions such as climate projections. CDL considered the risks and opportunities to its core business in three key markets – Singapore, China and the UK – for a 2°C temperature rise scenario (i.e. achieving the Paris Agreement target) and a 4°C temperature rise scenario (i.e. business as usual), the results of which will inform business resilience and capital investment strategies moving forward. CDL also conducted a scenario analysis to assess the impacts of climate change on its supply chain and, to prepare for Singapore's 2019 carbon tax, has completed an internal carbon pricing study.
Hear from Esther An, Chief Sustainability Officer, at CDL, Karen Lee, Sustainability Lead Asia, at Interface and others, and learn about ambitious steps being taken by companies in Asia to address climate change. Check out the programme online or email me at [email protected] for more information.