APAC firms take lead in decarbonization reporting

ASIA-PACIFIC (APAC) companies are leading the effort to bring emissions measurement and reporting into the mainstream, according to a report issued by the Boston Consulting Group (BCG).

“Regionally, you have APAC leading, of course, because of the influence of China in there, in addition to others like Japan, who do a lot on the climate front,” Diana Dimitrova, managing director and partner at BCG X, the tech build and design unit of BCG, said in a virtual briefing on Tuesday.

BCG and carbon management platform CO2 AI released the “Boosting Your Bottom Line through Decarbonization” report, which tracked the progress made by companies on climate issues over the past year.

“While (the report) shows a slowdown in corporate decarbonization efforts, it also highlights really promising developments with some companies achieving significant financial benefits,” said Hubertus Meinecke, BCG’s global leader of climate and sustainability practice.

The report surveyed 1,864 executives from businesses across 16 major industries in 26 countries. The report said the countries are “collectively, responsible for about 45% of global greenhouse-gas (GHG) emissions.”

Among the companies surveyed, only 9% said they comprehensively report Scopes 1, 2, (operational emissions) and 3 (supply chain emissions). Only 16% of the respondents said they have set targets across all three scopes, while 11% reported emissions reductions in line with their plans.

“These statistics are all lower than those reported in 2023,” according to BCG and CO2 AI.

Of the countries covered in the survey, those that topped the list are China, Brazil, India, Japan, and the US, leading on reporting, target-setting, and reducing emissions in line with ambition.

The first three countries also led in reducing emissions and securing value from decarbonization.

Despite slow progress, the report said 25% of the companies in the survey reported annual decarbonization benefits worth at least 7% of sales. This translates to an average of $200 million in financial benefits a year.

The report said that a leading source of financial benefits was reduced operating costs, often from efficiency initiatives, waste reduction, and renewable energy use. — Sheldeen Joy Talavera