Real state of climate action
WHEN I started working on climate action in Malaysia, commitment to it by companies was largely superficial.
There wasn’t any commitment to science-based targets (SBTS) through the Science Based Targets initiative (SBTI), a corporate climate action organisation that enables companies and financial institutions worldwide to play their part in combating the climate crisis in line with the Paris Agreement and the latest climate science.
Recognising the urgent need for action guided by the latest climate science, I spearheaded initiatives in the company I worked for to promote the adoption of SBTS for carbon management while advocating the same among other Malaysian companies.
Since 2020, 24 Malaysian companies have joined the global call for SBTS through the SBTI. It was encouraging to see the fast adoption of science-based targets in Malaysia, especially by public listed and multinational companies. But these bold commitments to climate action were equally concerning as they were made without clear regulations on greenhouse gas (GHG) inventory and climate action by the government.
Commitments to sustainability and climate action have sprung up across Malaysian corporations much like mushrooms after the rain. I have coined the term “sustainability mushrooms” to describe this trend.
PETRONAS announced its commitment to net zero in 2020, but its total GHG emissions reported in 2022 were higher than in 2020 (as reported on its official website and sustainability report).
Tenaga Nasional Bhd announced its net zero commitment in 2021. However, its 2022 emission intensity for scope 1 emissions were higher than in 2021.
FGV Holdings Bhd announced its commitment to science-based net zero target in 2021, making it the first public listed company in Malaysia to do so alongside
Bursa Malaysia.
But even after nearly three years of its public announcement, the company has not even established its GHG inventory, let alone its total GHG emissions.
It is now official that at least two Malaysian companies have had their commitments to net zero and science-based target removed by SBTI due to failure to present and validate their carbon reduction targets.
It is unsettling that Malaysian companies are exhibiting such inertia, particularly with the involvement of a Un-backed, globally recognised organisation such as SBTI.
It becomes apparent that Malaysian corporations are engaging in an evolved exploitation of the latest knowledge of climate science and sustainability issues, perpetuating a cycle of continuous climate inaction.
Despite the rapid growth of sustainability initiatives and commitment to climate action, the reality of these “sustainability mushrooms” may be nothing more than a marketing trip.
The absence of laws and regulations on climate action has created a loophole that allows the companies to continue to make commitments without executing any meaningful actions.
Climate change is not an economic opportunity. It is a crisis, and it has and will continue to impact our lives, especially for those living in countries along the equator who are expected to face more severe adverse effects of climate change.
It is crucial to urgently introduce regulations to manage these sustainability mushrooms in ensuring meaningful climate action and preventing greenwashing.