BCSD Malaysia assists companies to tackle climate change

BY FATIHAH MANAF

MITIGATING CLIMATE change requires collective effort . In doing so , both industry players and individuals must play their roles effectively . Collaborations between political will and companies will bring Malaysia closer to carbon neutrality .

According to Roberto Benetello , Company Director and Executive Director of Business Council for Sustainable Development ( BCSD ) Malaysia , Malaysia ’ s companies are committed to climate change action .

Benetello revealed that based on a survey conducted by Ernst & Young , over 60 per cent of the 100 public listed companies ( PLCs ) in Malaysia reported their commitment to climate action . He said the commitment also included stepping up disclosures on climaterelated risks in governance , strategy and risk management .

“ For example , in October last year , PETRONAS declared that it would be carbon neutral by 2050 . It is the first time for an oil and gas company to set its climate zero targets in Asia . So , it ’ s encouraging ,” said the Benetello , highlighting that it is inevitable for Malaysia to embrace nett-zero carbon emission .

Policies to facilitate energy transition

Benetello opined that many policies could be implemented to facilitate Malaysia ’ s energy transition .

“ Let ’ s look at t h e

energy intensity . Energy intensity is a measure that indicates how well energy is utilised to create wealth for the country .

“ It is projected that Malaysia ’ s final energy intensity will continue to rise . It is not so good . That ’ s why there must be efforts to ensure energy efficiency is improved . If the current trend continues , Malaysia will spend more than necessary to sustain the energy needs for the economy ,” explained Benetello , adding that it is essential to have policies that could tackle energy efficiency issues without sacrificing public welfare .

He added Malaysia should also look into policies in electric vehicles and believed there should be more targets for their adoption . Benetello highlighted the current target for electric cars adoption was relatively low and would not directly impact the overall energy consumption in the transportation sector .

Additionally , Benetello mentioned the efficiency issue of coal-fired power plants should also be addressed at the policy level .

“ Clear and effective roadmap , as well as an energy action plan , must be developed to reduce the energy and carbon intensity ,” he said .

Without significant policies to facilitate the energy transition , Benetello stated Malaysia would be a bit off target in realising its pledge to reduce 45 per cent carbon intensity per unit of GDP .

“ However , if we have good policies introduced , there is a good chance that Malaysia will meet this objective of CO2 reduction .”

Companies are the prosumers of energy

Benetello stated companies and businesses play a significant role in the reduction of CO2 emissions .

He said : “ Companies need to take this energy transition seriously . They need to look into becoming or getting to at least a nett-zero GHG emissions .”

He believed the transition would not be easy as companies need to look thoroughly into what they do internally and their relation to the external environment . However , he stated the situation also allowed companies to rethink the way they sourced and consumed energy .

Roberto Benetello

“ Many companies right now are moving from being consumers of energy to being prosumers , a mix between producers and consumers . For example , many of them have decided to utilise the roofs of their manufacturing plants or facilities to install solar panels ,” shared Benetello .

Benetello then explained companies must look into the three types of CO2 : Scope 1 , Scope 2 and Scope 3 emissions . He mentioned that Scope 3 emission would be quite a challenge for companies as it required sophisticated approaches for companies to talk to all stakeholders in the value chain .

“ That ’ s where we come into play . As a sustainability organisation , we are a CEO-led non-profit organisation . Still , we offer a lot of education , training and events to educate and help our members in this transition .”

Aside from being a platform that gathers and encourages collaboration between stakeholders , Benetello emphasised that BCSD Malaysia was affiliated to the World Business Council for Sustainable Development ( WBCSD ). He shared that the organisation produced many reports , methodologies , and tools that BCSD Malaysia could leverage and offer to Malaysian companies .

Carbon Border Adjustment Mechanism and COP26

Benetello then shared his opinion regarding the Carbon Border Adjustment Mechanism ( CBAM ), which the European Union ( EU ) pushed . Since CBAM was a new proposal and still at a proposal level , Benetello said he was still studying the mechanism .

“ In principle , it ’ s a nice idea . But with everything like this , the devil is in the details ,” he said .

He said the implementation must be done with the correct mechanisms avoiding a high level of bureaucracy , red tape , documents , and reliability of the information or else the system will become unfair . Benetello highlighted all these climate action initiatives needed to be equitable .

He then mentioned the 2021 United Nations Climate Change Conference ( COP26 ) was an important platform that would feature essential discussions . He hoped carbon taxation and just energy transition would be discussed during the conference . – @ greenXtra