Asia-Pacific Corporations Accelerate Climate-Transition Plans with a Focus on Clean Tech
Key Ideas
  • Asia-Pacific corporations are increasingly committing to climate-transition plans, with 837 companies doubling their commitment growth by 2025.
  • Focus on clean-tech investment is driving the transition plans, with companies in sectors like energy, utilities, and materials integrating hydrogen and renewable energy solutions.
  • Success stories include companies like Waaree Renewable and KPI Green, which reported over 100% compound annual growth rates from 2020 to 2023 in renewable energy solutions.
  • Challenges remain, such as the slow phase-out of coal-fired power plants in certain countries and the high production costs and infrastructure requirements for scaling up hydrogen production.
A report by investment research firm MSCI revealed that 837 Asia-Pacific corporations are accelerating their climate-transition plans, showcasing a positive momentum towards decarbonisation efforts. The rise in commitments is attributed to a strategic focus on real economy decarbonisation, with sectors like information technology, industrials, and materials leading the way. Notably, companies with transition plans are more likely to disclose key climate metrics, set climate targets, and invest in clean technologies. MSCI's analysis also highlighted the growing interest in clean-tech investment, particularly in areas like energy, utilities, and materials. While some companies are successfully integrating hydrogen and renewable energy solutions into their transition plans, challenges like high production costs and infrastructure requirements hinder the scaling up of hydrogen production. Success stories include companies like Waaree Renewable and KPI Green, which saw significant growth in revenue from renewable energy solutions. However, market dynamics in countries like China, Indonesia, and India pose challenges due to slower phase-outs of coal-fired power plants. Additionally, the materials sector faces challenges in adopting low-carbon practices, with fewer companies considering options like carbon capture and sequestration. Overall, the report underscores the importance of continued efforts to advance clean-tech solutions and drive corporate decarbonisation in the Asia-Pacific region.
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