Corporate Decarbonisation in the Asia-Pacific: Trends and Challenges
Key Ideas
  • 837 Asia-Pacific corporations doubled their climate-transition plans commitment, showing a growing momentum towards decarbonisation and technological innovation.
  • Companies with transition plans are more likely to disclose key climate metrics, emissions, and set climate targets, signaling strategic focus on real economy decarbonisation.
  • Major disclosures in Japan, South Korea, and Taiwan indicate a shift towards cleaner technologies and a focus on reducing greenhouse gas emissions.
  • Success stories in the energy, utility, and materials sectors demonstrate a significant growth in clean energy solutions and a push towards sustainability.
A report by investment research firm MSCI revealed that 837 Asia-Pacific corporations have doubled their commitment to climate-transition plans, indicating a positive trend towards decarbonisation and technological innovation. The growth in companies adopting the Science Based Targets initiative standard highlights a strategic focus on real economy decarbonisation. Major disclosures in countries like Japan, South Korea, and Taiwan reflect a shift towards cleaner technologies. Companies with transition plans are more likely to disclose key climate metrics, emissions, and set climate targets. The energy sector is investing in hydrogen, renewable energy, and electric vehicles to diversify revenue streams towards clean energy. Additionally, 5% of the companies hold hydrogen-related patents, showcasing its potential as a low-carbon energy carrier. Despite challenges in scaling up hydrogen production, companies are integrating it into their transition plans. Electric and hybrid vehicle companies are showing market growth potential, with some posting compound annual growth rates of over 150%. Utilities companies are also prioritizing sustainability, with more than 80% indicating transition plans towards clean fuels like hydrogen-fired generation. The materials sector is developing low-carbon steels, but challenges remain due to the heavy use of fossil fuels. Success stories from companies like Waaree Renewable and KPI Green reflect the momentum towards renewable energy solutions. However, countries like China, Indonesia, and India face challenges in phasing out coal-fired plants, while petrol subsidies in Japan slow decarbonisation efforts.
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