Connect with us on
Connect with us on
This report sets out MAS’ strategy on climate resilience and environmental sustainability to strengthen the resilience of Singapore’s financial sector to environmental risks, develop a vibrant green finance ecosystem, build a climate-resilient reserves portfolio, and incorporate sustainable practices.
This report was originally published in https://www.mas.gov.sg/publications/sustainability-report/2022/sustainability-report-2021-2022
Landmark research from Global Reporting Initiative (GRI) and the National University of Singapore (NUS) Business School has, for the first time, shed light on how companies in the ASEAN region are addressing their obligations for climate-related reporting.
Analysis of the top 100 largest listed companies in six Southeast Asian nations – Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam – finds 70% (420 companies) published climate-related disclosures in 2020/2021. Climate Reporting in ASEAN: State of Corporate Practices analyzes those 420 businesses, focusing on their approach to reporting, materiality, risks and opportunities, governance, strategy, targets, and performance.
Key findings of the research include:
In terms of climate reporting:
This report was originally published in https://globalreporting.org/news/news-center/asean-companies-get-serious-about-climate-change/
By Alton Wong, Executive Director, Co-head of Sustainability Services, Greater China, Cushman & Wakefield
For businesses in carbon-intensive industries, the challenge of reducing Scope 1 emissions (direct emissions from owned or controlled sources) can be great.
For service-based organizations, Scope 1 emissions may represent only a single-digit percentage of their entire carbon output. In these cases, the majority of their emissions are Scope 3 – they originate further up or down their supply chain through the activities of their suppliers.
So how do service businesses, like financial institutions and consultancies, reduce what they cannot control?
The data challenge
Any carbon reduction journey begins with reporting: you cannot manage what you cannot measure. While we have seen an increase in queries on ISO14064 – the international standard for reporting greenhouse gas emissions – reporting requires data, and capturing reliable data is the greatest challenge we see across the region.
In many cases, the data needed even to establish a baseline year – the year to which emissions will be compared – is not captured. While most, but not all, companies have utility data, few capture emissions for business travel or employee transport. This problem is compounded when tackling Scope 3 emissions.
Collaboration is the only way forward
As a service organization ourselves, Cushman & Wakefield’s Scope 3 emissions account for greater than 98 percent of our total emissions. That is why a key pillar of our net zero commitment is to engage our clients in their own carbon reduction journeys.
For businesses like ours, achieving a net zero commitment – which includes Scopes 1, 2 and 3 – is dependent on our supply chain doing the same. The good news is that it is a two-way street: by reducing our own direct emissions (by implementing energy efficiencies such as updated HVAC and LED lighting, for example) we are also bringing down the Scope 3 emissions of our clients. Similarly, when our clients implement energy efficiencies (their Scope 1), they reduce our Scope 3.
As more companies set net-zero targets, it is increasingly apparent that we are all in this together. At Cushman & Wakefield we have our own data challenges to overcome – especially around Scope 3 emissions. Like all companies, we are working hard to constantly improve, and to share our learnings with others, because we know that we will not reach net zero alone.
Executive Director,
Head of Advisory Services,
Valuation & Advisory Services, Greater China
Co-head of Sustainability Services
Cushman & Wakefield
Executive Director,
Head of Advisory Services,
Valuation & Advisory Services, Greater China
Co-head of Sustainability Services
Cushman & Wakefield
Alton is the Executive Director and Head of Advisory Services in the Valuation & Advisory Department, Greater China as well as Co-head of Sustainability Services, with over 16 years of experience in valuation and advisory services, particularly for due diligence, auditing, public document and financing purposes in Hong Kong, Mainland China and other Asia Pacific countries.
Leading the Greater China Advisory Services team, Alton provides valuation, feasibility and market study, market positioning, performance assessment, development advisory services etc., which covering different areas of alternative investments, including senior housing, logistics property, data centre and life science park.
He also has extensive experience in environmental, social and governance (ESG) advisory services, covering ESG ratings, Global Real Estate Sustainability Benchmark (GRESB), Task Force on Climate-related Financial Disclosures (TCFD), energy solutions, sustainable development, green/ wellbeing building certifications services etc. He is also our committee member of C&W’s Global Corporate Social Responsibility team.
Alton is also one of the drafting members of the HKIS Valuation Standards 2017 and 2020 editions.
An increasing number of institutions, especially financial institutions, have started to disclose climate-related risks and opportunities in alignment with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
MSCI ESG Research LLC data and metrics can be used at the portfolio, sector and security level to support reporting on the four pillars of the TCFD recommendations: governance, strategy, risk management and metrics and targets.
This report was originally published in https://www.msci.com/www/research-paper/tcfd-aligned-climate-risk/03306029396
With the pandemic now well into its third year, most office occupiers in Asia Pacific are displaying a clear shift towards embracing real estate strategies that recognise that COVID-19 is here to stay for the long-term.
Among these approaches are a sharper focus on wellness and sustainability in the workplace, with CBRE Asia Pacific’s 2022 Spring Office Occupier Survey finding that most tenants are implementing or at the very least considering a range of related initiatives.
This ViewPoint by CBRE Research expands upon the survey findings and identifies the main challenges and priorities facing landlords and investors as they look to respond to growing occupier demand for green buildings, leases and technologies.
This report was originally published in https://www.cbre.com/insights/viewpoints/asia-pacific-viewpoint-landlords-and-tenants-must-collaborate-to-achieve-sustainability-goals-jul
Cushman & Wakefield Greater China’s report begins by considering and explaining what climate positive is and means. Secondly, the report looks at a number of selected climate-positive approaches for sustainable real estate. Thirdly, the report examines two proven rating and benchmarking systems that can go some way to help enterprises achieve their climate positive goals, and they are:
This report was originally published in https://www.cushmanwakefield.com/en/greater-china/insights/china-sustainability-climate-positive-report-2022
This starter guide provides a quick summary of approaches to responsible investment for direct and indirect real estate investors. It outlines options for including ESG issues in the investment process, management of assets and the relationship between asset owner and investment manager.
Investing in real estate presents two key ESG considerations when compared with many other asset classes. Firstly, real estate is usually a long-term investment, allowing more time for material ESG issues to play out in ways that affect investors, the environment and society. Secondly, many ESG issues play out at a local level, for example extreme weather, water stress, legislative and/or regulatory requirements and community relations. Direct real estate investments are inextricably linked to a specific geographic location, making the incorporation of ESG issues particularly relevant.
This report was originally published in https://www.unpri.org/an-introduction-to-responsible-investment/an-introduction-to-responsible-investment-real-estate/5628.article
Pension funds, sovereign-wealth funds, insurance companies and other institutional owners of capital are committing to reduce financed emissions across their portfolios.
This guide from MSCI ESG Research outlines concrete steps to help asset owners convert climate commitments to action.
This guide was originally published in https://www.msci.com/www/research-paper/implementing-net-zero-a-guide/03298099988
For the MSCI APAC ESG Research team, three of the trends in MSCI’s 2022 ESG Trends to Watch report resonated with particular strength and importance, as they present major potential risks and opportunities in the APAC region: The Coal Conundrum: Rethinking Divestment, Coffee vs. Burgers: Biodiversity and the Future of Food and The New “Amazon Effect”: Corporates Pushing Corporates for Net-Zero Supply Chains.
This report explores these three trends more deeply, delving into the underlying ESG metrics and ultimately identifying a group of companies that are considered ESG trendsetters.
This report was originally published in https://www.msci.com/www/research-paper/esg-trendsetters-in-apac/03104342240
ESG savvy multinationals are in a tight race towards net zero by 2030. Many know that being a responsible corporate citizen is not only good for the planet—it is good for the bottom line. At the same time, investors are keen to unlock funds for those who not only talk the talk about reducing emissions but walk the walk with quantifiable solutions. And a sure thing is electrifying buildings through green sources.
It is well documented by climate experts that a significant proportion of emissions arise from commercial real estate, with carbon dioxide and methane gases typical byproducts from operating workplaces. Emissions spike in tropical and sub-tropical climes that require year-round air conditioning or northern climes that need to heat and illuminate workdays with short daylight hours. In its 2019 report, the World Green Building Council noted that “building and construction are responsible for 39% of all carbon emissions in the world, with operational emissions (from energy used to heat, cool and light buildings) accounting for 28%. The remaining 11% comes from embodied carbon emissions, or ‘upfront’ carbon that is associated with materials and construction processes throughout the whole building lifecycle. WorldGBC’s vision to fully decarbonise the sector requires eliminating both operational and embodied carbon emissions.”
Keeping corporate eyes on the renewable energy prize helps companies focus on combating reliance on existing power grids that historically burn fossil fuels. “Our buildings can definitely be powered by 100% renewable energy sources,” ascertains Lisa Hinde, Head of Sustainability | Asia Pacific, Real Estate Management Services. “Many existing buildings are currently cycling out equipment that consumes gas on site and committing to electrification as part of their development strategy. This is supported by industry frameworks such as Green Star Building mandating electrification as the only pathway to a 6-star rating.
While most Asia Pacific countries have a percentage of sustainable energy sources in place—wind in Thailand, geothermal in the Philippines and Indonesia, and hydro in New Zealand are a few examples—Rick Thomas, Managing Director | Emerging Markets, explains that they are all at varying stages of maturity. “The real estate industry should find a common rating system and governments should mandate or implement a policy that part of the power supply has to be green,” he suggests. “It is always a combination of policy plus sentiment and appetite. If multinationals demand 5-or-6-star rated buildings, developers will have to build them.”
Lisa notes that as renewables become a larger percentage of the grid, buildings powered by electricity will naturally decarbonize. “Our reporting systems are now set up to recognize this transition,” she notes. “They allow organizations with net zero targets to capture cost savings associated with electricity-based consumption.” In Australia, the National Australian Built Environment Rating System (NABERS) has recently announced changes to emissions factors in 2025 and 2030 that will reflect the growing presence of renewable energy in the grid. This will make it increasingly difficult to maintain existing NABERS ratings in buildings that retain gas systems.
According to NABERS, a 4.5 star rated building today that is 100% electric will improve, whereas a building with 50% gas contribution will fall incrementally.
This may impact access to green finance and meeting obligations under green lease schedules, putting buildings with gas systems at higher risk in these categories than 100% electric buildings.
On the operations side, Rick advises for asset managers to be one step ahead to exceed the expectations of occupiers. “They should have solid green programs in place that outlines how the majority of electricity can come from green sources,” he states.
Electrifying buildings through green sources is universally beneficial. Landlords and occupiers that get on board now reap huge dividends in the long run as sustainable energy sources become more widely adopted to combat climate change. “This is not just a nice environmental initiative to pursue,” says Rick. “This strategy, if executed during the appropriate time frames, will be far more cost effective in meeting or exceeding net zero targets. By working with market forces and understanding occupier demand, landlords can turn this trend into a lucrative investment strategy for their portfolio.”
Colliers’ client DOMA has recently completed the 13,200sqm office for the ACT Government in Dickson (pictured) as the first all-electric HVAC system for Canberra and is continuing their push for all new office developments being fully electric with two new CLT offices in Canberra and Newcastle set to commence construction this year. “Removing the dependence on gas systems is not only the best decision for the environment and in line with our best practice agenda, but also reflects the expectation of our future occupiers to be operating out of a building powered by 100% renewable electricity,” said Gavin Edgar, General Manager, Development, at DOMA.
Demonstrating its commitment to promoting sustainability in the built environment, Hines’ 600 Collins Street office development in Melbourne will be fully electric as part of its 6-Star Green Star environmental certification. “ESG and reducing our industry’s carbon footprint are the pressing issues of our time, both for tenants and investors,” said Simon Nasa, Director and City Head for Hines in Melbourne. “Hines is leading the way globally in decarbonising new developments – 600 Collins will be at the forefront of sustainable design and construction, and will provide an example to the industry here in Australia of how the next generation of office space will operate to benefit its occupants and environment.”
This article was originally published in https://www.colliers.com/en-xa/news/e22-expert-talks-electrification-for-real-esg-impact
Kemmu Kawai joined Longevity Partners Japan in September 2022 as the Country Director. Based in Tokyo, he oversees all operations and activities in Japan, the Asia-Pacific region and beyond. He brings him more than 16 years of experience in finance where he specialised in real estate and credit investments. Before joining Longevity Partners, he served as a Portfolio Manager at Norinchukin Bank and as Investment Manager at Center Point Development.
Kemmu Kawai
Managing Director
Longevity Partners
