Asian firms boast strong intentions when it comes to implementing decarbonisation measures in their businesses, but face a number of hurdles, including a lack of information, clarity on measurement frameworks, and difficulty in obtaining sufficient budget, a new study by GoNetZero has found.
It found that 67% of Asian companies have set net-zero targets while the remainder are still working on their strategies.
Lack of knowledge on decarbonisation
Among the challenges, both external and internal, that Asian firms have cited more than half (53%) of respondents cite a lack of knowledge regarding the processes involved in decarbonisation as a key challenge.
Furthermore, 42% noted that they face an uphill battle of securing budget approvals for their decarbonisation initiatives. The absence of clear measurement and reporting frameworks for carbon emissions adds another layer of complexity, with 36% expressing concerns in this area.
Moreover, the availability of affordable renewable energy options was also cited, with 23% suggesting that there are limited choices to offset their carbon emissions. Some 77% are aware of technology solutions in the renewable energy industry.
“The survey findings provide a unique perspective on the progress and challenges faced by Asia-based businesses as they strive to meet their decarbonisation efforts,” commented Soon Sze Meng, CEO, GoNetZero.
Conducive policy environment
Turning aspiration into action can be facilitated through a conducive policy environment, GoNetZero added, including clear regulation, incentives and availability of government supported green initiatives.
‘By using technology to improve and automate carbon management, businesses can monitor and track their own emissions more effectively. This will empower them to initiate their energy transition planning and take a data-driven approach to identify solutions scaled to their needs and demands,’ it added.
The survey was conducted with members of the American Chamber of Commerce in Singapore and European Chamber of Commerce in Singapore, and the results were announced at the Singapore Fintech Festival 2023.
