PM-ESG:

Carbon / GHG Emissions

Management and Reporting

Asian Institute of Technology

Jiehui Kia
22 October 2024
What we will learn today

1. How are companies expected to report on

Scope 1, 2 and 3 GHG emissions?
2. Case study: How Singapore has implemented
Sustainability and GHG Emissions Reporting
3. Scope 3 GHG emissions and engaging with your
value chain
About me

Singapore Economic Development Board

Marketing & Communications for Sustainability
Clean energy, water, waste management, green
buildings

Forum for the Future

Principal Sustainability Strategist
Textiles manufacturing, decentralised
renewable energy, food supply chains

Shin Seiki & Ichi Seiki

Start-up Founder & Business Development
Making engineering fun and sustainable
Internal transformation for my family business
Carbon / GHG emissions
reporting

Scope 1, 2, 3…
“Carbon” vs “GHG”

• Gases that trap heat in the atmosphere are called

greenhouse gases (GHG)

• Carbon dioxide (CO2) is the primary greenhouse gas

emitted through human activities. In 2022,
CO2 accounted for 80% of all U.S. greenhouse gas
emissions from human activities.

• Emissions reporting typically refer to GHG emissions.

In the case of many companies (especially non-
agriculture), carbon emissions comprises all of their
GHG emissions.
GHG Scope & Value Chain

• Scope 1: Direct GHG emissions from sources that a company owns or

controls. These emissions typically occur on-site, such as the combustion of
diesel used for driving a truck or the burning of coal to generate electricity.

• Scope 2: Indirect emissions from purchased electricity, steam, heat and

cooling. For example, an electricity user’s scope 2 emissions would be the
scope 1 emissions of the power generating company.

• Scope 3: Indirect emissions from a company’s upstream and downstream

This is (partially)
activities. They occur outside a company’s control and are associated with its
value chain. For example, for a mobile phone manufacturing company, the why value chain
indirect emissions that occur when a mobile phone user charges their phone management has
would be the company’s downstream scope 3 emissions. Similarly, the become a top
emissions from the materials it took to build the phone would be the priority
company’s upstream scope 3 emissions.

Source: World Resources Institute

Emissions Intensity vs Absolute Emissions

• Absolute targets:
Aim to reduce GHG
emissions by a set amount.

• Intensity target:
A normalized metric that
sets an organization’s
emissions target relative to
an economic or operational
variable. Intensity targets
allow a business to set
emissions reduction targets Intensity of emissions is seen as a problematic accounting metric. The UN Integrity
while accounting for Matters report states: “Non-state actors cannot focus on reducing the intensity of their
emissions rather than their absolute emissions.”
economic growth.
Source: [Link]
Source: US EPA in-a-sustainability-report
Which led to the creation of…

Targets are considered 'science-based' if they are in line

with what the latest climate science deems necessary
to meet the goals of the Paris Agreement – limiting global
warming to 1.5°C above pre-industrial levels.
LOOKING AHEAD
To achieve our ambitious emissions
reduction goal, we will focus on increasing
use of EPMs (environmentally preferred
materials), helping factories convert
to use of more renewable energy and
working across industries to accelerate
decarbonization of fuels, packaging and
other components of the value chain
necessary to produce, move and sell
NIKE products.
Scope 1, 2 3…

Has GHG or carbon emissions

management and reporting
has been required for your
company or your clients?
[Link]
anding-scope-1-scope-2-and-scope-3-emissions/
How one country in Southeast Asia has
implemented Sustainability and
Carbon Emissions Reporting

The Case of Singapore…

Fresh off the press…

Good job, Singapore…

but how did we get here?
A Brief History of ESG Reporting in Singapore

The From Encouraged Focusing in Comparable

Beginning to Required on Climate Carbon Emissions
(2011) (2016 to 2017) (2022 to 2024) (2025 onwards)

SGX published Upgraded the “Guide” to a Climate reporting From FY2025, SGX
“Guide to Sustainability listing rule requirement aligned to global ‘Task requires all issues to
Reporting for Listed Sustainability reporting was Force on Climate- report Scope 1 and
Companies” in 2011 to made mandatory on a “comply related Financial Scope 2 GHG emissions
encourage listed or explain” basis, effective Disclosures’ (TCFD) and meet IFRS (new
companies to report on 31 December 2017 mandated for FY2022 TCFD) standards
their sustainability
performance
Mandatory: Include in Annual TCFD requires companies Localized emission
Very few companies did Report, ESG factors that affect to conduct climate-risk factors for over 200
voluntary reporting business strategies, report assessment common business
performance and targets Phased implementation activities & purchases
More of an “opening”
for SGX and MAS to Up to company to set based on carbon intensity Sidenote: All audit and
begin stakeholder measurements and targets, not of industry → By FY2024, consultancies firm are
engagement & public comparable across the board all mandatory, no more aggressively hiring for
consultation If unable to comply, explain why not ‘comply or explain’ ESG talent
Emissions Registry
Fun fact: Emissions incurred via travel to and from
work is included in Scope 3 emissions
Singapore took 14 years…
can Vietnam move faster?
 Scope 3 emissions and
engaging with your value
chain
ESG Risks in Value Chains

ESG risks in value chains are potential

negative impacts that suppliers or business
partners in a company’s value chain can
have on the environment, society and its own
governance practices.

EU’s Corporate Sustainability Due

Diligence Directive (CSDDD) Environmental Risks Social Risks Governance Risks

• Adopted by EU Parliament in April 2024 • Carbon Emissions • Forced Labour • Corruption and
• Requires both EU and non-EU companies Bribery
• Air/ Water Pollution • Workplace
operating in the EU to take responsibility
Discrimination • Ethical Sourcing
for the environmental and social impacts • Energy/ Water
of their value chains, including those of Consumption • Working • Transparency
suppliers and their sub-suppliers and Conditions
business partners • Biodiversity Loss • Compliance
• Community
• EU has the right to impose fines of as • Hazardous Waste Engagement • Fair Pricing
much as 5% of global turnover if abuses
are identified
Even Singapore doesn’t have the answer here…
CDL, DBS, Enterprise Singapore: Programme to help
local SMEs strengthen decarbonization efforts

Real estate developer Govt. agency supporting local Largest bank in Singapore
(listed on SGX) SME development
DBS will offer financing at
CDL is a leader in corporate 70% grant support for relevant preferential rates to CDL’s
sustainability in Singapore. costs incurred by SME suppliers to SME suppliers, and discounted
In collaboration with the adopt carbon accounting/ reporting rates for invoice financing, in
government and DBS bank, software and send employees for relation to the suppliers’
they launched a “SME relevant training courses. activities with CDL.
Supplier Queen Bee
Programme” to empower
CDL’s selected 100 local Business benefit: Support government’s goals to improve SME
SME suppliers to enhance decarbonization capabilities, while equipping their own
their abilities in carbon preferred suppliers with capabilities to report Scope 1 & 2
accounting and reporting. carbon emissions, which are CDL’s Scope 3 emissions.
Realistically, what is the impact of Scope 3
emissions reporting requirements?
 Thank you,
keep in touch!

Ms. Kia Jie Hui

jiehui@[Link]