Climate Change and Carbon Management

Gain a keen understanding of your business' greenhouse gas emissions across the entire value chain to enable strategic decision making in managing risks and seizing opportunities

Why is it important?

CEOs’ race against time is especially urgent when it comes to climate change. In PwC’s 26th Annual Global CEO Survey, about half of Malaysian respondents expect impact (moderate, large or very large impact) from climate change in the next 12 months—primarily in supply chains (51%), followed by their cost profiles (48%).

To what extent do you expect the following areas of your business to be impacted by climate risk in the next 12 months?

_{Source: PwC 26th Annual Global CEO Survey}

How can we help you?

Including:

Establish / review your business’ GHG emissions baseline
Establish the approach for emissions calculation based on selected international standards (e.g. GHG Protocol)
Recommend data collection and proxy methodologies for reliable representation and ongoing maintenance

Short, medium, and long term ambitions:

Set science-based targets to guide strategic decision-making and as interim checkpoints
Identify appropriate pathways to achieve Net Zero
Facilitate a just transition when progressing towards Net Zero
Develop Net Zero roadmap and complementary 5-year implementation plan to enable immediate actions
Enhance key enablers (e.g. governance structure, policies, key performance indicators) to support operationalisation
Integrate climate and Net Zero considerations across key corporate functions
Facilitate capability building to uplift general awareness and topical knowledge to support implementation
Provide support in submitting commitments / targets to the Science-based Targets Initiative (SBTi)

Conduct gap analysis against the recommendations of the Task-force on Climate-related Financial Disclosures (TCFD)
Identify relevant climate risks and opportunities
Conduct materiality assessment against shortlisted climate risks and opportunities
Conducting scenario analysis to better understand the impacts of transition and physical risks
Integrate climate risks and opportunities into existing enterprise risk management frameworks

Explore related case studies

Malaysian Sovereign Wealth Fund
Local Major Conglomerate
Private Healthcare Provider
Regional Telecommunications Conglomerate
Government Sustainable Fund

Malaysian Sovereign Wealth Fund

Challenge: The client wanted to develop a Task-Force on Climate-related Financial Disclosures (TCFD) response.

Solution: We identified areas for optimisation in the client’s current reporting practices, and evaluated material climate risks across key investment sectors. Drawing upon these insights, we proposed to integrate identified climate risks into existing risk assessment procedures, enhancing overall risk management strategies. To facilitate sustained progress in climate disclosure practices, we also designed a detailed disclosure roadmap, enabling the client to enhance their disclosures in a way that effectively aligns with TCFD guidelines.

Results: The client was able to obtain an increased understanding of TCFD and better visibility of climate risks faced within its investment portfolio. Climate risks were then integrated into existing investment risk processes and established mitigation measures to reduce determined risks, allowing them to navigate the complexities of climate risk management and disclosure effectively, fostering a more climate-resilient organisation.

Local Major Conglomerate

Challenge: The client wanted to develop a global carbon inventory baseline to track and manage emissions effectively.

Solution: We collaborated with the client to develop a global carbon inventory baseline. We did this by first establishing a standardised carbon reporting process that facilitated future years' reporting, ensuring accurate and consistent data collection and analysis. Leveraging the findings from the carbon inventory, strategic opportunities to reduce emissions were identified which would lead to potential cost savings and reduce carbon emissions. A comprehensive carbon reduction roadmap was developed, with detailed outlines on actionable initiatives.

Results: Through the carbon inventory, the client gained greater visibility into their carbon footprint to make better informed decisions. The carbon reduction roadmap enabled the client to implement initiatives for reductions in carbon emissions and enhancing sustainability performance through green technologies and operational improvements.

Private Healthcare Provider

Challenge: The client wanted to review and assess their GHG emissions inventory, aiming to improve accuracy and effectiveness when tracking, monitoring and managing Scope 1, Scope 2, and Scope 3 data across their operations.

Solution: We conducted a comprehensive evaluation of the client’s GHG emissions inventory, including identifying and defining operational and organisational boundaries. To enhance the client’s data collection process moving forward, a GHG data collection template and Group GHG Accounting Manual were developed. A training session was carried out with the data owners to guide them through these tools, enabling them to understand the importance of data collection and how it feeds into the client’s overall sustainability agenda.

Results: The client’s GHG baseline inventory is now aligned to the requirements of the GHG Protocol, as well as in establishing a standardised methodology for GHG accounting, enabling consistent tracking and monitoring of GHG emissions.

Regional Telecommunications Conglomerate

Challenge: The client made a Net Zero commitment, and wanted to implement and align TCFD recommendations to execute their Net Zero Carbon Roadmap effectively.

Solution: We provided recommendations to strengthen their overall climate response and related disclosures, staged and prioritised across three reporting periods. Then, through a climate risk and opportunity assessment, we qualitatively assessed the materiality of key physical and transition risks, along with climate opportunities their pilot operating companies across Asia may have. We also developed a series of tailored TCFD awareness and upskilling sessions for the client’s Board of Directors, Senior Leadership Teams and functional departments, aim to help, understand and integrate climate considerations across its key corporate functions.

Results: The client was able to gain a deeper understanding of TCFD, and better visibility of the material risks and opportunities across their key business segments and operational jurisdictions. This has allowed them to factor these into their strategic, business and financial decisions, which enabled more holistic climate disclosures.

Government Sustainable Fund

Challenge: The state wanted to transition into a low carbon economy by developing a Green Economy Policy and Carbon Trading Strategy framework

Solution: We identified priority areas for the State’s green economy by analysing the existing policy framework and international case studies on generating green growth policies towards a low carbon economy. A carbon trading scheme was also developed, which included reviewing existing regulations on carbon emissions and additional documentation to implement carbon trading projects. Key strategic policies and green growth initiatives were identified for the State to foster a greener economy.

Results: A committee tasked to implement selected key green growth initiatives was formed, along with various carbon credit generating projects. This created new potential revenue streams for the State and further supported the implementation of green growth initiatives.