Article
The Environment and our Global Commons:Taking Account of the Natural World
Deloitte CarbonCare Asia has a global record advising major local and international corporations, and has amassed the experience and expertise to deliver a suite of sustainability services to clients from a range of sectors and industries. In addition to our focus on business and finance, we have a strong record in bringing sustainability solutions to public bodies and non-governmental institutions.
Industrial Products & Construction
Consumer Products
Financial Services
Real Estate
Transportation, Hospitality & Services
Power, Utilities & Renewables
Industrial Products & Construction
Challenges and Trends
The built environment is in a prime position to address climate change through the reduction of embodied carbon emissions in building design and materials used as well as emissions and waste during the construction process. The energy efficiency of the completed building depends on the choices made at the design stage related to features such as the thermal efficiency of the building envelope and equipment installed in the building. Industrial accidents, safety and migrant labour issues are also significant for the construction sector. Sustainable buildings can ensure they connect with existing communities and facilities rather than displace them.
Solutions
- Designed-in low-carbon and low-waste materials and construction techniques
- Design to achieve green building certification schemes
- Resilience and climate-readiness assessments pre-construction
- Natural cooling or heating and passive design systems
- Connection to district heating and cooling systems
- Low energy internal equipment
- User-friendly operational efficiency measures
- Community engagement: heritage protection and community recreation facilities
Consumer Products
Challenges and Trends
Food, beverages, garments and electronic goods are responsible for a massive amount of carbon emissions when raw material supplies, manufacturing, transport, storage, packaging, marketing and retailing are fully included in the ultimate carbon footprint.
Greenhouse gas emissions, water use, chemical and plastic pollution are big issues for both agriculture, manufacturing and the consumer sectors. Micro-plastics are of particular concern in the textile and garment sector. Besides environmental concerns, labour rights, child labour, health and safety and conflict zones in the supply chain are potent issues. Lax standards on these issue can result in devastating brand collapse and loss of consumer support.
Environmentally conscious consumption is a growing driver of change in consumer products. Questions about over-packaging, plastic waste and the impact of fast fashion are part of a lifestyle movement that is promoting circular economy and product responsibility. The issue of wasteful consumption extends beyond the retail sector to the advertising industry involving questions about the ethics of promoting extravagant lifestyles and unrealistic body images.
Solutions
- Retailers codes of conduct regarding ethical and environmental screening of supply chains and labour issues
- Traceability and carbon footprint information supplied with products
- Product responsibility related to health, safety and the environment including food additives and animal welfare
- Product durability, reparability, takeback and reuse of original materials
- Use of low pollution and safe materials in textile, garment, shoe and electronics production
- Garment, shoe and electronics factory health and safety standards
- Responsible advertising initiatives
- Codes of conduct and product labels for sustainability in forestry, agricultural and marine products
- Sourcing from and support for small-scale producers such as fair trade schemes
Financial Services
Challenges and Trends
The greening of the financial system is high on the agenda of the world's major financial centres, including Hong Kong and mainland China. Lenders, investors and insurers are setting ambitious decarbonisation targets for their portfolios, aware of the pressure to reduce their financed emissions as well as provide financial support for the transition to net-zero economies. Borrowers and investees are aware of the benefits of seeking finance linked to green projects or sustainability targets with instruments such as green bonds, green loans or sustainability-linked loans and investments.
As the region's financial centres position themselves as green finance hubs, a range of opportunities are emerging to incentivise green bonds, green loans and green investments. At the same time, regulatory authorities throughout the region are putting reporting standards in place which will require lenders, investors and insurers to take full account of climate risk in their activities through stress tests and scenario plans.
Governance challenges for banks include prevention of money laundering; sanction violation; market manipulation, irresponsible lending practices and inflated executive remuneration. For employees, banks must guard against cases of bullying and harassment.
Solutions
- Net zero and interim targets for financed emissions
- Stress testing and scenario planning on climate risk
- Top level responsibility for sustainability in governance and management
- Ethical investment standards, criteria and monitoring
- Participation in industry codes of conduct
- Support to initiatives providing financial services to small-scale producers, the unbanked, migrant workers and disaster relief efforts
- Participation in public-private initiatives on climate mitigation and adaptation including support to climate funds and green banks
Real Estate
Challenges and Trends
Buildings are the main source of greenhouse gas emissions and energy consumption in many Asian cities, making the greening of the property and real estate sector imperative for achievement of net zero emissions targets. As a key element of urban planning, the property sector also has a strong responsibility towards the surrounding community. Treatment of waste and water use are also subject to tightening environmental laws. Asset values are being affected by environmental credentials of buildings in the eyes of investors. Other recognised challenges for the sector include: environmental issues related to the wellbeing of building users; employment conditions for sub-contracted services such as cleaners, gardeners and security guards; heritage protection; land rights; corruption and affordable housing.
Solutions
- Green building certification and standards
- Smart metering and active energy use information
- Occupant wellbeing and health initiatives
- Integrated waste management systems
- Energy use incentives and benchmarking schemes for users
- Supply chain standards for sub-contracted services
- Connectivity and outreach to surrounding area and community: walkability, green areas, recreational facilities, job creation
Transportation, Hospitality & Services
Challenges and Trends
The tourism, hospitality and the meetings, incentives, conferencing, exhibitions (MICE) sectors need to address environmental and social challenges driven by customers demanding low-carbon events and holidays as well as more stringent ESG regulations from governments applied to buildings and transport. Food and plastic waste is a major issue for the food and beverage sector as is material and paper waste resulting from temporary exhibitions. Labour conditions for employees, and particularly for subcontracted services are a significant social issue for this sector. Threats to fragile ecosystems and biodiversity from over-tourism is a further challenge along with noise pollution, the sex trade, land issues and taxation.
Solutions
- Zero-carbon and low-carbon conferences and exhibitions
- Comprehensive and transparent waste management choices for clients
- Eco-tourism, including promotion of local cultures
- Sustainable management of tourist numbers and locations
- Conservation areas and clean up initiatives
- Engagement of indigenous groups and local residents on land and employment issues
Power, Utilities & Renewables
Challenges and Trends
As demand for energy continues to grow, the energy sector faces the challenge of meeting growing needs, enabling energy efficiency and providing smart delivery systems while transitioning to renewable sources of power and green fuels. If our sources of energy remain high carbon, efficiency improvements by energy users will not be sufficient to achieve our carbon neutrality targets.
Solutions
- Renewable energy targets and renewable portfolio standards
- Energy efficiency for buildings, manufacturing, agriculture and transport
- Water conservation and watershed protection
- Electrification of mobility
- Smart grids and meters
- Biofuels and hydrogen
- Support to feed-in tariff and off-grid schemes
Bespoke Services
To ensure the best possible outcomes for our clients, as well as for planet and society, we provide tailor-made solutions for clients meeting specific needs based on their sector, their location, organizational structure and size and their position in the market. Please contact our team to discuss your particular needs.
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