Friday October 16, 2009
StarBizICR - Corporate Responsibility Awards 2009
By YEOW POOI LING
The Star will be featuring a series of articles in conjunction with the StarBiz-ICR Malaysia Corporate Responsibility Awards 2009. The programme is a partnership between The Star and Institute of Corporate Responsibility Malaysia, and is supported by the Securities Commission and Bursa Malaysia Bhd. The working partners are Association of Chartered Certified Accountants, PricewaterhouseCoopers and the Securities Industry Development Corp while the official sponsors are HSBC Bank ( M) Bhd and Canon Marketing (M) Sdn Bhd.
PETALING JAYA: A global climate policy framework may still be nowhere in sight but various initiatives by individuals and companies are being implemented around the world.
Scientists and environmentalists have warned of severe consequences if countries worldwide do not act decisively to undertake measures that will stabilise greenhouse emissions to safe levels.
On a lighter note, BBC News recently reported the Maldives government planned to hold its Cabinet meeting under the sea as a signal of the threat of global warming to the country.
Comprising over 1,000 coral islands, Maldives will be hit most by climate change as 80% of the archipelago is less than one metre above sea level, making it vulnerable to any rise in sea levels, the report said.
On the global front, a World Economic Forum task force recently proposed strategies to quicken private sector investment and innovation to deal with climate change while governments continue to discuss on a climate policy framework in the United Nations.
It suggested, among others, regional, public-private, low-carbon energy investment funds worldwide, which will combine equity investments from governments, pension funds, insurance companies, sovereign wealth fund and philanthropies with debt financing.
This financing structure is expected to generate over US$1 trillion in investment in developing countries in the next 15 years, which is way above what can be generated by increased foreign aid alone.
It also suggested a global standard for the labelling of carbon footprints on consumer products to help the public make informed choices.
In terms of improving energy efficiency, it asked for the private sector dimension to be included in the post-Kyoto climate framework to encourage companies in the same industry worldwide to share and spread technology.
While these initiatives are still pending the green light, certain sectors and companies have taken more proactive measures against climate change. For example, the aviation industry, a major contributor of carbon dioxide (CO2) emission, is actively involved in efforts to reduce its carbon footprint.
On its website, the International Air Transport Association (IATA) said the sector was responsible for 2% of global CO2 emissions, 12% of CO2 emissions from all transport sources (road transport is 74%) and 3% of the total man-made contribution to climate change.
Its vision is to achieve carbon neutral growth, towards a carbon-free industry. A Reuters report said IATA aimed for an average improvement in fuel efficiency of 1.5% a year from this year to 2020. IATA said that by 2020, airlines targeted for at least an additional 25% improvement in fuel efficiency and CO2 emissions via technology and operational enhancements. IATA fleet fuel efficiency improved by about 3.1% in 2006 and 2007.
On Feb 2, the European Union, in an attempt to curb CO2 emissions, had included aviation in the EU Emissions Trading Scheme from 2012 onwards, which involved almost all airlines with operations to, from and within the EU.
Under the EU legislation, airlines had to submit monitoring plans by end of last August, monitor tonne-kilometres and CO2 emissions from Jan 1, 2010, report tonne-kilometre and CO2 emissions data and apply for free-emissions allowances by end-March 2011, and surrender allowances for 2012 emissions by April 30, 2013.
Road transport, however, remains largely an unregulated segment. Imagine that China alone is expected to have about 12 million new vehicles on the road this year.
Plantation companies are another segment that has been actively involved in conservation, as climate change would significantly impact their crops and production.
Malaysia, as one of the two largest producers of palm oil, has in place practices aimed at preserving the environment. The zero-burning replanting technique, for example, is an industry standard for oil palm replanting, which was introduced by Golden Hope Plantations (now part of the Sime Darby group).
The technique allows complete return of organic matter to the soil, which helps improve soil chemical and fertility. It offers immediate replanting of trees and the process is not dependent on weather conditions. Most importantly, it is non-polluting and therefore does not contribute to global warming.
YTL Corp Bhd, which has diversified businesses in utilities, construction, property, cement, telecommunications, hotels and resorts as well as high-speed rail, has an on-going programme to educate the public about climate change.
Its Climate Change Week 2009, running for the third year, featured six-episode Strange Days on Planet Earth: Oceans on Astro’s National Geographic Channel in June. The campaign is designed to raise awareness on climate change and the environment among Malaysians.
In its businesses, YTL also adopts measures that reduce CO2 emissions, conserve energy and protect natural resources such as the use of clean technology and renewable energy.
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