The global discourse regarding sustainability has gained a lot of traction in recent years, and it is quite evident in Asia. According to a study by consulting firm McKinsey & Co., the region is home to five of the world's ten largest greenhouse gas (GHG) emitters, namely China, India, Indonesia, Japan and South Korea. These countries account for around 45% of worldwide GHG emissions.
Companies in Asia have started to prioritize a more sustainable future in technology, from cutting-edge renewable energy endeavors to ground-breaking waste management methods.
The factors that drive sustainability projects strike a careful balance between external pressure and their potentially beneficial effects. According to a 2022 study by the International Data Corporation, worldwide firms are evenly divided between these two factors, indicating a 50/50 split in their adoption of sustainable initiatives. Such change is driven by the voices of stakeholders ranging from investors and regulators to end-users and ecosystem partners. Simultaneously, the benefits inherent in sustainability projects are opening up new avenues for growth.
Companies that integrate sustainability into their business operations receive benefits that go beyond environmental protection. The elimination of waste, cost optimization, increased operational efficiency and introduction of new income sources are only the beginning. These efforts also have an impact on human resources, allowing for talent acquisition and retention while promoting an innovative culture. These effects ripple across every aspect of business, resulting in game-changing product and service improvements.
In Thailand, for example, a ground-breaking renewable energy project is underway in the heart of Thailand's high-tech Eastern Economic Corridor. As the globe grapples with pressing climate issues, Thailand's efforts toward sustainability are admirable and serve as a beacon of hope for Southeast Asia and beyond.
Kansai Electric Power Co., Japan's second-biggest energy supplier, is building the world's largest stand-alone rooftop solar panel installation on a huge rooftop larger than 18 football fields. The facility is built on top of a factory that produces high-performance Falken tires for the European market. This enormous project, in conjunction with a gas co-generation system and extra electric power powered by biomass from leftover rubber trees, will span 100,000 square meters and produce a remarkable 22 MW by 2025. It is expected to decrease CO2 emissions by 38,000 metric tons.
Thailand's quest for sustainability is guided by a comprehensive national policy known as the Bio-Circular Green Economy. This strategy attracted investors with subsidies, tax breaks and other perks in order to encourage renewable energy projects. The strategy has been enormously effective, with 186 of the 195 proposals to the Thailand Board of Investment (BOI) for power production projects in the first half of 2023 concentrated on renewable energy.
Meanwhile, India boasts a solar power revolution that exemplifies Asia's potential for global sustainability influence. The country's ambitious solar energy goals have resulted in the construction of the Kurnool Ultra Mega Solar Park, one of the world's largest solar parks. The park, which covers 5,932 acres, generates over 1,000 MW of power and offsets around 1.3 million tons of CO2 a year. This initiative not only promotes renewable energy but also helps reduce global greenhouse gas emissions.
The impact of sustainability extends beyond human dynamics, driving innovation across industries. Circularity initiatives demand the reimagining of product design and supply systems. This strategy requires innovative approaches to minimize, recycle and repurpose resources, resulting in eco-smartphones and sustainable SIM cards. Even data centers, which are essential to the digital domain, are being reengineered to conform to sustainable principles. Innovative designs, such as Microsoft's undersea "clouds in the ocean," are expected to decrease carbon emissions by around 40%.
According to IDC's "Trends in Sustainability Regulations in Asia Pacific," a thorough examination of the regional market environment over the last three years, modifications in national policies and laws are attributed to the establishment of three country segments: pacesetters, emerging leaders and watchers. These components shed light on a country's level of sustainability maturity, which is formed by the policies that drive change.
The impacts of these new policies are driving an increase in demand for sustainability and ESG reporting-related technology and services in certain Asian regions. According to IDC, at least 30% of the top 2000 firms in the Asia-Pacific region will increase their attention to ESG performance monitoring.
IDC's report identified eight economies as emerging leaders: China, Hong Kong, India, Indonesia, Japan, Malaysia, Thailand and Vietnam. These nations will see a surge in demand for ESG data management, supply chain data management, ESG reporting, decarbonization technology and product lifecycle data management.
As businesses implement sustainable practices, new tools and services emerge to suit specific needs. Carbon footprint monitoring and data security are two examples of ESG-related professional business services in high demand. Existing technologies, such as blockchain, are finding new applications in the verification of sustainable sourcing, while AI and digital twins are being used in sustainability simulations and human rights tracking.
