Philippine businesses prioritize ‘net zero’ goals, but tangible action plans still lacking

Philippine businesses are big on verbalizing mindset shift toward decarbonization across their business operations and supply chains as the central action points on their net zero goals for them to meaningfully contribute to tempering global warming as cast in the Paris Agreement.

In a sustainability survey carried out by global research platform Milieu Insight, it was fundamentally cited that “in the Philippines, 99% of local business leaders have established goals to achieve net zero in their operations.” The survey had engaged 4,500 C-level to middle level corporate leaders across nine countries in East Asia and Southeast Asia, including the Philippines.

Regrettably though, it was fleshed out in the same survey that concrete action items on greenhouse gas (GHG) emissions reduction remain wanting compared to the blaring pronouncements or branding statements of businesses.

The survey, in particular, revealed that “99% of the surveyed leaders have established sustainability plans, (but) only 58% have set their plans in action.”

As conveyed by French multinational firm Schneider Electric, which is a leader in digitalization and energy management solutions, the reasons for the less-than-desired performance of businesses on advancing their net zero goals include:  poor incentives, regulatory uncertainties, bureaucratic challenges, insufficiency of market data references as well as lack of desire to make it a business priority.

“While challenges persist, this gap serves as a rallying call for urgent efforts to bridge intentions with actions,” the company stressed.

Along with businesses within the Asia Pacific region, it was also uncovered in the survey that another major realm of business focus is on digital transformation, with  94% of business leaders sounding off their placed bets on this strategy as part of their sustainability pathways.

Circling back to the sphere of attaining net zero goals, it has been emphasized that it is very essential for companies to have very solid data as a base for their targets – and there must also be a transparent way of monitoring the milestones achieved as anchored on the prescribed scoping of the GHG Protocol when it comes to carbon emissions reduction reporting.

According to Schneider Electric Philippines President Ireen Catane, “we are seeing a growing trajectory towards greater sustainability integration into our local industries’ operations.”

Through the company’s offer of energy management solutions, the French firm executive indicated that they are seeing vast opportunities to “support the business industry and the government in their pursuit towards their shift to green energy.”

Schneider Electric is primarily dangling its ‘Green Action Gap’ toolbox, which is the metric being employed to calculate the disparity between an organization’s commitment to decarbonize via its net zero goal versus the tangible results logged in the reduction of its greenhouse gas emissions.

On the wider precept of sustainability, it was further stipulated in the survey result that “60% of Asia Pacific business leaders feel that their company and country view sustainability as a high priority.”

By far, the survey reckoned that the major factors driving corporates to embrace sustainability encompass the need for innovation and competitiveness; as well as increase in business opportunities – chiefly for many companies in Southeast Asia which perceive sustainability as their business growth stimulus.

“Risk management, reputation and opportunity for cost saving round out the top five motivating factors companies consider when making decisions around sustainability strategy,” Schneider Electric noted.

It added that “most business leaders across the region (82% on average) believe that providing more incentives is more effective than enforcing penalties to encourage private sector compliance with government sustainability goals.”

Nevertheless, Catane said “the survey's findings on the intention-action gap reveal that there is still work to be done. As we navigate the urgent need for sustainability, it becomes more crucial for businesses and the public sector to collaborate and leverage innovative solutions to create a more sustainable future.”