15 Dec 2022
HO CHI MINH CITY, 15 DECEMBER 2022
Frasers Property Vietnam (FPV), one of Vietnam's leading diversified real estate companies, today announced that the Science Based Targets initiative (SBTi) has approved its science-based approach to significantly reduce greenhouse gas (GHG) emissions. This is Vietnam’s first approval for science-based targets from SBTi for a company in real estate.
The SBTi is a collaboration between Carbon Disclosure Project (CDP), the United Nations Global Compact (UNGC), World Resources Institute (WRI) and the World Wide Fund for Nature (WWF), to drive ambitious climate action in the private sector by enabling organisations to set science-based emissions reduction targets. Following COP27, which was recently held in November 2022, FPV is committed to deliver action on an array of critical issues to tackle the climate emergency, and is committing to ambitious carbon emissions reduction targets that have been assessed and validated by the SBTi.
Edwin Tan, Deputy CEO of Frasers Property Vietnam, said, "Vietnam has a growing commitment to the ESG (Environmental, Social and Governance) agenda, which is in line with our Group-wide sustainability goal to be a net-zero carbon corporation by 2050. Frasers Property wants to do our part to raise sustainability outcomes in Vietnam. We are delighted to have the SBTi's approval of our science-based targets, which affirms our ambitious goal-setting to make a tangible impact on climate change. We want to work with like-minded partners to drive greater meaningful change in sustainability, and will continue to promote and lead activities for a sustainable environment and more inclusive society."
FPV’s science-based approach to reducing emissions across the value chain
As part of the Group’s decarbonisation journey that encompasses Scopes 1, 2 and 3 emissions, FPV has developed detailed net-zero carbon roadmaps and carbon reduction targets.
Scope 1 includes direct emissions produced from company’s owned or controlled sources, while Scope 2 comprises indirect emissions produced by energy usage across company’s footprint. FPV has committed to reduce absolute Scopes 1 and 2 emissions by 46.2% by FY2030 from FY2019 as its base year. This target covers GHG emissions from the company’s operations and is aligned with the Paris Agreement to limit global temperature rise to 1.5°C. With reductions in GHG a priority, FPV is actively making buildings more energy efficient with green building certifications. To further reduce emissions in facilities it manages for occupiers, Melinh Point is now equipped with a water-cooled chiller system that reduces more than 23% in energy use. Additionally, LED lights are now in use in common areas across all properties, and solar streetlights and solar panels have been installed in Binh Duong Industrial Park.
Scope 3 carbon emissions contribute the largest share and encompasses a company’s value chain – from tenants, contractors, suppliers, and vendors. FPV has also committed to reducing absolute Scope 3 emissions by 46.2% within the same timeframe.
To make progress on all three Scopes, FPV is moving towards implementing low-carbon building materials, improving energy efficiency and deploying more renewable energy solutions, as well as establishing Frasers Property’s Group Responsible Sourcing Policy which was first unveiled in 2021. FPV has been engaging tenants on a regular basis to spread awareness on climate issues and empowering them to take action, particularly in conserving energy. Most tenants in its commercial developments such as Melinh Point and Worc@Q2 as well as its first industrial development, Binh Duong Industrial Park, are currently on green leases. Green leases help define the environmental objectives for tenants to ensure higher standards in energy consumption and efficiency for better working environment and experiences.