TNB has embraced Malaysia’s aspiration to becoming a carbon-neutral nation by 2050. With that in mind, it is critical that our carbon emission performance management is effective and transparent through regular assessment of our business operations while benchmarking our performance against our industry peers, and identifying gaps and potential solutions to address them.
TNB has consistently reported its Greenhouse Gas (GHG) Scope 1 and Scope 2 direct and indirect emissions in the TNB Sustainability Report since 2018. For greater transparency in our reporting, we adopted international standard guidelines on GHG emissions methodologies, such as the 2006 IPCC Guidelines for National Greenhouse Gas Inventories (revised July 2023); GHG Protocol Corporate Accounting and Reporting Standard (2004); Scope 2 Guidance (2015); and ISO 14064:2018.
Reporting on Greenhouse Gas (GHG) Scope 3: Category 6 (Business Travel) & Category 7 (Employee Commuting)
Measures are underway to incorporate Scope 3 in future emissions reporting from 2023 onwards as part of TNB’s commitment to strengthen its reporting mechanism and manage its climate-related actions in a more responsible manner. We shall focus on our operations in Peninsular Malaysia by including Scope 3 indirect emissions under Categories 6 (Business Travel) and 7 (Employee Commuting).
The inclusion of Scope 3 emissions reflects TNB's commitment to monitoring and reducing its direct and indirect environmental impact as well as fostering collaborative efforts along the business value chain for a more sustainable future. This approach is significant for:
Identification of Opportunities
Measuring Scope 3 emissions allows us to identify energy efficiency and cost reduction opportunities within our supply chain, contributing to more sustainable and economical operations
Employee Engagement
Measuring and reporting Scope 3 emissions empowers us to engage positively with employees. This engagement aims to reduce emissions associated with business travel and commuting, aligning with our commitment to environmental responsibility.
Compliance Assurance
The measurement of Scope 3 emissions ensures that we are in compliance with environmental reporting standards and regulations such as Bursa Malaysia and Global Reporting Initiatives (GRI) Standard, and further demonstrating our commitment to transparency and environmental stewardship.
GHG Scope 3 Emissions Assessment
Leveraging current data availability and readiness from TNB’s internal monitoring systems, we employ a distance-travelled-based methodology for reporting Greenhouse Gas (GHG) Scope 3 emissions in Categories 6 (Business Travel) and 7 (Employee Commuting). This approach aligns with the GHG Protocol Scope 3 Calculation Guidance (2013).
| GHG Scope 3 | Methodology |
|---|---|
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The adoption of this methodology aims to ensure the disclosure is aligned with international and industry practices, improve result credibility and thus, provide better insights for all stakeholders.
Establishing Baseline Results Towards Responsible Decarbonisation
While our data gathering and analysis are still in progress, we aim to share preliminary results based on the available data to demonstrate our ongoing efforts and commitment
| GHG Scope 3 | Data availability | Average emissions / month (tC02e) | Estimated annual emissions (tC02e) |
|---|---|---|---|
| Category 6: Business Travel | FY2023 (8 months) | 3,067.94 | 36,815.24 |
| Category 7: Employee Commuting | FY2023 (4 months) | 2,628.57 | 31,542.79 |
We are steadfast in our commitment to collect and analyse the Scope 3 data on Categories 6 and 7. Beginning in 2024, we will expand our efforts to gather and analyse data for the rest of the Scope 3 categories across the value chain of TNB’s business operation, which includes collaboration with suppliers and vendors to collectively reduce environmental impact and enhance sustainability across the supply chain. We have formed a project management team to advocate stakeholders, deploy digitalisation efforts and manage the progress in process simplification to address the carbon emissions reduction data management. These crucial data sets serve as the foundation for establishing a baseline and strengthen a more robust reduction strategy, propelling us towards achieving our emission reduction targets. After all, our commitment to fulfil our Net Zero 2050 aspiration is our driving force behind our relentless pursuit of environmental sustainability.