In the recent Carbon Disclosure Project (CDP) 2011, DiGi Telecommunications Sdn Bhd  came in first in Malaysia and fifth in Asia (excluding Japan, India China and South Korea).

DiGi had recently begun focusing on integrating its carbon disclosure and reduction activities into business strategy and planning. DiGi also launched its Deep Green programme in 2010 to boost awareness and efforts. According to Zaiton Idrus, its head of corporate affairs, DiGi is one of two Malaysian companies that disclosed their carbon emissions for 2011. Zaiton says this award was a recognition of the company’s efforts to build a more sustainable business by practising diligent carbon reporting and managing carbon savings.

According to the CDP report, this is the first year all responses from Asia received a carbon disclosure and performance score. The study found the top disclosure leaders to be Samsung Electronics (South Korea), Posco (South Korea) and Tata Consultancy Services (India).

In the Asia (excluding Japan, India China and South Korea) category, Noble Group Industrials (Singapore), Power Assets Holdings Ltd Utilities (Hong Kong) and Lenovo Group Information Technology (Hong Kong) were the top three in disclosure. DiGi ranked fifth in this category.

In the introduction to the report, Paul Simpson, CEO of the CDP, said the global energy-related carbon dioxide emissions reached a record high last year. He stated that companies will feel the need to compete aggressively for finite resources if they do not choose to advance towards a low carbon economy that enables sustainable, profitable growth, while reducing reliance on increasingly scarce materials.

“Rising energy demands are competing for a limited supply of fossil fuels. The competition for increasingly scarce natural resources is putting pressure on commodity prices and having a growing impact both socially and economically. It is clear that today, more than ever, we must build momentum to decouple economic growth from emissions. Managing carbon emissions and protecting the business from climate change impacts is fundamental to achieving sustainable and strong shareholder returns,” wrote Simpson.

Simpson also recommended, quoting a Mercer report, that investors begin to manage portfolio risks associated with climate change by shifting 40% of their portfolios into climate-sensitive assets emphasising those that can adapt to a low carbon environment.

The CDP is an independent non-profit organisation that was launched to accelerate solutions to climate change and water management. The CDP encourages companies to measure and disclose their greenhouse gas emissions, water management and climate change strategies through CDP, in order that they can set reduction targets and make performance improvements. This information is then put before decision-makers to ensure better and more sustainable decisions.

The CDP website records over 3,000 organisations in some 60 countries around the world which now measure and disclose their greenhouse gas emissions, water management and climate change strategies through CDP.

This article appeared on the Management page, The Edge Financial Daily, Jan 13, 2012.