ESG

Tokio Marine, Japan’s largest property and casualty insurer, has launched Tokio Marine GX (TMGX), a dedicated green insurance unit aimed at supporting businesses transitioning to low-carbon operations. The group is targeting USD1 billion in revenue from the new unit by the end of the decade as it seeks to capture a significant share of the growing global green insurance market. TMGX will provide tailored insurance and advisory solutions for sectors driving the energy transition, including green hydrogen, shipping, cement, floating solar, and small-scale nuclear. The initiative underscores Tokio Marine’s commitment to supporting decarbonisation efforts and unlocking financing for sustainable infrastructure projects. “We’re going to rip up the rule-card a little bit here,” said Fraser McLachlan, who leads both GCube, the group’s renewable energy arm, and the newly formed TMGX. “We’re going to look at some new technologies and explore more sophisticated ways of transferring risk for businesses.” The unit plans to offer coverage of up to USD500 million on individual risks and is aiming for at least 10 per cent of the projected USD10 billion global green premium income market by 2030. Building on GCube’s existing USD200 million revenue base and a 50-person team, both are expected to double in size over the coming years. “There are many sectors that really haven’t been served by the insurance space,” McLachlan noted, highlighting the need for innovative solutions to address physical and operational risks tied to the energy transition. Among TMGX’s novel offerings is tax credit insurance, designed to help unlock project financing. “It’s a win-win. Lenders favour it because it transfers their risk; we value it as we earn a premium for a risk we understand, and it enables projects to be financed on more equitable terms,” McLachlan explained. To accelerate its market entry, TMGX may also partner with managing general agents (MGAs) instead of relying solely on in-house teams. “It’s a pretty quick win and provides instant access to a market,” McLachlan added. The broader goal is to prevent climate-linked infrastructure projects from stalling due to risk constraints. “Unless people start coming to the table with more creative insurance solutions, many of these projects will struggle to move forward,” he cautioned. Tokio Marine Group emphasised that its GX initiative aligns with global capital flows towards carbon neutrality, positioning the insurer to lead in underwriting, consulting, and deploying risk solutions for a decarbonised economy. “We aim to contribute to social development and the growth of various industries by providing insurance solutions and risk consulting, supporting our customers and society in the transition towards carbon neutrality,” the company stated. As the global energy transition accelerates, Tokio Marine is positioning TMGX to play a pivotal role in insuring the future of sustainable infrastructure. -ESG News

DHL Express has entered into a major agreement with Neste to secure 9.5 million litres, equivalent to 7,400 metric tons, of Neste MY Sustainable Aviation Fuel™ (SAF) from July 2025 to June 2026. The fuel will be produced at Neste’s Singapore refinery, the world’s largest SAF production facility, and deployed on DHL’s intercontinental Boeing 777 freighters operating from Changi Airport. Christopher Ong, Managing Director for DHL Express Singapore, described the partnership as a critical step in advancing emissions reduction for air transport. “This partnership with Neste to procure and uplift SAF for DHL Express’ international air cargo flights from Singapore is a significant milestone for us,” he said. “Not only will it enable us to gain new strides in emissions reduction in air transport, but it also allows us to strengthen our commitment to customers to provide more sustainable shipping options.” Under the terms of the deal, SAF will comprise between 35 and 40 per cent of the total fuel consumption for DHL’s five aircraft based at Changi, which undertake 12 weekly departures to destinations across Asia and the Americas. This marks DHL’s first SAF procurement for international flights departing Singapore. Neste will supply the SAF blended with conventional jet fuel through Changi Airport’s fuel distribution network, leveraging its integrated supply chain. Compared to fossil jet fuel, Neste’s SAF delivers an approximate 80 per cent reduction in greenhouse gas emissions over its lifecycle. Carl Nyberg, Senior Vice President Commercial, Renewable Products at Neste, highlighted the significance of expanding the collaboration. “We are excited to expand our cooperation with DHL to Singapore, a leading aviation hub in Asia Pacific,” he said. “It demonstrates how we are working together with DHL globally to help the company achieve its air transportation decarbonisation targets using a solution that is available at scale today.” This strategic move aligns with Singapore’s Green Plan 2030 and supports the national objective of achieving a 1 per cent SAF usage across all flights—cargo and passenger—by 2026. DHL Express is already among the largest global users of SAF, operating sustainable flights through key hubs in Amsterdam, Stockholm, Brussels, East Midlands, Los Angeles, Leipzig, Miami, San Francisco, Stansted and Nagoya. In 2022, the company introduced GoGreen Plus, a pioneering service enabling customers to address Scope 3 emissions through SAF, using a book-and-claim model that drives measurable decarbonisation benefits across the value chain. In Singapore, DHL has also taken significant steps towards sustainability on the ground by converting its last-mile delivery fleet to electric vehicles, now the largest commercial EV van fleet in the country with 100 vehicles. As part of DHL Group’s Strategy 2030, “New Energy” has been identified as a key growth pillar, with the Group developing end-to-end logistics solutions for the sustainable energy sector including wind, solar, EV batteries, charging infrastructure, energy storage systems, alternative fuels and hydrogen. -ESG News

Microsoft and Novata have announced a strategic collaboration to scale AI-powered sustainability solutions for small and mid-sized enterprises (SMEs) on a global scale. Through this expanded alliance, Novata will integrate Microsoft’s Azure AI Foundry—including Azure AI Search—and Microsoft Fabric into its platform, enhancing its capabilities in data management, ESG reporting and sustainability performance tools for Microsoft’s extensive global ecosystem of clients and suppliers. Microsoft will serve as a key distribution partner, supporting the deployment of Novata’s technology through its SME channels. This includes direct access to tools such as Novata’s Carbon Navigator, which is purpose-built to streamline carbon footprint tracking and sustainability planning for smaller businesses. The partnership will also see the co-development of new AI-powered technologies designed to automate and simplify sustainability data collection and regulatory reporting. These innovations aim to ease compliance burdens while simultaneously helping organisations identify opportunities for sustainable growth. Alex Friedman, Chief Executive Officer and Co-Founder of Novata, commented: “We are excited to deepen our relationship with Microsoft, a company that has not only revolutionised productivity but has also been a leader in addressing the climate crisis and leveraging AI for good. This collaboration expands our global reach and strengthens our commitment to providing trusted technology that simplifies sustainability data management, helping companies unlock growth opportunities and enhance their resilience in a rapidly changing world.” Novata will also support Microsoft’s supply chain partners in fulfilling climate reporting obligations, offering scalable, AI-driven solutions that enhance emissions tracking and reporting with improved accuracy and operational efficiency. Jeremy Pitman, Director of Partner Development, Digital Natives and ISVs – Tech for Social Impact at Microsoft, added: “We believe that addressing climate change is both a responsibility and an important business opportunity. Our collaboration with Novata will enable a key segment of our clients to seamlessly and affordably integrate cutting-edge sustainability technology into their operations, empowering them to reduce their carbon footprints and meet their emissions goals.” Since its launch in April 2022, Novata has experienced rapid growth, supporting over 10,000 companies and hundreds of investment firms—including private equity, growth equity, private credit and venture capital—managing assets in excess of $12 trillion. This agreement builds on an existing relationship between the two companies. Microsoft became an investor in Novata through its Climate Innovation Fund (CIF) in 2023. CIF is designed to accelerate the development and adoption of climate-focused technologies by providing capital to companies advancing decarbonisation and sustainability innovation. -ESG News

Asia’s rapid industrialisation has long served as an engine of global economic growth. However, with industry now accounting for nearly one-third of global carbon emissions — and Asia’s share more than doubling over the past two decades — the region must lead the next wave: sustainable industrialisation. As global markets shift towards decarbonisation, the industrial sector must adapt to maintain competitiveness. Governments and enterprises are increasingly investing in low-carbon industrial parks — comprehensive, scalable platforms designed to decarbonise operations and position businesses for sustainable, long-term growth. Sembcorp Industries, a recognised leader in renewables and integrated urban solutions, is at the forefront of this transition. Through its development of next-generation industrial parks, Sembcorp embeds sustainability into each phase — from green master planning and low-carbon construction to clean energy provision and circular utility design. These parks are purpose-built to meet the demands of tomorrow’s low-carbon economy, providing critical infrastructure for industries looking to future-proof their operations. Why Low-Carbon Industrial Parks Are Crucial Decarbonising industry is now a strategic imperative for governments, manufacturers, and investors alike. Across Asia, net-zero commitments are intensifying the need to reduce emissions across both operations and supply chains. Meanwhile, consumer demand for sustainably produced goods is growing, and industrial activity is expanding in emerging markets such as Vietnam and Indonesia, propelled by reshoring, digitalisation, and rising domestic consumption. Low-carbon industrial parks offer a turnkey platform to address these converging trends. By delivering reliable clean energy and shared infrastructure, they help tenants reduce carbon intensity, increase supply chain resilience, and sharpen competitive advantage. These ecosystems also support rigorous environmental, social, and governance (ESG) compliance — a key requirement for global trade and capital access. Moreover, they promote responsible land use, inclusive employment, and long-term resource resilience, reducing pressure on local grids and water systems. Upgrading the Old, Building for the New Many existing industrial zones across Asia were designed with speed, not sustainability, in mind. These legacy sites often rely on fossil fuels and lack the infrastructure needed to support decarbonised operations. Retrofitting these facilities demands targeted investment in renewables, energy storage, and digital utilities. While the long-term benefits are clear, high upfront capital expenditure remains a hurdle, particularly for small- and medium-sized enterprises. Innovative financing models and public-private partnerships will be essential to unlocking this transformation. Equally critical is regulatory clarity. Harmonised emissions standards, stable incentive frameworks, and cross-border policy alignment are necessary to mobilise investment and accelerate action. Without such enablers, progress on industrial decarbonisation could stagnate. Delivering low-carbon industrial ecosystems at scale requires deep collaboration. Developers, tenants, energy providers, and governments must align on shared objectives. Integrated players such as Sembcorp are well positioned to deliver the end-to-end infrastructure and solutions needed to enable this shift efficiently and cost-effectively. Scaling Across Asia With more than 35 years of experience, Sembcorp has established a strong track record across Asia’s high-growth markets, including Vietnam, Indonesia, and China. To date, the company has developed 24 industrial parks covering 14,800 hectares, home to over 1,000 tenants and attracting nearly US$58 billion in cumulative investment. By 2028, Sembcorp aims to expand its footprint to 18,000 hectares and increase leasable industrial space to 1.5 million square metres — positioning itself at the forefront of sustainable industrial growth in the region. Designing for Sustainability and Performance Sembcorp’s low-carbon industrial parks integrate renewable energy, circular utilities, and advanced ESG-enabling technologies to deliver both environmental and commercial value. Renewable energy infrastructure is already in place, including large-scale solar deployment. The company is actively exploring wind energy to further diversify its clean energy mix and is investing in energy storage systems to enhance grid stability. Power purchase agreements offer tenants direct access to renewables. Digital platforms also play a pivotal role. Tenants use Sembcorp’s proprietary GoNetZero™ system to manage renewable energy certificates, track carbon credits, and monitor emissions. This supports transparent reporting and data-driven ESG performance. Water and waste management systems are equally advanced, with capabilities for industrial wastewater treatment, water reuse, and the use of low-carbon construction materials. Sembcorp’s ready-built facilities meet green building standards, helping tenants reduce operating costs, enhance ESG credentials, and create healthier, more productive workspaces. Circular industrial design further enables the closed-loop use of materials — from transforming plastic waste into building components to facilitating by-product exchanges between tenants. Accelerating the Transition In Vietnam, Sembcorp has built 20 Vietnam Singapore Industrial Parks (VSIPs), which integrate industrial facilities with renewable energy, water management, and waste solutions. The Sembcorp Logistics Park Hai Phong, for instance, supports Vietnam’s industrial and urban development goals with rooftop solar installations that lower emissions. In Indonesia, Sembcorp is developing Kendal Industrial Park — the largest township of its kind in Central Java and a designated Special Economic Zone. It offers investment incentives and is emerging as a regional hub for clean technology supply chains. The company is also launching the Tembesi Innovation District in Batam — a new low-carbon industrial park. In China, Sembcorp supports the country’s dual carbon goals through high-tech industrial zones that integrate clean energy, water reuse, and sustainable urban planning. The Sino-Singapore Nanjing Eco Hi-Tech Island, in particular, exemplifies innovation in climate resilience and smart city design. Looking Ahead Asia’s low-carbon industrial transformation is gaining momentum. However, scaling these ecosystems will require bold collaboration across sectors, long-term capital deployment, and harmonised regulatory frameworks. Sembcorp remains committed to leading this transformation, integrating planning, utilities, and digital innovation to build resilient, low-carbon industrial parks across Asia — enabling sustainable growth for decades to come. -The Edge