ESG

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

Japan’s Government Pension Investment Fund (GPIF), the world’s largest pension fund with assets totalling US$1.7 trillion (approximately ¥275 trillion or RM7.2 trillion), is strengthening its commitment to environmental, social and governance (ESG) investments. This move comes as many global asset managers reduce their exposure to sustainability-focused strategies. At the end of March, the GPIF reported ¥18.2 trillion (US$126 billion or RM532.6 billion) in assets tracking ESG indices, accounting for 14.7% of its equity portfolio. This marks an increase  from ¥17.8 trillion in ESG-linked assets recorded a year earlier, according to documents released on Friday. Despite broad market challenges, including a weakening dollar and declines in domestic asset valuations that contributed to a quarterly loss, the fund reaffirmed its ESG strategy. Global ESG funds have faced significant outflows amid mounting investor scepticism, underwhelming performance, increasing regulatory complexity, and political pushback, particularly from the administration of former US President Donald Trump. In contrast, the GPIF—alongside Norway’s US$1.9 trillion sovereign wealth fund—remains one of the few institutional investors actively maintaining and growing its ESG positions. The outlook for ESG investing in Japan remains positive. Bloomberg Intelligence notes that the GPIF’s sustained interest in sustainability-linked assets, combined with the Tokyo Stock Exchange’s ongoing corporate governance reforms, are expected to support ESG momentum throughout the remainder of the year. -Bloomberg

BMW Brilliance Automotive Ltd, the long-standing Sino-German joint venture, has reaffirmed its strategic commitment to sustainable development in China with the publication of its 2024 sustainability report. The document outlines notable advancements and sets ambitious new goals aimed at supporting China’s transition to a greener economy. The company continues to position itself at the forefront of sustainability in the premium automotive segment, with key initiatives spanning renewable energy deployment, materials innovation and cultural heritage preservation. A central focus of BMW Brilliance’s roadmap is the planned local production of its Neue Klasse electric vehicles, scheduled to commence in 2026. This move is expected to significantly bolster the company’s electrification strategy in the world’s largest automotive market. The report also details BMW’s continued investment in sustainable materials, highlighting the integration of bio-based components in the BMW X3 range. These include materials derived from coffee grounds and sugarcane fibre, underscoring the company’s drive to reduce environmental impact throughout its value chain. By embedding sustainability across its operations, BMW Brilliance aims to set a benchmark for luxury carmakers operating in China, aligning industrial innovation with national green development objectives. -ANN