On December 15, Frasers Property Vietnam (FPV) announced that the Science Based Targets initiative (SBTi) has approved its science-based approach to significantly reducing greenhouse gas (GHG) emissions. This is Vietnam’s first approval of science-based targets from SBTi for a company in real estate.

The SBTi is a collaborative endeavor between the Carbon Disclosure Project (CDP), the United Nations Global Compact (UNGC), the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF), to drive ambitious climate action in the private sector by enabling organizations to set science-based emissions reduction targets.

Following November’s COP27, FPV is committed to delivering action on an array of critical issues to tackle the climate emergency, and targets ambitious carbon emissions reduction targets assessed and validated by the SBTi.

Mr. Edwin Tan, Deputy CEO of FPV, said Vietnam has a growing commitment to the environmental, social, and governance (ESG) agenda, which is in line with FPV’s Group-wide sustainability goal to be a net-zero carbon corporation by 2050. FPV wants to do its part to raise sustainability outcomes in Vietnam.

“We are delighted to have SBTi approval of our science-based targets, which affirms our ambitious goal-setting to make a tangible impact on climate change,” Mr. Tan said. “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 decarbonization journey, which encompasses Scope 1, 2, and 3 emissions, FPV has developed detailed net-zero carbon roadmaps and carbon reduction targets.

Scope 1 includes direct emissions produced from a company’s owned or controlled sources, while Scope 2 comprises indirect emissions produced by energy usage across a company’s footprint. FPV has committed to reducing Scope 1 and 2 emissions by 46.2 per cent by FY2030, with FY2019 as the base year.

The target covers GHG emissions from the company’s operations and is aligned with the Paris Agreement to limit global temperature rises to 1.5C. With reductions in GHG a priority, FPV is actively making its buildings more energy efficient with green building certification.

To further reduce emissions in facilities it manages for occupiers, Melinh Point is now equipped with a water-cooled chiller system that reduces energy use by more than 23 per cent. LED lights are also now in use in common areas across all properties, and solar streetlights and solar panels have been installed at the Binh Duong Industrial Park.

Scope 3 carbon emissions contribute the largest share and encompass a company’s value chain, from tenants and contractors to suppliers and vendors. FPV has also committed to reducing Scope 3 emissions by 46.2 per cent within the same timeframe.

To make progress in 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 raise awareness about climate issues and empower 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 environmental objectives for tenants to ensure higher standards in energy consumption and efficiency for a better working environment and experience.