Advancements in Combating Climate Change are noted within Energy Sectors of Asian Corporations, according to Investors

The Asia Investor Group on Climate Change (AIGCC), a regional investor coalition with members managing over $11 trillion, has released a report focusing on the decarbonisation journey of Asian electricity companies. The report, which can be accessed here, has sparked action among key members, including Nikko Asset Management, Sumitomo Mitsui Trust Asset Management, and Amundi.

The report studied seven of the region's largest utilities firms, including China Resources Power Holdings, CLP Holdings, PT Perusahaan Listrik Negara, J-POWER, Chubu Electric Power, and Tenaga Nasional Berhad. The findings have led to a more positive attitude towards phasing out coal and preparing businesses for a net zero economy, according to AIGCC CEO, Rebecca Mikula Wright.

One of the key findings of the report is the need to accelerate the momentum towards phasing out coal plants to meet emissions reductions goals by 2030 or 2050. This message was emphasized by Yoshio Hishida, representative director and president of Sumitomo Mitsui Trust Asset Management.

Asia hosts more than half of the world's population and is witnessing a rapid rise in energy demand. The utilities sector in Asia accounts for more than $200bn of stock market capitalisation. The electric utilities sector contributed approximately a quarter of global greenhouse gas emissions in 2022.

In response to these challenges, some companies in Asia have set more granular, asset-level decarbonisation targets for 2030. For instance, Malaysia's state-owned utility, Tenaga Nasional Berhad (TNB), has published a comprehensive decarbonisation plan focusing on integrating higher levels of renewable energy into its transmission grid to support Malaysia's goal of having 70% renewable energy in its power mix by 2050.

China is expected to double its data centres by 2030, compared to 2021 figures. Data centres could account for up to 6% of China's entire electricity demand by the International Energy Agency's prediction within the next two years. This rise in data centres could present a new challenge for the Asian continent.

Since its last statement in 2022, the AIGCC has attracted 7 new members: abrdn, Cathay Life Insurance, LGIM, Lion Global Investors, Neuberger Berman, SeaTown Holdings, and Sun Life. The specific companies that belong to the AIGCC coalition actively supporting the decarbonization of Asian electricity companies in 2025, including new members since 2022, are not detailed in the available search results.

The rise of AI is expected to become another challenge for the Asian continent. However, the report does not explicitly discuss this issue.

Hong Kong's CLP Holdings has linked executive remuneration to the achievement of science-based greenhouse gas emissions intensity targets and the phasing out of coal-based assets. Many of the firms surveyed have now produced detailed transition plans, including the phasing out of coal-fired power plants.

In conclusion, the AIGCC report has provided a comprehensive analysis of the decarbonisation journey of Asian electricity companies and has sparked action towards a more sustainable future. The report serves as a call to action for Asian companies to accelerate their efforts towards decarbonization and meet their emissions reduction goals.