This article first appeared in Forum, The Edge Malaysia Weekly on June 24, 2024 - June 30, 2024

The first ever global stocktake that was presented at the 28th Conference of the Parties to the UN Framework Convention on Climate Change (COP 28) in November 2023 found that the world is not on track to achieve the goals set out in Paris in 2015. This was of no surprise to anyone. The report went on to highlight the need to reduce greenhouse gas (GHG) emissions by 43%, 60% and 84% from 2019 levels by 2030, 2035 and 2050 respectively to limit global warming to 1.5°C. For perspective, scientists believe a 1.5°C increase in global temperatures will result in the loss of 70% to 90% of coral reefs worldwide.

At a financial level, Carbon Disclosure Project Global Supply Chain Report found that climate risks threaten to cause US$1.26 trillion (RM5.93 trillion) in revenue losses for suppliers within the next five years. The global stocktake compiles data over two years and is scheduled to be conducted every five years. Work for the report presented at COP 28 in November 2023 started in 2022. The next stocktake will begin in 2028 with its results to be presented in 2030.

The data presented at COP 28 is already at least a year out of date and only in another six years will we know if (and it’s a big if based on past performance) humanity is on track to meet the GHG emission targets that it set for itself. In other words, important data required to plan and execute vital projects to reduce GHG emissions on a global level will not be made available until 2030. And any shortfall in the actual emissions reduction will be pushed forward into the remaining years. This is similar to taking a loan today and only looking at our finances in five years’ time to see if we can repay our debt. Most people would recognise this as being financially irresponsible. And in the same vein, we are acting irresponsibly if we do not monitor emission reductions targets versus actual results more prudently.

GHG emissions data must also be accessible, reliable, auditable and contextual. The veracity of data is essential for users to be able to rely on it in their decision-making process. For example, if a company commits to 30% reduction in its GHG emissions over three years, the data that was used to derive its baseline as well as the data to substantiate the reductions must be able to stand up to public scrutiny; similar to a company presenting its financial data to the public and vouching for its accuracy.

Unfortunately, bad actors and opportunists will use imperfect GHG emission data to create a false narrative to further their own agenda. Not only do they erode public trust but they disincentivise others from working towards real emission reductions. The net result is that insufficient resources are allocated to these necessary projects, resulting in achieving lower emission reductions than required. The battle against climate change can only be won through meticulous planning and execution of impactful climate action projects. Their success depends on timely, accurate and verified data to close the knowledge gaps and operationalise their strategies.

The solution lies in leveraging available technologies such as Internet of Things devices, satellite imagery and remote sensing to collect data inputs. This approach can overcome many of the limitations of manual data collection and modelling using sample data and yield timelier, and accurate and comprehensive measurements. The data sources can be fed directly into digital platforms like monitoring, reporting and verification to generate visibility into the location of carbon sinks and sources that is precise down to the metric tons of GHG. The addition of a blockchain or public ledger would establish the data as a single source of truth that facilitates cross-sectoral cooperation and decision-making processes that are cost-effective and impactful. An interconnected network of data sources that together provide true transparency and tamper-proof metrics for tracking and monitoring carbon emissions.

Quality climate data in the realm of carbon emissions would:

1. Make it easier for companies to reduce their carbon emissions by accurately measuring and accounting for their carbon production;

2. Rebuild public trust in claims of carbon reductions and avoid accusations of greenwashing;

3. Increase the transparency and efficiency within carbon markets to attract financial capital to fund worthy carbon reduction projects like reforestation and afforestation and improve tree cover as well biodiversity habitats.

Near real-time climate data at a localised level is also important in advanced climate models that leverage machine learning and artificial intelligence (AI) algorithms to process vast amounts of climate data, identifying patterns, trends and correlations that may not be evident through conventional analysis. AI-based weather and climate forecasting models train on simulated climate data (without historical data) and transfer these learnings onto observational data. For example, the climate models could simulate centuries of extreme weather events to generate more accurate outputs on the impact of these types of events.

These learnings can be used to generate forward-looking forecasts and key insights for businesses about the long-term risk to their operating sites, suppliers and key logistics locations. It is imperative that governments, businesses and individuals have improved climate data integrated it into decision-making. As a business for example, understanding climate change impacts is key for enabling better operational decisions, including sourcing, contracting, demand planning and logistics, as well as decisions on long-term investments and strategy.

Climate Governance Malaysia (CGM) has initiated the development of a climate intelligence dashboard that will give Malaysian stakeholders visualisation tools to analyse climate trends as well as provide push notifications of climate events. Working with government as well as private data sources, CGM’s vision is to build an open climate data platform that will allow permitted sharing of data sets across all stakeholders. Should we fail to seize the opportunity now to transform the way we collect, share, analyse and consume climate data, the inevitable result is to drown in a sea of outdated, unaudited and unsearchable numbers, and be a spectator to the destruction of what remains of our fragile home. Ignorance will not be bliss.

Jasim Puthucheary is the COO, government solutions and e-commerce for Scicom (MSC) Bhd and a director of Nur Inspirasi Sdn Bhd, a company focused on building a community of environmentally conscious stakeholders with the singular goal of achieving net zero emissions as fast and as cheaply as possible.

This column is part of a series coordinated by Climate Governance Malaysia, the national chapter of the World Economic Forum’s Climate Governance Initiative. The CGI is an effort to support boards of directors in discharging their duty of care as long-term stewards of the companies they oversee, specifically to ensure that climate risks and opportunities are adequately addressed.

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