Target 2030: Committed to Reduction in Scope 1 Emissions by 20%”, says KE’s CDMO Sadia Dada

KARACHI: At The Future Summit, Sadia Dada, Chief of Distribution and Marcomms at K-Electric, underlined KE’s commitment toward reducing its Scope-I carbon emissions by setting tangible goals, stating that “K-Electric has committed to reducing its Scope 1 emissions further by 20% till 2030, having already achieved half of this target presently.

The key achievement, also documented in KE’s recently published Sustainability Report as well, resulted in 0.8 million metric tons reduction—equivalent to 10% of the company’s total emissions.

To maintain momentum, the company is focused on transitioning away from fossil fuels and ensuring energy security and affordability for the public.

One major pledge that KE has taken is to avoid generating electricity from imported fuels, which are subject to supply chain disruptions. Additionally, K-Electric has set a target for 30% of its power supply to come from renewable sources by 2030.”

Looking ahead, Sadia highlighted the growing regulatory interest in sustainability, especially from the SECP, which is working to formalize corporate disclosures on climate-related impacts. K-Electric has already been a pioneer in this regard, having been the first company in Pakistan to publish a gender pay gap report two years ago—a move that led to meaningful changes within the company. Sadia Dada emphasized the crucial role of transparency in driving sustainability, stating that disclosures are key to meaningful change. She pointed out that for K-Electric, this commitment to clear disclosures has been a defining factor in ensuring real, actionable progress toward their sustainability goals.

Diving deep into the discussion, Philip Skinner, Head of Middle East, North Africa & Pakistan at GuarantCo and Origination Lead for Nature at PIDG, highlighted the importance of integrating nature-based solutions into infrastructure projects during his talk. He emphasized assessing existing infrastructure projects for their potential to incorporate nature-based solutions, making them more adaptable and resilient while also de-risking them for investors.

Skinner cited successful case studies that have inspired this approach, particularly in Pakistan. He mentioned a wind farm project that, instead of constructing traditional barriers, planted mangroves, saving $7 million in maintenance costs. This is a prime example of how integrating nature can lead to significant cost savings and foster long-term sustainable growth.

Andrew Bailey, Managing Director of BASF Pakistan, also shared insights on how BASF is transitioning to renewable energy sources, with 1.3 GW of wind power in Germany. He pointed out BASF’s efforts on plastic recycling in Pakistan, where post-consumer waste has seen a threefold increase in recycling efforts.

Bailey explained that while part of the plastic can be chemically recycled, there are limitations, and BASF uses innovative processes like "ChemCycling" to address these challenges. He stressed that Pakistan offers significant opportunities, particularly in agriculture, where renewable raw materials can be produced locally and integrated into the value chain for products made within the country.

Matteo Scalabrino, Associate at Bankers without Boundaries (BwB), discussed how the market and sector are evolving to integrate nature-based solutions with traditional financial instruments. He highlighted the Tiger Landscape Project, combining eco-tourism, community-based agribusinesses, and regenerative activities to create sustainable projects that appeal to traditional investors.

Ayla Majid, ACCA's Global Deputy President and CEO of Planetive, highlighted the need for a practical approach to decarbonization in Pakistan, considering the country’s unique dynamics and high costs pertaining to sustainable solutions. She emphasized the potential of green hydrogen, which could play a key role in decarbonizing various sectors with high carbon emissions. While the IEA estimates that green hydrogen could meet 12% of global energy needs by 2050, Majid highlighted challenges, including high production costs (currently $3-7 per kg).

Session Chair, Dr. Shamshad Akhtar, Chairperson of the Pakistan Stock Exchange and former Federal Minister for Finance, emphasized the increasing global demand and accountability for climate action, particularly at forums like the G20. She noted that institutions, including multilateral organizations like the World Bank and others are actively pushing the agenda forward with higher targets.

Panel moderator Sajjeed Aslam, Partner, SpectrEco LLC, concluded the session by emphasizing the importance of cross-border collaboration in addressing climate challenges. He stressed that policy regulation, funding, and innovative solutions are crucial for progress, but equally important is building the necessary capacity and talent to implement these changes effectively on a global scale.

Copyright Business Recorder, 2024