Act now to drive sustainability and meet climate goals and government mandates

However, a more comprehensive analysis by Krungsri Research paints a far grimmer picture, projecting total losses of up to THB46.5 billion, including a staggering THB43.4 billion in agricultural output and THB3.1 billion in property damage.

The State of the Climate in Asia 2023 Report highlighted that from 1970 to 2021, there were 3,612 disasters attributed to weather, climate and water extremes, with 984,263 deaths and US$1.4 trillion in economic losses in Asia. Globally, the 2023 US drought and heatwave alone cost USD14.5 billion, while extreme weather events in the European Union between 2021 and 2023 resulted in over EUR162 billion in losses. 

Climate change is reshaping economies and disrupting businesses worldwide, impacting Thailand and beyond. Now more than ever, companies must act swiftly to adapt and thrive in this challenging environment.  Yet, a stark reality emerges from Fujitsu's 2024 Sustainability Transformation Survey: Charting a Change Course, which surveyed over 600 C-level executives across 15 countries and 11 industries. While 70% of executives consider sustainability as a top priority for the next five years, as few as four in 10 organisations have yet to implement a sustainability strategy.

And among those who have, more than 7 out of 10 organisations are failing to achieve tangible results. This significant gap highlights the critical need for businesses to bridge the divide between their sustainability aspirations and actual progress.

Addressing this sustainability transformation gap was a hot topic at this year’s Fujitsu ActivateNow Southeast Asia 2024 in Bangkok Thailand, an annual event on integrating sustainability to drive business growth.  Over 150 Thai business leaders gathered at this event to explore the success stories of how leading organizations have used technology to overcome business challenges and create value. We are sharing our key takeaways from this flagship event. 

Sustainability transformation is no longer a nice-to-have

Businesses in Thailand are facing a pressing need to swiftly adopt sustainable practices as the government enforces stringent policies to combat climate change and reduce greenhouse gas emissions. Companies that fail to comply with these mandates could result in severe penalties and exclusion from global trade and international markets.

Thailand is actively promoting the adoption of sustainability measures among businesses, driven by the urgent need to address climate change:

•    The National Strategy on Climate Change 2018–2037, which aligns with the Paris Agreement, outlines the government’s plans to reduce greenhouse gas emissions by 30% by 2030 from baseline levels and achieve carbon neutrality by 2050. 

•    The 30@30 Policy sets a target for 30% of Thailand’s automotive production to be zero-emission vehicles by 2030.

•     Additionally, the SET Sustainability Reporting Guide requires listed companies to report Environmental, Sustainability, and Governance (ESG) data annually as part of Form 56-1 One Report.

•     The Climate Change Act introduces carbon pricing, emissions trading, and other economic tools to encourage reductions in greenhouse gas emissions.

These are just a few examples of the many policies that reflect the Thai government's commitment to addressing sustainability challenges in the country.

Changemakers supercharging sustainability efforts

“Changemakers" are innovative leaders who have made significant strides in their sustainability initiatives by effectively leveraging digital technologies and data. Fujitsu has identified this cohort as a key factor in driving change and success. According to IDC’s Asia/Pacific Sustainability Readiness Index Survey, August 2023, progress in sustainability transformation (SX) is often slow due to challenges related to people, processes, and technology. Essential elements for sustainability transformation include sufficient financial resources, a robust sustainability strategy, accountability and governance, high-quality sustainability metrics, and sound operational practices.

Most importantly, digital transformation (DX) accelerates sustainability transformation (SX) to advance Environmental, Sustainability, and Governance (ESG) goals. According to the same IDC survey, the use of technology in business operations enables 46% of organizations to process ESG data in a timely and efficient manner, as well as to measure ESG performance and impact more quickly. Additionally, 43% have improved their ability to proactively identify and mitigate ESG-related risks, and 41% have gained better visibility and transparency in ESG processes and tasks. These insights were also shared at Fujitsu ActivateNow Southeast Asia 2024 in Bangkok Thailand.

Fujitsu's 2024 Sustainability Transformation Survey revealed that only 11% of surveyed organizations have fully achieved sustainability. However, these “change makers” share three key characteristics: strategic internal and external data sharing, cross-industry collaboration to drive meaningful sustainability progress, and a clear understanding that sustainability and business performance are mutually beneficial.

Unlocking the true value of sustainability transformation

Sustainability isn't just about checking boxes; it's a catalyst for significant business growth. IDC’s Asia/Pacific Sustainability Readiness Index Survey, August 2023 also revealed compelling results from sustainability initiatives beyond compliance: businesses undergoing sustainability transformations see a 50% boost in operational efficiency and cost reduction. Additionally, 40% of businesses experience a decrease in capital costs, while 39% report enhanced supplier relations and improved brand reputation in response to their requirements. Furthermore, 37% have successfully mitigated the business risks inherent in unsustainable practices, maintaining a competitive edge in a rapidly evolving market. Ultimately, sustainability transformation acts as a powerful risk mitigator, a key differentiator, and a significant driver of long-term value for organizations.

Integrating sustainability strategy for business success 

Integrating sustainability strategy into business practices isn't just an option; it's a strategic imperative for long-term business success. To effectively embed sustainability into the core of your operations, start by revisiting your company’s vision. Integrating sustainability principles into this vision ensures a unified approach, to cascade its importance across all business functions and accelerate sustainability transformation.

Clear, measurable goals are crucial. Establish key performance indicators (KPIs) and milestones to track progress, ensuring everyone understands their roles in achieving sustainability targets. This transparency fosters accountability and keeps your team aligned. Additionally, leveraging technologies such as AI, the Internet of Things, and blockchain can accelerate your sustainability efforts. Most importantly, partnering with vendors who share your commitment to Environmental, Social, and Governance (ESG) principles is essential for navigating the evolving regulatory landscape and meeting growing market demands.

Fujitsu's commitment to global sustainability reflects this approach. We foster trust through innovation, focusing on tackling environmental challenges, advancing digital society, and improving individual well-being. This commitment is central to our mission and drives our business strategy. Don’t navigate the ever-evolving sustainability landscape alone. Fujitsu’s expertise in technology, data and cyber security, digital experience, and sustainability transformation can help you stay ahead. 

By Kanokkamon Laohaburanakit, Managing Director, Fujitsu Thailand