Sansiri sets target to achieve net-zero emissions by 2050

Uthai Uthaisangsuk, Chief Operating Officer (COO) of Sansiri Public Company Limited (SET: SIRI), revealed that after his company had announced its commitment to be the first real estate developer in Thailand to set a net-zero goal for greenhouse gas emissions, Sansiri has changed the way it operates to meet this goal and mitigate the pressing global issue of climate change.

According to the Climate Watch data, the top-emitting sectors in Thailand were the energy sector, which accounted for 61.11% of emissions; the industrial sector, 16.67%; the agricultural sector, 15.96%; and the forestry and land development sector, 3.31%.

Although the real-estate sector was not named a top-emitting sector, its value chain still contributes to emissions and the subsequential change in the climate.

According to a study, Sansiri emits a total of 229,486 metric tons of carbon dioxide equivalent (MtCO2e) per year, but only 4,939.74 MtCO2e  or 2.2% of which comes from its corporate activities.

This last figure can be further divided into 0.2% under Scope 1 direct emissions from the use of fossil fuels in Sansiri's corporate activities and 2% under Scope 2 indirect emissions from the generation energy used by Sansiri in its corporate activities.

Meanwhile, its indirect emissions from sources throughout the entire value chain or Scope 3 account for 224,547.24 MtCO2e per year or 97.8%.

This figure can be broken down into 55% from the projections of customers' electricity consumption in the next 60 years, 29% from building material procurement, 2% from suppliers' transport, and 14% from other sources.

Uthai also explained that Sansiri plans to reduce its direct emissions under Scopes 1 and 2 by 20% by 2025 and under Scopes 1, 2 and 3 by 50% by 2033.

The developer hopes to achieve its ultimate net-zero goal by 2050 through the following three strategies:

·       Strategy 1: Become a low-carbon organisation. Sansiri will focus on energy saving and efficiency by upgrading to 100% clean energy by 2025.

The company plans to install solar roofs and electronic vehicle (EV) chargers for every Sansiri home in every segment; have a solar roof installed at every clubhouse of every new Sansiri development; have a solar water treatment pump will be installed at the central wastewater management plant of every development; switch company vehicles to 100% EVs; and use biodiesel for every piece of machinery.  

·       Strategy 2: Implement carbon-reducing policies throughout the entire value chain. The following three Gs will be implemented:

o   Green Procurement Sansir will select suppliers who are attentive to sustainable production processes, plan to reduce their energy and water consumption in production and in the long run, use eco-friendly materials, and focus on circular economy principles.

Additionally, Sansiri has committed to 30% of the materials procured being certified low carbon by 2025.

o   Green Architecture and Design Sustainability will play a central role in Sansiri's architecture and design — including "Cooliving Designed Home" to reduce energy consumption, zero-waste design to reduce construction waste, and universal design to cater to residents of all ages.

Residents' well-being will also be considered. Cleanliness and good air quality will be taken into account.

o   Green Construction Sansiri will construct and develop properties without wasting materials unnecessarily and use innovation to reduce construction as much as possible and generate as little waste as possible.

·       Strategy 3: Invest in green technologies. Sansiri will invest in environmentally friendly companies involved in clean energy technologies and construction technologies. It has set aside a budget of THB500 million for this purpose and has already invested roughly THB120 million in three companies.

Sansiri is confident that it will be able to reduce emissions under Scopes 1 and 2 (from activities under its control) to zero in the near future. To sustainably mitigate the threat of climate change, the entire value chain needs to act.

To this end, Sansiri join hands with 10 partners to form a research and development team to build Thailand's first net-zero home by 2050 — including Sharge Management Co., Ltd., a full-service EV charging solution provider, and ION Energy Co., Ltd., a developer of integrated solar energy solutions. The team's short- and medium-term goals are to develop a low-energy home by 2023 and a low-carbon home with 30% fewer emissions by 2030.

The team is currently researching future trends and innovations for sustainable living, such as using artificial intelligence (AI) to calculate energy savings, using fibre instead of rebar in construction, innovative precast construction with zero carbon and waste, and solar roofs that generate more electricity and batteries to store the energy generated for use at night, solar roof tiles, solar power exchange between households, 100% electric gardens, and innovative electric car chargers.

"Sansiri is committed to reducing all forms of emissions in the most comprehensive way, especially from our residences and suppliers. This is challenging and unprecedented. If we are successful, more organisations will want to work together to tackle this issue of emissions. Reducing emissions at the household level is not only environmentally friendly but will also promote understanding and encourage homeowners to care more about the environment. A movement at this micro level can lead to a larger scale change, such as in the workplace or other areas of society. It will benefit the environment in the long run and combat climate change in the most effective manner," concluded Sansiri's COO.