How are we progressing with our ‘Building Towards 2030’ Sustainability Strategy?
Since we launched our sustainability strategy in 2021, we have been focused on integrating sustainability considerations into all aspects of our business, with climate action a top priority. We are making encouraging progress as we work together as a Group to make Jardines stronger for the future.
We have set sustainability objectives which provide a framework in which each of our portfolio companies can develop their own strategies, and I’m pleased to see that each of them has made excellent progress in implementing plans to achieve their goals.
In 2024, we have been transitioning from being an owner-operator of our portfolio assets to being a long-term, engaged investor in our portfolio companies. We aligned the Group’s governance approach with our role as an engaged investor, as well as strengthening board oversight over sustainability, with our boards now spending more time discussing sustainability strategy and performance.
The Group’s presence in a wide range of markets and sectors across Asia, a key engine of global economic growth, has allowed us to deliver resilient performance. As an engaged investor, we expect sustainability to remain a key strategic priority for our portfolio companies. We prioritise setting long-term strategic objectives, while adapting to the region’s fast-changing markets. We have helped our portfolio companies perform strongly in this environment, by further enhancing governance and empowering the leadership of our companies in both decision-making and execution.
Our stakeholders are increasingly recognising the progress we have made over the past few years in advancing our sustainability strategy. This is illustrated by the positive feedback received from shareholders and by the improvements we have seen in the ESG ratings of both the Group and our portfolio companies.
We also prioritise listening to our stakeholders and addressing their concerns. For example, after years of preparation and effort, Astra Agro Lestari demonstrated its commitment to operating its palm oil operations in line with global best practice, by applying for membership of the Roundtable on Sustainable Palm Oil, the pre-eminent industry certification body.
What are we doing to accelerate the decarbonisation of our portfolio?
We are making steady progress towards our Group ambition of net-zero by 2050. Last year, all our portfolio companies set medium-term scope 1 and 2 decarbonisation targets and developed roadmaps for achieving them. We have segmented our portfolio companies into two pathways to net-zero by 2050: the Decarbonisation Pathway includes the portfolio companies with credible roadmaps for achieving carbon reductions aligned with a 1.5 degree trajectory; and the Transition Pathway consists of portfolio companies which are in hard-to-abate sectors with significant decarbonisation challenges. As they continue to understand and address these challenges, portfolio companies in the Transition Pathway will develop plans for business continuity in a zero-carbon economy.
By the end of 2024, several of our portfolio companies, accounting for well over a third of the emissions under the Decarbonisation Pathway, had received validation of their carbon reduction targets by Science Based Targets Initiative (SBTi). In Indonesia, Astra announced a target of net-zero by 2050 for scope 1 and 2 emissions, in line with the Group’s timeline.
With ambitious sustainability targets set, we expect our portfolio companies to collaborate closely with their stakeholders to deliver on these commitments as we support them on this journey.
Our portfolio companies operate leading businesses in the region and are each doing their part in relation to decarbonisation. They are identifying opportunities, driving innovation and accelerating carbon reduction initiatives and we are seeing promising results. For example, Hongkong Land is the first property developer to attain a “Triple Platinum” existing building certification (BEAM Plus, LEED and WELL) for all its commercial buildings in Hong Kong.
Reducing scope 1 and 2 emissions remains the key priority for the Group and our portfolio companies. Our companies are, however, also building inventories of scope 3 emissions, with a view to driving positive impacts across the entire value chain. The next stage will be for our companies to engage, where they can, with third parties in their value chain to increase awareness and drive change.
Decarbonisation remains an immense challenge, but we believe positive influence and collaborative action at scale will over time result in significant reductions to our collective emissions. In 2024, while we experienced growth in key businesses, the Group’s emission performance remained stable as our portfolio companies continued to make progress toward reducing scope 1 and 2 emissions. We have confidence in the decarbonisation roadmaps developed by our portfolio companies and that they are on track to meet their emissions reductions targets. We are encouraged by their efforts to explore opportunities to adopt more low-carbon or net-zero solutions.
How will we create value from taking sustainability into account in our capital allocation and risk management decisions?
In 2024, we worked with our portfolio companies to develop a framework for embedding sustainability considerations into business strategy, capital allocation, financial planning and forecasting processes. This included the development and rollout of sustainability due diligence and carbon costing tools. The new framework will enable the Group and our portfolio companies to assess sustainability and climate-related risks and opportunities effectively. It will also help assess the benefits of low-carbon investments, drive innovation and efficiency improvements, enhance business resilience, and ensure that our business investments take into account our long-term sustainability objectives and commitments.
We’ve also integrated climate risks into our enterprise risk management process, ensuring that the interconnected challenges posed by climate change are properly managed by the business risk owners, as they address their strategic and operational risks. In 2025, we will further strengthen the climate risk culture and enhance knowledge to facilitate climate risk integration across the Group.
What is Jardines doing to create positive social impact?
Jardines and each of our portfolio companies are committed to contributing to our communities, we believe this helps create long-term value. For example, Astra continues to increase its focus on the healthcare sector in Indonesia, reflecting the growing demand for higher quality healthcare services arising from a growing population and advancing economy. This focus saw the acquisition in 2024 of Heartology Cardiovascular Hospital, with this investment also helping Astra progress its aim of improving health services – including critical illness treatment – for the local community. In support of entrepreneurialism and small business in Indonesia, Astra also provides interest-free credit to support local micro, small, and medium enterprises.
Across our Group, there is a strong dedication to supporting the development of our communities. We have a focus on improving access to education, through the award of scholarships and the construction of schools. Our companies are also focused on wider community development, with support for a broad range of community programmes which improve health and livelihoods.
In Hong Kong, MINDSET, the Group’s mental health charity, supports a number of local organisations, all committed to raising awareness about mental health issues and supporting those impacted in the community. One great example of MINDSET’s support to the community is their funding in Improving Access to Community Therapies (iACT) service, which strengthens community support by training wellbeing practitioners at scale to fill knowledge and treatment gaps. The programme is now gaining real traction and works alongside a number of government initiatives, offering free mental health assessments and consultations at select private pharmaceutical outlets and District Health Centres in Hong Kong.
What are Jardines’ sustainability priorities in 2025?
Climate action, and decarbonisation in particular, remains our top priority. In 2025, we look forward to seeing our portfolio companies make further progress in achieving their medium-term carbon reduction targets. We want our portfolio companies to adopt forward-thinking mindsets to achieve sustainable value creation, leveraging opportunities to grow their businesses in a sustainable manner, driving innovation and efficiencies.
Our portfolio companies will be focusing their efforts on reducing their scope 1 and 2 emissions. They will also continue to explore how they can best work with their supply chains to understand and manage scope 3 emissions. This proactive approach will help our portfolio companies identify and take advantage of business opportunities.
In addition to the climate agenda, we will begin to explore how our portfolio companies can pursue their long-term growth while taking account of, and mitigating their impacts on, the natural environment. Our portfolio companies are also keeping abreast of nature-related regulatory developments, including the Taskforce on Nature-related Financial Disclosure (TNFD).
We will also continue to strengthen our sustainability governance, by ensuring that the boards of our portfolio companies consider key sustainability issues and encourage leadership teams to drive their sustainability agendas forward.
We believe that sustainable business practices are synonymous with good business, and sustainability is now firmly embedded as a core element of strategy across our portfolio companies.
I expect 2025 to be another year of progress by our portfolio companies, building on the excellent foundations which they have established and the effective structures now in place.