About Climate Action
Strengthening Our Approach to Tackle Climate Change
Organisations and industries around the world are pledging to respective carbon reduction targets in a bid to collectively reduce environmental impacts and cultivate a sustainable future. With various risks threatening the future of businesses and livelihoods, ISF is determined to join the fight against climate change.
As such, ISF has committed to starting climate action by aligning our business operations with the Environmental, Social, and Governance (ESG) criteria, with strategies, action plans, and targets to boot.
Task Force on Climate-Related Financial Disclosures (TCFD)
ISF understands the unpredictable risks posed by climate change on its commodities, finance, business operations, and opportunities. For preparedness, ISF adopts the Task Force on Climate-Related Financial Disclosures (TCFD) to understand the potential financial implications associated with transitioning to a lower-carbon economy and climate-related physical risks.
TCFD’s recommended disclosures are structured around four interrelated thematic areas: governance, strategy, risk management, and metrics and targets. These are supported by 11 recommended disclosures that create an informative framework that helps stakeholders understand the operations of reporting organisations and assess relevant climate-related risks and opportunities.
ISF officially released a Statement of Support for TCFD on May 2022, aligning with our parent company’s declaration in supporting the disclosure.
ISF’s Statement of Support for TCFD
Environment, Social, and Governance (ESG)
ISF’s Environmental, Social, and Governance (ESG) Committee was established in 2021 as a cross-functional management committee for the board of directors. The Committee is made up of members from key senior management positions across all ISF divisions/departments and reports directly to the Deputy CEO (DCEO) on sustainability matters. This ensures that ESG factors are given due consideration in all aspects of our operations. The Committee’s objective is to consider the material environmental, social, and governance issues relevant to the group’s business activities and support the group in maintaining its position as a global leader in ESG performance.
The role of the Committee is to support the Board in:
- Understanding the expectations of key ISF stakeholders
- Setting strategies relating to ESG matters
- Developing, implementing, and monitoring initiatives and policies based on the materiality regarding ISF’s long-term value creations
- Monitoring external ESG trends and understanding associated risks and opportunities
The Committee meets at least twice yearly to discuss the progress and targets toward ISF’s established goals of which internal and external experts are invited as advisors to incorporate an ESG-related perspective.
Scope 3 Emissions Inventory
Scope 3 emissions include emissions that are not owned or controlled by the reporting company and comprise 15 categories. Like TCFD, many organisations are reporting their Scope 3 emissions as it accounts for more than 70% of an organisation’s carbon footprint.
As ISF has been reporting our Scope 1 and Scope 2 emissions in our past Sustainability Reports, we have begun assessing the materiality of the 15 categories from the Scope 3 emissions and developed an inventory for regular disclosures in the future.
Nature-based Solutions (NbS)
The International Union for Conservation of Nature (IUCN) defines Nature-based Solutions (NbS) as actions to protect, sustainably manage and restore natural and modified ecosystems in ways that address societal challenges effectively and adaptively, to provide both human well-being and biodiversity benefits. This includes investing in initiatives such as nature restoration and building green spaces within the city.
In January 2022, ISF invested in NbS in the form of a 3-Year partnership with Global Environment Centre (GEC) to rehabilitate 4 hectares of degraded mangrove at Tebuk Mendeleng, Sabak Bernam in Selangor. A total of 4,000 mangrove saplings will be planted over the next 3 years which will provide a variety of beneficial services to the local villagers at Kg Dato’ Hormat. Read more about this project in our featured news article.