About Climate Action

Accelerating actions to combat climate change

Organisations around the world are pledging to respective emissions reduction targets to collectively reduce environmental impacts and cultivate a sustainable future.

ISF is accelerating climate action by aligning our business operations with the Environmental, Social, and Governance (ESG) criteria. We are actively working on reducing our emissions, with a targeted reduction of our Scope 1 and 2 GHG emissions by 34% by 2030 using the 2019 baseline. Our set targets drive us to formulate effective plans, ensuring we pave the way for a sustainable future.

Climate Action Roadmap

We developed our Climate Action Roadmap in early 2023 after reviewing our current climate practices and a comprehensive scenario analysis. It follows the four thematic pillars of the TCFD Recommendations and will guide and influence ISF’s business objectives and long-term strategic direction. We advocate for national climate policies that advance the Paris Agreement on Climate Change to limit global temperature increases to well below 2°C, and ideally no more than 1.5°C above pre-industrial levels. We believe businesses have an important role to play in taking decisive action to fight climate change.

ISF’s Climate Action Roadmap

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Task Force on Climate-Related Financial Disclosures (TCFD)

ISF adopted the TCFD framework and released a Statement of Support for TCFD in May 2022, aligning with our parent company’s declaration in supporting the disclosure. ISF aims to utilise the TCFD to:

  • Enhance transparency and address climate-related risks and opportunities beyond compliance requirements
  • Understand the potential financial implications associated with transitioning to a lower-carbon economy and climate-related physical risks.

ISF’s Statement of Support for TCFD

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ISF’s alignment with the TCFD

Alignment with the TCFD


ISF's sustainability governance is led by the ESG Committee overseen by the Deputy CEO and reported to the Board of Directors. The ESG Committee, with departmental support, develops and drives sustainability strategies, policies, and targets related to material environmental, social, and governance issues.

ISF ESG Committee Organisation Chart

Alignment with the TCFD


Climate-related risks such as floods, droughts, and other natural disasters could disrupt raw material supply.

In 2022, we used a scenario analysis tool to conduct qualitative and quantitative climate modeling across our value chain. We identified climate-related transitional risks and opportunities and integrated them into the risk management framework to evaluate the financial implications.

The evaluations are used to develop our Climate Action Plan and address our upcoming challenges, including the key strategies highlighted below.

ISF’s Climate-related Strategies

Promote sustainable procurement by mapping carbon footprints

  • Baselines were established for Scope 1 and 2 emissions and measures were implemented to reduce emissions.
  • Group-level Scope 3 emissions were mapped in 2022, providing valuable insights into indirect emissions.

Driving operational efficiency and reducing GHG emissions

  • Reducing our dependence on grid electricity and non-renewable energy sources.
  • Installed rooftop solar panels at our Dengkil factory in 2020 and expanded to our Port Klang factory in 2022. Our solar energy yield was 1,471,323 kWh in 2022.

Invest in climate innovations and technology

  • Investing in energy-efficient machinery and equipment.
  • Implement technologies that utilize advanced controls, automation, and energy-saving features to optimise resource usage.
  • Subscribed to TNB’s Green Electricity Tariff to offset our energy usage.

Green Electricity Tariff (GET)

  • Offsetting our energy usage where electricity requirements exceed our renewable energy generation potential
  • Achieved 17% renewable electricity using GET since mid-2021

Sustainability-linked financing

Alignment with the TCFD

Risk Management

ISF conducted a quantitative climate change assessment to identify transition and physical risks.

Integrated climate change into our overall risk management framework and regularly review its impacts
Our periodic assessments encompass all environmental, social, and governance (ESG) matters, with a specific emphasis on climate change.

Collaboration with all of ISF’s departments
We work collaboratively across all levels of the company to assess and address these risks, while frequently reviewing and monitoring our sustainability impacts, including at the Board of Directors level.

Alignment with the TCFD

Metrics and Targets

In line with our parent company, The Nisshin OilliO Group, Ltd's environmental targets, we aim to reduce our GHG emissions by 50% by 2030 and achieve carbon neutrality in ISF’s facilities and operations by 2050. Our GHG accounting adheres to the globally recognised Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition).

We track key metrics and report against climate-related targets regularly and disclose the following climate-related metrics consistent with TCFD’s Guidance on Metrics, Targets, and Transition Plans.

Carbon neutrality

By 2050


(The targets above are benchmarked against the year 2019 baseline)