Decarbonisation Case Studies | Terrascope Australia

MUI Group: Exploring opex savings through emission reductions

Written by Terrascope Team | 09/07/2024 9:42:47 AM

 

PRODUCT IMPLEMENTED

Corporate Carbon Footprinting (CCF)

INDUSTRY

Retail, Hotels, Food & Confectionery,
Property development

HQ

Kuala Lumpur, Malaysia

COMPANY SIZE

500 - 1,000 employees

KEY RESULTS
  • Comprehensive Scope 1, 2, and 3 emissions measurement and initial decarbonisation plan in 4 weeks

  • Simulations revealed a potential emissions reduction of 5-10% while slashing annual spend on refrigerants by 56%

  • Integration of OPEX savings and emissions reduction

 

About The MUI Group 

Malayan United Industries Berhad (MUI) Group is a large investment holding company listed on Bursa Malaysia Securities Berhad. With businesses spanning retail, hotels, food & confectionery, and property development, MUI Group maintains a global presence across Europe, the United States and the APAC region.

MUI Group is determined to lead the charge in corporate sustainability and climate action in the Malaysian market, and set a benchmark for others. By partnering with Terrascope, they aimed to accelerate their sustainability journey and prepare for evolving reporting requirements. To achieve this, they sought to establish a precise and comprehensive baseline for their 2021-2023 emissions across key businesses – laying the groundwork for a robust climate and ESG strategy.

 

The Challenge 

With aspirations to spearhead corporate sustainability in Malaysia, MUI Group recognised the critical importance of understanding their emissions footprint. As an investment holding company with a diverse business portfolio that spans across 3 continents, 9 countries and multiple industries, they were looking for a reliable and scalable platform capable of delivering comprehensive, fast and repeatable emissions measurement.


The Terrascope Solution

MUI Group partnered with Terrascope for its first foray into emissions measurement. In just 4 weeks, the group gained a comprehensive understanding of the emissions profile of several key businesses.

 

01.
Emissions Insights from MUI Group’s Food businesses

In just four weeks, MUI Group was able to establish that 82% of the food business’ emissions in FY2022 came from its supply chains (Scope 3). They also found that 92% of total emissions could be traced back to just 10 activities. Major contributors were primarily related to the procurement of raw ingredients for chocolate and confectionery manufacturing, such as cocoa powder, whey powder and cocoa butter substitute.


02.
Building an impactful decarbonisation program

Emissions analytics uncovered a surprising hotspot: a specific refrigerant used in chillers and air-conditioners during the manufacturing process emerged as the fourth largest source of emissions. Leveraging the platform’s simulation capabilities, MUI Group explored strategies to address identified emissions hotspots. This unveiled an unexpected opportunity: replacing the refrigerant with a more environmentally friendly alternative could potentially reduce total emissions from the food business by 5-10%, alongside a 56% potential reduction in refrigerant operating costs.




Armed with years of emissions data for key businesses, MUI is well-positioned to develop a data-driven climate strategy that will set the standard for large companies in Malaysia.

 


The Value for MUI Group

By partnering with Terrascope, MUI Group unlocked value in three distinct ways:

Speed and Operational Efficiency

Terrascope equipped MUI Group with a comprehensive emissions measurement and management solution, ensuring speed, accuracy and scalability right from the start. With its advanced and flexible data management capabilities, Terrascope processed MUI Group’s diverse business data formats five times faster than manual methods. Leveraging AI, machine learning and data science, Terrascope then provided hotspot analytics and decarbonisation recommendations in just four weeks. This helped save time and resources, enabling MUI Group’s executive and sustainability teams to focus on climate strategy and action.

Reducing Reputation Risks & Enabling Sustainable Leadership

By providing MUI Group with accurate emissions data for their Scope 1, 2, and 3 emissions, Terrascope is enabling the group's sustainability reporting to Bursa Malaysia. Starting in FY2025, Malaysian listed companies will be mandated to also provide climate-related disclosures that are aligned with recommendations from the Task Force on Climate-Related Financial Disclosures (TCFD). Terrascope is facilitating this transition by offering emissions measurement that is regulation-, audit- and assurance-ready.

Optimising Decarbonisation Investments

Previously unaware of the magnitude and composition of their emissions footprint, MUI Group can now confidently identify emissions hotspots and drivers, as well as craft data-driven reduction strategies. Terrascope not only bolstered MUI Group's strategic understanding of its emissions footprint, but also found opportunities to enhance operational resilience. Detailed hotspot analysis and reduction simulations revealed a potential to achieve an overall 5-10% emissions reduction and cut annual refrigerant spend by 56%.