With climate action now being the most discussed issue globally, MRCB is proud to attest to the efforts and commitment we have put in place to lead the industry in pushing forward the Environmental, Social, and Governance (ESG) agenda in 2021. As a member of the United Nations Global Compact (UNGC) CFO Taskforce for the Sustainable Development Goals, we endeavour to walk the talk in embedding ESG in our business management and operations. For a start, we believe in practising transparency and as such, we have been very actively engaging with key stakeholders to make disclosures of our ESG performance, which is also publicly available on our corporate website. We have also established a foothold in climate risk disclosure by engaging an external consultant to assess our assets against the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
As an ESG proponent, we truly believe that climate actions by businesses need to start now. The recent floods in Malaysia in December 2021 are just one of the few examples of the negative impacts of climate change. The event, which led to the loss of properties and even lives, disrupted various business operations and supply chains, further impacting the economy that was already reeling from the pandemic, and served as a wake-up call for all industries to take immediate action before it is too late. In 2020, we announced our commitment towards achieving Net Zero Carbon in our Scope 1 & Scope 2 emissions by 2040 and set internal reduction targets for our operations. While our Scope 1 & Scope 2 emissions are currently calculated in accordance with the World Business Council for Sustainable Development and World Resources Institute’s GHG Protocol, we now plan to adopt more stringent emission reduction target setting and from this year we have transitioned to science-based targets. In 2021, we began to lay the groundwork to extend our goal to our vendors and suppliers by reaching out to our top suppliers to communicate our plans and assess their readiness levels that could eventually allow us to track their carbon footprint as a means to strengthen our climate action plans. While we are still a long way from being able to measure and monitor carbon emissions produced by our vendors and suppliers, we hope we will eventually be able to disclose their greenhouse gas (GHG) emissions, which contribute to our Scope 3 emissions. We also canvassed our major suppliers on their human rights policies and other important sustainability related data points, to enable us to develop our sustainable procurement strategy, which will be a key thrust for us in 2022.
As a sustainable developer, our contribution to climate change will not stop at reducing our own direct and indirect carbon emissions as we expand our scope of business into waste treatment. Nationwide, there are 141 landfills, with only 21 of them being sanitary landfills. These landfills, which have an average lifespan of 30 years and require large areas of land, contribute to environmental pollution and release methane gas which traps 72 times more heat than CO2. With the expected growth in household waste, there is an urgent need for alternative ways to treat waste, in an environmentally-friendly manner, and slowly eliminate landfills completely. To this end, we are pleased to report that our endeavour in developing a waste-to-energy project will soon come to fruition as we reach the final stage of negotiations at the Government level.
I am also pleased to note that we remain a constituent of the FTSE4Good Index, which has been a challenge given our classification as being in a primary industry in the index, where our carbon emissions are a top focus area. It however also indicates that our efforts to manage this matter, in addition to our other sustainability initiatives continue to be recognised.