MUI Group: Exploring opex savings through emission reductions

Partnering with Terrascope unveiled a potential to reduce total emissions by 5-10% while slashing annual spend on refrigerants by 56%

>> Key Result 1

Comprehensive emissions measurement and hotspot analytics in 4 weeks

>> Key Result 2

Integration of opex savings with emissions reductions simulation

>> Product Implemented:

Emissions measurement

>> Industry:

Retail, hotels, food & confectionery, property development

>> Headquarters:

Kuala Lumpur, Malaysia

>> Company Size:

500 - 1000

 

andrew-khoo-executive-chairman-and-ceo-mui-group

About 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 Problem

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

 

The Terrascope Solution

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

Delving into emissions associated with MUI Group’s food business, Terrascope delivered detailed insights into hotspots and drivers, covering scope 1, 2 and 3 emissions.

hotspots-and-drivers-covering-scope-1-2-3-emissions

 

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.

mui’s-food-business-emissions

 

The Terrascope platform also uncovered a surprising finding: a specific refrigerant used in chillers and air-conditioners during the manufacturing process emerged as the fourth largest source of emissions.

Leveraging Terrascope’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.

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.

 

Value Creation with Terrascope

 

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 ingestion capability, 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 decarbonization 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.

 

Optimise decarbonization investment

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 slash refrigerant operating costs by 56% alongside an overall 5-10% emissions reduction.

 

Regulation-ready

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.

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