Leading industrial outsource process service provider Testech Inc. of the Philippines and carbon accounting platform Asuene APAC Pte. Ltd. of Japan are eyeing business process outsourcing (BPO) firms for accurate reporting and management of greenhouse gas (GHG) emissions.

“There is a circumstance in which they must answer the demand for sustainability in order to improve their global credibility and ensure their competitiveness in the European and US markets,” Testech said of the BPOs in an email to the DAILY TRIBUNE last Thursday.

Asuene helps firms measure both their direct and indirect carbon emissions in creating annual sustainability reports as required by the Securities and Exchange Commission (SEC).

To achieve this, Asuene uses cloud technology which is an online data storage and computer software management system.

Meanwhile, Testech provides firms technologies and technical advice for saving on energy consumption.

“Through this business alliance agreement, both companies will collaborate to provide companies with one-stop services,” Testech said.

Under the Philippine Development Plan 2023 to 2028, companies must also submit targets for GHG emissions reduction to the SEC as the government aims to slash it nationwide by 75 percent by 2030. This is the Philippines’ commitment to the United Nations (UN) which aims to limit the rise in global temperature to 1.5 degrees Celsius.

Aside from environmental protection, Testech said compliance with sustainability standards will help Filipino firms attract more investments and customers amid the “growing demand” for environmentally-conscious firms.

For example, a survey by McKinsey in 2020 revealed over 60 percent of American consumers preferred buying products with sustainable packaging.

As a result, McKinsey shared that companies with publicized sustainability plans and efforts increased their profits by 28 percent in five years compared to 20 percent by the traditional firms.

In the Philippines, Pulse Asia said 83 percent of Filipinos would patronize brands with environment-friendly products and operations. This came from its survey in 2022.

“Filipinos know that there are certain things that are happening in the country that require us to be more socially conscious. The question now is whether industries or firms will be able to cater to this preference,” Pulse Asia president Ronald Holmes said.

In the 2024 Environmental Performance Index by Yale University, the Philippines ranked 169th out of 180 countries with the most effective sustainable measures. At the top was Estonia, followed by Luxembourg and Germany.