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Smart ASEAN cities have an urgent need for creative solutions that can meet the rising energy demand while also advancing sustainable development due to the region's growing energy consumption. Virtual Power Plants (VPPs) have become a viable option for assisting these cities in realising their electrification aspirations as well as their sustainability objectives.

<h2>Introduction</h2>
The development of smart cities has accelerated dramatically in recent years around the globe, and the Association of Southeast Asian Nations (ASEAN) is no exception. The necessity for sustainable energy systems has been more critical as urbanisation and energy consumption keep growing. In order to fulfil both of these objectives, Virtual Power Plants (VPPs) have become a promising alternative that can assist ASEAN cities in electrifying their cities while also achieving their sustainability goals.
Virtual Power Plants (VPPs) are a cutting-edge technology that has been created to overcome the difficulties involved in integrating renewable energy sources into the power grid. VPPs, or virtual power plants, are software-based cloud-based power plants that combine and manage the output of numerous small-scale distributed energy resources (DERs), including rooftop solar panels, energy storage systems, electric vehicles, and demand response initiatives.
In response to the rising need to strike a balance between the erratic nature of renewable energy sources and the stability and dependability of the power grid, the concept of VPPs initially surfaced in the early 2000s. However, the idea of VPPs was not technologically and financially viable until the emergence of cloud computing, sophisticated analytics, and the Internet of Things (IoT). A flexible, scalable, and adaptive platform that can maximise the usage of DERs, balance supply and demand, and guarantee grid stability was able to be created because of the convergence of these technologies.
As a vital enabler of the shift to a decentralised and carbon-free energy system, VPPs are now gaining ground. VPPs provide a number of economic, environmental, and social advantages in addition to their technical advantages. For instance, they can lower electricity prices, improve the grid's resiliency, lower greenhouse gas emissions, and enable customers to engage in the energy market.
VPPs have the potential to be significant in helping smart ASEAN cities realise their aspirations for electrification and sustainability. ASEAN cities may employ VPPs to optimise the usage of DERs, increase the efficiency and flexibility of the grid, and improve the reliability and affordability of electricity thanks to their tremendous potential for renewable energy, smart grid technology, and digital infrastructure. This study intends to offer policymakers, investors, and stakeholders information and recommendations on how to fully utilise VPPs in smart ASEAN cities by analysing the technological, economic, and legal aspects of VPPs.
<h2>Virtual power plants and sustainability in smart ASEAN cities</h2>
Smart ASEAN cities are densely populated communities that have embraced cutting-edge technology to improve sustainability and foster economic growth. To achieve their goals of electrification and carbon footprint reduction, these cities must overcome formidable obstacles. Most ASEAN cities currently rely a lot on conventional energy sources, like coal and gas, which are not only expensive but also unsustainable.
VPPs, or virtual power plants, have become a viable option for smart ASEAN cities. VPPs are networks of distributed energy production facilities, such as solar and wind turbines, that are linked to a centralised administration platform. The management system makes it possible to optimise both the production and distribution of electricity, effectively transforming the VPP into a single, well-organized power plant.
VPPs provide a number of advantages for smart ASEAN cities. They firstly enable energy efficiency by making it possible to track and manage energy usage in real time. This guarantees that energy is dispersed and used efficiently, minimising waste and saving money. In addition, VPPs offer significant cost advantages over conventional power sources. VPPs use renewable energy sources, therefore their running costs are far lower than those of conventional power plants. Thirdly, by encouraging the use of sustainable energy sources, VPPs aid in the reduction of carbon emissions.
The adoption of VPPs in smart ASEAN cities can significantly contribute to the attainment of sustainability objectives and electrification aspirations. The sustainability and carbon footprint of smart ASEAN cities can be improved by lowering their dependency on conventional power sources. Additionally, by reinvesting the cost savings from VPPs into other sustainability programmes, these cities may further their commitment to sustainable development.
<h2>Analysis of virtual power plants in smart ASEAN cities&nbsp;</h2>
On sustainability and electrification in smart ASEAN cities, virtual power plants could have a huge impact. VPPs can help to optimise energy supply and demand, increase energy efficiency, and lower carbon emissions by aggregating and managing dispersed energy resources. A more dependable and adaptable power grid can be achieved by utilising VPPs, which can help boost the energy system's flexibility and resilience.
However, there may be a number of difficulties with adopting VPPs in smart ASEAN cities. One of the biggest obstacles is the requirement for cutting-edge infrastructure and technology, such as smart metres, sensors, and communication networks, to manage distributed energy resources efficiently. Utility companies, government agencies, and IT companies must all work together and invest a lot of money to do this.
The complexity of the legislative and policy frameworks of smart ASEAN cities is another difficulty. New market mechanisms and business models are frequently needed for VPPs, and they may not be effectively supported by current legislation. The implementation of VPPs may also be hampered by the lack of uniformity and consistency among the ASEAN nations.
Despite these difficulties, deploying VPPs in smart ASEAN cities has enormous potential. For instance, VPPs can improve energy security, lessen reliance on fossil fuels, and open up new possibilities for the growth of renewable energy sources and involvement in the energy market. Additionally, VPPs can assist in enhancing remote or underserved communities' access to energy, which is essential for reaching universal electrification goals.
Overall, the analysis points to the potential importance of virtual power plants in helping smart ASEAN cities electrify and achieve sustainability goals. To overcome the difficulties and take advantage of the potential afforded by this cutting-edge technology, several stakeholders&mdash;including regulators, utilities, and technology providers&mdash;must work together in concert for the effective deployment of VPPs.
<h2>Case studies of virtual power plants in smart ASEAN cities and around the world</h2>
Virtual power plants have already been installed in a number of smart cities throughout the globe, offering successful case studies that can be used to smart ASEAN towns. One such instance is Copenhagen, Denmark, which has created a virtual power plant made out of wind turbines, solar panels, and combined heat and power plants. The city's CO2 emissions have been cut by almost 140,000 tonnes annually because of this VPP.
In order to regulate energy usage in smart cities, virtual power plants (VPP) are becoming more popular as a viable and effective alternative. Numerous projects in ASEAN are looking into how VPPs might be used in smart cities. A few examples of VPP use in ASEAN smart cities are provided below:
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<li style="font-weight: 400;" aria-level="1">Singapore: In partnership with SP Group and the Energy Market Authority (EMA), Singapore is exploring the usage of VPP in a residential neighbourhood. The VPP system enables the locals to keep track of and control their electricity usage while reselling any extra energy to the grid. The project attempts to decrease energy use and carbon footprint while giving residents control over their energy use.</li>
<li style="font-weight: 400;" aria-level="1">Malaysia: To evaluate the viability of VPP in regulating the energy demand in a smart city, the Malaysian government initiated the Sustainable Energy Development Authority (SEDA) VPP pilot project in 2020. The pilot project, which is being carried out in Malaysia's administrative capital of Putrajaya, intends to combine renewable energy sources with energy storage technologies to more effectively manage the country's energy needs.</li>
<li style="font-weight: 400;" aria-level="1">Philippines: To construct a VPP system in the city of Iloilo, the Philippine government is working with the business sector. In order to provide residents with a steady and dependable power supply, the project attempts to merge renewable energy sources with energy storage devices. The VPP system will also allow locals to sell excess energy back to the grid, boosting sustainability and energy efficiency.</li>
<li style="font-weight: 400;" aria-level="1">Indonesia: The Palangka Raya Smart City project, which includes the deployment of a VPP system, was introduced by the Indonesian government in 2018. The VPP system combines renewable energy sources with energy storage devices in an effort to optimise energy demand and supply. Smart grids and smart metres are also being implemented as part of the initiative to better track and manage energy consumption.</li>
<li style="font-weight: 400;" aria-level="1">Vietnam: Working with Siemens, the Vietnamese city of Da Nang is investigating the usage of VPP in a residential neighbourhood. The VPP system optimises energy demand and supply while enabling tenants to monitor and control their electricity consumption. The initiative seeks to increase sustainability and energy efficiency while lowering energy use and carbon impact.</li>
<li style="font-weight: 400;" aria-level="1">Australia: Another successful VPP is located in the city of Adelaide, Australia. The project utilizes rooftop solar panels from approximately 1,000 households and a 4.3 MW battery storage system to supply energy to the grid. This VPP is projected to reduce electricity prices for participating households and decrease carbon emissions by approximately 5,000 tons per year.</li>
</ul>
The effectiveness of these initiatives can be evaluated by keeping an eye on the local cities' energy consumption trends and carbon footprints. It is crucial to remember that VPP system adoption in smart cities is still in its early phases and needs more testing and analysis. However, the incorporation of VPP systems in smart cities offers a promising means of enhancing sustainability and energy management.
<h2>Effect of VPP's deployment on green hydrogen energy ecosystems</h2>
For establishing sustainable energy and net-zero emissions economies, green hydrogen is largely viewed as a possible answer. Virtual Power Plants, or VPPs, can significantly contribute to the general acceptance of green hydrogen as a renewable energy source.
VPPs make it possible to distribute electricity produced by individual units intelligently, reducing the strain on the grid when demand is at its highest. In a sustainable energy system, this technology can be utilised to maximise the generation and consumption of green hydrogen. For instance, extra hydrogen generated when demand is low can be kept in tanks and utilised when demand is high, increasing the total effectiveness and utilisation of the hydrogen.
Additionally, VPPs can assist in integrating renewable energy sources, like wind energy, into the generation of hydrogen. As a result, the process of producing green hydrogen would be much more environmentally friendly.
In general, green hydrogen as a sustainable energy system might gain a lot from VPPs. By permitting intelligent power distribution from individual units and facilitating the incorporation of renewable energy sources into hydrogen production, they can increase the overall efficiency and utilisation of hydrogen while lowering greenhouse gas emissions.
<h2>Critical success factors to consider for VPP&rsquo;s adoption in ASEAN</h2>
Virtual Power Plants (VPPs) have attracted a lot of interest as a crucial tool for increasing the use of sustainable energy in the ASEAN area. There are numerous important success elements that must be taken into consideration for the VPPs to be implemented successfully in ASEAN. Here, we go over the financing, laws, and regulations required to promote the growth of VPPs in ASEAN.
First off, the breakeven point must be taken into account for VPPs to be successfully adopted. The breakeven point marks the point at which all of the VPP's revenues are equal to all of the costs associated with setting up and running the VPP. Making ensuring the VPP's breakeven point is reachable and that its cost structure is optimised are crucial for achieving a positive return on investment. This can be accomplished by maximising the VPP's asset mix and achieving a balance between the revenue generated by the VPP and the costs associated with setting up and running it.
The second important criterion for the introduction of VPPs in ASEAN is money. To fund the construction and operation of the requisite energy assets, such as solar panels, wind turbines, and battery storage systems, VPPs must make large upfront capital investments. Government grants, subsidies, and private financing are all possible sources of funding for VPPs in the ASEAN region. Finding funding solutions that are appropriate for each VPP's unique needs and making sure the financing arrangements are long-term sustainable are crucial.
Last but not least, laws and regulations are essential success elements for the development of VPPs in ASEAN. By fostering a positive business climate and lowering entry barriers, clear and supportive rules can aid in the development of VPPs. The introduction of net metering regulations, for instance, would permit VPP operators to resell extra electricity produced by the VPP to the grid. As a result, VPP operators may receive financial incentives to deploy more VPPs. In addition, regulations can support the growth of new energy markets that let VPPs engage in energy trading, including demand response.
<h2>Conclusion</h2>
In conclusion, virtual power plants offer an environmentally friendly way for smart ASEAN cities to achieve their goals of electrification and sustainability. VPPs have the potential to increase the grid's reliability while also reducing costs, reducing carbon emissions, and improving energy efficiency.
The advantages of VPPs cannot be disregarded despite the difficulties involved in implementing them, such as regulatory obstacles and financing restrictions. VPPs can have a substantial impact on energy systems in smart cities, as shown by successful case studies from around the globe.
Therefore, more studies and applications of VPPs in smart ASEAN cities are required. Smart ASEAN cities can meet their electrification and sustainability goals while improving the quality of life for their residents by utilising cutting-edge technologies and stakeholder participation.
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illuminem Voices is a democratic space presenting the thoughts and opinions of leading Sustainability &amp; Energy writers, their opinions do not necessarily represent those of illuminem.
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Virtual power plants: accelerating smart ASEAN cities' electrification ambitions and sustainability goals

There are many obstacles to the creation of generative AI, including the requirement for enormous data sets, powerful computers, and complex algorithms. Decentralized Web3 technology may offer a remedy to some of these problems.

<h2>What is Web3?</h2>
A new era of the internet marked by decentralisation and democracy is being ushered in with the introduction of Web3 decentralisation technologies. Built on blockchain technology, Web3, commonly referred to as the decentralised web, is a new paradigm for internet infrastructure that aspires to build a more open, secure, and transparent network that is owned and governed by its users. The development of generative AI, a branch of artificial intelligence that focuses on developing intelligent systems that can generate novel content including images, movies, music, and text, could greatly benefit from the application of this technology.
Generative AI is a fast-expanding topic that has a wide range of uses in industries like marketing, education, healthcare, and entertainment. Yet, there are many obstacles to the creation of generative AI, including the requirement for enormous data sets, powerful computers, and complex algorithms. Decentralized Web3 technology may offer an additional remedy to some of these problems.
<h2>Benefits of Web3</h2>
One of the main benefits of Web3 technology is that it permits decentralised data processing and storage, meaning that data can be handled and stored on a distributed computer network rather than a centralised server. For creating generative AI, where a lot of data is needed to train models, this can be quite helpful. Decentralized data processing and storage allow for some of the privacy and security concerns related to centralised data storage to be reduced, as well as the costs and time needed to gather and process data.
Decentralized governance, which means that the rules and protocols that govern the network are decided by the community of users rather than a central authority, is another benefit of Web3 technology. This can be especially helpful for developing generative AI, where there is a requirement for accountability and openness in the creation of algorithms and models. It is possible to guarantee that the growth of AI systems is governed by moral and social norms that are consistent with the goals and values of the larger community by utilising decentralised governance.
Moreover, Web3 technology may offer a supplemental answer to a few of the technological issues that arise in the creation of generative AI. It is conceivable to build decentralised markets where AI developers can purchase and sell algorithms and models, for instance, using Web3 smart contracts. This can hasten the development of AI systems. Furthermore, Web3 technology can offer a framework for developing decentralised identification and reputation systems, which can aid in reducing some of the problems related to bias and discrimination in AI systems.
<h2>An era of immense potential possible with decentralisation</h2>
The need for decentralisation is growing along with the development of generative AI, which has the potential to disrupt a number of industries. In order to ensure that generative AI tools are utilised morally and for the good of society as a whole, decentralization&mdash;the spread of control and power away from a central authority&mdash;is essential.
Using Web3 and blockchain technology is one method of achieving decentralisation. Decentralized applications (dApps) can be developed and used utilising the Web3 framework, also known as the decentralised web. Web3's foundational technology, blockchain, enables safe, transparent transactions without the use of middlemen.
In a variety of ways, generative AI can be made decentralised by utilising Web3 and blockchain technologies. First, it can make it possible to establish decentralised markets where people and businesses can trade generative AI models and tools directly with one another. This not only encourages transparency but also lessens the possibility of bias and deception.
Second, decentralisation can make it possible to develop decentralised AI platforms and models, in which the data necessary to train these models is dispersed among a number of network nodes. By guaranteeing that generative AI models are trained on a variety of data, this not only helps to preserve data privacy but can also reduce the risk of bias and encourage ethical use.
Decentralization can also make it possible to develop decentralised governance systems for generative AI tools and models. Decentralized autonomous organisations (DAOs), which are businesses regulated by smart contracts on a blockchain, can be used to do this. Decision-making authority can be spread among all stakeholders, including users, developers, and regulators, by employing DAOs to manage generative AI systems, thereby fostering transparency and accountability.
Decentralization, Web3, and generative AI work in harmony with one another. While generative AI can aid in accelerating the development and uptake of Web3 and blockchain technologies, decentralisation can help to ensure that generative AI tools are utilised morally and for the good of society. As a result, it's critical that we keep researching the potential benefits of decentralisation and Web3 in the context of generative AI and fight to create a more egalitarian and decentralised future for everybody.
<h2>Implications of decentralisation and generative AI for global sustainability</h2>
Global sustainability is significantly impacted by generative AI and decentralisation. The decentralization of AI refers to the distribution of control over AI models among a bigger group of people and organisations as opposed to a small number of powerful individuals or governments. As a result, a more varied ecosystem of AI models and applications will be developed, making them better adapted to address a larger range of sustainability-related problems.&nbsp;
Additionally, the application of generative AI in sustainability programmes can aid in resolving some of the most urgent problems facing the planet. For instance, generative AI can aid in the optimisation of energy use and waste reduction in structures and cities, resulting in more effective and sustainable resource utilisation. By anticipating demand and enhancing transportation routes, it can also assist in enhancing supply chain management and lowering the environmental effect of transportation.&nbsp;
Moreover, the combination of Web3, blockchain, and generative AI can produce a potent symbiotic relationship that promotes sustainable behaviour and facilitates decentralised decision-making. In order to ensure that sustainability decisions are based on accurate and trustworthy information, generative AI models can be trained on data that is verified and validated by many sources by utilising the transparency and immutability of blockchain. This could result in more environmentally friendly behaviours in a variety of sectors, including industry, transportation, and agriculture.&nbsp;
Decentralized decision-making that rewards sustainable behaviour is made possible by the decentralisation and integration of generative AI with Web3 and blockchain technology. This has the potential to significantly advance sustainability on a global scale.
<h2>The integrative challenge of Web3</h2>
The process of integrating Web3 technology into generative AI is difficult, and there are a number of issues that must be resolved in order to avoid the centralization issue that could give one organisation an excessive amount of control. The scope and quality of data collected via AI represent one of the biggest problems. A significant amount of data is required for successful AI projects, from which businesses can extract knowledge about their clients' needs in terms of goods and services. To avoid centralization and prevent an organisation from having too much power, this data should be obtained via decentralised sources in the context of Web3 technology.
The economic necessity of maturing to become AI-fuelled presents another obstacle to the integration of Web3 technologies into generative AI. Companies are encountering intrinsic hurdles in data management as they increase their AI experimentation, develop their data-related capabilities, acquire new technologies and personnel, and integrate AI into their business operations. In terms of Web3 technology, this means that businesses must invest in new infrastructure and hire personnel who have the necessary abilities to operate with decentralised systems.
Furthermore, while AI-based devices are quick and precise, they lack human characteristics and skills. Because of this, the question of whether AI will replace human employees makes the false assumption that AI and humans are equal in terms of traits and skills. Instead of replacing human intelligence, AI should enhance it. This implies that businesses should put more effort into developing a symbiotic relationship between people and AI in the context of Web3 technology than relying only on AI to make decisions.
<h2>Shortcomings and fears</h2>
Despite the potential advantages of Web3 decentralisation technology for the advancement of generative AI, some issues with its application exist. For instance, worries exist about the scalability and compatibility of Web3 networks, as well as the possibility of brand-new fraud schemes and security flaws. As a result, it's crucial to approach the adoption of Web3 technology cautiously and to make sure that it's done in a way that optimises its advantages while reducing its hazards.
Despite these technologically-based phobias, there are currently various worries regarding the possible harmful effects of generative AI, especially ChatGPT4. One worry is that these AI models might be used to spread false information and fake news, making it harder for people to tell what is true from what is not. There are also worries about the possibility of job losses because ChatGPT4 and other AI models might automate a lot of work that was previously done by people, which would lead to job losses and societal inequities.
Moreover, running generative AI models like ChatGPT can be quite expensive, restricting access to smaller businesses and organisations and leading to greater centralization of AI resources.
The creation of decentralised AI models that are more accessible and inexpensive for smaller businesses and organisations is possible thanks to decentralisation technology like Web3, which may help allay some of these worries.
Decentralized AI systems may also aid in preventing the concentration of power in the hands of a small number of powerful governments and enterprises. Before decentralised AI can compete effectively with centralised AI models like ChatGPT, there are still a number of obstacles to be addressed.
In conclusion, the development of generative AI can be greatly aided by Web3 decentralisation technology. These issues might be addressed by decentralisation technologies like Web3, but more study and development are required before decentralised AI becomes a practical substitute.
illuminem Voices is a democratic space presenting the thoughts and opinions of leading Sustainability &amp; Energy writers, their opinions do not necessarily represent those of illuminem.

Web3 decentralization technology: a complementary tool for generative AI development towards a sustainable world

Personal carbon allowances (PCAs), also referred to as personal carbon quotas, are becoming more popular as a potential climate change mitigation strategy. Personal carbon allowances are designed to offer people a cap on how much carbon they are allowed to emit over a specific period and enable them to exchange those allowances in a market. With this strategy, people are encouraged to lessen their carbon footprint and are rewarded for doing so. I will examine the background, advantages, difficulties, and prospects for personal carbon allowances in this post.

Personal carbon allowances (PCAs), also referred to as personal carbon quotas, are becoming more popular as a potential climate change mitigation strategy. Personal carbon allowances are designed to offer people a cap on how much carbon they are allowed to emit over a specific period and enable them to exchange those allowances in a market. With this strategy, people are encouraged to lessen their carbon footprint and are rewarded for doing so. I will examine the background, advantages, difficulties, and prospects for personal carbon allowances in this post.
The idea of personal carbon allowances was first put forth as an alternative to conventional carbon taxation in the early 2000s. Every person is granted a certain amount of carbon credits and if they use more than that, they must purchase additional credits from the market. This strategy tries to put a price on carbon emissions and motivate people to lessen their carbon impact.
By offering a clear and equitable framework for decreasing carbon emissions, personal carbon allowances have the potential to improve global sustainability. Everyone has an equal stake in lowering carbon emissions because each person is given a carbon allowance, regardless of their income. Also, this strategy rewards people for reducing their carbon footprint, which could result in large emissions reductions.
PCAs have a wide range of advantages. They might offer a clear and equitable mechanism for cutting carbon emissions and encourage people to lessen their carbon footprint. Additionally, this strategy can assist governments in achieving their carbon emission targets and offer a strong incentive for companies to create and implement low-carbon technologies. Furthermore, by guaranteeing that everyone has an equal stake in decreasing carbon emissions, personal carbon allowances may aid in the reduction of inequality.
But, PCAs will face a number of difficulties in the future. The political viability of this strategy is one of its main obstacles. Individuals and businesses that largely rely on fossil fuels may oppose personal carbon allowances because they see it as a restriction on their personal freedom. A personal carbon allowance system must also overcome technical obstacles, such as the creation of a strong market for trading carbon allowances.
<h2>Attempts to pilot PCAs&nbsp;</h2>
As was already indicated, PCAs normally function by allowing individuals to consume a certain amount of carbon emissions - if they use less, they can sell their excess to others. Around the world, there have been numerous early attempts to test PCA and trading, therefore I will try to give four pilot cases with varied degrees of success.
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<li style="font-weight: 400;" aria-level="1">China: In 2020, China declared that it would test a system for pricing carbon emissions in a number of its regions. The plan involves giving manufacturers, electricity producers, and other high-emitting companies carbon permits so they may trade and buy credits depending on their carbon emissions. Despite not being aimed at individuals specifically, this plan's effect on industrial emissions could indirectly affect people's carbon emissions.</li>
<li style="font-weight: 400;" aria-level="1">Finland: A Personal Carbon Trading (PCT) Scheme for mobility called CitiCAP was created by the Finnish city of Lahti and was piloted in 2019 before going live in 2020. It is the first city-wide PCT mobility plan in the EU. CitiCAP's goal is to persuade users to cut back on their transportation-related greenhouse gas emissions through financial incentives, education on such emissions, and peer pressure. The app has roughly 3,000 downloads in 2019 and 350 weekly active users at its peak. The initiative encouraged Lahti inhabitants to push their boundaries, and the app forced Lahti citizens to re-evaluate their mobility choices and cut back on emissions. According to a PCT programme research, low-income individuals had reduced mobile greenhouse gas emissions, and personal carbon trading may have beneficial distributional impacts on mobility. The CitiCAP project is a component of Lahti's overall attempt to make the urban region more ecologically friendly, which is to become carbon-neutral by 2025.</li>
<li style="font-weight: 400;" aria-level="1">France: Via the Budget Air-Climat-Energie (BACE) programme, which was put into place in 2014, France has also experimented with PCAs. The programme is intended to cover 40% of the carbon emissions caused by energy consumption in high-income nations, including personal carbon emissions from travel, space heating, and hot water use. The plan hasn't yet been put into action on a large scale, so it's unclear how successful it will be.</li>
<li style="font-weight: 400;" aria-level="1">The United Kingdom: In 2008, the UK carried out a sizable personal carbon trading (PCT) pilot programme. About 300 homes in the town of Swindon participated in the experiment, and each household received a starting carbon allowance that could be swapped. Although the study was effective in showing that PCAs are a workable policy instrument for decreasing carbon emissions, there were reservations about how feasible it would be to put PCAs into place on a nationwide level.</li>
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Ultimately, a number of variables, such as the scheme's design, the level of public support, and the practicality of execution, affect how effective PCAs are as a tool for policymaking. Although PCAs have undergone successful trial programmes in certain nations, it is still unclear if they will be useful on a broader scale. It will be crucial to keep experimenting with various PCA models to ascertain whether they have the capacity to cut carbon emissions at the individual and societal levels.
<h2>Tackling Equity</h2>
A personal carbon allowance (PCA) may be viewed as "ahead of its time," according to some media reports because a really equitable allocation of carbon would close the carbon gap between the rich and the poor. The wealthy may be able to buy more allowances, but it's crucial to remember that they often have greater carbon footprints and would need to buy more allowances to balance their emissions.
According to one study, PCAs might be created to cover a variety of emissions sources, such as those connected to industry and agriculture, in addition to personal emissions, to address concerns about equity. This would make it more difficult for richer people to just buy their way out of lowering their carbon footprint.
Allocating more allowances to individuals with lower earnings is another remedy suggested by the same study, which would assist to guarantee that PCAs are not disproportionately harsh on those with fewer means. The creation of a just and transparent allocation mechanism would be necessary for this strategy, as well as a careful evaluation of the numerous socioeconomic elements that may have an impact on carbon emissions.
Finally, by offering a just and open method for lowering carbon emissions, personal carbon allowances have the potential to improve global sustainability. Personal carbon allowances are gaining momentum and could play a key role in reducing carbon emissions in the future, despite the significant obstacles that still need to be overcome, such as political viability and technical execution. To fully reap the benefits of personal carbon allowances, policymakers and stakeholders will need to collaborate to overcome these issues and provide a solid framework for their implementation.
The effectiveness of PCAs as a tool for policymaking depends on a number of variables, including the scheme's design, the level of public support, and the practicality of implementation. Although PCAs have undergone successful trial programmes in certain nations, it is still unclear if they will be useful on a broader scale. It will be crucial to keep experimenting with various PCA models to ascertain whether they have the capacity to cut carbon emissions at the individual and societal levels.
However, by creating a system that considers the numerous variables that affect carbon emissions and making sure that allowances are allocated equitably, it may be possible to lessen some of the opposition that wealthy people may express.
It is my personal belief that PCAs can enhance personal responsibilities toward the environment and the protection of our biosphere. The ability to create a system for PCAs to operate efficiently while providing equity across socioeconomic boundaries will be challenging and requires global collaboration. With the need to create greater advocacy towards sustainability and the environment, there would be much optimism for more use cases and implementation of PCAs in the near future.
illuminem Voices is a democratic space presenting the thoughts and opinions of leading Sustainability &amp; Energy writers, their opinions do not necessarily represent those of illuminem.

Are Personal Carbon Allowances (PCAs) ahead of their time or are they the answer to equity in our sustainability ambitions?

It is no secret that we generate and consume enormous amounts of data on a daily basis in the era of digital media. Our digital activities do have an impact on the environment, but this is frequently forgotten. Advocates for sustainability and circularity will become more and more important as we look to the future in determining how the digital landscape will be shaped. ChatGPT is an effective tool for promoting digital curation while advancing sustainability and circularity objectives in this situation.

It is&nbsp;no secret that we&nbsp;generate&nbsp;and consume&nbsp;enormous&nbsp;amounts of data on a daily&nbsp;basis in&nbsp;the&nbsp;era&nbsp;of&nbsp;digital media. Our&nbsp;digital activities&nbsp;do have an impact on the environment, but this&nbsp;is&nbsp;frequently forgotten. Advocates for sustainability and circularity will become more and more important as&nbsp;we look to the&nbsp;future&nbsp;in&nbsp;determining how&nbsp;the digital&nbsp;landscape will be shaped.&nbsp;ChatGPT&nbsp;is an effective&nbsp;tool for promoting digital curation while advancing sustainability and circularity&nbsp;objectives in this situation.
Business analysts at&nbsp;Acumen Research and Consulting&nbsp;estimate that the global market&nbsp;for&nbsp;generative AI will reach&nbsp;USD 110.8 billion by&nbsp;2030,&nbsp;growing at a CAGR of&nbsp;34.3 percent between 2022 and 2030. In 2021, the market for generative AI was valued at USD 7.9 billion. Greater implications than can be seen by numbers alone result&nbsp;from&nbsp;the&nbsp;use of ChatGPT in&nbsp;the majority&nbsp;of our productive lives in the near&nbsp;future.
Digital&nbsp;curation is&nbsp;fundamentally&nbsp;about making the most of the information&nbsp;at our disposal. We&nbsp;can reduce the amount of data we&nbsp;create&nbsp;and&nbsp;consume by curating content, which will eventually result in&nbsp;a more sustainable and circular digital ecosystem.&nbsp;By giving users curated, pertinent information that is catered to their needs,&nbsp;ChatGPT is uniquely positioned to support this&nbsp;effort.&nbsp;ChatGPT can help&nbsp;lessen&nbsp;the overall carbon footprint of our digital&nbsp;activities by minimizing the amount of unimportant content that users must sift through.
ChatGPT has effects that go beyond simple content curation in terms&nbsp;of&nbsp;promoting&nbsp;sustainability and&nbsp;circularity.&nbsp;The&nbsp;software that powers&nbsp;ChatGPT is&nbsp;based&nbsp;on machine learning&nbsp;algorithms, allowing&nbsp;it to&nbsp;grow and&nbsp;learn over time. This&nbsp;implies&nbsp;that&nbsp;ChatGPT will become more effective and efficient&nbsp;as more people use&nbsp;it,&nbsp;ultimately&nbsp;resulting in&nbsp;even greater reductions in digital waste. ChatGPT is&nbsp;advancing&nbsp;a more circular digital&nbsp;economy&nbsp;where information is carefully managed, optimized, and&nbsp;reused by developing an intelligent and flexible tool for digital curation.
A&nbsp;crucial advancement in sustainability is ChatGPT's ability to help people develop their&nbsp;critical&nbsp;thinking skills&nbsp;and&nbsp;recognize&nbsp;the&nbsp;genuine demand&nbsp;for accurate and&nbsp;impartial&nbsp;information.&nbsp;Users&nbsp;can trust the information they&nbsp;receive because ChatGPT's algorithms are based on factual objectivity&nbsp;and&nbsp;accuracy.&nbsp;ChatGPT can advance sustainability and circularity&nbsp;initiatives&nbsp;by&nbsp;fostering accurate and trustworthy information, which will promote well-informed&nbsp;decision-making. A growing&nbsp;number&nbsp;of&nbsp;people who are knowledgeable about the most important&nbsp;sustainability issues will&nbsp;"move&nbsp;the&nbsp;needle"&nbsp;for sustainability advocacy and action much more&nbsp;quickly.
However as in any ground-breaking technology (or way of thinking), there will be some shortcoming (that will be overcome in the future) of AI-power curation that we need to be aware of:
<ol>
<li>Privacy concerns:&nbsp;Privacy&nbsp;violations are a possibility&nbsp;with any technology that&nbsp;depends&nbsp;on&nbsp;data. It's critical to ensure that personal data&nbsp;is&nbsp;handled responsibly and ethically because&nbsp;ChatGPT may collect&nbsp;user&nbsp;personal&nbsp;data&nbsp;in order to&nbsp;offer customized recommendations.</li>
<li>Need for human oversight: ChatGPT can&nbsp;give&nbsp;users&nbsp;access to curated&nbsp;and&nbsp;pertinent&nbsp;information,&nbsp;but&nbsp;it&nbsp;can't comprehend&nbsp;nuance and context the way a&nbsp;person&nbsp;can. Without&nbsp;adequate&nbsp;human oversight, ChatGPT's responses&nbsp;might&nbsp;be&nbsp;insufficient&nbsp;or&nbsp;mistaken, leaving users perplexed&nbsp;or&nbsp;frustrated.</li>
<li>Human biases: Because ChatGPT can only be as good/effective as the data it uses to train, if the training data contains biases, those biases will be reflected in the model&rsquo;s output. While we know that biases are a human trait that help us through our evolution to &ldquo;shortcut&rdquo; responses to daily scenarios, it can affect output when we unconsciously apply some of these biases to train ChatGPT. For example, ChatGPT&rsquo;s suggestion might be biased if the training data favours a particular demographic which could result in recommendations that are deemed unreliable or unfair.</li>
<li>Misinformation and disinformation:&nbsp;Although&nbsp;ChatGPT is&nbsp;intended&nbsp;to&nbsp;give&nbsp;users accurate and&nbsp;trustworthy&nbsp;information,&nbsp;it is&nbsp;still&nbsp;susceptible&nbsp;to the&nbsp;dissemination&nbsp;of&nbsp;both types of false information.&nbsp;Bad actors can&nbsp;alter&nbsp;the data used to train ChatGPT,&nbsp;producing responses that are incorrect&nbsp;or misleading&nbsp;and may&nbsp;have&nbsp;unfavorable effects.</li>
<li>Tech reliance:&nbsp;Although&nbsp;ChatGPT is an effective tool for digital curation, there is a&nbsp;risk&nbsp;that users&nbsp;will rely too heavily&nbsp;on its&nbsp;suggestions, which could result in&nbsp;a lack of&nbsp;independent thought&nbsp;and decision-making.</li>
</ol>
It is my opinion that ChatGPT represents a&nbsp;potent&nbsp;tool for promoting digital curation and advancing sustainability and circularity advocacy.&nbsp;It is a crucial development on sustainability.&nbsp;ChatGPT is&nbsp;laying&nbsp;the&nbsp;groundwork&nbsp;for a more sustainable and circular digital&nbsp;ecosystem by minimizing&nbsp;digital&nbsp;waste, fostering accurate information, and enabling more effective resource use. Tools&nbsp;like ChatGPT will&nbsp;become more and more important&nbsp;in&nbsp;fostering&nbsp;a more sustainable and prosperous future for&nbsp;all as we continue to navigate the difficulties of a rapidly changing digital landscape.
illuminem Voices is a democratic space presenting the thoughts and opinions of leading Sustainability &amp; Energy writers, their opinions do not necessarily represent those of illuminem.
<h6>Photo by <a href="https://unsplash.com/@steve_j?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText">Steve Johnson</a> on <a href="https://unsplash.com/photos/_0iV9LmPDn0?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText">Unsplash</a>​</h6>

ChatGPT: A radical new age of data curation begins - what are the implications for sustainability?

Because of the public's and the media's growing awareness of climate change and sustainability, biophilic design has attracted a lot of attention. Due to the convergence of the global pandemic, mass resignations, and global inflation in the previous two years, there has also been a significant emphasis on mental health. It is important to emphasise how nature and natural designs can play an important role in supporting our endeavours to solve many of our modern challenges.

The idea of biophilic design is not particularly novel; it has roots in the research of biologists Edward O. Wilson and psychologist Erich Fromm. Wilson in the 1970s. According to Fromm, people are innately drawn to nature, and a lack of that connection can have negative effects on both the physical and mental well-being of people. Wilson coined the term &quot;biophilia&quot; to describe this innate love of nature.
Stephen Kellert, an architect and author, started looking into the idea of biophilia in design and architecture in the 1980s. The health, happiness, and productivity of occupants could be increased, according to Kellert, by incorporating natural elements into buildings and spaces. He suggested that biophilic design should include elements like natural ventilation, water features, and views of the outdoors.
Cradle to cradle design, which aimed to create structures and products that were not only sustainable but also regenerative to the environment, was developed in the 1990s by the architect William McDonough and chemist Michael Braungart. They claimed that biophilic design was a crucial component of this strategy because it would aid in the creation of structures that were more in tune with the natural world.
Because of the public&#x27;s and the media&#x27;s growing awareness of climate change and sustainability, biophilic design has attracted a lot of attention. Due to the convergence of the global pandemic, mass resignations, and global inflation in the previous two years, there has also been a significant emphasis on mental health. It is important to emphasise how nature and natural designs can play an important role in supporting our endeavours to solve many of our modern challenges above.
In terms of sustainability/biodiversity, mental health and human performance, biophilic design offers a number of advantages, including:
<h3>Benefits to sustainability:</h3>
<ol><li>Reducing energy use: By providing natural light, ventilation, and shade, biophilic design can help buildings use less energy by reducing the need for artificial lighting, heating, and cooling.</li></ol>
<ol><li>Air quality improvement: By removing pollutants and bringing in fresh air, the addition of plants and natural ventilation can help to improve indoor air quality.</li></ol>
<ol><li>Water conservation: Biophilic design can incorporate water-saving elements like rainwater collection, green roofs, and water-efficient landscaping to cut down on water use and help protect this precious resource.</li></ol>
<ol><li>Supporting local ecosystem: By incorporating native plants and providing habitat for nearby wildlife, biophilic design can aid in supporting local ecosystem thereby boosting urban biodiversity (it can also as an advocacy for biodiversity appreciation).</li></ol>
<h3>Benefits to mental health and human performance:</h3>
<ol><li>Stress reduction: Biophilic design, which incorporates natural elements that have a calming effect on the human psyche, has been shown to reduce stress, improve mood, and promote overall well-being.</li></ol>
<ol><li>Productivity: By minimizing distractions and fostering mental clarity, biophilic design can also aid in increasing productivity.</li></ol>
<ol><li>Creativity enhancement: Studies have shown that exposure to nature and natural elements can improve cognitive function, problem-solving abilities, and creativity.</li></ol>
<ol><li>Enhancing physical well-being: Biophilic design can also benefit one&#x27;s physical well-being by lowering blood pressure, enhancing sleep, and enhancing the immune system.</li></ol>
While it is becoming less common for management to not recognize that content, healthy, and motivated employees produce the best work, it is still crucial to present a business case for the financial justification of implementing biophilic designs in the workplace. The effectiveness and profitability of contemporary corporations can be enhanced by biophilic design in a number of ways:
<ol><li>Corporate saving: Biophilic design has been demonstrated to improve employee satisfaction and will-being, which can result in increased productivity and decreased turnover rates. Companies may save money as a result of enhanced tenure and reduce rehiring/retraining new employees.</li></ol>
<ol><li>Enhanced customer satisfaction: Biophilic design can also increase customer satisfaction because people are more likely to feel at ese and relaxed in environment that feature natural elements. It may also result in more repeat business and customer loyalty.</li></ol>
<ol><li>Enhanced brand image: Corporations that use biophilic design in their structures and environments can gain from a better perception of their brands as being more socially and environmentally conscious.</li></ol>
<ol><li>Improved energy efficiency: Biophilic design can help buildings use less energy, which can save businesses money (and enhanced sustainability) by lowering their utility bills and maintenance expenses.</li></ol>
<ol><li>Improved creativity: Biophilic design has been demonstrated to increase creativity (as mentioned before) and innovation, which is critical in today’s competitive environment. Such innovation can bring forth greater revenue and margins (profitability).</li></ol>
The aforementioned amply demonstrates how biophilic design can give forward-thinking corporations a competitive advantage by nearly all aspects of value creation, including creating long-term customer satisfaction. Businesses can gain a number of advantages that can enhance their long-term success and profitability by designing healthy, useful, and sustainable buildings and spaces.
<h3>Further reading:</h3>
To read more about biophilic design in ASEAN/Asia, here are some references you might want to consider:
<ul><li>&quot;Biophilic design as a paradigm shift in tropical Asia&quot; <a href="https://blog.interface.com/en-au/biophilic-design-asia/​">https://blog.interface.com/en-au/biophilic-design-asia/​ </a></li></ul>
<ul><li>&quot;Sacred Sustainability: Singapore Greening and Biophilic Design&quot; <a href="https://thediplomat.com/2021/04/sacred-sustainability-singapore-greening-and-biophilic-design/">https://thediplomat.com/2021/04/sacred-sustainability-singapore-greening-and-biophilic-design/</a>​ </li></ul>
<ul><li>&quot;Biophilic Design Case Studies&quot; <a href="https://www.terrapinbrightgreen.com/report/biophilic-design-case-studies/">https://www.terrapinbrightgreen.com/report/biophilic-design-case-studies/</a>​ </li></ul>
illuminem Voices is a democratic space presenting the thoughts and opinions of leading Sustainability &amp; Energy writers, their opinions do not necessarily represent those of illuminem.

Green by Design: How Nature-Friendly Designs Boost Corporate Bottom Lines

Stakeholder capitalism is much more important in modern times because it can create a more equitable and sustainable economy by prioritizing the interests of all stakeholders. By creating value for a wider range of people and promoting social and environmental sustainability, companies can contribute to a more just and sustainable society. It is generally noted that it is one of the ways in which we can adapt capitalism for the modern age where we are facing the biggest challenges of our lifetime – climate change and biodiversity loss.

The recent frequency of climate change news dominating the media has resulted in much criticism of capitalism. One of the main criticisms revolves around prioritizing economic growth over the environment and for contributing to climate change and other forms of pollution (i.e. negative externalities not priced in). The history of stakeholder capitalism can be traced back to the early 20th century, with the concept being first suggested by economist John Kenneth Galbraith in the 1950s, a Canadian economist who argued that corporations should be accountable not just to their shareholders, but to all stakeholders, including employees, customers, suppliers, and the community at large. This concept was popularised by management theorist Peter Drucker in the 1970s, and later by R. Edward Freeman in 1984 in the book &quot;Strategic Management: A Stakeholder Approach”. The idea behind stakeholder capitalism is that companies should consider the interests of all stakeholders, not only shareholders, in order to achieve long-term success.
Stakeholder capitalism is much more important in modern times because it can create a more equitable and sustainable economy by prioritizing the interests of all stakeholders. By creating value for a wider range of people and promoting social and environmental sustainability, companies can contribute to a more just and sustainable society. It is generally noted that it is one of the ways in which we can adapt capitalism for the modern age where we are facing the biggest challenges of our lifetime – climate change and biodiversity loss.
These are five ways that stakeholder capitalism can enhance environmental, social, and governance (ESG) and sustainability:
<ol><li>Encouraging sustainable practices and reducing environmental impact: Stakeholder capitalism can encourage companies to adopt more sustainable practices and reduce their environmental impact by prioritizing the long-term interests of all stakeholders, including future generations and the environment. For example, a study by the Carbon Trust found that companies with a strong focus on sustainability outperformed their peers on environmental, social, and governance (ESG) metrics by 2.5%.</li></ol>
<ol><li>Improving employee well-being and promoting fair labour practices: Pivoting towards stakeholder capitalism can improve employee well-being and promote fair labour practices by prioritizing the interests of employees. By doing so, companies can improve worker satisfaction, reduce turnover, and increase productivity. A study by the Harvard Business Review (HBR) found that companies with high levels of employee engagement outperformed their peers by 147% in earnings per share. In a world obsessed with efficiency and profits, this is also critical for sustainability.</li></ol>
<ol><li>Encouraging responsible and transparent governance: This concept can encourage companies to engage in responsible and transparent governance by prioritizing the interests of all stakeholders. By doing so, companies enhance their reputation, attract more responsible investors, and increase trust and confidence among stakeholders. A study by the Harvard Business Review (HBR) found that companies with high levels of corporate social responsibility (CSR) outperformed their peers by 42% in return on assets. This effectively overturns perception that sustainable finance/investment is not profitable.</li></ol>
<ol><li>Supporting local communities and promoting economic development: To support local communities and promote economic development by prioritising the interests of local communities. By doing so, companies can create jobs, promote social and economic inclusion, and support local economic development. A study by the World Bank found that companies with a strong focus on local community development outperformed their peers by 20% in return on equity. This development multiplier should not be overlooked.</li></ol>
<ol><li>Encouraging long-term thinking and responsible decision-making: Stakeholder capitalism can encourage companies in ASEAN and beyond to consider the long-term impacts of their actions on all stakeholders by prioritizing the long-term interests of all stakeholders. Companies can make more responsible and sustainable decisions and create long-term value for all stakeholders. A study by the MIT Sloan Management Review found that companies with a strong focus on long-term value creation outperformed their peers by 66% in market capitalization. This statistic is important to encourage long-term, impact investing but also raise the question of long-term leadership in corporations.</li></ol>
Some key leaders in ASEAN have expressed support for stakeholder capitalism. For example, President of the Philippines, Rodrigo Duterte, said &quot;Stakeholder capitalism ensures that the benefits of economic growth are shared by all stakeholders and not just shareholders.&quot; In the same spirit, the Prime Minister of Singapore, Lee Hsien Loong, has stated that &quot;Stakeholder capitalism is crucial for Singapore&#x27;s long-term economic growth.&quot;
While the drivers can be seen as main advantages of stakeholder capitalism, there are also some known disadvantages/criticisms of stakeholder capitalism. I would include some personal justification of how they can be nullified or overcome. They include:
<ol><li>Potential for reduced profitability in the short-term: Companies that prioritize the interests of all stakeholders may face short-term trade-offs in terms of profitability. Corporations will see that pivoting towards sustainability/circularity will provide additional security for resources and future cost savings to ensure long-term profitability with better environmental protection.</li></ol>
<ol><li>Increased regulatory burdens and compliance costs: Corporations may face increased regulatory burdens and compliance costs as they attempt to prioritize the interests of all stakeholders. The burden can be eliminated/reduced by collaboration within regional bodies such as ASEAN to create a common taxonomy in sustainable finance and other regulatory framework sharing.</li></ol>
<ol><li>Potential for decreased competitiveness in the global market: Organisations that prioritize the interests of all stakeholders may face increased competition from companies that prioritize shareholder interests. This is a mindset change that needs to occur when corporations view the environment and society with greater reverence that is reflected by changing investment and consumption behaviours.</li></ol>
<ol><li>Potential for increased conflict between stakeholders: Companies may face increased conflict between different stakeholders as they attempt to balance competing interests. This is a direct result of the increased complexity of stakeholder management that will occur with or without stakeholder capitalism.</li></ol>
<ol><li>Complexity in balancing the interests of different stakeholders: Enterprises may face challenges in balancing the interests of different stakeholders in a way that is fair and sustainable. A positive approach towards complexity will create deeper engagements and this cannot be avoided as challenges in sustainability are always multifaceted.</li></ol>
Another movement that has gained momentum over the years is the concept of degrowth. Stakeholder capitalism is similar to degrowth in that both prioritize sustainability and social equity over economic growth. However, stakeholder capitalism is focused on creating a more sustainable and equitable economy within the current growth-oriented system, while degrowth calls for a reduction/alignment in overall economic activity in order to achieve sustainability and social equity.
Drivers of stakeholder capitalism in ASEAN include growing awareness of social and environmental issues, pressure from stakeholders such as customers and employees for companies to adopt more sustainable practices, and increasing competition for socially responsible investments. Also, the increasing focus on responsible investing and ESG by investors is a key driver for stakeholder capitalism in ASEAN.
Some leading companies of stakeholder capitalism in ASEAN include:
<ol><li>DBS Bank: DBS Bank is a leading financial institution in ASEAN and has a strong focus on sustainable banking. The bank has set several sustainability targets, DBS has concluded over 100 sustainable financing deals worth over SG$17b in 2018. The bank has also raised its sustainable finance target to SG$50b by 2024 (from an earlier target of S$20b).</li></ol>
<ol><li>Ayala Corporation: Ayala Corporation is one of the largest diversified conglomerates in the Philippines, and has a strong focus on sustainability and stakeholder capitalism. The company has set several sustainability targets, such as achieving net zero greenhouse gas emissions by 2050. Ayala also has a strong focus on promoting social inclusion and has launched a range of social impact projects to support marginalized communities in the Philippines.</li></ol>
<ol><li>CIMB Group: CIMB Group is one of the leading financial institutions in ASEAN and has a strong focus on sustainable banking. CIMB doubled its sustainable finance target to RM60b by 2024 (after achieving RM30b two years ahead of schedule in 2022) in line with its ambition to be an ASEAN sustainable leader.</li></ol>
In terms of the impact on sustainability, stakeholder capitalism can lead to a reduction in environmental impacts and a more sustainable use of resources. By prioritizing the long-term interests of all stakeholders, companies are more likely to consider the environmental and social impacts of their actions, leading to more sustainable business practices. Additionally, by promoting fair labour practices and supporting local communities, stakeholder capitalism can contribute to greater social sustainability and economic development in ASEAN.
It is important to note that stakeholder capitalism is not seen as a precursor to degrowth, as it is a way of achieving sustainable growth within the current economic system. It is a way of organizing economic activities to make them more inclusive, equitable, and sustainable by considering the interests of all stakeholders. However, it&#x27;s not the only solution to achieve a sustainable future and other policies may have to be implemented as well. I believe the concept of degrowth can happen in the near future as consumers rationalise their demand to be more in-line with the environment’s regenerative capabilities. Increased knowledge of circularity and biodiversity is critical to pivoting consumer behaviour towards more informed choices.
The future of stakeholder capitalism in ASEAN is likely to see an increased focus on sustainability and ESG. As investors become more aware of the need for sustainable and socially responsible investing, companies in ASEAN will be under pressure to adopt stakeholder capitalism as a way of demonstrating their commitment to sustainability. Additionally, as consumers become more aware of social and environmental issues and demand more sustainable products and services, companies will have an increasing financial incentive to adopt stakeholder capitalism. When companies adopt stakeholder capitalism, it has the potential to drive long-term economic growth that is inclusive, sustainable, and equitable for all stakeholders.
Whether stakeholder capitalism is a “solution” is irrelevant in my opinion, but the realisation that corporations need to have a radical mindset change is critical. We are in need of a reexamination of our value chains and our processes to create better alignment towards our economic processes so that we can continue our activities with minimal disruptions to the regenerative properties of our environment.

illuminem Voices is a democratic space presenting the thoughts and opinions of leading Sustainability &amp; Energy writers, their opinions do not necessarily represent those of illuminem.

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Alex Hong

Alex Hong

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