The outlines of the initiative will be crafted within the month and announced at the COP26 climate summit to be hosted by the UK, starting Oct 31.

With many members of the Association of Southeast Asian Nations lacking a tracking method, gauging emissions at individual companies has been difficult. The ability to monitor decarbonisation efforts across the supply chain has become increasingly important.

Companies in Japan that release the equivalent of at least 3,000 tons of carbon dioxide a year are required to report emissions by site.

Similar requirements are in place in Europe and the US. The Japanese model, including the calculation methods used by companies, will serve as a template for Asean members.

Japan plans to provide assistance and take part in joint projects. In the Philippines, a field trial will begin next summer for calculating emissions industry by industry.

The selection process has begun with the cooperation of the environment ministry and Chamber of Commerce, with the cement and waste management sectors among the candidates to participate.

Emissions calculations in the Philippines will likely be based on data including electricity and fossil-fuel consumption, as well as production volume. Methane from waste will be estimated.

The process of selecting candidate industries is also underway in Vietnam and Thailand.

As climate change issues become more prominent, consumers and investors are increasingly taking decarbonisation into account in making choices. Apple has announced the goal of achieving net-zero emissions across its entire supply chain by 2030.

Companies unable to gauge emissions and make progress toward reductions face the risk of being dropped as suppliers.

Asean’s emissions are projected to rise as the region’s economy expands. Malaysia has set a goal of reducing GDP-adjusted emissions in 2030 by 45% from 2005 levels while Singapore targets a 36% cut.