A high-stakes battle to lessen their impact on the environment has begun in the heart of Southeast Asia between two digital age massive company, Grab and GoTo. 

While Grab's emissions have increased by 21%, GoTo has reduced its carbon footprint by an impressive 11%, according to their sustainability reports. These two companies' strategies and their commitment to a more sustainable future are called into question by this disparity.

The recovery from the COVID-19 outbreak has ended up in a dramatic increase in demand for Grab, the biggest taxi hub in Southeast Asia.

The company has associated the rise in demand for their services to an increase in emissions, which have been significantly heightened. The direct emissions, or Scope 1, from Grab have soared by a whopping 142%, while the indirect emissions, or Scope 2, from purchased power, have climbed by 15%. The complete value chain is included in Scope 3, which has seen a 20% increase in the company's emissions. And yet, Grab has restated its emissions numbers for 2022 and 2021, admitting a "wording error" in determining Scope 3 emissions caused a 64% overestimation of overall emissions in 2022.

In the other hand, the owner of the Gojek taxi app in Indonesia, GoTo, has been working hard to lessen its impact on the environment.

Since selling a controlling stake in the e-commerce site Tokopedia to TikTok in January, the company's emissions have dropped by 11%, mostly as a result of better routing and operational savings. Emissions from capital equipment (down 64%) and acquired products and services (down 12%) that make up a large portion of GoTo's Scope 3 emissions have also decreased dramatically. Despite a 27% increase in Scope 2 emissions, the overall decrease in emissions more than makes up for it.

As a result of focusing on increasing revenue, Grab has increased emissions, whereas GoTo has decreased them by concentrating on improving operating efficiencies. 

Achieving carbon neutrality by 2040 is a formidable undertaking given Grab's aggressive business growth targets in an area that relies on fossil fuels and has a still-infancy electric vehicle infrastructure. A worldwide benchmark for business net zero ambitions, the Science Based ambitions program has supported GoTo's aim of attaining "zero emissions" by 2030.

The sustainability reports of both corporations clearly show the difficulties of decarbonization. More than 95% of Grab's emissions come from Scope 3, and the business has admitted that lowering these emissions is challenging. The difficulties of decarbonization, especially in cutting Scope 3 emissions, have been brought up by GoTo as well. As evidence of its concern for the environment, the corporation has pledged to reach "zero emissions" by 2030.

A lesson that sustainability isn't always an outdoor activity is the tug of war between Grab and GoTo. 

Reducing their carbon footprint is a major problem for both firms, but their strategies show how important it is to be strategic and efficient in operations. 

The world is still trying to figure out how to deal with climate change, but these corporations' decisions will affect our planet for years to come.

[1] Hicks, R. (2024, June 11). Grab emissions jump in 2023 as Goto carbon footprint shrinks. Eco.