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BCM JANUARY 2023 MONTHLY MEETING RECAP
The Business Council of Mongolia (BCM) held a regular Monthly Meeting in cooperation with URECA on 31 January 2023 on the theme “Future-proofing your business in an increasingly net-zero world,” with BCM Chairman Ts.Tumentsogt hosting for an audience of around 120 attendees.
In his opening remarks at the first meeting of 2023, Chairman Tumentsogt noted that last year, the BCM organized over 60 Monthly Meetings, Knowledge Sharing Sessions, and Networking Events, and also sent out 50 NewsWires and 2 macro-economic updates. He also emphasized that the business community has an essential role to play in addressing climate change. It is a matter of the long-term growth and health of our businesses.
Ms. Bayasgalan Onon
Ms. Bayasgalan Onon, Chief Sustainability Officer at URECA, delivered a presentation answering the question “Why all this hype over climate change?” Many people still regard climate change as something not relevant to them personally. Not only will climate change ensue direct, physical risks on businesses, but there are also the net zero transition effects on the business environment. All trends are moving towards a systemic change – a transition towards decarbonization of economies. Despite global commitment made by over 200 governments to keep global warming below 1.5 degrees Celsius, humanity is still increasing emissions. However, net zero does not mean stopping emissions, but rather offsetting emissions at the same rate that we emit greenhouse gases. By incorporating mitigating strategies into your company’s vision, you safeguard your business, achieve access to finance and license to operate, and you will be on the right side of history.
After the opening presentation, a panel discussion was held on the topic “Finance in the time of climate change – seizing opportunities while saving the planet.” Moderated by BCM Chairman Tumentsogt, on the panel were:
- Mr. Rufat ALIMARDANOV, Resident Representative for Mongolia, IFC
- Ms. Byambadorj BILEGSAIKHAN, Senior Business Development and Partnership Manager, Mongolian Sustainable Finance Association
- Mr. Onon ORKHON, CEO, Trade and Development Bank
- Mr. Mairambek BATAEV, Principal Banker, EBRD
- Ms. Galzagd TUUL, Head of Eco Banking, XacBank
 International financial institutions are all prioritizing climate action in their policies and lending behaviors. Although the portfolio share of green projects and investments in Mongolia is not as high as across the world, each have specific figures they want to reach by certain dates. The EBRD plans to make its share of green projects more than 50 percent by 2025 (globally). The same goes for commercial banks. For example, TDB seeks to reach net-zero by 2050 not only in operations but also lending policies, and XacBank aims to increase its share of green lending to over 10 percent in the coming 2-3 years. A climate roadmap, green taxonomy, and ESG guidelines have all been developed recently in Mongolia. The market and business opportunities are there, if the right projects can attract investment.
Before moving onto the second panel, an introduction video of URECA was shown. Click here to view the video.
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A second panel was held on the topic “On the frontlines of climate change – how organizations can lead the fight against climate change.” Moderated by Co-Founder and COO of URECA Mr. Baatartsogt AMAR, on the panel were:
- Mr. Batsukh ANAND, Senior Advisor, Energy and Climate Change, Rio Tinto
- Mr. Baatarsaikhan AMARSAIKHAN, Chief Growth and Strategy Officer, Gobi Corporation
- Mr. Jon LYONS, Vice President of Projects, Erdene Resource Development Corp.
- Mr. Mark KOENIG, Country Representative, The Asia Foundation
- Mr. Erdenemunkh UNURBAT, Co-Founder and CTO, URECA
 Companies large and small are taking the initiative with their own climate policies. For example, Rio Tinto plans to go net zero by 2050 and has an internal carbon price of $75, which is used as a metric to assess project costs. It also plans to overhaul its vehicle fleet and transition to electric vehicles. However, due to the size of heavy-duty copper transport trucks, this will understandably take some time.
Erdene Resource Development Corp. plans to make its flagship project at Bayan Khundii the most water-efficient mining project in Mongolia, perhaps the world, certainly for arid regions. The company will also source a portion of its energy needs from renewables. Mining is vital to the green transition, as the world needs huge amounts of copper for it to become a reality.
As an NGO, the Asia Foundation has a relatively small carbon footprint compared to industries such as mining. Despite that, the Foundation still implements a climate policy. No matter how big or small an organization’s emissions are, it is the collective contribution of everyone that is important, noted Mark Koenig. Another important aspect of climate action is to ensure that the benefits of offsets go to the most vulnerable communities.
Gobi Corporation takes a holistic approach to climate policy. Water, chemicals, pasture management, workers’ rights, ESG, CSR – all these aspects are considered interrelated. Furthermore, Gobi is launching a traceability campaign with KPIs from sourcing to manufacturing. As a vertically integrated business, it is important that everything is accounted for and traced. In the future, a specific scarf will be able to be traced to when, from where, and which specific herder the materials came from.
Following the second panel, Roy Peng, Business Development Manager at URECA, delivered a presentation on “Pathways to becoming a net zero company.” URECA offers an enterprise solution for sustainability. Incorporating ESG is no longer a choice, it is an urgent calling. Companies prioritizing ESG have been empirically proven to have higher returns compared to their counterparts, so it is also a sound economic decision. URECA will provide third-party baseline measurement of carbon footprints, create a decarbonization strategy, use MRV tech (machine learning and AI) to screen current initiatives, and then give access to the URECA market for carbon credits. The marketplace will be B2B as well as B2C.
NEW MEMBERS CERTIFICATE RECEIVING CEREMONY
The following organizations are new members of the BCM:
- ChemTech - Exclusive distributor of Sinochem Agro products and services in Mongolia
- Faro Foundation - Advancing digital literacy, online safety and more
- Nito - AI-powered human resources platform for business, tech, and finance sectors - Giving each BCM member company 2 free job postings
- Buren Score - Lending information service fintech company, accredited by the Bank of Mongolia
- Bishrelt International - Importer and official distributor of global brands in Mongolia
SIGNING CEREMONY FOR MEMORANDUM OF UNDERSTAND BETWEEN URECA AND THE BCM
Last but not least, a signing ceremony was held for an MoU between the BCM and URECA, agreeing to collaborate to engage BCM members, partners, and stakeholders in promoting the net zero movement and raising awareness among its members and the public.
After the meeting, a networking event was held sponsored by URECA.
Photos from the meeting and networking event can be found from the BCM's Facebook page. Follow the BCM to receive updates and info.
More information can be found from the Editor's notes and presentations linked below.
Links:
- Editor's notes (English)
- "Why all this hype over climate change?" - by Ms. Bayasgalan Onon, Chief Sustainability Officer, URECA Pte Ltd
- Roy Peng's presentation cannot be shared with the public as it contains confidential and proprietary information.
- URECA introduction video
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