Schneider Electric’s Path to Scope 3 Decarbonization

To meet their climate targets, global corporations must reduce CO2 from their supply chain in particular, which can account for up to 90% of their total emissions. The problem: they cannot reduce these Scope 3 emissions themselves, but instead have to enable their suppliers to do so. This collaboration requires, above all, holistic data on the climate performance of suppliers, which does not yet exist.

How does a global enterprise such as Schneider Electric deal with this challenge? This is what we learned at the the CHOICE Event #47 from Kanishk Negi, Sustainable Procurement Director at Schneider Electric. Here you will find the most important insights from his presentation.

Schneider Electric’s corporate sustainability strategy

Schneider Electric SE, the multinational leader in the digital transformation of energy management and automation, is aiming to accelerate sustainable progress for its customers, employees, partners and communities everywhere. For this purpose, the organization has set six long-term commitments:

To ensure compliance, Schneider Electric has committed to achieving 12 measurable goals by 2025.

Schneider Electric's sustainability strategy

The particular importance of procurement is reflected in the fact that one-third of these targets depend mainly on Schneider Electric’s supply chain (marked with a blue arrow in the graphic). Of these four procurement-dependent commitments, let’s now take a closer look at how Schneider Electric is trying to reduce the CO2 emissions of its top 1,000 suppliers by 50%.

The challenges of Scope 3 decarbonization

Decarbonizing Scope 3, or supply chain emissions, is a complicated and challenging undertaking. This is especially true for a large and diversified company like Schneider Electric. The multinational organization employs more than 128,000 people in 115 different countries. Its procurement spend last year was over 14 billion euros. Because of its well-balanced global presence, Schneider Electric’s suppliers come from all parts of the world. Managing this global supply chain effectively is therefore a particularly complex task.

Supplier distribution Schneider Electric

In addition, when Schneider Electric began looking at the climate maturity of its top 1,000 suppliers, further challenges came to light. As it turned out, 70% of these companies were actually new to the idea of decarbonization. This means that they had never calculated or quantified their carbon footprint and were not aware of the difference between Scope 1, 2 and 3 emissions. Furthermore, two-thirds of the suppliers requested were found to be small and medium-sized enterprises. This added another nuance to the challenge, as smaller companies have only limited capacities and competencies when it comes to topics like sustainability and decarbonization. Accordingly, many suppliers initially took particular notice of the high cost factor involved in implementing climate protection measures.

Solving the problem: The Zero Carbon Project

After gathering all these insights and gaining a holistic understanding of the challenges, Schneider Electric launched a comprehensive support program in April 2021 and named it “The Zero Carbon Project”. Under the program, Schneider provides tools and resources in order to help suppliers set and achieve their climate targets. The suppliers participating in the program were first encouraged to quantify their CO2 emissions using the company’s digital tools. This data was then used to set goals and strategies for emissions reduction. 

In order to provide suppliers with comprehensive support for climate actions, Schneider Electric has established a wide range of offerings. So far, more than 130 live training sessions on CO2 calculation and decarbonization measures took place. In addition, Schneider Electric has provided its suppliers with various digital tools on its web portal. Among other things, they can use these for a digital emissions calculation as well as for best practice exchange with peers and partners to access other innovative solutions for decarbonization. The consultation is supported by specialized experts and is also adapted to the different geographical characteristics.

Supplier Support Framework, Scope 3 Schneider Electric

The results of all these intensive engagements have already been promising. 1,016 active suppliers are currently participating in the program and are being engaged in decarbonization measures. 90% of those suppliers have now calculated their CO2e footprint. In addition, the participating suppliers have already reported around 8% reduction in their CO2e emissions.

Streamlining Scope 3 decarbonization with digital tools

Schneider Electric’s pioneering efforts show that, despite today’s challenges, it is actually possible to successfully engage suppliers in decarbonizing the supply chain. Nevertheless, as it stands today, companies can only accomplish this extremely complex task with a great deal of effort, which is why digital tools are now more crucial than ever in order to streamline the process of collaborating with suppliers. 

Climate Ready Supply Chain

One such tool is our Climate Intelligence Platform. The end-to-end Software as a Service platform helps enterprises to capture and manage comparable climate-related performance data and information from their suppliers. Via the secure IT platform, suppliers can easily report their climate data and obtain benchmarks, year-to-year comparisons as well as action-oriented potential and concrete decarbonization measures. Thereby, suppliers and customers can work together in a transparent manner to actively pursue climate goals.

For more information on the benefits of the Climate Intelligence Platform for Scope 3 decarbonization:

Get basic access for free within 5 minutes by completing our form and climate check.

Milestones in Climate Reporting – New CSRD Proposal finalized

For months the European Parliament and the EU Council have been negotiating, and now they have been finalized: the CSRD. These new rules for sustainability disclosures will tens of thousands of companies have to publish in the future.

The new proposal released at the end of June 2022 addresses shortcomings in the existing rules on disclosure of non-financial information. The existing regulation has formerly been considered insufficient to be properly taken into account by investors. But there is hope on the horizon! The new CSRD takes climate reporting to a historic new level. Find out the most relevant insights on the new CSRD proposal:

1. Introduced more detailed reporting requirements

Transparency is key. The CSRD makes sustainability-related information about companies more readily available, of higher quality and more comparable. Large companies are obligated to report on social and environmental issues, human rights as well as governmental factors. The disclosures must now be externally audited and made in a separate section of the annual report.

2. Over 50,000 companies in Europe soon to be affected by CSRD

Affected are large companies with over 500 employees that are already subject to the Non Financial Reporting Directive (NFRD). They will first have to prepare the reports for the 2024 financial year and publish them in 2025. Additionally, all other large companies will be required to report one year later. Finally, capital market-oriented SMEs will be included from the 2026 financial year.

Nature

From which points in time does the CSRD apply to companies?

Furthermore, non-European companies, which are generating a net turnover of €150 million in the EU and are having at least one subsidiary or branch in the EU, are required to report on their ESG impacts.

3. CSRD aligned with global reporting standards

The new CSRD guidelines will require companies to report in line with mandatory EU sustainability reporting standards. For example: the suggestions of the TCFD as well as the EU Taxonomy and the existing NFRD.

The reporting will need to cover:

international regulations

CSRD – Economy’s game changer

The European milestone in setting international standards for sustainability reporting shows: In the future, every company worldwide will have to disclose its climate impact. This will help investors to reorient capital flows towards sustainable investment and manage financial risks stemming from climate change and improve transparency.

This is a great opportunity, guidance and motivation for effective climate action. It enables companies to position themselves as pioneers and to empower business partners along the way.

You want to learn more on how to prepare best for CSRD, in order to seize the opportunity now to drive forward climate transformation? Access the Whitepaper on CSRD here to get more insights.

You want to drive climate transformation in your organization today? Find out more about the free CLIMATE Readiness Check here and take the first steps towards a low carbon economy!

Picture: Unsplash

Why the CLIMATE TRANSFORMATION Summit makes 2022 our year for actions!

Wow, what an energy! One week has passed since the 2 interactive days of the third edition of the CLIMATE TRANSFORMATION Summit ended. It is time to celebrate, to look back at the numbers, results and what we achieved together as CLIMATE Community.

A DREAM CLIMATE TEAM + A DOG
First of all, what I can share with you: a few months of inspiring work flowed into the #CTS2022! Which I was happy to lead together with our dedicated team from THE CLIMATE CHOICE – composed by Max and Lara, and the continuous support of our Growth Team. Sometimes even our office dog ‘Sunny’ brought in the necessary energy. But it did not stop here. We had countless enthusiastic helpers, partners and supporters who did everything to make the Summit valuable and meaningful. An incredibly big THANK YOU in advance to all of you. It was wonderful to be able to work with you!

BUILDING UP A GLOBAL CLIMATE COMMUNITY

So let me get you into the journey we took together. It all started as a brainstorming on an excel spreadsheet, and turned into an amazing event less than 6 months later. Gathering 1,000 climate enthusiasts, decision makers and curious people from around the world, all interested in learning more about climate transformation, and in particular about Decarbonisation of Companies and their Supply Chains. Fast forward: we kicked off the 100% online summit on 2nd June, with participants and experts joining from many many different countries.

STARTING A CLIMATE REVOLUTION

As stated by our co-founder Lara during her Welcome Speech: “We see now more than ever, companies need to step up and go into a sustainability revolution, but they need to act now, as the window of opportunity is closing faster and faster”. I bet the majority of us today would agree on this need for a sustainability revolution, driving a successful climate transformation of economy and within companies, but probably only few of us would know exactly what to do to get it started.

CLIMATE TRANSFORMATION IS A MATTER OF HOW, NOT IF

So let’s go deep here on actions! These are the three most important steps we learned about climate actions at #CTS2022.

The first point of departure would be to understand your individual status quo. Where does your company stand, how climate mature is it and which actions are already taken?  This step requires collecting all climate relevant data on your business and along the supply chain. This allows you to learn where you stand and to make assumptions about where you are most likely heading. As you may guess, this can be difficult to acknowledge, but it is the only way to start. With you and your own actions.

Therefore the only logical next step is to get active and find ways to reduce emissions. This most often brings in a new challenge, remembering that your accountability does not end at the borders of your company, but that the supply chain is where up to 90% of the total corporate emissions typically are generated.

Facing this hurdle brings you to step three: collaborate with your suppliers to align climate strategies, to share best practices and implement solutions to reduce emissions together. Useless to say that these can also create a positive impact on cost reduction, efficiency and sometimes even other sustainability issues such as loss of biodiversity, labor rights or plastic waste.

Allowing for best practices sharing around these three steps, on the first day,  we looked into how to become truly climate neutral, and then, on the second day,  went deeper into how to create and manage collaborative supply chains transformation and a planet proof procurement.

LEARNING FROM CHANGE AGENTS 

We welcomed over the course of the  two days over 64 speakers (of which proudly 52% were female, which we were able to achieve for the first time!!), who spoke with our audience composed of 30% of corporates and 15% of SMEs and a 55% going as ‘others’, such as start ups,  NGOs, Institutes or self-employed people, overall coming from 59 different countries.

THE MOST ACTIVE CLIMATE COMMUNITY

In fact, this year’s summit was for the first time entirely held in English, which made its CLIMATE Community more international than ever, with the top 10 countries represented being Germany, Austria, India, Switzerland, Netherlands, UK, Spain, France, Italy and USA!

The summit required, besides a strong internet connection, also a lot of focus, to grasp the insights shared during the various sessions, which were super interactive and helped answer questions coming from the participants. In fact, the #CTS2022 attendees deserve a special applause, as they were getting the most out of the  event platform we used. On average a participant spent an unbelievable amount of time:11 hours! Celebrating this huge level of commitment and lively contribution, we honored our 3 most active participants with the CLIMATE Community award. Thanks for your outstanding engagement!

GETTING YOUR HAND DIRTY 

Furthermore, attendees had the chance to participate in two of the 12 limited workshops we prepared for them, together with our Partners from  B.A.U.M. e.V., First Climate, BearingPoint, AXA Climate School, Enviria, Fairantwortung gAG, Katjes Fassin GmbH & Co. KG, Regionique, IBM, Make-IT Alliance, Telefónica Germany, EcoVadis, Alice Schmidt, ESG Portfolio Management,  Sustainable Procurement Pledge Germany, Development and Climate Alliance Foundation and WWF Germany.

Quite amazingly, 73% of the attendees participated in a workshop, and loved it so much that the most recurring feedback was that we should have even more workshops next year! By looking at the attendance, it turns out that the  most popular topics covered in the workshops were the ESG regulations & EU Taxonomy reporting, the En-ROADS simulation and a concrete example on how to decrease emissions with a company and along the supply chain.

DISCOVERING CLIMATE SOLUTIONS 

Last but not least, the online fair, showcasing 26 different Climate Pioneers, was also available to our  attendees. They had the chance to meet the exhibitors at their booth, learn about their solutions and discuss possible business opportunities. A total number of around 4.500 visits to all booths was tracked down!

Which leads us to the last highlight of the online fair. We gave all attendees the opportunity to vote for the CLIMATE Champion Awards, which had all Exhibitors competing in the following three categories: 

The voting results saw 3 companies winning over the others, respectively CarbonStack (Climate Solution), THE CLIMATE CHOICE (Supply Chain Transformer) and Enviria (Exhibitor Hero). Thanks therefore for everyone voting, but a huge congratulations to all exhibitors – you do amazing work!

The #CTS2022 in numbers

AFTER THE SUMMIT: MOVING TO ACTIONS

Overall, I had an amazing experience and it was an impactful event of which our Team Climate is proud of. But most importantly, now is the time for action. We learned a lot, we shared more and made valuable business connections. Let’s go out and start the CLIMATE TRANSFORMATION in our daily lives and business decisions, see you next year!

Many thanks for everyone working with us, and me, on this #CTS2022 journey! I am very excited to move to a new role now within THE CLIMATE CHOICE, supporting our Growth & Customer Happiness Team. Stay tuned, sign up for our CLIMATE News and thus don’t miss on our next events, whitepapers and shared opportunities for Climate Actions! 

Your CLIMATE Team & Chiara

Our WHY behind the #CTS2022

Climate action is all about collaboration and we need to start thinking (and acting) beyond the company’s borders! How can we fulfill the latest regulations? Which innovations should we have on our radar? What are best practices of climate-progressive companies?

We believe that we can all learn from each other’s experiences to boost #climatetransformation! That is our ‘WHY’ behind our third CLIMATE Transformation Summit on June 2nd and 3rd.

As Dr. Jonathan Foley of Project Drawdown said last year at #CTS2021: 

 “It is not too late to stop climate change – the only thing stopping us is us. We have the tools, we have enough solutions to stop climate change and we can add more tools and solutions as we go.”

Dr Jonathan Foley – Project Drawdown

How do we go about it? At the CLIMATE TRANSFORMATION Summit 2022, over 900 Speakers, Climate Pioneers and Climate Solution Providers will gather to discuss Best-Practices of the Climate Transformation. Trend topic of this year’s climatesummit.de will be the decarbonization of companies and their supply chains. At the #CTS2022 we are going to raise questions of how to effectively reduce CO2 along entire supply chains. We will share success stories and will learn from each other’s experiences – Together we design, create and discuss. For two days, live and 100% online. And the best part: You can participate!

On June 2nd and 3rd, we will all be part of the solution! We will work together to make our goal – decarbonising companies and their supply chains – a reality. In interactive Panels, Fireside Chats, Speed-Networking Sessions and an Online Fair, we will talk openly about challenges and opportunities and discover tangible climate solutions! In deep-dive workshops, you can share your insights, clarify your questions, actively participate and get to know the community. 

The Agenda of #CTS2022 – Changing the economy together

We already know how to tackle the Climate Transformation! Today, Climate-Tech and Green-Tech innovations from different fields enable innovative climate solutions. Get to know the climate experts and solution providers at the #CTS2022:

Ecosystem Map #CTS2022

Among others, we will have Prof. Stefan Rahmstorf (PIK), Yvonne Zwick (B.A.U.M. e.V.), Gaby Symonds (Nestlé Germany AG), Dr. Jonathan Foley (Project Drawdown), Therese Seiringer (Vodafone Germany), Johannes Knubben (HiPP), Gundula Ullah (FUNKE Mediengruppe), Tom Raftery (SAP) and many more.

In order to find ways for a regenerative future, we need to bring the climate debate out of the niche and into the broad economy and provide practical steps to implement Climate Transformation in businesses. And since we already know that the supply chain is the biggest lever of Climate Transformation, it gets clear: We can only do it together!

Transparency, Collaboration and Data!

We are looking forward to learning from our speakers, coming from international corporations such as Microsoft, IBM, Telefónica Germany, SIEMENS and Nestlé as well as from CLIMATE Pioneers such as WWF, Project Drawdown and Potsdam Institute for Climate Impact! All of them are ready to share valuable business insights with you into how their organization is tackling the biggest opportunity of our time: The Climate Transformation! 

How do we engage all relevant stakeholders and how do we establish a functional supplier-management? At the #CTS2002, these are only some of the questions that will be answered by leading Climate Experts. Topics like climate-relevant procurement decisions and data-driven solutions for climate performance assessments will be covered. Businesses will get insights on how to prepare for upcoming climate-related disclosure requirements, such as the EU-Taxonomy, and companies will get to know innovative ways on how to collaborate with suppliers, in order to move towards a climate-relevant economy, together!

YOUR SUMMIT, YOUR CLIMATE TRANSFORMATION! 

The #CTS2022 is exactly what you are looking for? You can still get a ticket! The CLIMATE TRANSFORMATION Summit invites all decision-makers, climate officers, buyers, green tech entrepreneurs, self-employed, researchers and interested parties who want to implement relevant climate transformation measures and best practices now! 

TOGETHER WITH STRONG PARTNERS!

The summit connects solution providers and companies, as well as interested parties and experts. The #CTS2022 is made possible to a large extent by its great supporters! Without B.A.U.M. e.V., First Climate, Ørsted, BearingPoint, AXA Climate School, Enviria, Fairantwortung gAG, Katjes Fassin GmbH & Co. KG, Regionique, IBM, Make-IT Alliance and StackFuel, the Summit would not be possible! Likewise, our terrific media partners make the Summit a real community event! Thank you for your support and enthusiasm, which makes us look forward to the Summit with great excitement. It’s wonderful that you are all here! 

Since we want to make climate transformation accessible to as many people as possible, the Transformation Ticket is for those who cannot afford the ticket due to the current situation. It gives you access to all event points. Please send us an email to kontakt@theclimatechoice.com – subject: Transformation-Ticket. We are looking forward to seeing you!

This year’s workshops at #CTS2022 – Take action and be part of change! 

The preparations are full on – the CLIMATE TRANSFORMATION Summit 2022 is just around the corner! Just 5 weeks to go until Climate Experts, Entrepreneurs and Decision-Makers get connected to discuss and share Best-Practices on decarbonizing the supply chain. Are you in? Get to know more about the program and exclusive workshops at climatesummit.de below.

Climate Targets and Decarbonization – Why is it relevant today? 

The topic of supply chain decarbonization is more relevant this decade than ever before. Many companies have already set climate targets and aim to build a climate-compatible supply chain. Not only because most of them understand that including a climate strategy into their core company goals is relevant today more than ever, but also because political decisions drive companies towards the disclosure of climate relevant information. 

For example, the European Union is about to tighten controls on supply chains and demands companies to review their entire supply chain instead of merely their direct suppliers. According to the EU’s draft for the supply chain act, companies with 500 employees and 150 million Euro annual revenue are required to disclose relevant information regarding social and environmental standards along the supply chain. Corporates now face the challenge of preparing for this law. However, most of the companies still lack the knowledge and resources to make climate relevant decisions and create transparency around the value chain in order to identify the important savings potential. 

The value chain is the biggest lever for a successful Climate Transformation – up to 90% of the emissions are generated along the supply chain. So let’s take this challenge and transform it into an opportunity! Here is how the climatesummit.de will help you achieve this.

Why you should take part in #CTS2022

In order to effectively reduce CO2, the first step is to calculate Scope 1-3 emissions. Generating climate-relevant data along the supply chain is the foundation to get an overview over the suppliers climate performances. Doesn’t sound feasible yet?

Together with Climate Experts and Change-Makers, we will explore the questions around climate-relevant data and how it’s being used for managing climate-related risks and opportunities along the supply chain. Data experts will share their experiences and success stories and show how climate data enables a holistic supply chain decarbonization and drives a strong Climate Transformation in businesses. In keynotes, panels and fireside chats, Climate Pioneers such as Project Drawdown, WWF Germany and B.A.U.M. e.V. will give insights on how to implement Climate Transformation internationally and based on most recent scientific findings share Best-Practices for decarbonization.

Also, Climate Transformation isn’t something to do on your own. That’s why connecting a strong CLIMATE Community and building networks is also one of the main goals of the Summit. At our online fair, you will get to know innovative climate solutions – such as myclimate, windCORE, BearingPoint, greenmiles and exxeta. Learn how these suppliers of climate-friendly B2B products or services can help your company reduce CO2 and build a climate-relevant supply chain.

Interactive workshops with CLIMATE Pioneers

And that’s not all! We also want to hear what you have to say! Take part in this year’s interactive workshops and share your experiences and expertise as well as raise your questions around the topic of decarbonization. From workshops about climate-relevant procurement and supplier management to creating solutions on how to reach the 1.5 degree goal in a climate simulation game – Here’s something for everyone!

Which specific topics await you? Find out more about the workshops below. Here are some of the topics that will be tackled in the workshops this year – more details will soon be published on the climatesummit.de.

Employee engagement

Have you ever wondered how to train employees on climate and sustainable transformation? AXA Climate enables companies to upskill and engage all employees to succeed in the sustainable transition and already trains more than 3 million subscribers. Join the workshop in order to learn more about driving Climate Transformation together with your employees.

Global Climate Action – Simulation Game

Ready to take action? In this interactive workshop with Alice Schmidt, we are going to simulate global climate action and together create a scenario in which global warming stays below 1.5 degrees Celsius. Together, we will establish high-impact actions and discuss how energy efficiency, renewable energy investment or carbon pricing affects temperature rise.

Climate-compatible Procurement

In workshops with Sustainable Procurement Pledge Germany and BearingPoint, we will tackle the most relevant questions about sustainable procurement. We will explore how procurement can engage suppliers in the race to Net-Zero emissions by 2050, the pros and cons of doing so, and how to make it happen. Learn how to increase supplier engagement and enable your relevant suppliers to reach climate targets.

Data-driven CLIMATE Rating

It’s all about data – In the workshop by Telefónica and The Climate Choice, we will discuss the relevance of climate-related ESG data and how it enables companies to make sustainable sourcing decisions. Learn how to collaborate with suppliers in order to successfully decarbonize your supply chain by using data-driven Climate Analysis Tools.

Transparency and ESG-Reporting

Reporting standards and disclosure needs are providing new risks and chances. What are companies expected to deliver? In this workshop with Christoph Klein, companies’ executives understand the perspective and requirements of a manager of article 9 funds. Join the discussion and learn how to tackle the challenges of companies to comply with new reporting standards.

Join #CTS2022 – be part of Climate Transformation

As you can see, the #CTS2022 will be full of different insights, learnings and opportunities to challenge your company with new CO2-reduction strategies and Best-Practices for Climate Transformation! Not only in the „Climate Bubble“ but among the wider economic sphere, we need to raise awareness and make climate solutions easily accessible for every business – cause that’s how real change happens. The climatesummit.de invites all Decision-Makers, Climate Officers, Green-Tech Entrepreneurs, Freelancers, Researchers and interested parties to join the CLIMATE Community and enable a long-lasting Climate Transformation!

We are happy to have you joining! Get your ticket here!

#CTS2022 Workshop Hosts

Featured Images: Unsplash

Why should I attend the #CTS2022?

Chiara Tufarelli

Hello again and welcome to the second blog entry on this year’s CLIMATE TRANSFORMATION Summit, here is Chiara, the Event Project Manager of the Summit. In case you missed the first blog post and do not want to leave anything behind, I suggest you read here before proceeding.

SO FAR SO GOOD

Three weeks have passed since we last spoke and SO MUCH has happened! Everyday we have had super interesting calls with potential speakers, exhibitors, workshop hosts and media partners and I can assure you that the #CTS2022 will be a great learning and networking experience!

You don’t have a ticket yet? Register here and enjoy the Early Bird Discount, only available for a limited amount of time! 

WHAT ARE WE GOING TO TALK ABOUT?

That’s a very good question and the answer is: Climate Data & Supply Chain Transformation. These two will respectively be the focus points of the 2 days of the Summit, happening on the 2nd & 3rd June 2022.

The Supply Chain is where the majority of corporate CO2 emissions stem from, and is also the most difficult aspect to tackle, as it is (mostly) out of one’s control. However, at the #CTS2022 we want to show how Climate Data and Procurement are intrinsically related and how the only way to REALLY change things is to take responsibility beyond the borders of your company.

A HOT TOPIC YOU DON’T WANT TO MISS

The Decarbonisation of the Supply Chain is a highly debated topic and we read it more and more often on the news. The European Commission has recently adopted a proposal for a Directive on corporate sustainability due diligence, which aims to foster sustainable and responsible corporate behaviour throughout global value chains. This means that soon corporations will need to identify and if necessary, prevent, end or mitigate adverse impacts of their activities on human rights and on the environment. This is easier said than done, and it will be the main focus of the #CTS2022!

DOES ONLINE MEAN BORING?

Of course not! Even if the CLIMATE TRANSFORMATION Summit is 100% online, it is also 100% live! This means that all attendees will have the opportunity to connect and chat with the people present, to exchange contact information and interact with one another. We want to offer you a great experience and will make sure to deliver it to you!

#StayTuned to find out the technical details for the #CTS2022, coming up soon!

WHAT’S ON THE AGENDA? ONE PANEL AT A TIME

I guess you are all dying to know more about the agenda of the Summit and I’m here to tell you exactly this.

  1. KEYNOTE

Each day we will start with a Keynote Speech, where Sustainability Experts and Practitioners will give impactful insights linked to the Decarbonisation of the Supply Chains. Why? It’s always good to hear from the experts their viewpoints and it’s a good way to get you started on the summit.

  1. FIRST PANEL

How can companies and corporates improve their sustainability performance, if they don’t know where they’re standing? To have clear and reliable climate data it’s equally important and hard for companies, and this will be the starting point of discussion during the First Main Panel. I bet you cannot wait to hear what will come out of this Panel – neither can I!

  1. WORKSHOPS

After having “passively” heard our Speakers, it’s time to get into action and participate in one of the selected Workshops! We will have around 5 Workshops happening simultaneously and attendees will register in advance to their most preferred ones (one for each day). This is the time where attendees can actively contribute and participate in what our Workshop hosts prepared for them – details on the workshops will soon be published on the ClimateSummit.de!

  1. ONLINE FAIR

And then what’s next? After the workshops it’s time to visit our amazing CLIMATE Online Fair! Start-ups and Innovators, providing B2B climate solutions will welcome you at their virtual Exhibitor Booth, where they will present you their services and products. So you will have the chance to get your personal deep dive into climate transformation. You certainly don’t want to miss what is out there. You aim to become an exhibitor yourself, you can still apply to become one here.

  1. FIRESIDE CHAT

Last but not least, the afternoon will be all about the interactive Fireside Chats, where three speakers at a time will exchange ideas and experiences on the chosen topic. Additionally, the moderators of the panel discussions will ask questions coming from the audience via the live chat.

The program is truly exciting and interactive, the line up of the Speakers is very promising – anything that is still missing is you! Check out the agenda here and get ready to join!

I hope this gave you an overview of what the Summit will all be about, but the only way to truly be part of the climate transformation is by attending it! We are looking forward to meeting you in June. 

Get your ticket now and join the CLIMATE Community!

Any question remained? Please feel free to write to me, I am happy to help.

Chiara

Third time’s the charm: #CTS2022!

In four months the third edition of the CLIMATE TRANSFORMATION Summit will take place. My name is Chiara Tufarelli, I am this year’s Event Project Manager and I am very excited to give you a glimpse of what the #CTS2022 will be like this year, so let’s get started!

WHAT AWAITS YOU

We are taking the next step: for the first time the CTS is entirely going to be held in English! No more language barrier for those who do not speak German – it is a very hard language after all, I know it very well as I am Italian and I’ve been struggling with it for years!

The reason for this change is obvious if you think of the mission of the #CTS2022: sharing best practices and creating a CLIMATE Community to foster decarbonisation.

THE WHAT, THE HOW AND THE WHY

This leads me to the second point I want to touch upon: who is participating?

The CLIMATE TRANSFORMATION Summit is the first 100% online B2B event where climate officers, procurement leaders, decision makers, politicians and innovators participate to learn from one another – sharing their insights, best practices and challenges working on the climate transformation. The focus of the #CTS2022 will thus be on the Decarbonisation of Companies and their Supply Chains, which is where the majority of corporate CO2 emissions stems from! Exciting, isn’t it? It also creates a certain fil rouge with the previous Summits, where the focus was first on learning about climate solutions, at #CTS2020, and then on implementing climate goals in action, at #CTS2021.

WHERE AND WHEN?

Now that you know the what and the who, I should probably tell you the when and how: the 2nd and 3rd of June100% online, live and interactive!

Considering that we will all meet online, you don’t have to worry about flying in, finding a hotel room or cancelling last minute saying that you “tested positive” – this event is climate- and covid-proof!

CLIMATE COMMUNITY

Now I have to be honest with you and tell you that I didn’t participate to the previous CLIMATE TRANSFORMATION Summits – I wasn’t aware of them yet – but I’ve heard they’ve been pretty awesome! So no matter if you are new to the world of climate transformation and supply chain decarbonisation or a leading expert, join the CLIMATE community and make 2022 matter the most! Head right away to EventBrite where you can enjoy an Early Bird Discount on the tickets!

ARE YOU STILL READING?

In case you like to find out even more about the #CTS2022, on the website you can get already a sneak preview of this year’s speakers.

Among them we have Professor Stefan Rahmstorf, Head of the Earth System Analysis Department at Potsdam Institute für Klimafolgen (PIK). In 2017, he was the first scientist outside the USA to be awarded the Climate Communication Prize. Stefan will open the summit with his keynote, getting us all excited to take actions!

Then, if you’re interested in climate disclosure and regulations, you cannot miss the opportunity to meet Yvonne Zwick, CEO of B.A.U.M. e.V., who undertook various positions in the office of the German Council for Sustainable Development from 2004 onwards and now joins as an expert in EFRAG’s SME working group, which is developing the European sustainability reporting standard for companies.

Finally, if you’re a procurement passionate, you will certainly appreciate the expertise of Yvonne Jamal, CEO of the JARO Institut e.V., who is specialized in sustainable procurement and wants to ensure that sustainable action becomes the standard for the economy – by imparting relevant knowledge, connecting people and organizations and working for the implementation of the SDGs.

WHAT A TEAM! AND MANY MORE TO JOIN…

On the #CTS2022 website you will find in the next days and weeks more speakers who will be revealed. I will happily introduce them to you next time. 

Alright, I think you noticed I am pretty excited and looking forward to meeting you soon!

For now, I go back to planning the Summit, but I’ll keep you updated in the THE CLIMATE CHOICE Magazine! 

See you then!

Chiara

Sustainable Procurement – a boost for climate transformation!

How can procurement help to stop the exploitation of nature and human beings? In our CHOICE Event #34, Thomas Udesen, Chief Procurement Officer at BAYER AG, elaborated on the opportunities and challenges in building sustainable and profitable procurement. Lara Obst, Co-Founder of THE CLIMATE CHOICE, additionally shared her insights on how improved collaboration between companies and suppliers can help to achieve this goal in practice. These are the key insights of their presentations.

Thomas Udesen’s insights

PEOPLE – PLANET – PROFIT 

We as humanity are overstepping the Planetary boundaries. Climate, Humanitarian and Geo-Political issues are manifesting itself and we need to make sure we are ready for these changes.

COVID-19 has been a wakeup call for most of us. 2020 represents a turning point in history. It was a year to reflect on ourselves and our business models. The economical impact it had across society caused many losses that we need to respect and learn from. It’s time for businesses to make a decision.

Sustainable procurement is built on three pillars: People, Planet and Profit. The environmental, social and economical dimension must be considered to ensure its integral approach. In this regard each company faces unique challenges they need to address accordingly. 

SHIFT TOWARDS IMPACT AND INNOVATION

Financial and Sustainability Targets are merging increasingly. Very few companies nowadays focus exclusively on Shareholder Value. We can see a shift away from that focus towards the aim of being a social innovator. How can that look in practice?

This challenge calls for integrated strategies. As we are making sure to enhance Corporate Sustainability, we also change how we communicate and how we drive our supply chain.

The majority of CO2 emissions originates externally. Reducing carbon emissions along the supply chain is a vital step towards integral sustainability, nevertheless it requires a long term commitment as well as the collaboration across and within industries. 

These are potential implications that might occur:

  1. Product Portfolios:
  1. Supply Chains:
  1. Business Relationships:

HELPING HANDS – Sustainable Procurement Pledge (SPP)

Sustainability means that we all must collaborate. The good news is that there are some really clever people with great ideas out there. But often those ideas are not gonna make it to the market if they’re not being rewarded. We need to make sure that innovators are funded. We need to change our buying and make sure discussions are being held in broader forums.

There is an african proverb that says: “If you wanna go fast, go alone. If you wanna go far, go together.” It is time to take a stand. 

BAYER is part of a diverse and engaged Ambassador community, the Sustainable Procurement Pledge (SPP), with procurement leaders and practitioners from leading corporates, SME’s and from across different industries, academia and governments.

Their strategy of impact is building on Ambassador feedback and focuses on closing these gaps: Knowledge Gap (SPP Ambassadors don’t know where or how to start in a structured way), Support Gap (SPP Ambassadors are seeking some personal guidance and support), Leadership Gap (SPP Ambassadors report a lack of engagement and mandate from their management), Confidence Gap (SPP Ambassadors are concerned about failing or causing damage). The aim is to empower and equip and to encourage leadership.

The SPP is growing rapidly and is impacting real decisions. So far 73% of the ambassadors confirm the SPP has positively influenced decisions

In his closing statement, Thomas Udesen referred to the saying: With great power comes great responsibility. Procurement is not just a job, but a great chance to actually make a change towards integral sustainability. 

Lara Obst’s insights

OUR OBLIGATION TO ACT NOW

The transition to a low-carbon economy is underway and accelerating globally. It’s now expected that organizations set climate targets that align with the latest climate science and drive action on ambitious emission reduction initiatives. Climate transformation is therefore an existential challenge. It requires us to look beyond competition and come together to cultivate collaboration across all sectors and professions. 

Luckily there are already initiatives such as SPP working together to build more equitable, resilient supply chains. These climate commitments need to be met through absolute CO2 reductions and from a large portion of the company’s suppliers achieving their own successful climate transformation. As most emissions are created upstream, so-called „supply-chain emissions“ are often purchased in the course of manufacturing products or services that the company buys.

Companies that already set science based climate targets are facing the challenge of engaging a large number of suppliers to commit to their goals within a relatively short time frame of typically five years. This creates the need to provide suppliers with tools and resources to develop their own climate action plans. 

A comprehensive, systematic approach to supplier relationship management is therefore essential to fast-track progress on absolute emission reductions and supplier engagement goals. Whereas working in silos creates inefficiencies and duplicates efforts, supplier engagement and capacity building are essential for corporate and supply chain decarbonisation.  

HOW DOES SUPPLIER ENGAGEMENT LOOK LIKE?

We explore the essential steps of a continuous journey that starts with strategy, the Corporate Climate Target Setting. The second step is to establish a scalable supplier management program. The third step focuses on the supplier engagement – and is up until today mostly carried out by data collection. The fourth and final step includes value creation and capturing. Here the measured results are reported, actions are implemented and outcomes analyzed?.

Supplier engagement goes way beyond data collection. So far the term is often understood as the process of simply requesting climate related ESG-data from suppliers. However, true “engagement” requires much more involvement. It includes the three steps: Data collection, analysis and decarbonisation. Each step is an own elaborated phase that needs to be acknowledged in order to successfully carry out the overall process. 

Prior to data collection, businesses need to inform and prepare suppliers for an upcoming assessment. Next, the actual data is collected from suppliers on relevant climate ESG topics. Using a single platform for data collection and asking standardized questions are two very important points. This ensures that all information is centralized and that supplier data is formatted in a way that is easily referenceable year over year, for both buying companies and suppliers.

In the third phase the data collected gets analyzed in order to uncover climate relevant hotspots in the supply chain. This third and final phase is the most important and is often where companies struggle. This phase involves driving tangible improvement with suppliers, often through co-creation of action plans, capacity building, training programs, incentives, and more. 

A CONTINUOUS PROCESS

To conclude: supplier engagement is an iterative, continuous, and collaborative process, not something you do once every few years. We therefore note that it builds on high quality supplier data, but most important is its actionable usage for decarbonisation efforts. Hence, the following questions arise: How do we collect supplier data collaboratively? And what do we do with it in order to actually improve climate impact? 

The study “Net Zero Challenge” from BCG & World Economic forum says that supply chain decarbonisation is the game changer for corporate climate action. However, it also highlights various challenges: Data collection is often a one-way street, where suppliers are being asked to provide complex data without getting much in return. If companies want to see real improvements on their goals, suppliers must be willing to participate. To do this, the preparation and support of suppliers during each phase of the supplier engagement process is not enough, but the real value should be apparent for them. In other words, just like any good relationship, it has to be a two-way street.

TRUST AND TRANSPARENCY

To build these relationships, your suppliers need to trust the data collection process. Today suppliers often do not know what is done with their data, and fear that if they answer “incorrectly,” they will lose their contract. Transparency is crucial in this regard. Be sure to explain how their data will be used, emphasizing that their responses will be the foundation for future collaboration and that there will be no punishment for “wrong” answers.

You then should also clearly communicate what incentives are in place for them to improve. One way to do this is to simply share back your assessment results so your suppliers know where they stand. This is a great way to start a dialogue with your suppliers on what support they may need.  

Honor that suppliers are often at different stages of their climate journeys. Some may already have set climate targets, reduction efforts and methods to engage their own suppliers on topics like greenhouse gas emissions whereas others may not know how or even why they should start. Supplier engagement strategies should therefore be segmented by supplier climate maturity, product category, or key impact areas. 

Most important of all: provide value for suppliers and communicate clear benefits of your supplier engagement program. Typically supplier gain from a collaborative participation in a supply chain decarbonisation program in multiple ways: 

  1. It drives innovation and transforms business practices
  2. It enables suppliers to Benchmark & increases their competitiveness
  3. It builds credibility and reputation
  4. It ensures their own supply chain resilience
  5. Last but not least, it demonstrates climate commitments to consumers

To conclude: Supply chain engagement programs need to be built on meaningful, collaborative relationships that provide impactful benefits for suppliers.

HOW WE HELP

That is what we are working on at The Climate Choice with our Climate Data SaaS platform. We provide companies a systematic and collaborative way for the collection of climate relevant supplier data for decarbonisation actions.

Customers use our data driven software platform to either engage their own supply chain and share relevant insights with their suppliers or to assess their own climate maturity compared to market averages.

Our platform therefore offers an „Out of the box“ supplier engagement program that is aligned to international climate standards and regulations and can be adapted to company specific needs. The process is thereby designed along the 3 steps of supplier engagement

  1. Data collection
  2. Analysis & Value creation
  3. Decarbonisation actions & monitoring

In the first phase, the supplier’s climate performance is evaluated using an actionable assessment framework that covers 5 dimensions. From governance to labor & human rights, environment, broader sustainability and specific climate areas.

In the second phase, the analysis,suppliers receive based on their performance an individual CLIMATE Scorecard that can be shared with multiple customers. On top they receive insights on how to improve their climate performance score, which decarbonisation actions fit their potentials and how they benchmark to others. This way the program provides mutual value and a direct approach to impactful climate action management. Finally: the platform provides guidance to buyers, helping them monitor supplier climate performance, decarbonisation actions along the supply chain and decrease potential climate risks.

TO CONCLUDE

COVID-19 showed us that there is vulnerability in supply chains that can affect the company tremendously. It is necessary for organizations to choose who to do business with. The commitment to a sustainable journey is becoming a vital criteria in regards to that. Being prepared to address the complexities requires a different type of conversation, based on trust, not pride, and the establishment of long term relationships. 

Sustainable Procurement can be a key lever for global climate transformation. It is on us to take chances, honor our responsibilities and use our privilege to contribute to the necessary decarbonisation. Collaboration across industries and continents can drive this mission forward. Let’s learn from each other, with each other and most importantly: Let’s act now! 

Make your company a CLIMATE Champion! Contact us now to arrange a free consultation.

Game Changer: CSRD. How to transform your business and value creation.

Big things are happening in the Climate and Sustainability Reporting Field

Make sure you are prepared! In the following you find the most important key takeaways about the upcoming Corporate Sustainability Reporting Directive (CSRD) and how it changes the way you do business today. 

Summary: The new sustainability reporting standard is leading a future-oriented change of business relations. Investors, customers and business partners will be able to discover the impact of companies and their actual measures to improve it. Companies will therefore report annually on how they manage their social and environmental dimensions as well as governance. Reported information will need to be robust, transparent, and verifiable. Therefore, an internal management system as well as external audits will be mandatory for companies, in order to continuously measure and monitor their impact along the supply chain. 

What is the CSRD? 

Let’s start at the beginning. The Corporate Sustainability Reporting Directive (CSRD) is today still a proposal from the EU Parlament, but will soon replace the Non-Financial Reporting Directive (NFRD) in the EU. Until then, certain details and requirements can still change. However, the objectives of the directive are clear. The policy objective of the new Directive is to ensure that stakeholders can assess the climate and sustainability risks of companies. The practical objective is to bring climate and sustainability reporting to the highest level of maturity, in order to make it transparent and comparable. The process involves the challenge of creating sustainability reporting standards, digitize impact reports and overview them – such as financial reporting.

Who is affected by Sustainability Reporting? 

The CSRD proposal is suggesting that all “large” companies need to report. Large is defined by 2 out of these 3 criterias:

It is estimated today that in the EU 50.000 companies and more will be affected by the CSRD – compared to about 11.000 that are currently falling under the non-financial reporting requirements. 

When will the CSRD come into effect? 

In 2024 large companies will need to fulfil the CSRD requirements, reporting on the business year of 2023. SMEs will have a little more time to adapt. But large companies are likely to request the respective information from their suppliers – and they might need to ask their suppliers to report, too. This way, the CSRD will have an indirect effect on more or less all companies. Over time, until 2026 it is also addressing listed SMEs directly. 

Large companies are addressed first, but SMEs will most likely be indirect affected.

Which information needs to be reported? 

The CSRD refers to existing ESG-guidelines, therefore it requires information about environmental, social and governance aspects of companies. Right now the EU Financial Reporting Advisory Group (EFRAG) works on concrete proposals for binding criterias. However, it is already clear that the directive will be aligned to international ESG-standards such as the work of the Global Reporting Initiative (GRI). 

What comes next? 

Scheduled for summer 2022, a first set of requirements and final standards will be published. Those will be required for the reporting year 2023. The new update will include guidelines for two main concepts: 

  1. The double materiality concept: This concept requires companies to report both on how sustainability issues affect their own performance, position and development (the ‘outside-in’ perspective), and on their impact on people, stakeholder and the environment (the ‘inside-out’ perspective). It will further demand the disclosure of: 
    1. Climate and environmental impact of a company and its supply chain. 
    2. Social impact and responsibilities across the value chain. 
    3. Climate related risks and financial uncertainties. 
  2. Quality of information: Guidelines on how comprehensive data needs to be collected, managed and reported. 

Double Materiality and Data Quality along the entire value chain

A year later, in summer 2023, a set of additional guidelines regarding the reporting standards and its quality will be published. These will focus on the integration of non-financial and financial reporting, the depth of collected and managed data from companies and their supply chains as well as future-oriented metrics to improve companies’ sustainability performance.

How to prepare for Sustainability Reporting? 

Start preparing now! Ask how your company collects already climate related data and ESG information, use systems to standardise and prepare to be able to share them. This is not only a matter of digitalisation and software-tools, but it requires a transformation for status quo management. CSRD and its implications will be central to a company’s whole strategy as well as to its internal and external stakeholders. Each company needs to start now with mapping out which resources need to be activated in order to be able to meet the necessary criteria. As mentioned, the EU Parlament is still in the process of defining and discussing the proposal. Nevertheless, decision makers, sustainability officers and supply chain managers are now preparing best by focusing on the strategic means to be able to report on past and future-oriented criteria of the CSRD. 

The sooner the better! Focus on climate impact and ESG information.

Conclusion: Which next steps to take? 

The CSRD will follow the suggestions of the TCFD*, especially for climate relevant ESG-information. Moreover, it will be in line with the EU Taxonomy as well as the existing NFRD.  This means that companies will very likely have to report against:

Get your data managed: From information collection to actions.

Lead the transformation!

The new CSRD is meant to make impact transparent and to simplify investment decisions. For companies this will bring opportunities to position themselves as pioneers and to empower business partners along the way. Meanwhile, the whole process demands attention and needs to be implemented as collaborative transformation within companies and together with stakeholders. Do not hesitate if you want to learn how our software service is enabling you to take the next steps forward. Contact us for more information