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3 Key Steps to Use Competitive Climate Intelligence
In today’s rapidly evolving business landscape, staying ahead of the curve requires more than just traditional market insights. The emergence of the future low-carbon economy has ushered in a new era of competitiveness. Companies now need to start navigating the complexities of climate information and strategies to maintain their edge. This is where the concept of competitive climate intelligence comes into play. In this article, we’ll delve into what competitive climate intelligence entails and outline three essential steps to effectively leverage it for your company’s success.
Understanding Competitive Climate Intelligence
“Competitive climate intelligence” is the systematic gathering and analysis of climate-related data and insights to drive informed decision-making. Stemming from the broader concept of “competitive intelligence,” which focuses on understanding market dynamics and competitors, competitive climate intelligence delves into climate-related aspects of business strategy. This intelligence goes beyond understanding the environmental impact of your operations. It encompasses understanding how your competitors are positioning themselves, identifying emerging opportunities, and assessing potential risks.
Benefits of Competitor Climate Insights
Here’s why incorporating information about your competitors’ climate strategies is crucial for positioning your business at the forefront:
- Benchmarking: Analyzing your competitors’ climate data allows you to benchmark your performance against industry leaders. This comparison helps identify gaps in your sustainability efforts and set ambitious yet realistic goals to outperform.
- Innovation Insights: Monitoring competitors’ climate strategies unveils innovative practices that can inspire your company’s approach. By learning from their successes and failures, you can adopt best practices and refine your own initiatives.
- Market Positioning: Understanding how competitors position themselves in the low-carbon landscape helps you differentiate your brand. Identifying gaps in the market and addressing unmet sustainability needs can accordingly enhance your company’s appeal to conscious consumers.
- Risk Management: By assessing competitors’ responses to climate risks and regulatory changes, you gain insights into potential challenges and opportunities. This proactive approach ensures your business is prepared for shifts in the regulatory and consumer landscape.
- Collaboration Opportunities: Collaborative efforts within your industry can amplify impact. Analyzing competitor data highlights potential partners for joint sustainability initiatives, fostering a collective drive towards a greener future.
- Investor Confidence: As environmental concerns grow, investors increasingly value companies with robust climate strategies. Demonstrating a comprehensive understanding of competitors’ approaches bolsters your credibility and attractiveness to investors.
- Adaptive Strategies: The low-carbon economy is evolving swiftly. Analyzing competitor climate data aids in fine-tuning your strategies based on real-time insights. This adaptability allows your company to seize emerging opportunities and stay resilient in the face of change.
The key steps for Competitive Climate Intelligence
So how can your company take advantage of this and successfully implement climate competitive intelligence? Here are the three most important steps.
Step 1: Data Gathering and Analysis
The foundation of competitive climate intelligence lies in robust data collection and analysis. The first step is to identify and gather relevant data from both internal and external sources. While internal data might include your company’s carbon footprint and sustainability initiatives, external data encompasses market trends, competitor activities, regulatory changes, and public sentiment around climate issues. This is where AI tools shine, as they can efficiently sift through vast amounts of public data to provide actionable insights. By utilizing these tools, you can uncover hidden patterns, emerging trends, and valuable competitor strategies that inform your decision-making.
Step 2: Integration with Business Strategy
Climate intelligence should not exist in isolation; it must be seamlessly integrated into your company’s overarching business strategy. This involves aligning climate-related goals with core business objectives and identifying synergies that drive value. For example, using climate intelligence to optimize supply chain efficiency not only reduces emissions but also enhances cost savings. By weaving climate considerations into product development, marketing, and operations, you not only contribute to sustainability but also bolster your competitive position in the market.
Step 3: Continuous Monitoring and Adaptation
The future low-carbon economy is dynamic, with changes in regulations, technologies, and consumer preferences shaping its trajectory. As such, competitive climate intelligence is not a one-time effort but an ongoing practice. Establish a framework for continuous monitoring and adaptation. Regularly update your data sources, track competitor moves, and stay informed about industry shifts. This adaptive approach enables you to seize emerging opportunities swiftly and mitigate risks effectively.
As the business landscape transforms to embrace the challenges and opportunities of a future low-carbon economy, competitive climate intelligence emerges as a critical tool for success. By systematically gathering, analyzing, and integrating climate-related data, businesses can not only contribute to a sustainable future but also enhance their competitive advantage. With the aid of AI tools, the data collection process becomes more efficient, empowering companies to make informed decisions. Embrace these three key steps and start now to position your company at the forefront of the evolving business paradigm.
Your Cheat Sheet: Climate Regulations to be aware of in 2023
Your Quick Guide through recent Climate Regulation Updates
We all experience it this summer: Climate change poses significant threats to the global economy, to humans and the planet. Time to act, especially also in the financial world. As a consequence, regulators worldwide are addressing climate-related risks. In the last weeks and months, several crucial developments in that area took place across the globe! Let’s delve into what happened in terms of climate regulations in America, Europe, International – and what’s coming up soon.
Quick insight summary: As climate management and disclosure becomes more standardized and mandatory, companies must ensure high-quality data by implementing strong data governance, strategies and control mechanism to maintain audit-ready information throughout the value creation process.
United States of America
The upcoming Securities and Exchange Commission (SEC) climate disclosure rule in the US requires large companies to disclose their carbon footprints alongside financial statements. The SEC’s proposal is aligned with existing recommendations from the Task Force on Climate-related Financial Disclosures (TCFD)and will require organizations to disclose certain climate-related information including greenhouse gas (GHG) emissions, Scopes 1, 2 and 3 and disclosure of climate-related risk, impacts, targets and goals.
The US Commodity Futures Trading Commission announced its second voluntary carbon markets meeting. It aims to discuss private sector efforts in high-quality carbon credits, current market trends, public sector initiatives, and how CFTC can facilitate markets for high-quality carbon credit derivatives.
The International Sustainability Standards Board (ISSB) will assume the role of monitoring companies’ climate-related disclosures. This task was previously handled by the FSB Task Force on Climate-related Financial Disclosures (TCFD). This development comes after the ISSB published global standards for sustainability and climate reporting, which incorporated the TCFD’s recommendations. The move is seen as an attempt to unify sustainability reporting standards, but some may question whether it could pose a threat to independence given the ISSB’s expanded responsibilities. Nonetheless, the decision recognizes the ISSB’s commitment to building upon the TCFD’s legacy and providing more clarity in the realm of climate-related initiatives.
The European Commission suggests to ease raising Climate and ESG disclosure rules for companies to reduce regulatory burdens. It published the final version of the European Sustainability Reporting Standards (ESRS) on July 31. The climate regulation shifts initially mandatory indicators, including greenhouse gas emissions disclosures, into the scope of materiality assessments, making them reportable if relevant to a company.
But: “If an undertaking concludes that climate change is not a material topic and that therefore it does not report in accordance with that standard, it shall disclose a detailed explanation of the conclusions of its materiality assessment with regard to climate change. This provision is included in recognition of the widespread and systemic effects of climate change on the economy as a whole.”
Under the CSRD, a company needs to implement processes to properly assess and collect climate-relevant information, for their own company and their supply chains. Described as such:
This information must be reported in accordance with European Sustainability Reporting Standards (ESRS). This information shall include information related to short-, medium- and long-term time horizons, as applicable, and it shall contain: The principal actual or potential adverse impacts connected with the undertaking’s own operations and with its value chain.
This obligation is closely related to the due diligence duties to identify adverse impacts, as introduced by the proposed Directive on Corporate Sustainability Due Diligence Directive (CSDDD). The proposed CSDD Directive will thus lead to more complete and effective reporting across global value chains. Part of this proposal is the introduction of a link between variable remuneration of directors and the sustainability targets of the company. Directors of companies that fall within the scope of the proposed directive also need to take into account the consequences of their decisions with respect to sustainability matters, climate change and human rights.
European Financial Reporting Advisory Group (EFRAG) introduced sector-specific Sustainability Reporting. EFRAG announced plans to create three advisory panels for sector-specific sustainability reporting rules for the capital markets, and insurance sectors. These panels will provide tailored reporting guidance for financial institutions starting in September, with applications open until July 31.
The Australian Government introduced mandatory Climate-Related Financial Disclosure Requirements for businesses and financial institutions. The climate regulations closely align with the ISSB’s climate standards, focusing on governance, strategy, risk management, and metrics and targets. Regulations have been proposed by the nation to start at the beginning of the 2024/2025 financial year.
Monetary Authority of Singapore (MAS) drives the early phase-out of coal-fired power plants. MAS launched a public consultation on incorporating financing for the early phase-out of coal-fired power plants into the Singapore-Asia Taxonomy, which classifies investments supporting a 1.5°C transition pathway.
The International Sustainability Standards Board (ISSB) has released its first set of sustainability and climate-related disclosure rules, IFRS S1 and IFRS S2, based on voluntary reporting frameworks. These standards aim to present sustainability efforts in a robust and comparable manner, facilitating informed capital allocation decisions by investors. It gets international adoption in countries like Canada, the UK, Japan, Singapore, and Nigeria are considering implementing ISSB standards. The International Organization of Securities Commissions (IOSCO) is now also endorsing them, accelerating their global adoption.
These developments show a growing commitment among regulators worldwide to tackle climate-related risks and enhance reporting. Companies should closely follow the rising need for climate management processes and contribute to a more sustainable and resilient future. Stay tuned for further updates on the global climate transformation.
Start your Climate Journey today!
The global economy is undergoing a fundamental shift, to a world in which climate considerations are a core part of doing business. In this new climate economy, every company needs to factor climate into its business decisions — both to avoid risk and to create new value. Get in touch to learn how our Climate Intelligence Platform empowers you to become a leading climate champion.
The Climate Power of Supply Chains – 10 Steps towards Decarbonization in Scope 3.
The pressing issue of climate disclosure are making it clear. CO₂ numbers are not enough to understand the climate performance of a company – as we all know. Instead, companies are establishing holistic climate management approaches in order to drive real change. A market transition that is very much highlighted by rising regulations such as the European Supply Chain Due Diligence Directive (CSDDD), the Corporate Social Responsibility Directive (CSRD) and the de facto standard for climate-relevant information from the Task Force on Climate Related Financial Disclosures (TCFD).
What is holistic climate management in supply chains all about?
However, there is even one step further to take. Sustainability leaders know that climate impacts, risks and necessary decarbonization actions don’t end at the office door. Instead, investors, customers and policymakers urge companies to take responsibility for their entire value chain and purchasing decisions. The growing climate crisis shows that supply chain resilience and the transformation of entire business models are more important than ever.
Challenge of going beyond the basic CO₂ Footprint in Scope 1 & 2
When addressing climate responsibility within and beyond the own company, it becomes tricky. As climate-relevant information in Scope 3 are connected to hundreds and sometimes thousands of suppliers. Meanwhile, your climate data needs to be accurate, granular, and auditable.
Achieving net-zero for Scope 1 and Scope 2 emissions presents a substantial technical and economic challenge for many companies. Addressing Scope 3 emissions adds an additional layer of complexity. Such as, but not limited to:
- Consistent carbon accounting and climate performance tracking practices
- The need to work collaboratively with suppliers and business partners
- Handling multi-tiered supply networks and difficulties of engaging them in the improvement process
So how do sustainability and procurement leaders alike overcome this challenge?
Manage your Decarbonization Journey in Scope 3
Overarching climate goals in the supply chain can only be achieved by treating and involving the supply chain as a crucial aspect of any firm’s holistic climate performance. Therefore, businesses must collaborate with their suppliers to enable them to play a vital role in their climate transformation.
By publicly disclosing climate targets for Scope 3, emissions and decarbonization measures along the supply chain, an organization demonstrates accountability and provides stakeholders with vital information for understanding its climate performance. Beside regulatory pressure, new market mechanisms already show that those companies gain competitive advantages and are ahead of their peers. Undergoing a significant shift, business partners, customers and stakeholders alike increasingly consider climate impact in their decision-making. This presents the opportunity to align business strategies with market expectations and respond to the growing decarbonization demands proactively.
10 Steps towards climate-relevant data in Scope 3 – powered by Supplier Engagement
STEP1 – SET YOUR FOUNDATION
To embark on the path of supply chain decarbonization, you must begin by establishing a solid foundation. Start by making your climate commitment public, setting ambitious targets that include your supply chain. Assess your emissions and clearly define your priorities for implementing actions and solutions in your own transition. Aim high and align your goals with the Paris Agreement’s 1.5°C target.
STEP 2 – ACCEPT THE AMBIGUOUS STATUS QUO
Acknowledging the diversity of targets, strategies, incentives, and requirements within your own company is crucial. Align your sustainability and procurement offices to ensure a successful program outcome. Assemble a dedicated #TeamClimate and ask yourselves the important questions: Why do we need this program? What outcomes do we anticipate? Who needs to be involved? With these answers, you can set the stage for success.
STEP 3 – BE SIMPLE!
Simplicity is key when starting your supply chain decarbonization journey. Avoid overwhelming complexity right from the beginning. Instead, focus on asking your suppliers simple yet essential questions: Have you set climate targets? Have you calculated your emissions? What climate actions are you planning to implement? By keeping it simple, you can prevent frustration and maintain momentum.
STEP 4 -START WITH YOUR HOTSPOTS IN THE SUPPLY CHAIN
Having set your climate targets and aligned your internal team, it’s time to identify the hotspots in your supply chain. Utilize third-party data, databases, screening or a spend-based approach to gain an initial understanding of your value chain’s status quo. Cluster suppliers based on their climate maturity and strategic importance to pinpoint the hotspots that require your attention. The Climate Intelligence Platform offers a swift and straightforward way to screen your supplier base and kick-start your supplier climate engagement program.
STEP 5 – CLARIFY DATA NEEDS FOR TEAM SUSTAINABILITY AND PROCUREMENT
Before engaging with your supply chain, ensure that your internal stakeholders are on the same page. Align your sustainability and procurement teams regarding data, processes, and next steps.
This collaborative effort ensures that everyone is working towards the same goals and expectations. Clear communication is essential.
STEP 6 – SET UP THE PROCESS IN PROCUREMENT AND SUSTAINABILITY TEAM
Establishing the supplier engagement program is often organized by the procurement team. However, the sustainability team’s involvement is crucial in providing insights and publishing a clear message regarding your supply chain climate targets. This collaboration strengthens the credibility of your program and enables effective engagement with suppliers.
STEP 7 – START ENGAGING SUPPLIERS BY STRESSING THE “WHY”
Now it’s time to reach out and communicate with your suppliers. Make it a two-way conversation by inviting collaboration, sharing knowledge and resources, and guiding them through the journey. Highlight the benefits for suppliers supporting your climate initiative and provide incentives to get them on board. Build relationships and emphasize the collective effort needed to make a difference.
STEP 8 – DON’T OVERWHELM, STAY SIMPLE!
Understand that managing climate issues can be overwhelming for both you and your suppliers. Be open to feedback and improvement. Remember that we are all on this climate journey together, transitioning toward a low-carbon economy will take time. Motivate and engage your business partners, support them along the way.
STEP 9 – DARE TO TAKE DECISIONS
With information, feedback, and data in hand, it’s time to make decisions. Data should be utilized to gain insights and inform decision-making processes. Define a baseline from which you started and plan the next steps that bring you and your suppliers closer to achieving Net Zero. Address crucial questions such as how to provide climate knowledge to suppliers, share best practices, define quirements, and collaborate on taking action.
STEP 10-REPORT AND REPEAT
You took the first 9 steps, talk about it and share your learnings. This leads to your final step: report and repeat. You will repeat the process next year, so it’s the best time to get into the improvements and actions – together with your suppliers.
Let’s take action together!
This is why at THE CLIMATE CHOICE we empower every single company to become a climate champion in order to implement its climate targets and reduce emissions.
How? We start with the most impactful part: the supply chain. Which typically consists of hundreds and thousands of small and medium sized suppliers. They have the power to drive climate actions at scale. To do so, they need to understand where they stand in terms of climate transformation and work transparently together with their business partners to implement meaningful measures.
Our software-based Climate Intelligence Platform collects climate-focused data from companies, represents them in CLIMATE Scorecards and provides business insides into risks, potentials and best practices to reduce emissions.
Get more information in the Climate Playbook 2023, which provides a comprehensive overview of key insights from the CLIMATE TRANSFORMATION Summit 2023 (#CTS2023) and serves as a guide for companies to transition from incremental internal to exponential climate action across the supply chain.
How to generate Value from Supplier Climate Data
New reporting requirements and stakeholder expectations are driving large companies to collect climate-related information from their suppliers. Once they have overcome the first hurdle of collecting data along complex supply chains, they immediately face the next challenge. What do I do with all this supplier climate data now? How can I generate value for my company from it? How can it help me to achieve my sustainability targets?
This is what we learned at the CHOICE Event #52 from Neele Franke and Hugo Ernest-Jones from IBM Consulting. Here you will find the most important insights from their presentation.
Companies struggle with operationalizing climate strategies
When it comes to sustainability and climate efforts by large companies, it is striking that today many of them are already publicly committing to climate targets and developing strategies for their implementation. While most have ambitious plans, however, many are still struggling to operationalize them. A recent survey among over 2,000 CEOs worldwide revealed that 86% of companies have a sustainability strategy, but only 35% have acted on that strategy (Source: IBM Institute for Business Value (2022): Sustainability as a transformation catalyst).
So while the “What” seems to be rather clear, the “How” of getting it actually done remains a big challenge. Added to this is the increasing pressure and complexity of regulations and frameworks for corporate sustainability and climate disclosure. Regulators are mandating minimum levels of reporting – putting the responsibility onto corporations. They, in turn, have to find their way through the jungle of new standards and initiatives defining the most important climate data in companies. Since up to 90% of a company’s emissions originates from the supply chain, they must also manage to collect this data from their suppliers.
The evolution of a sustainable enterprise
For companies that start collecting supplier climate data, it is important to understand that next to compliance and reporting purposes, they can also generate huge amounts of value from their data collection. If done right, it can help the company to operate more effectively, more profitably, with reduced costs and in a more innovative way to develop new products and services.
Based on this insight, companies can be classified in a maturity curve for their sustainable evolution in three stages.
Stage 1 – Sustainability Compliance
Focus mainly on license to operate and meeting regulatory or compliance requirements. Digital maturity is low, processes and systems are siloed, and data collection and aggregation is a manual process.
Stage 2 – Sustainability Optimization
Sustainability initiatives exist for Social, Environmental & Governance, across operations and support functions. Acceleration of digitization and automation of sustainability data collection and reporting.
Stage 3 – Sustainability Transformation
Sustainability is embedded as a core value and mission statement across all company departments and functions. Technology is focused on differentiation, advanced analytics and futuristic, with the objective of leveraging sustainability as a competitive advantage.
Key steps in operationalizing supplier climate data
How can companies leverage their supplier climate data to move from mere sustainability compliance to real sustainable transformation? The following key steps can serve as a guide to successfully operationalize the data collected in order to drive action.
1. Data Collection
There are two different options when collecting climate data from suppliers. Real supplier “primary” product level data is the preferred where available, though availability is limited. “Secondary” averages data on the other hand are readily available, but of limited quality. Clients should therefore collect and integrate primary data for selected high impact/strategic suppliers (at least scopes 1 and 2) where possible and use secondary data sources to model remaining emissions.
2. + 3. Data Integration and Engine
While many companies still collect and integrate their data manually in Excel spreadsheets, the goal should be to automate this process as much as possible. Specialized software solutions are already available for this purpose, such as the Climate Intelligence Platform. This has the advantage that time-consuming processes can be carried out efficiently and cost-effectively, and the data is also auditable.
4. Visualization and reporting
Once companies have collected and integrated the supplier climate data, they should visualize the results next in order to draw out insights to inform reporting and strategy. Smart visualization with specialized tools also supports the management of data availability and quality.
5. Simulation and strategy
In order to use the data not only for insight into the past, but also for future planning, the next step is strategy work. Companies can now leverage the supplier climate data to help guide decision making around reducing emissions along the supply chain. This is where modeling and simulation comes in and links with the next and last step: supplier engagement.
6. Supplier Engagement
Collaborating with and engaging suppliers is the core and end goal of every effort to decarbonize the supply chain. It is important to note that successful supplier engagement must occur at three levels.
Process & Governance – Companies should design a strategy and operational model aligned to supplier benefits and user outcomes that are fair, democratic, transparent and evolving.
Business Value – In order to secure participation, companies must design a business model that includes appropriate incentives to stimulate collaboration and network effects.
Technology – Technical solutions with winning human experiences help to drive mass adoption of new digital products and services with privacy, trust and security.
Start with a free basic account for the Climate Intelligence Platform
The best approach to finding the entry point to collecting and leveraging supplier climate data is to “start small and think big”. The Climate Intelligence Platform offers a perfect small start for companies looking to engage their suppliers for climate action. The free basic account offers access to over 10,000 climate supplier profiles and the possibility to analyze the basic climate maturity of an unlimited number of suppliers in an automated way.
“Together we can. Together we will” – Interview with Anna Rathmann from the Jane Goodall Institute
Everything is connected – everyone can make a difference. Under this motto, the Jane Goodall Institute fights worldwide to conserve the natural world we all share. We are excited that Anna Rathmann, Executive Director of the Jane Goodall Institute, will be a keynote speaker at the CLIMATE TRANSFORMATION Summit 2023, sharing her vision and insights with the CLIMATE community.
For the Climate Magazine, she has already taken the time to answer our most pressing questions to her. The interview is about the three big global crises – climate change, biodiversity loss, and environmental inequity –, how they intertwine and how the institute is partnering with companies to tackle them.
First off, thank you for the opportunity to share a little bit about the Jane Goodall Institute’s nearly 50 years of conservation. My name is Anna Rathmann, I am the executive director of the Jane Goodall Institute (JGI) USA in Washington, D.C. I have spent my career working in conservation and, like many others, have a profound respect for the holistic philosophies and approach of Dr. Jane Goodall. The Jane Goodall Institute’s mission evolved as Jane evolved as a scientist and activist.
The foundation of JGI was built on the groundbreaking research Jane began over 60 years ago in Gombe National Park in western Tanzania on chimpanzees and their ecosystem. While this ongoing research continues to be at the core of our work today, we combine this decades long commitment to science with community-led conservation, innovative advocacy around animal welfare and environmental issues, best-in-class rehabilitation and sanctuary care for a variety of wildlife exposed to trafficking, One Health initiatives, forest protection and restoration, applied conservation technology, and our global youth program: Roots & Shoots.
Jane often refers to our planet as a “tapestry of life”. This philosophy, of “when nature thrives, we all thrive,” has guided the work of her namesake Institute to view complex issues like biodiversity and habitat loss, human inequity, and apathy – as interconnected. In response, JGI’s solutions are interconnected. We see threats as opportunities to bring people together across industry, sector, and identity to pursue science-based solutions that integrate the needs of people, other animals, and the environment in their communities. Together we are adding to the “tapestry of life” and building a “tapestry of hope” towards positive change worldwide.
Climate change, biodiversity loss, and environmental inequity are deeply intertwined. Human inequities have largely driven the over consumption of natural resources and environmental degradation. Global consumer industries both perpetuate inequities and overwhelmingly drive this damage. In turn these processes are the main drivers of greenhouse gas emissions, habitat loss, pollution, and harmful transformations that are causing the Sixth Great Extinction. We are each part of the grand tapestry of life and as species go extinct, the whole tapestry begins to fall apart.
We also know that as ecosystems lose their ability to absorb greenhouse gases, like global forests and oceans, all these factors of damage and threat increase. This cycle then deepens human inequities, disproportionately affecting low-income communities worldwide, leading to a cycle of habitat loss, destruction, and suffering.
This is why Jane and JGI have never seen threats as standalone problems. Every threat is integrated and requires integrated solutions – and everyone plays a role in these solutions. That is why people are at the center of the Jane Goodall Institute’s approach to conservation. We want to create involvement at every level for true community ownership of conservation and environmentalism. Local and indigenous people are the stewards of the majority of the world’s biodiversity, so JGI wants to ensure local communities and indigenous groups are leading their own natural resource management and sustainable development – an approach the Jane Goodall Institute calls “Tacare” (to “take care”). We also firmly believe in the power of young people. Our Roots & Shoots program empowers young people to identify problems facing people, other animals, and their environment – so that they see these interconnections and find ways to help locally.
Jane and JGI are part of global campaigns and advocacy to influence environmental policies at all levels of government and stewardship. Our #EATMEATLESS campaign is part of our efforts to shine light on the damaging effects of the animal agricultural industry. Our “Jane’s Green Hope” campaign focuses on nature-based solutions through partnering with companies such as Hewlett Packard for native forest restoration and protection.
Top down and bottom up, JGI believes everyone has a role in creating change and the responsibility to create a better world for us all. These threats facing our planet are complex, but when each of us takes part in transforming our systems, we change the way we view our relationship to one another and to the natural world.
We know that a small group of around 100 companies are responsible for the majority of emissions, but we also know those companies consist of people. Jane often uses the analogy of speaking to someone’s “heart and their head” by sharing a story about how a young woman in Roots & Shoots spoke to her father who was in the fossil fuel industry about climate change. When we have these intergenerational conversations – interpersonally or between entities like JGI and major companies – we can make important shifts towards the necessary sustainability this world needs before it is too late.
Jane and JGI work to have these conversations and keep the momentum going in the right direction. This means either directly scaling or deepening our work, increasing accessibility for end-users to participate in sustainable practices, and/or advancing efforts that will work with companies to identify ways to reduce negative impacts, carbon emissions, pollution, and more.
In any relationship, there is the need to make sure we are listening and creating a vision for the project that benefits everyone, one based in science, and which perpetuates movement towards tangible and real sustainability. Having companies see how robust our programs are, and how simple solutions can create big impact, has been less of a challenge and more of an emerging opportunity.
When finding partners, the Jane Goodall Institute wants to make sure that they have already invested in carbon divestment goals and green transformations. We then find ways to move further to the goal together. Jane has always found common ground through conversations, and conversations are where true understanding happens – where is there already a chance for overlap or expanding programs that work? How can we use our brand to increase the accountability of a corporation to walk the talk? How can we also provide resources, insights, and expertise to ensure that every aspect of the partnership and deliverables are sustainable? These are the questions to ask.
We know that there are so many innovative people in influential companies ready to turn the tide on the harms facing our planet through partnerships. Through the Jane Goodall Institute’s model, we have the programs, expertise, and investment in local and indigenous leadership, and we welcome thoughtful and meaningful partners to help take that work further. Everyone wants to be part of a winning team and when they see what is possible by working together, they are inspired to think more critically about the brands and organizations they support, and how they live their lives.
Jane has always followed a path of doing what was right for the sake of the common good with the knowledge that we are all dependent on one another, this planet, and its finite resources. But as Jane says, “How is it that the most intellectual species to ever exist is destroying our only home?” One of Jane’s most important reasons for hope is the human intellect – what has driven our incredible globalized industries is our human brains, and so these same brains can work together to solve even the greatest of complex challenges. When we combine our intellect with using our hearts to guide us in doing what is right, we change the world.
“Together we can. Together we will”
We thank Anna for the inspiring interview.
Don’t miss her keynote at the CLIMATE TRANSFORMATION Summit 2023. Here you can secure your ticket.
JGI does not endorse handling or close proximity to wildlife. This represents a sanctuary context with trained professionals.
THE CLIMATE CHOICE says thank you for a special 2022!
What a year for climate champions! We all faced major new challenges in 2022 – especially companies that were particularly hard hit by the energy crisis and supply chain bottlenecks. Despite everything, you, the CLIMATE community, have continued to work with us to drive the transformation to a low-carbon economy. There have been many positive highlights and developments for which we at THE CLIMATE CHOICE want to say thank you. Let’s take a look at how 2022 allowed us to boost climate transformation all around the globe!
Kicking off the year with strong, new partners
Our year began with a firework of climate action. We were able to start working with many new major and influential customers for the Climate Intelligence Platform, including, as two special highlights, the corporate projects with the mobile phone provider o2 Telefónica and the baby food manufacturer HiPP. We kicked off inspiring collaborations to elevate the transparency of emissions along their supply chains by using our platform.
HiPP was able to successfully identify climate-related risks and potentials of five suppliers with the help of our software tool. HiPP’s Head of Sustainability Management Dr. Johannes Knubben reflects: “The software tool from THE CLIMATE CHOICE enables us to implement a scalable and reliable process to increase the climate-relevant transparency of our supply chain.”
Our next goal is to extend the software-driven climate data collection initially to other partners and ultimately to HiPP’s supply chain. Through an integration of THE CLIMATE CHOICE software tool into HiPP’s sustainability and procurement strategy, the full potential of climate-relevant supplier management is to be exploited.
Our corporate project with o2 Telefónica also successfully identified climate-related risks and potentials of the selected suppliers. The company is now able to develop a transparent, scalable process for collecting comparable data on the climate maturity of suppliers.
In the next step, we will integrate our platform into the procurement dashboard of o2 Telefónica. The climate-relevant data collection for the decarbonization of Scope 3 will be extended to around 1,000 suppliers.
CLIMATE TRANSFORMATION Summit 2022
The climate action kept on flowing and reached a new peak at our #CTS2022. For the third year in a row, we brought together international climate leaders and procurement experts for our two-day 100% online Climate Transformation Summit.
We welcomed 64 speakers, who interacted with over 1,000 attendees from 59 different countries. Attendees had the chance to participate in 12 limited workshops 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. THE CLIMATE CHOICE says thank you!
More good news: We just announced the date for #CTS2023! We cannot wait to welcome you on May 11 & 12 2023 for two days full of climate action! Our focus this year: Making it happen – the decarbonization of supply chains! Together with you and leading experts, we will find out how we can impement CO₂ reduction along the value chain.
You can’t wait to secure your spot?
Get your Super Early-Bird ticket now!
You want to be a speaker, workshop host or partner?
Let’s get in touch.
Launching CLIMATE Readiness Check
The most important insight we gained from the discussions at the #CTS2022 was that small and medium-sized enterprises (SMEs) in particular still find it very difficult to get a quick start in climate transformation because they often do not have sufficient know-how and/or resources. In response to this challenge, we worked over the summer on a new solution offering.
The result: In October, we launched our digital and freely available Climate Readiness Check in partnership with 10 leading sustainability organizations. Among those B.A.U.M. e.V., Bundesverband Nachhaltige Wirtschaft e.V. (BNW), Stiftung Allianz für Klima und Entwicklung, Jaro Institut für Nachhaltigkeit und Digitalisierung e.V., and the Deutscher Mittelstands-Bund (DMB).
The Climate Readiness Check offers SMEs an easy entry point into their climate transformation: through knowledge and insights into their own climate maturity, benchmarks, suggestions for improvement, and access to a B2B climate data platform.
Our Launch was a full success! We are beyond happy to see so many companies kicking off their climate transformation with our Climate Readiness Check! We can’t wait to see who will join us in 2023!
Kickstarter Program 2022
In addition to the projects we developed ourselves, this year we were also part of pioneering external initiatives. Among them, one highlight: In August, we were selected from more than 2.000 applicants for the Climate Lab and Kickstart Innovation scale-up program in the finance and insurance track! Kickstart is one of the largest European Innovation Platforms. Each year they chose a select number of the best international startups to participate in a 10-week program.
We were honored to work in the program with corporates – such as Swisscom, Credit Suisse, AXA, Sanitas, Post Finance, La Mobilière, Coop, CSS, SATW – from the DACH region, who strive to reduce climate risks and emissions in value chains.
Thanks for the EU ‘Best Digital Solution’ Award
The cherry on top of 2022 was winning the “Best Digital Solution” award from the European Commission. The award recognizes the development of our software platform for the collection of climate-relevant data from suppliers and attributes it great impact potential for the greening and digitalization of European industry.
On behalf of the European Commission’s DG GROW, Deputy Director General Hubert Gambs emphasized: “Digital solutions are not only useful to be competitive and provide better value to European customers. They are also key to making our economy greener and European businesses more resilient to future shocks.”
We are so grateful and can’t wait to enable more businesses in boosting their climate transformation!
Many, many thanks for driving our Mission together!
Our mission at THE CLIMATE CHOICE is transforming every company into a climate champion and enabling businesses to make procurement decisions that are aligned with the 1.5-degree-goal! We have summarized our mission for you in this short video.
We are very grateful to work with inspiring companies – and that media is increasingly sharing our mission. THE CLIMATE CHOICE says thank you Süddeutsche Zeitung, t3n, Berliner Morgenpost, Gründerszene and many more, for featuring our platform and allowing us to gain more visibility on our mission!
Our Wrap up, 2022!
Let’s wrap it up before we go back to wrapping presents. 2022 was a complicated year for the world. We learned that the energy transition is a major driver for the overall climate transformation. We literally saw that it is interlinked with peace and has a positive impact on people, planet and profit. At the THE CLIMATE CHOICE we are therefore honoured that we were able to work on one piece of the puzzle – bringing us towards a regenerative future. These are our 5 highlights:
- Started working with major new customers, including HiPP and o2 Telefónica
- Held our 3rd 100 % digital CLIMATE TRANSFORMATION Summit with 64 speakers and 1.000 participants from 59 countries
- Launched our new Climate Readiness Check, accessible for companies of all sizes for free to kick off their climate transformation
- Won the EU ‘Best Digital Solution’ award of the Get Digital Initiative from the European Commission and the European DIGITAL SME Alliance
- Süddeutsche Zeitung, Gründerszene, t3n, Berliner Morgenpost, Beschaffung aktuell and many more shared our work
Our biggest ‘THANK YOU’ goes to you, Climate Champion! If you are reading this, you are dedicating your valuable time to make this climate transformation a positive one. Whether you are Sustainability Manager, Procurement Expert, or Tech Champion: You are on a mission to strive together with us for an economy that allows the world to stay below 1.5 degree. Let’s start the new year with the same energy and even more climate action. Cheers to 2023!
THE CLIMATE CHOICE
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.
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.
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!
Featured Images: Unsplash
Why should I attend the #CTS2022?
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.
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.
- 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!
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!
- 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.
- 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.
Supply chain decarbonization, what’s to be expected in 2022?
Many companies are recognizing the effectiveness of decarbonizing their supply chain. But which measures can ideally be implemented in 2022? Which trends can companies follow in order to efficiently reduce CO2 emissions along their supply chain?
The biggest challenge of the 21st century is to successfully implement climate transformation. Climate change is noticeable worldwide: fires, floods and species extinctions are already paramount during this decade. If the global surface temperature warms by 2 degrees, a quarter of the world will regularly suffer from extreme heat waves. Even if the widely discussed 1.5-degree target was being achieved, extreme heat still affects about 1 billion people worldwide.
The global economy plays a central role in making substantial impact. Although emissions in Europe have been declining since the 1990s (Fig. 1), this is the result of global crises rather than that of successful climate management. Our climate transformation measures have a large scope for improvement.
Regulations are being put into place worldwide to enable the implementation of climate targets (Fig. 2). At the COP26 climate conference in Glasgow, agreements were made to eliminate the use of fossil fuels and to reduce emissions worldwide by at least 55% by the end of 2030. Such targets are also increasingly being set in Europe. The “Fit for 55” program was adopted in summer of 2021, also with the goal of reducing emissions by 55%. Earlier this year, Germany reaffirmed its intention to work towards a 65% reduction by 2030 and to achieve climate neutrality by 2045 (however, whether 2045 is a feasible target year is still a matter of debate).
These targets are having an impact on businesses. Companies must adapt, commit to reducing emissions and help meet the 2-degree target. However, last year we realized that it is not enough to simply set these climate targets. We also need to talk about how we put them into practice.
The EU taxonomy has been in force since January 1, 2022. It aims to classify companies according to how their actions contribute to climate and sustainability. The EU taxonomy is considered to be the first framework for such a classification. The framework provides tangible criteria to measure the degree of sustainability and climate compatibility of business activities. It analyzes whether they positively influence one of the six environmental goals of the EU (Fig. 3) without violating another while at the same time complying with all social standards. Companies will soon have to transparently disclose how they contribute to adhering to this framework and assess whether their own business model is climate-compatible. Heavily discussed within this framework is the inclusion of nuclear power.
A second framework is a proposal from the Taskforce Climate Related Financial Disclosure (TCFD), which was developed at the request of the EU to show the other perspective: How can companies show what risks climate change poses to them? And how can businesses set up strategies to address these risks and seize opportunities? Although this framework is only a recommendation so far, 60% of the world’s largest 100 companies are already using it in order to assess especially financial related climate risks.
The CSRD (Corporate Social Responsibility Directive) aims to bring these two perspectives together. The goal is to create a framework for 2023, which companies may refer to, instead of the currently existing Non-Financial Reporting Directive (NFRD). It is already known from publications that the CSRD builds on existing standards and takes into account the 6 EU climate targets. For now, this framework will apply to companies with over 250 employees with €40 million net sales and €20 million balance sheet. From 2026 it will also apply to listed SMEs.
These frameworks are emerging not only at the European level, but also at the international level. Companies are already aligning with the TCFD requirements. In the meantime, the International Sustainability Standard Board (ISSB) has also been established, whose task is to create an international concept for the disclosure of climate-relevant ESG data. This will also consider governance, strategy, risk metrics and KPIs.
2022 – GET YOUR DATA RIGHT!
In order for companies to make the impact of ESG criteria measurable and manageable along the value chain, climate data analysis is necessary. The obligations for companies to disclose their climate impact are increasing, not only from the customer side, but also due to the regulations mentioned previously. As a starting point, it helps to identify the biggest emission sources within the company. The majority of a company’s negative climate impact is not caused by direct emissions, but the emissions that are generated within its supply chain (Fig. 4).
Emissions from the supply chain can account for up to 90% of corporate emissions. If a company aims to improve its climate impact, the biggest lever is the supply chain.
HOW CAN COMPANIES OPERATE IN A CLIMATE-COMPATIBLE MANNER?
To drive climate transformation within a company, the first step is to implement a structured climate management system. It is insufficient to measure CO2 and simply offset emissions- CO2 emissions must be avoided and reduced. In addition, it is necessary to transparently disclose climate-relevant data.
Decarbonization through climate-relevant procurement makes supply chain transparency ever-so important. Dealing with Scope 3 emissions is essential for companies to meet requirements pertaining to their climate transformation. This is accompanied by various challenges (Fig. 5). For example, climate-relevant data is often missing, which impedes companies from enabling a climate-compatible procurement practice. Moreover, there are still no clear climate targets and standards along the value chain, by which companies can measure whether their suppliers are abiding by established climate standards.
An alliance of international corporations- “Transform To Zero” (Fig. 6), was formed in order to successfully address these challenges. Participants across different industries benefited from working together to decarbonize their supply chains. Engaging a fragmented supplier landscape across multiple industries requires collective action.
The biggest challenge of supply chain decarbonization: There are many small and medium-sized companies in supply chains that are not yet ready to manage their climate impact, resulting in a lack of climate-relevant ESG data. Only 28% of companies with decarbonization goals are on track to meet their targets. This mainly results from the fact that they have not yet addressed supply chain challenges. The following is a step-by-step guide to supply chain decarbonization.
STEP-BY-STEP SUPPLY CHAIN DECARBONIZATION
When decarbonizing the supply chain, the following questions need to be addressed:
- How climate-relevant are my suppliers?
- How do I help them decarbonize?
- How can I foster collaboration between buyers and suppliers?
No matter what process you implement, according to Gartner, a company should first find a way to collect data and analyze it, in order to provide expertise from the different areas of transformation.
To help companies move towards climate-compatible supply chains, one must consider the following five steps:
- Comprehensive climate management system – addressing climate regulations and customer needs.
- Engagement – collaborating with suppliers on climate reporting and emission reduction effort
- Data collection implementation – developing a method to manage climate-related ESG data from suppliers
- Data-driven – using software to enable suppliers to identify emission reduction opportunities
- Data-driven procurement – making smart decisions and allocating capital properly
HOW ZERO-CARBON SOLUTIONS DECARBONIZE SUPPLY CHAINS
40% of emissions in supply chains could be reduced via easily accessible and affordable means (<€10 per ton CO2e), which equals current offsetting prices (Fig.7).
WHY IS CLIMATE TRANSFORMATION PROFITABLE?
The assumption investing in Climate Transformation contradicts the company’s goal of generating profit still prevails. But investing in climate solutions is profitable for businesses. According to World Economic Forum, a sustainable supply chain increases a company’s market value, as procuring companies improve their performance and reduce costs directly in the supply chain as well as suppliers benefitting from sustainable practices and reducing their own costs.
WRAP-UP SUPPLY CHAIN DECARBONIZATION:
The past year has shown the need to effectively implement CO2 emission reductions along the entire value chain. Companies need to transform their supply chains and implement climate-relevant sourcing by actively engaging with suppliers and empowering them to manage their own climate data and reduce CO2 emissions. Climate-relevant sourcing includes enabling a collaborative sourcing-supplier relationship that empowers suppliers to become climate champions themselves.
THE CLIMATE CHOICE supports this goal. As a software-as-a-service platform, it provides reliable climate ratings and a collaborative, data-driven tool for decarbonizing companies and their supply chains. As a detailed analysis, the action-oriented and easy-to-use climate scorecard provides insights into the company’s climate-related opportunities, potentials and risks. The smart technology platform supports companies in identifying fields of action and implementing decarbonization measures together with suppliers and trading partners. This drives forward a holistic transformation. By working with a consistent methodology to evaluate its own climate performance, effective measures for supply chain decarbonization can be implemented in collaboration with a strong CLIMATE network. This way companies can target CO2 reduction and promote transparency.
Make your company a CLIMATE Champion! Contact us right now to schedule a free consultation.
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 June, 100% 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!
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!
Carbon Credits – current Trends and Best Practices for Companies
Companies are increasingly being held accountable to ensure a climate-compatible future. In order to compensate for their unavoidable remaining emissions, carbon credits are a popular ingredient of climate strategies. But what effects do carbon credits actually have on the climate transformation, and how can companies use them properly and ensure their offsetting approach is credible? In the CHOICE Event #30, Adele Marie Grundmann and Julia Hunziker from South Pole explained the basics of building a successful carbon portfolio and explained current trends in the offset market. In the following, you can find the most important key takeways.
Best Practice in Corporate Climate Action
Although the global community has just recently agreed on new plans and pledges for climate protection at COP26 in Glasgow, these government pledges are currently not enough to keep us within +1.5 degrees warming. Therefore, it is key for the private sector to act, and more and more companies are taking their responsibility seriously and setting themselves climate targets.
However, companies are committing to different climate actions, and it is important to understand exactly what each of these means. The three targets of companies are:
Climate Neutral – Reducing and compensating the company’s GHG emissions with any type of certified carbon credits resulting in no net increase of global GHG emission in the atmosphere.
Net Zero – Reducing emissions in line with science to as close to zero as possible while ramping up carbon removal to balance out any remaining emissions. These solutions can be natural and technical (WRI, 2020).
Climate Positive – Doing more than becoming climate neutral and net zero, meaning removing more emissions than the company is generating.
Companies can gradually achieve each of these goals as follows.
- First, they should measure their own Scope 1, 2 and 3 emissions and provide a detailed overview of their holistic corporate climate performance.
- Based on this, companies can develop and implement effective measures to reduce their own carbon footprint. These reduction measures should always be the number one priority in their climate strategy.
- By investing in carbon avoidance projects, companies can afterwards compensate for their unavoidable remaining emissions and become climate neutral.
- Over time, the residual emissions that could not be reduced are neutralized with carbon removal credits. If all residual emissions are addressed, the company has reached net-zero.
Carbon Credits 101
To understand exactly how carbon credits can help achieve these goals, let’s take a look at the basics and define what a carbon credit actually is: A carbon credit is a tradeable certificate that represents the avoidance or removal of one tonne of carbon dioxide emissions resulting from a specific project activity. One carbon credit is equal to 1 tonne of CO2 being reduced or removed from the atmosphere.
In order to acquire carbon credits, an organisation invests in a project which is aligned with its values. That project generates a carbon certificate which in turn can help the organisation to become climate neutral or reach net-zero.
These carbon projects must meet certain criteria. One of the most important ones is additionality. This means that the project would not have been established and would not be viable without the income from the carbon credit. Simply put, there is no business case behind the project. Also important is that the projects need to be verified by several third parties.
What to consider when purchasing carbon credits?
When buying a carbon credit, there are several important factors to consider. First: What category falls the project in? There are avoidance projects and removal projects. Avoidance projects avoid or reduce GHG emission in comparison to a baseline scenario. For example you could develop a renewable power generation by a solar power project instead of the “average” power plant technology using fossil fuels. Removal projects on the other hand actually remove CO2 from the atmosphere and durably store it. These projects can either be technical – e.g. direct air capture and storage – or natural in the form of natural sinks – e.g. planting trees.
Next to the categories, there are also different types of carbon projects. These can for example be subdivided into household projects that reduce the amount of fuel needed for household tasks, innovation in industry that promotes green growth through energy efficiency or clean water projects that reduce fuel needed to boil water for purification.
The next question you want to ask yourself: Is the project certified with an internationally recognized standard? The two most important standards are The Gold Standard and the Verified Carbon Standard (VCS). The Gold Standard is endorsed by more than 80 NGOs and has 1400+ certified projects in over 80 countries. Gold Standard certified projects need to fulfill 3 Sustainable Development Goals to assure social co-benefits. The Verified Carbon Standard (VCS) is the world’s most widely used voluntary emissions reduction standard. It was developed and is managed by Verra, a registered not-for-profit organization founded in 2005.
Voluntary Carbon Market Trends
A lot is happening at the moment on the carbon market. Most recently, at COP26 there was a great deal of discussion and ultimately also a decision that transferring carbon credits between countries would still be possible. However, the COP agreement concerning the voluntary carbon markets for organization is purposefully vague, and it will be up to voluntary carbon standards, governments, and market participants to determine whether the voluntary use of carbon credits needs corresponding adjustments.
Beyond the regulatory changes, there is currently a strong increase in demand. Since 2020, the annual retirement of carbon credits has grown 56% with a specifically high demand in nature based avoidance projects. Accordingly, prices have also risen significantly, and this trend will continue in the near future. According to the results of a survey conducted by the Taskforce on Scaling Voluntary Carbon Markets, the volume and price of carbon offsets transacted is expected to soar in the coming decades, to 3.6 GtCO2 and US$ 54/tCO2e by 2050. Other market sizing models suggest the voluntary carbon market could even grow to 7 GtCO2e per annum.
What to remember
In summary: In order to reach the targets set under the Paris Agreement (Net Zero), it is vital for organisations to invest in climate action projects. The voluntary carbon market is transparent and helps organisations to really measure their impact today and show their efforts. Nevertheless, in a successful climate transformation, carbon credits must only be treated as a complementary measure. The first priority should be to analyse and understand one’s own climate performance, then to set science-based targets and implement appropriate reduction measures, and finally to achieve climate neutrality with the help of carbon projects. Only with this approach and a holistic climate strategy is your company credible and able to actually reach the net-zero target.
Your CHOICE EVENT
Would you also like to present your innovation or best practice in climate transformation? Then get in touch with us! Or join the next free CHOICE event and become part of the #TeamClimate community.