企业“碳中和”目标设定、行动及全球合作（英文）---联合国全球契约组织VIP专享VIP免费

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2023-04-18
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CORPORATE CLIMATE TARGET

SETTING, ACTION AND GLOBAL

COLLABORATION TOWARDS A

NET-ZERO FUTURE

ACCELERATE 2030 AGENDA FOR SUSTAINABLE

DEVELOPMENT THROUGH GLOBAL

DEVELOPMENT INITIATIVE

In partnership with

This white paper is produced as part of a series of publications

to implement the UN Global Compact China Strategy.

FOREWORD 2

ACRONYMS AND ABBREVIATIONS 4

EXECUTIVE SUMMARY 8

1. GLOBAL MACRO-ENVIRONMENT 11

1.1 The Call to Action 11

1.2 The Role of the Global Development Initiative (GDI) 14

1.3 The Importance of Corporate Climate Action 15

2. CORPORATE CLIMATE TARGET SETTING STANDARDS 17

3. SCIENCE BASED TARGET SETTING PROGRESS IN THE THREE

FOCUSED INDUSTRIES 21

4. CORPORATE CLIMATE ACTION AND GLOBAL COLLABORATION 24

4.1 Food and Agriculture 24

4.2 Manufacturing 30

4.3 Technology, Media and Telecom 36

5. REPRESENTATIVE CORPORATE DEEP DIVE 43

5.1 DanoneM SBTi — Food and Agriculture 44

5.2 MarsM SBTi — Food and Agriculture 49

5.3 Schneider ElectricM SBTi — Manufacturing 54

5.4 Siemens AGM SBTi — Manufacturing 58

5.5 LenovoM SBTi — Technology, Media and Telecom 62

5.6 Hewlett Packard EnterpriseM SBTi — Technology, Media and Telecom 67

5.7 China Energy Conservation and Environmental Protection GroupM 72

6. KEY TAKEAWAYS FOR CORPORATES MOVING TOWARDS A NET-

ZERO FUTURE 78

7. CONCLUSION 81

REFERENCES 83

PROJECT STEERING COMMITTEE, PROJECT TEAM AND

ACKNOWLEDGEMENT 91

CONTENTS

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CORPORATECLIMATETARGETSETTING,ACTIONANDGLOBALCOLLABORATIONTOWARDSANET-ZEROFUTUREACCELERATE2030AGENDAFORSUSTAINABLEDEVELOPMENTTHROUGHGLOBALDEVELOPMENTINITIATIVEInpartnershipwithBThiswhitepaperisproducedaspartofaseriesofpublicationstoimplementtheUNGlobalCompactChinaStrategy.FOREWORD2ACRONYMSANDABBREVIATIONS4EXECUTIVESUMMARY81.GLOBALMACRO-ENVIRONMENT111.1TheCalltoAction111.2TheRoleoftheGlobalDevelopmentInitiative(GDI)141.3TheImportanceofCorporateClimateAction152.CORPORATECLIMATETARGETSETTINGSTANDARDS173.SCIENCEBASEDTARGETSETTINGPROGRESSINTHETHREEFOCUSEDINDUSTRIES214.CORPORATECLIMATEACTIONANDGLOBALCOLLABORATION244.1FoodandAgriculture244.2Manufacturing304.3Technology,MediaandTelecom365.REPRESENTATIVECORPORATEDEEPDIVE435.1DanoneMSBTi—FoodandAgriculture445.2MarsMSBTi—FoodandAgriculture495.3SchneiderElectricMSBTi—Manufacturing545.4SiemensAGMSBTi—Manufacturing585.5LenovoMSBTi—Technology,MediaandTelecom625.6HewlettPackardEnterpriseMSBTi—Technology,MediaandTelecom675.7ChinaEnergyConservationandEnvironmentalProtectionGroupM726.KEYTAKEAWAYSFORCORPORATESMOVINGTOWARDSANET-ZEROFUTURE787.CONCLUSION81REFERENCES83PROJECTSTEERINGCOMMITTEE,PROJECTTEAMANDACKNOWLEDGEMENT91CONTENTS2ForewordTheworldtodayisfacingunprecedentedglobalchallengesincludingrecoveryfromCOVID-19pandemic,climatechange,conflicts,risingpovertyandhunger,andstructuralinequalitiesbetweenandwithincountries.Amongall,thecurrentclimatecrisisisoneofthemosturgentissuestotakeactiononsincewearealreadyperilouslyclosetohittingthe1.5-degreelimitthatsciencetellsusisthemaximumlevelofwarmingtoavoidtheworstimpactsofclimatechange.Climateactionisalsointhebesteconomicandcommercialinterestsofgovernmentsandcommercial,public,andprivateenterprises.Reducingcarbonemissionscangohand-in-handwitheconomicdevelopment.Climate-responsibleeconomiesthatinvestinrenewableenergywillincreasetheirwealthinawaythatislastingandequitable.Itwillhelpthemremainmorestableinthefaceofothercrisesinhealth,migration,andtheeconomy.Atthisinflectionpointinhistory,theUnitedNationswelcomesinnovativeglobalinitiativesbyanyMemberStatethatmarshalideas,capacities,andresourcesinsupportofthe2030AgendaforSustainableDevelopment,includingtheGlobalDevelopmentInitiative(GDI).AstheUNSecretary-GeneralAntónioGuterresstressed,“wearefastapproachingthemid-pointofthetimeavailabletoreachtheSustainableDevelopmentGoals”butthe“progressisinperil”and“discussionsthroughtheGlobalDevelopmentInitiativecanhelpmovetheneedleondevelop-mentprogressacrossallcountries”.TheUnitedNationsalsoactsasabridgeforglobalcollaborationbetweenthepublicandprivatesectors.TheScienceBasedTargetsinitiative(SBTi)isanotableexampleofourcollab-orativemechanismtodriveambitiouscorporateclimateactionbyenablingorganizationstosetscience-basedemissionsreductiontargetssothatwecanachieveathrivingeconomyinharmonywiththenaturalworldthatsustainsusall.Asbusinessesaremajorcontributorstogreenhousegasemissionsandatthesametimeacrucialsourceforfinancingandexpertise,wecallformoreprivatesectorplayerstotakecrediblecorporateactiontowardsnet-zerothroughvalidatedscience-basedtargets(SBTs).SiddharthChatterjee,UNResidentCoordinatorinChina3Iamhappytoseethatthisreportoccursatthiscriticaltimewithnotonlytheoreticalelucida-tionontheglobalmacroenvironmentandthecorporateclimatetargetssettingstandards,butalsointroductiononthecurrentprogressinfocusedindustriesandproposalsonkeyNet-Zeroinitiativesinoperationsandinvaluechain.Mostimportantly,thisreportillustratesexistingbestpracticesofcorporateforerunnersindifferentindustriesacrosstheglobe—theseglobalbestpracticesnotonlybenefittheworld,butalsodemonstratethatcrediblecorporateactionbasedonclimatesciencetowardsnet-zeroispossible.Whilemuchhasbeenachieved,muchremainstobedone.Weneedmoreandeventuallyallcompaniesineverycontinent,everycountry,andeverycity,tojoinusonthisjourneytotakecredibleandambitiousclimateaction.UNPhoto/ElmaOkic4AcronymsandAbbreviationsACWIAllCountryWorldIndexADMArcherDanielsMidlandAIArtificialIntelligenceAIoTArtificialIntelligenceofThingsAPIApplicationProgrammingInterfaceASEANAssociationofSoutheastAsianNationsAUAfricanUnionCAAClimateAmbitionAcceleratorCBAMCarbonBorderAdjustmentMechanismCCACleanCompetitionActCCERChinaCertifiedEmissionReductionCCUSCarbonCapture,UtilizationandStorageCO2eCarbonDioxideequivalentCOFCOChinaNationalCereals,OilsandFoodstuffsCorporationCOPConferenceofthePartiesoftheUNFCCCDESATheUnitedNationsDepartmentofEconomicandSocialAffairsEPEATElectronicProductEnvironmentalAssessmentToolESGEnvironmental,Social,andCorporateGovernanceETSEmissionsTradingSystemEUEuropeanUnionEVElectricVehiclesFAOFoodandAgricultureOrganizationoftheUnitedNationsFLAGForest,Land,andAgricultureFYFiscalYearGDIGlobalDevelopmentInitiativeGHGGreenhouseGasesGWGigawattsGWPGlobalWarmingPotentialHFCHydrofluorocarbonsHPEHewlettPackardEnterpriseCompanyICTInformationandCommunicationTechnologyIMFInternationalMonetaryFund5IoTInternetofThingsIPCCIntergovernmentalPanelonClimateChangeISOInternationalOrganizationforStandardizationITNIT&NetworksLARLinearAnnualReductionLCALifecycleAssessmentLTSLow-TemperatureSolderingMEGMonoEthyleneGlycolMSCIMorganStanleyCapitalInternationalMWMegawattsOBPOceanBoundPlasticPCPersonalComputerPCCPost-ConsumerRecycledContentPCRPost-ConsumerResinPETPolyethyleneTerephthalatePHAPolyhydroxyalkanoatePHEVPlug-inElectricHybridVehiclesPPPolypropylenePPAPowerPurchaseAgreementPUEPowerUsageEffectivenessPVPhotovoltaicRERenewableEnergySBTScience-BasedTargetSBTiScienceBasedTargetsinitiativeSDGsSustainableDevelopmentGoalsSDKSoftwareDevelopmentKitSESchneiderElectricSERSocialandEnvironmentalResponsibilitySMESmallandMedium-SizedEnterprisesTMTTechnology,Media,andTelecommunicationsTPITransitionPathwayInitiativeUNDPTheUnitedNationsDevelopmentProgramme6UNFCCCTheUnitedNationsFrameworkConventiononClimateChangeUNIDOTheUnitedNationsIndustrialDevelopmentOrganizationUNITARTheUnitedNationsInstituteforTrainingandResearchUSTheUnitedStatesofAmericaVMSVideoManagementSystemWELLTheWELLBuildingStandardWMOWorldMeteorologicalOrganizationWRIWorldResourcesInstituteWWFWorldWideFundforNatureXDCX-DegreeCompatibilityZELPZeroEmissionLivestockProject78ExecutiveSummaryTheworldiscallingforimmediateandcollectiveactiontowardsauniversalclimategoal,outlinedintheParisAgreement.AsofNovember2022,195partieshadsignedtheagreementtoworktogethertolimitincreasesintheglobalaveragetemperaturetowellbelow2°Cabovepre-industriallevelsandpursueeffortstolimittemperatureincreasesto1.5°Cabovepre-industriallevels(UN,2022).However,astheCOVID-19pandemicandgeopoliticalinstabilitiesstallprogressinclimateactions,itisimperativethatwemobilizetheresourcesaroundus,atanunprecedentedscale.Workingwithtoptalentsfromaroundtheworld,theUnitedNationsistakingurgentactionstostandardizeguidelinesforachievingNet-Zero,creatingaplatformofglobalcollaboration.ChinatakestheleadinfosteringaconduciveenvironmentforglobalcollaborationthroughproposingtheGlobalDevelopmentInitiative(GDI),withaseriesofinitiativessurroundingeightkeyareasincludingclimateactions.AjusttransitiontoaNet-Zerofuturerequiresboldactionsfromallparties,andcorporatesareanindispensableforce.Thekeytosuccessisknowing“wheretogo”—settingclimatetargets,and“howtogetthere”—implementingNet-Zeroinitiatives.Tosetclimatetargets,corporatesfirstneedtoimaginetheirfinaldestination.Manyinterna-tionalorganizationssuchastheIntergovernmentalPanelonClimateChange(IPCC)andtheScienceBasedTargetsinitiative(SBTi)havepavedthewaybydefiningCarbonNeutralityandNet-Zeroinascientificcontext.Toensurecorporatesfulfilltheircommitments,SBTimapsoutthejourneybasedonsectorandcorporatetypesforbothnearandlong-term,strivingtoalignwiththe1.5°CclimategoalandreachNet-Zerobefore2050.Amongexistingtargetsettingstandards,SBTiisthemostwidelyadoptedandimpactfulinternationalstandard,havingcovered35percentofglobalmarketcapitalizationwithcommittedcorporates.AsofOctober12,2022,71companiesinmainlandChinahavecommittedtoSBTi,andeightcompaniesand24SMEshaveapprovedSBTitargets.Goingforward,weexpecttoseeanincreaseinparticipa-tionfromChinesecompaniesduetothreemainreasons:climateawarenesscampaignsfrominternationalorganizations,theinfluenceofclimatepioneersinvaluechains,andthetransitiontosustainablegrowth.ImplementingNet-Zeroinitiativesbothinoperationsandinthevaluechainisessentialtopositioningthecorporateforlong-termclimateadvantageandlastingbusinessandsocialimpact.ThiswhitepaperproposesthreekeyNet-Zeroinitiativesinoperationsandnineinvaluechain,groupedintothreegeneraldirections:Inoperations1)Increasingtheshareofrenewableenergy(RE)2)Improvingenergyefficiency93)RecoveringenergyfromproductionwasteInvaluechain■Climate-friendlysupplychainmanagement1)Optimizingraw-materialprocurement2)Evaluatingandtrackingsuppliers’climateperformance3)Optimizingpackagingdesign4)Decarbonizingtransportationandstorage■Climatecollaborationwithecosystempartners5)Settingemissionreductiontargetstogetherwithecosystempartners6)Co-developingdecarbonizationtechnologieswithecosystempartners7)Establishingaclimatechangefund■Productinnovationandrecycling8)Developingandlaunchinggreen/low-carbonproducts/services/solutions9)PromotingacirculareconomyThewhitepaperillustratesthebestpracticesofforerunnersforcorporatestoreachNet-Zero,basedonanextensivestudyof74corporatesinthreeindustries—foodandagriculture,man-ufacturing,technology,mediaandtelecommunications(TMT)—spanningAsia,Europe,AfricaandtheAmericasandfeaturing49membersofUNGlobalCompactand32corporatesfrommainlandChina.Inthecenteroftheseinitiativesstandtechnologicalinnovations.InadditiontothenineemergingclimatetechnologiesdetailedintheCorporateNet-ZeroPathwayreportpublishedinJuly2021,thiswhitepaperpointsouttwoprospectiveareaswherewehavewitnessedcon-tinuoustechnologicalinnovation:AIoT-basedenergyandcarbonemissionsmanagementsolutionsandregenerativeagriculture.Cementedintheseareasisalatticeworkofglobalcollaborations,inwhichdifferentindustriescontributetheirbest,workingtogethertowardsoneclimategoal.AstheGDI,amongmanyglobalprograms,continuestofosterclimateactionsonaglobalscale,webelieveclearandscientificNet-Zeroinitiatives,inlinewiththeTenPrinciplesoftheUNGlobalCompact,willhelpcorporatesacceleratetherealizationoftheSustainableDevelop-mentGoals(SDGs).10111.GlobalMacro-Environment1.1TheCalltoActionTheworldisundergoingprofoundchangesunseeninacentury.TheCOVID-19pandemichasupendedalmosteveryaspectofourlives,jeopardizingtheprogresstowardsthe17SDGsoutlinedintheUnitedNations(UN)2030Agenda(UN,2022).Inthemeantime,globaleconomicgrowthisslowingdown,pointingtosignsofarecession(IMF,2022).Amidthesechallengingtimes,theexacerbatingclimatecrisiscontinuestoremindusofthecriticalityandurgencyofclimateaction.AccordingtoanewclimateupdateissuedbytheWorldMeteorologicalOrga-nization(WMO),thereisstilla50percentchancetheglobalannualmeantemperaturewillrisebeyond1.5°Cabovepre-industriallevelsinatleastoneofthenextfiveyears(WMO,2022).Thisyear,wehaveagainwitnessedthedisastrousramificationsofglobalwarming,withrisingbillion-dollardisastersandwidespreadupheavalofextremeweatherevents(TheWashingtonPost,2022),includingscorchingheatwavesandflooding.ToensuretheglobalcommunityfulfillsitsNet-Zeropledgesandcontinuesonthepathwayofsustainabledevelopment,theentireUNsystemhastakenspeedyandproactivemeasures.UNSecretary-GeneralAntónioGuterresinitiatedthefirstExpertGrouponNet-ZerotodevelopstrongerandclearerstandardsforNet-Zeroemissionspledgesbynon-stateentities,addressingcriteriaandstandards,theprocessofverificationandaccount-ing,andaroadmaptotranslateintoregulations.HealsoappointedSimonStiellasthenewExecutiveSecretaryoftheUnitedNationsClimateChangeSecretariat(UNFCCC,2022).Whiledevelopedcountriesprimarilyfocusonclimatechangemitigation,developingcountriesprioritizeadaptationtobufferagainstclimaterisks.Adaptationandmitigation,whenimple-mentedappropriatelyandtimely,boosttheresilienceofcorporates.MitigationisdefinedasanyhumaninterventionthatcaneitherreducethesourcesofGHGemissionsorenhancetheirsinks(UNFCCC,2008),whichtranslatesintodecarbonizationmeasurestakenbycorporates.Adaptationreferstotheadjustmentsinecological,social,oreconomicsystemsinresponsetoactualorexpectedclimaticstimuliandtheireffectsorimpacts(UNFCCC,2022).Forcor-porates,thismeansbuildingtheprocesses,practices,andstructurestomoderatepotentialdamagesresultingfromclimatechange.Resilienceisthecollectivevisioninwhich“by2050,weallliveina1.5°Cwarmerworldwhereallregions,countries,cities,businessescommunities,andindividualsthriveinthefaceofmultiplerisks,uncertainty,andthreatsposedbyclimatechange(UNFCCC,2016).”Aresilientcorporatewillbetterabsorbtheshockofdisasters,experienceaspeedyrecovery,andflourishinthenewcircumstances,holdingasignificantcompetitiveadvantageoverthosewhostartlate.12TheUNGlobalCompact,WeMeanBusiness,andtheWorldResourcesInstitute(WRI)developedtheconcept“TheAmbitionLoop”,andpointedoutthatcorporateeffortsinbuildingresiliencecannotbeaccomplishedwithoutgovernmentalsupport(UNGlobalCompact,WeMeanBusiness,WRI,2018).Majoreconomies,followingtheirNet-Zeropledges,aretakingactionsthroughlegislationandpolicymakingtoadapttoclimatechangeandjointlymitigatetheeffectsofglobalwarming.Meanwhile,theyarepushingaheadwithinvestmentsintechnologiesthatenableagreentransformation,withafocusondigitaltechnologies.■TheEuropeanUnion(EU)aimstobeclimate-neutralby2050,acommitmentproposedintheEuropeanGreenDealandenshrinedintheEuropeanClimateLaw(EuropeanCom-mission,2022).TheintermediategoalofreducingnetGHGemissionsbyatleast55percentby2030isnowthenewstrategicpriority(EuropeanCommission,2022).Toachievethesetargets,theEUbegantherevisionofitsclimate,energy,andtransport-relatedlegislationandaddednewinitiatives,togetherformingaseriesofproposals,knownasthe“Fitfor55”package.InJune2022,theCouncilreachedadealontheproposed“Fitfor55”infiveareas:■EffortSharingRegulation:Settinggoalsandemissionstrajectoriesofeachmemberstate.■EUEmissionsTradingSystem(ETS):Deeperandsteepercutsinemissionsallowancesandexpansionofthescopetomaritimeshipping,aviation,buildings,androadtransportsectors,withaSocialClimateFundtoshieldvulnerablepopu-lationsfromthetransition.■CarbonBorderAdjustmentMechanism(CBAM):Expandingthemeasurementscopetoincludeindirectemissions.■CO2EmissionPerformanceStandardsforCarsandVans:Phase-outsaleofnewfossilfuelcarsby2035.■LandUse,LandUseChangeandForestry:Buildingalargercarbonsinktoachieveatleast310milliontonsofCO2enetremovalby2030(Reuters,2022).■TheUnitedStates(US)haspledgedtoachievea50-52percentofnetGHGemissionreductionfrom2005levelsineconomy-widein2030andreachnet-zeroemissionsby2050(USDepartmentofState,2021).InJanuary2021,PresidentBidensignedanexecutiveorderfortheUStorejointheParisAgreement,placingclimateactionatthecenterofhisdomesticandforeignpolicyagenda(TheWhiteHouse,2021).AtCOP26,theUSandChinaissuedtheU.S.-ChinaJointGlasgowDeclarationonEnhancingClimateActioninthe2020s,committingtocooperateinavarietyofclimateinitiatives,includingmonitoringandabatingmethaneemissions(USDepartmentofState,2021).TheBuildBackBetterBillwasproposed,whichincludedabout$555billiondedicatedtosubsidizingtheshiftfromfossilfuelstowardscleanenergysources(TheWhiteHouse,2022).TheInflationReductionActwaspassedinAugust2022,promisingtoinvest$36913billioninenergysecurityandclimatechange(SenateDemocrats,2022).Recently,USSenatorWhitehouseandcolleaguesproposedtheCleanCompetitionAct(CCA)astheAmericanalternativetoCBAM.Startingin2024,theCCAwouldimposeacarbonborderadjustmentfeeonenergy-intensiveimportsanddomesticmanufacturers(SheldonWhitehouseandcolleagues,2022).■China:In2020,ChinesePresidentXiJinpingannouncedthatChinawouldachieveapeakincarbondioxideemissionsbefore2030andcarbonneutralitybefore2060.Subsequently,the“1+N”policyframeworkwasestablished,where“1”referstothelong-termapproachtofightingclimatechange,and“N”referstothespecificsolutionsandmeasurestoachievetheclimategoal.Toelaborateonthe“N”,implementationplanswerereleasedforkeyareassuchasenergy,construction,andtransportation,andforkeysectorssuchascoal,iron,andsteel,coupledwithsupportingmeasuresintechnologyandfinance.Notably,theStateCouncilissuedaroadmapforreachingpeakemissionsin2030,detailing10keyinitiativesintransitioningtoRE,supportingtech-nologicalinnovation,decarbonizingtransportationandmanufacturing,andpromotingthecirculareconomy(TheStateCouncilofPRC,2021).Implementingthe“N”requiresabackboneofnationalstandardsandatalentpool—theMinistryofEcologyandEnvi-ronmentreleasedstandardsofcarbonemissionallowanceallocation,carbonemissionrightsregistrationandtrading,andGHGemissionmeasurementanddisclosure(MinistryofEcologyandEnvironmentofPRC,2021),whiletheMinistryofEducationissuedadocumenttoimproveclimateliteracyanddevelopasystemoftalenttraining(MinistryofEducationofPRC,2022).■Africa:WhileAfricahascontributednegligiblytothechangingclimate,withjustaboutfourpercentofglobalemissions,itstandsoutdisproportionatelyasthemostvulnerableregionintheworld.Thisvulnerabilityisdrivenbytheprevailinglowlevelsofsocioeco-nomicgrowthinthecontinent(GlobalCarbonAtlas,2022).Thecontinenthasrealizedtheurgencytoinvestinclimateadaptation,buildthefoundationforlow-carbondevelop-ment,andcreatelocalgreenmanufacturingcapabilities.Tomobilizetheprivatesector,theUNGlobalCompacthasledCEOsinAfricatoformtheAfricaBusinessLeadersCoalitionandconvenetodiscusstheblueprintforclimateadaptationandbuildingresil-ienceagainstclimatechange.141.2TheRoleoftheGlobalDevelopmentInitiative(GDI)Asourworldisrivenbygeopoliticalconflictsandinstability,theUNhascalledfortheurgentscale-upofglobalcollaboration,inwhichclimateisthemosturgentbreakthroughpoint(UNAffairs,2021).Againstthisbackdrop,ChinesePresidentXiJinpingproposedtheGlobalDevel-opmentInitiative(GDI)in2021,focusingoneightkeyareasofdevelopment,includingpovertyreduction,foodsecurity,pandemicresponseandvaccines,financingfordevelopment,climateactionandgreendevelopment,industrialization,digitaleconomy,andconnectivityindigital-era(MinistryofForeignAffairsofthePRC,2022).Morethan100countriesfromtheEU,theAssociationofSoutheastAsianNations(ASEAN),andtheAfricanUnion(AU)haveannouncedtheirsupportforGDI.Morethan50countriesacrossfivecontinentshavejoinedtheGroupofFriendsoftheGDIsetupbyChinaontheUNplatform(MinistryofForeignAffairsofthePRC,2022).TheGDIisalsosupportedbyUNSec-retary-GeneralAntónioGuterresandUNorganizationsliketheUNGlobalCompact,theUnitedNationsDevelopmentProgramme(UNDP),theUnitedNationsDepartmentofEconomicandSocialAffairs(UNDESA),theFoodandAgricultureOrganizationoftheUnitedNations(FAO),theUnitedNationsIndustrialDevelopmentOrganization(UNIDO),etc(MinistryofForeignAffairsofthePRC,2022).UndertheGDI,ChinaisleadingglobalcooperationbyestablishingtheGlobalDevelopmentandSouth-SouthCooperationFund,increasinginvestmentintheChina-UnitedNationsPeaceandDevelopmentFund,andlaunchingaglobaldevelopmentknowledgenetwork(MinistryofForeignAffairsofthePRC,2022).Climateactionandgreendevelopment,asoneoftheeightkeyareas,directlyaffectsthefunda-mentalbuildingblocksofhumansurvival,includingfoodsecurityandhousing.Collaborationinclimateactiononagloballevel,acrossindustriesandsectors,isamajordrivingforcetowardsabetterworld.Photo:UNPhoto/ManuelElías151.3TheImportanceofCorporateClimateActionCorporatesplayavitalroleinbridgingthegapbetweenhigh-levelclimatecommitmentsandrealchangeontheground.Asanimportantcontributortoclimateaction,corporatesurgentlyneedtosettargetsandstayontracktofulfillthem.■Corporatesarethetrueexecutorsofemissionreduction.Whilegovernmentsandinternationalorganizationsaresettinghigh-leveltargetsandprovidingguidelinesforthejourney,corporatesaretheexecutorswhodesignandimplementdecarbonizationsolutions.Throughtrial-and-error,corporateslearnfromtheirownexperiencesandother’s.Moreover,corporatesalsoinfluenceindividuals,whodrivechangethroughinitia-tivessuchasshiftingtoagreenerlifestyle.■Corporatesprovidetimelyandmeasurablefeedbackongovernmentpoliciesandboosttheconfidenceofgovernmentsinenactingclimate-relatedlegislationandpoliciesinthefuture.Forexample,inresponsetotheEU’spoliciesoncleanenergy,Europeancompaniesvoicedtheirdemandforeasieraccesstorenewableelectricitythroughajointdeclaration.Encouragedbythedemand,EUpolicymakerssetahighercleanenergytargetandremovedbarriersforcorporatePowerPurchaseAgreements(PPAs)inthepost-2020RenewableEnergyDirective(UNGlobalCompact,WeMeanBusiness,WRI,2018).Forcorporates,committingtoNet-Zerocomeswithfivebenefits—strengthenedbrandreputation,boostedinvestorconfidence,strongerresilienceagainstregulations,increasedinnovation,andincreasedbottom-linesavings(Galvin,2018).■Strengthenedbrandreputation:Theincreasingawarenessofclimatechangeamongcustomersisreflectedbythestrengthenedbrandreputationofacompany’sclimateperformance.■Boostedinvestorconfidence:Asinvestorsmakemoreenvironmentallyconsciousbetsonthefuture,corporateswithaclearclimatecommitmenttendtostandoutamongothers.■Strongerresilienceagainstregulations:Havingaforward-lookingclimatecommit-mentpreparesthecorporatetoridethewavesofuncertaintyinregulations,e.g.,carbontaxes,energyconsumptioncontrols,etc.16■Increasedinnovation:Emissiontargetsarebecomingadrivingforceofinnovation,inspiringthecreationoflow-carbon/zero-carbonproducts.■Increasedbottom-linesavings:Corporates,whichtakingclimateactionsproactively,arebeginningtoseesavingsfrommoreefficientoperationsandwillachievesignificantsavingsbyavoiding/minimizingcarbontaxexposure.172.CorporateClimateTargetSettingStandards“Net-Zero”and“CarbonNeutrality”aretwocommonlyusedtermsreflectingthesameintention,i.e.,neutralizingtheimpactofhumanactivityontheclimatesystem(CDP,2019).TheIntergovernmentalPanelonClimateChange(IPCC)definesthescopeofclimateforces(elementsthatforcechangeintheclimate)foreachofthetwoterms(IPCC,2018)(Exhibit1).Basedonthis,theScienceBasedTargetsinitiative(SBTi),launchedbyCDP,theUnitedNationsGlobalCompact(UNGlobalCompact),WorldResourcesInstitute(WRI)andtheWorldWideFundforNature(WWF),furtherdefinescorporateNet-Zeroas—one,reducingscope1,2,and3emissionstozeroortoaresiduallevelthatisconsistentwithreachingnet-zeroemissionsattheglobalorsectorlevelineligible1.5°C-alignedpathways;andtwo,neutralizinganyresidualemissionsatthenet-zerotargetyearandanyGHGemissionsreleasedintotheatmospherethereafter.(SBTi,2021).GiventhemorerigorousrequirementsfromNetZero,ifacompanyreachesNet-Zero,itautomaticallyachievesCarbonNeutrality.TermScopeofclimateforcersDeﬁnitionfromIPCCSR15CarbonneutralityorNet-ZeroCO₂emissionsCO₂emissionsAchievedwhenanthropogenicCO₂emissionsarebalancedgloballybyanthropogenicCO₂removalsoveraspeciﬁcperiod.Achievedwhenanthropogenicemissionsofgreenhousegasestotheatmospherearebalancedbyanthropogenicremovalsoveraspeciﬁcperiod.Ifmultiplegreenhousegasesareinvolved,thequantiﬁcationofnet-zeroemissionsdependsontheclimatemetricchosentocompareemissionsofdifferentgases(suchasglobalwarmingpotential,globaltemperaturechangepotentialandothers,aswellasthechosentimehorizon).Net-ZeroemissionsAllGHGemissionsTheGHGProtocolrequiresinclusionofalltheGHGsrequiredbytheUNFCCC/KyotoProtocolatthetimeacorporateorproductinventoryisbeingcomplied:carbondioxide(CO2),methane(CH4),nitrousoxide(N2O),hydrofluorocarbons(HFCs),perfluorocarbons(PFCs),sulphurhexafluoride(SF6),andnitrogentrifluoride(NF3).Source:IPCCSR15;BCGAnalysis.Exhibit1.Definitionsofclimate-neutrality-relatedtermsfromIPCCCountriesadoptdifferenttermsinsettingtheirNet-Zerocommitmentsinlaw,proposedlegislationornationalpolicydocuments.WhensettingNet-Zerotargets,corporatesneedtofollowthespecificstandardsreleasedbythecountrieswheretheyareoperating,andthenstriveforinternationalstandardsinordertoobtainglobalrecognition.Severalexistinginternationalstandards,suchasthoseoftheSBTi,PAS2060,TransitionPathwayInitiative(TPI),X-DegreeCompatibility(XDC)andtheSMEClimateHub,allowcorporatesto18determinetheirNet-ZeroorCarbonNeutralitytargets.Meanwhile,someinternationalorga-nizationsaretryingtodevelopnewstandardstoformpartoftheroadmaptowardsNet-ZeroorCarbonNeutrality.Forexample,afterpublishingdetailedcarbonfootprintaccountingstandards,theInternationalOrganizationforStandardization(ISO)isdevelopingacertificationstandardforcarbonneutrality(ISO/CD14068).Amongexistingtargetsettingstandards,SBTi,alignedwiththeParisAgreement1.5°Cpathways,isthemostwidelyadoptedinternationalstandard.SBTireviewsestimatesoftheremainingemissionsbudget,top-downmitigationscenarios,andsectoralstudiestodetermine1.5˚C-alignedpathwaysattheglobalandsectorallevels.Its1.5˚C-alignedpathwaysstaywithinthe500GTglobalcarbonbudgetandaimtoreduceemissionsatleast90percentby2050from2020levelsandneutralizetheremainingemissionswithqualifiedcarbonremovals.OnthewaytoNet-Zero,SBTiencouragescorporatestosetnear-termscience-basedtargets(SBTs)(fivetotenyearemissionreductiontargetsinlinewith1.5°Cpathways)andlong-termSBTs(toreduceemissionstoaresiduallevelinlinewith1.5°Cscenariosbynolaterthan2050)(SBTi,2021).SBTicategorizeseligibleorganizations1intothreetypes:■Companies.Eligibleorganizationthatisnotasubsidiaryanddoesnotoperateinthefinancialsectororoilandgassector2,with500ormoreemployees;■Financialinstitutions.Eligibleorganizationthatoperatesinthefinancialsector;■SmallandMedium-sizedEnterprises(SMEs).Definedasanon-subsidiary,indepen-dentorganizationwithfewerthan500employees,notincludingfinancialinstitutionsoroilandgascompanies.Inthiswhitepaper,wewilladdressalleligibleorganizationsascorporates.AsofOctober12,2022,theSBTijoinersreached3,821total(2,004committedand1,817approved),amongwhich1,399hasspecificNet-Zerocommitments.TheSBTicommittedcorporatescover35percentofglobalmarketcapitalization3.Meanwhile,morethan27percentoftheglobalcorporateswithpotentiallyhighimpactonclimatehavebeencoveredbytheSBTi,surpassingthe20percentthresholdwhichSBTiregardsasacriticalmassforpromotingtheSBTistandardwithinasectororgeography.Intermsofprogresstowardscarbonreduction,SBTi-approvedcorporateshaveachievedan8.8percentlinearannualreduction(LAR)inScope1and2emissionssincetheirtargetsettingyear,twiceasfastasthe4.2percentLARrequiredbySBTi(SBTi,2022).1.OrganizationsthatarenotNGOsorpublicorganizations.2.Companiesintheoilandgassectormustwaitforupcomingguidanceinordertosubmittargetsforvalidation.3.Globalmarketcapitalization,whichequalstoaround$110trillionbyDecember31,2021,isestimatedbasedontheMSCIACWIIndexretrievedfromBloomberg.MarketcapitalizationdataofSBTicompanieswasretrievedfromBloombergwithadateofDecember31,2021(datacouldberetrievedfor53percentoutof2,253companies).RefertoSBTiProgressReport2021formoreinformation.19InMainlandChina,71companieshavesubmittedcommitmentletterstoSBTi,includingAlibabaM4,ChinaShengmuM,ChalcoRuiminCo.,Ltd.M,EnvisionGroupM,JinkoSolarM,QingdaoHaierSpecialFreezerM,andYiliGroupM;eightcompaniesand24SMEshadtheirtargetsapprovedbySBTiasofOctober12,2022.AmongthecompaniesareindustryleaderssuchasLenovoMSBTi5,JDLogisticsSBTi,andShanyingSBTi,allofwhicharedrivingthedecar-bonizationoftheentirevaluechain,extendingtheirinfluencebeyondoperationalboundaries.LenovoiscommittedtoreducingScope1and2GHGemissionsby50percentbyFiscalYear(FY)2029/30,whilereducingScope3emissionsby25percentintheuseofsoldproducts,purchasedgoodsandservices,andupstreamtransportationanddistribution.JDLogisticscommitteditselftoreducingScope1,2,and3GHGemissionsby50percentandincreasingthesourcingofrenewableelectricityto100percentby2030,inconjunctionwiththegoalthathalfoftheirsupplierscommittoSBTiby2025.ShanyingplanstoreduceScope1and2GHGemissionsto39percentandScope3to20percentofthe2020baseyearpermetrictonofpaperandpackagingby2030.Itisimportanttonotethatifacompany’srelevantScope3emissionsare40percentormoreoftotalScope1,2,and3emissions,itisrequiredtosetaScope3target,whichcouldbeachievedthroughencouragingupstreamsupplierstocommittoSBTi,aligningwiththewell-below2°Cambition(2.5percentLAR)attheminimum(SBTi,2021).WehaveseenthatothercompanieswithtargetsapprovedbySBTi—DongguanCityO.T.CompositeSBTi,GuangzhouBattsysSBTi,SalcompSBTi,YingyangAromaChemicalsSBTi,andZhejiangArcanaSBTi—arepotentiallyinfluencedbytheirdownstreamkeyclientsduetothisrequirement,besidestheirownendeavorinclimateactions.ThepoolofparticipantsinmainlandChinaisrelativelysmallmainlyduetotworeasons.First,mostChinesecorporatesarestillnotawareofSBTi.Second,forthosecorporatesthatareaware,mostarestillinthestageofrapiddevelopmentandcapacityexpansion,andtheSBTi’s4.2percentLARrequirementmayconstituteabigchallenge.Inthefuture,weexpecttoseeanincreaseinChineseparticipantsinSBTi,thankstodrivingforcesfromallsectorsofsociety.Internationalorganizations,notablyUNGlobalCompact,CDP,andWWF,aremobilizingresourcestostrengthenclimateawarenessandtraincorporatesonthestepsneededtoaligntheirclimategoalswithSBTi.Corporates,inturn,areplayingincreasinglyconstructiverolesandleadingbyexample,bothindecarbonizingtheirownoperationsandinurgingupstreamanddownstreamecosystempartnerstoprioritizeclimateaction.Morecorporatesaretransi-tioningfromrobustexpansiontoamorematurestageofsustainablegrowth,whichleadstostabilizationofGHGemissionsandincreasingviabilitytofollowthroughwithscientificclimatecommitments.4.MstandsforUNGlobalCompactmembersasofAugust31,2022.5.SBTistandsforcompanieswhosetargetshavebeenapprovedbySBTi,asofAugust31,2022.20213.ScienceBasedTargetSettingProgressintheThreeFocusedIndustriesGHGemissionscomefromvariousindustries,amongwhichfoodandagriculture,manufac-turingandTMTdeserveparticularattention.Ontheonehand,thesethreeindustriesarekeytodrivingthesustainabledevelopmentofhumansocietyinthepost-pandemicera:thefoodandagricultureindustryensuresfoodsecurity;themanufacturingindustryprovidesessentialmaterialsforlifeandproduction;andtheTMTindustrypromotesdigitaltransformationandtechnologicalinnovation.Ontheotherhand,thevaluechainofthesethreeindustriesspansawidevarietyofupstreamanddownstreamsectors,sotheemissionsfromthemaccountformorethanhalfoftheglobaltotalGHGemissions:■FoodandAgriculture:Beforebringtothetable,foodgoesthroughfarmingorfishing,processing,packaging,distribution,andretailing.Whilefarmingactivitiesareusuallythebiggestemitters,everystepinthevaluechaingeneratesGHGemissions,whichcomprise20to25percentoftheglobaltotalGHGemissions.■Manufacturing:Themanufacturingindustrytakesrawmaterialinputsfromupstreamsectors,suchasminingandpetrochemicals,andmakesthemintovariousindustrialgoodslikeiron,steel,electronicequipment,paper,chemicals,andaviation.Thosegoodsarethenshippedandusedbyconsumersorindifferentdownstreamsectorssuchasconstructionandtransportation.Asaresultofitslongandcomplexvaluechain,man-ufacturingemissionsarethebiggestamongallindustries,accountingfor25to30percentoftotalglobalGHGemissions.■TMT:TheTMTindustryincludestechnologyhardwareandservices,media,andtele-communications.Itsupstreamtypicallyconsistsofcomponentandequipmentproviders.Itsdownstreamisspreadacrosstheconsumerandindustrialsectors,asdigitalizationisbecomingprevalentinallindustriesandaspectsofconsumers’lives.AlthoughtheemissionsofTMTonlymakeup2to4percentoftheglobaltotalGHGemissions,itisacrucialdriverinGHGemissionsmitigation,whichimpactsallotherindustries.WhiletheSBTiCorporateManualprovidesadetailedstep-by-stepguideformostindustries,companiesmustalsoalignSBTswiththerequirementsestablishedthroughsectordevelopmentworkapprovedbytheSBTi:22■FoodandAgriculture:SBTilaunchedtheForest,Land,andAgriculture(FLAG)ScienceBasedTargetSettingGuidanceonSeptember28,2022,whichistheworld’sfirststandardforcompaniesinland-intensivesectorstosetSBTs.FromApril2023onwards,companiesthatmeetFLAGcriteria6arerequiredtodiscloseFLAGandnon-FLAGemissionsseparatelyandsetseparatetargets.FLAGabatement(likebiogeneticremovals)cannotbeusedtomeetnon-FLAGabatementtargets.TheFLAGSBTscanfollowtheFLAGcommodityapproach,whilethenon-FLAGSBTsshallcomplywiththecross-sectortargetsettingguidance.■Manufacturing:TheSBTiisdevelopingsector-specificguidanceforthesteel,chemicals,andaluminumsectors,whileothersectorscanfollowthecross-sectorguidance.TheCementScienceBasedTargetSettingGuidancewaspublishedinSeptember2022,addressingadedicatedcementpathwayduetoitsprocessemissionsfromlimestonecalcinationthatdifferfromothersectors.TheguidancefortheSteelsectorisbeingdraftedandexpectedtolaunchinApril2023officially.Forthechemicalssector,SBTiisstillreviewingavailablesectorresourcesandplanstopublishtheguidancebefore2024.Theguidanceforthealuminumsectorisstillatitsearliestscopingphasetoidentifychallengesforaluminumcompanieswhenapplyingthecross-sectorapproach.■TMT:Inearly2020,theSBTipublishedguidanceforInformationandCommunicationTechnology(ICT)companiestosetscience-basedemissionsreductiontargets.Thisguidanceoffersasimplifiedabsolutecontractionapproachforthemobilenetworkoperators,fixednetworkoperatorsanddatacentreoperators.Inthesethreeindustriesabove,corporatesinallcountrieshavebeenactivelysettingNet-Zerotargets.AsofOctober12,2022,1,346corporatesinthesethreeindustrieshadcommittedtosettinganSBTorhavehadtheirclimatetargetsapproved,amongwhich501corporatesalsohavelong-termNet-Zerocommitments.Participantsfromthesethreeindustriesaccountedformorethanone-thirdoftotalSBTiparticipants.Thesecorporatesoffermanyadvancedpracticesinpromotingandfacilitatingcarbonneutralityintheirvaluechainthatothercorpo-ratescanlearnfrom.6.CompaniesfromtheFLAG-designatedsectorsandcompaniesinanyotherSBTi-designatedsectorwithmorethan20percentrevenuesoremissionscomefromFLAG-relatedareas.RefertoFLAGScienceBasedTargetSettingGuidanceFLAG-C1bySBTiformoredetails.23244.CorporateClimateActionandGlobalCollaboration4.1FoodandAgricultureMeetingafundamentalhumanneed,thefoodindustryisessentialforthehealthandwell-beingofhumanity.Theagriculturalactivitiessetthefoundationforthisindustry.ForestandlanduseisalargesourceofGHGemissions,andglobalfoodconsumptionisexpectedtogrowbyupto70percentinthenextfewdecadesduetothegrowingglobalpopulationandchangesindietarystructureinfavourofhighmeatdiets(EuropeanEnvironmentAgency,2015).Reducingcarbonemissionswhilemeetingtheneedsofthegrowinghumanpopulation,therefore,presentsamajordilemmafortheindustry.Acompany’spositiononthevaluechainusuallydeterminesitsmainsourceofemissions.Companieswhichoperateorownfarms(suchasraisinganimalsorgrowingcrops)mainlyproduceemissionsfromlanduseandfarmingactivities(morethan60percentoftotalemissions).Forfoodmanufacturerssourcingingredientsfromsuppliersorfarmingcontractors,about90percentoftheirtotalemissionscomefromScope3activities,includingingredientsourcing,packagingandlogistics.WehaveseenfourdirectionsthatgloballeadingfoodandagriculturecompaniesaretakingontheirpathtoreachingNet-Zero.1.ProductionprocessdecarbonizationProductionprocessiswheremostfoodandagriculturecompaniescanhaveadirectimpactandcontrol.Therefore,itisusuallythestartingpointinacompany’sNet-Zerojourney.■Increasingtheshareofrenewableenergy(RE):Withclose-to-zeroemissions,REcansignificantlyreduceScope1and2emissionscomparedwithfossilfuels.Asmethane(CH4)releasedfrommanuremanagementisoneofthebiggestemissionsourcesinthisindustry,methanerecoveryplaysacrucialroleinfoodandagriculturecompanies’effortstoincreasetheuseofRE.ChinaModernDairyMwasoneofthefirstcompanies25toinstallanaerobicmanuremanagementsystemsinChina.Itsanaerobicmanuremanagementsystemreleasesatleast40percentofCH4lessthanothertraditionalsystemslikeliquidstorage,solidstorageandcomposting.MostCH4generatedfromthesystemiscollectedasbiogasandusedtoreplacefossilenergy.In2021,biogasenergyaccountedfor60percentofChinaModernDiary’stotalenergyconsumptionandhelpedavoid290,000tonsCO2eofGHGemissionsfromcoalfiring(ChinaModernDairy,2022).Also,companiescandeployon-sitephotovoltaic(PV)panels,replacefossilfuelswithbiofuels,orsignPPAswithREproviderstofurtherincreasetheuseofRE.By2021,MengniuGroupM,oneofChina’sleadingdairyproducers,hadinstalled15MWPVpanelsacrossitsplants,generating8,698,000kWhofelectricityperyear.Furthermore,forproductionpurposes,Mengniuusesbiomassfuelsandbiogaspelletsgeneratedfromitswastewatertreatmentsystemtofuelthesteamboilersinsteadofusingcoalornaturalgas,whichgenerates290,000tonsofsteameveryyear.Asaresult,thetotalshareofREreached10percentbytheendof2021,leadingtoanemissionreductionof80,000tonsofCO2e(MengniuGroup,2022).■Improvingenergyefficiency:Enhancingenergyefficiencyreducescompanies’totalenergyconsumption,leadingtolowerScope1and2emissions.ArcherDanielsMidlandM(ADM),aglobalpremieragriculturaloriginationandprocessingcompany,implementedmorethan75energy-savingprojectsacrossitsbusinessunits,expectingtoreduceenergyuseby175,000mWh.ADMalsocontinueditsglobalEnergyTreasureHuntprogram,throughwhichitcanidentifyadditionalenergyreductionopportunitiesofabout177,000mWhannually,suchasheatrecoverytechnology,wasteheatoptimi-zation,andcompressedairsystemimprovements(ArcherDanielsMidland,2021).InFY2021,GeneralMillsMSBTicompleted35energyefficiencyandreductionprojectsacrossitsmanufacturingfacilities.Byfocusingeffortsoncommonsystemssuchascompressedair,lighting,andsteam/hotwater,theseprojectssaved4.1millionkWhofelectricityand58,000MMBTUofnaturalgas,andavoided370,594tonsofCO2e(GeneralMills,2022).BungeMSBTi,agloballeadingagribusinessandfoodproductioncompany,improveditsenergyefficiencythroughinitiativessuchasimplementingheatreusemethodologiesandupdatingperformancesystems,achievinga6.7percentreductioninenergyintensitycomparedtothe2016baseline(Bunge,2022).ChinaNationalCereals,OilsandFoodstuffsCorporation(COFCO),China’sleadingfoodandagriculturecompany,carriedoutenergyconservationandefficiencyimprovementinitiativesincorndeepprocessing,includingprocessoptimization,boilerupgrades,energy-savingtransformationofthesteamsystem,wasteheatrecovery,energyefficiencyimprovementofthemotorsystem,andindustrialwatersaving.In2020,thecomprehensiveenergyconsumptionper10,000yuanofoutputvaluewascutby67percent,andcarbonemissionsper10,000yuanofoutputvaluedroppedby68percentcomparedto2005(COFCO,2022).262.Climate-friendlysupplychainmanagementAsingredientsourcingorproductionisthemostprominentGHG-emittingactivity,managingthesupplychainandempoweringsupplierstobecomeclimate-friendlyisessentialforfoodandagriculturecompanies.■Reducingemissionsfromlanduseandfarmingactivities:TheentericfermentationandmanureofanimalreleasesCH4,whileactivitieslikefertilizationandirrigationusuallyleadtothelossofcarbonsinksinsoilandtheemissionofnitrousoxide(N2O).Notably,the100-yearglobalwarmingpotential(GWP-100)7ofCH4andN2Oisratedat27.9and273respectively,furtherdrivinguptheglobalwarmingimpactfromlanduseandfarmingactivities.Therefore,leadingfoodandagriculturecompanieshavebeenpromotingregenerativeagricultureanddevelopedasetofnewtechniquesthatimproveandrestoreecosystems.PepsiCoMSBTihelpsfarmerstransitiontowardsregenerativeagriculturebyassistingtheminidentifyingandimplementingadaptivepracticessuchascovercropstosequesterCO2underground,no-tillcultivationforminimalsoildistur-bance,andsystemiccrop-livestockrotation.By2021,morethan345,000acresoflandwerebeingfarmedusingregenerativefarmingpractices,accountingfor5percentofPepsiCo’stotallanduse.OnitsdemonstrationfarmsinThailand,PepsiCoimplementedintegratedpestandnutrientmanagementandinstalleddripirrigationsystems,increas-ingyieldsonaverageby25percentandcuttingGHGemissionsby23percent(PepsiCo,2022).GeneralMillslaunched115,000acresofpilotprogramsacrossNorthAmericatoadvanceregenerativeagriculture.Inadditiontoprovidingfarmerswithcoaching,technicalassistance,customizedplansandworkshopstofacilitatetheadoptionofregenerativepractices,GeneralMillsalsocollaboratedwithnumerousscientificorga-nizationstoconductin-depthresearchontheimpactsofthesepracticesandtofindthebestpathtoexpandingtheprogramto1millionacresoffarmlandby2030(GeneralMills,2022).■Evaluatingandtrackingsuppliers’climateperformance:Totrulyraisetheclimateawarenessofsuppliers,especiallysmallindividualfarms,manycompanieshavestartedtoaddclimateindicatorstotheirevaluationofsuppliers.Atthesametimeashelpingitssuppliersbecomemoreawareofthethreatofclimatechangeandadoptsustainablepractices,NestléMSBTiintroducedclimate-relatedcriteriawithitsResponsibleSourcingStandard.ThestandardrequiresthatNestlé’sfarmersmustnotconvertnewpeatsoilsforagriculturalpurposesandavoidpeat-relatedGHGemissions.ThestandardalsoencouragesNestléfarmerstohaveayear-roundnutrientmanagementplan,preferringtheuseofrecycledorganicmaterials,tominimizetherun-offofnutrientsandGHGemissions(Nestlé,2018).CargillMSBTiclearlystatesitsexpectationforsuppliersinitsSupplierCodeofConducttostrivetoreduceenvironmentalimpactthrougheffortssuchasendingdeforestation,minimizingGHGemissionsandwaste,andusingresourcesefficiently(Cargill,2022).7.GWP-100isameasureofhowmuchenergytheemissionsofonemetrictonofagaswillabsorbover100years,relativetotheemissionsofonemetrictonofCO2.AccordingtoIPCCAR67.SM.6,theGWP-100ofCH4andN2Oare27.9and273,respectively.Formoreinforma-tion,pleaseconsulthttps://www.ipcc.ch/report/ar6/wg1/downloads/report/IPCC_AR6_WGI_Chapter07_SM.pdf273.ClimatecollaborationwithecosystempartnersAchievingNet-Zerorequiresthecollectiveeffortofplayersupanddownthevaluechain,includingresearchinstitutes,ingredientsuppliers,technologyandequipmentproviders,logisticscompanies,packagingmanufacturers,retailers,andsoforth.■Settingemissionreductiontargetstogetherwithecosystempartners:Thisisthefirstandfundamentalsteptowardsstimulatingclimatecollaborationintheecosystem.Giventhatapproximately85percentofitstotalGHGemissionscomefrompurchasedmaterials,TheCoca-ColaCompanyMSBTihasbeenprovidingsupplierswithresources,tools,andknowledgetosupporttheirclimatejourney,aswellasencouragingsupplierstorespondtotheCDPSupplyChainClimateChangequestionnaire,foryears.By2021,70Coca-ColasuppliershadsetSBTsandanadditional49committedthroughSBTitosetnear-termSBTs.InDecember2021,theCoca-ColasysteminEuropeannouncedthegoalofreachingNet-ZeroacrossallEuropeanmarkets,andthustheentireEuropeanvaluechain,by2040.Thiseffortseeksareductionof30percentofCO2equivalentannuallyinEuropeby2030comparedto2015(TheCoca-ColaCompany,2021).MengniuGroupcollaborateswithitstoptworawmilksuppliers—ChinaModernDairyandChinaShengmu—tosystematicallyaudittheircarbonemissionsandsetasharedgoalofpeakingemissionsby2030andreachingNet-Zeroby2050(MengniuGroup,2022).In2021,ChinaShengmucommittedtosettingtheSBTi1.5°CscenarioandtheNet-Zerotarget(SBTi,2022).■Co-developingdecarbonizationtechnologieswithecosystempartners:Technolo-giescouldmakeacriticaldifferenceintheagricultureindustryandmitigateitsclimateimpact.CargillandtheZeroEmissionLivestockProject(ZELP)havepartneredtobringEuropeandairyfarmersaninnovativesolutiontoreducemethaneemissions,combiningmethaneoxidationanddataprocessingtechnologytominimizetheenvironmentalimpactofdairyproductionwhileimprovinganimalwelfare.The“wearables”technol-ogy—amask-shapedsmartdevicethatneutralizesmethanefromcattleburps—iscurrentlyundergoingtestingandpromisestodecreaselivestockmethaneemissionsbyupto53percent(Cargill,2021).284.ProductinnovationandrecyclingBesidesalltheeffortsfromtheoperationalside,productdesigncouldfundamentallychangeacompany’semissionstructure.■Developingandlaunchinggreen/low-carbonproducts:Manyleadingcompaniesarecollaboratingwithresearchinstitutionsandsupplierstodevelopinnovativeingredientssuchasplantproteinorlab-grownmeattoavoidtheheavyemissionsfromlanduseandfarmingactivities.Bungeoffersawiderangeofplantproteiningredientsfromfababean,pea,canola,andsoyassubstitutesformeatsanddairyproducts.Itenablesitscustomerstodevelopplant-basedmeatballs,nuggets,burgers,cheeseandicecreamthatareasdeliciousandnutritiousastheirusualcounterparts.Byreducingthedemandformeatanddairy,Bunge’splant-basedproteincouldeffectivelyreducecarbonemissionsfromanimalbreedingactivities(Bunge,2022).OthercompanieshavedevelopedfeedadditivestoalleviatemethaneemissionsfromanimalbreedingordevelopedchemicalslikenitrogeninhibitorstoreduceNitrogen-lossfromlanduse.Since2017,Cargillhasworkedcloselywithitspartner,Delacon,tounderstandhowthecompositionofthefeedgiventolivestockcanimprovecows’guthealth,whichinturnsignificantlyaffectshowmuchgaseachanimalemits.Naturalphytogenicfeedadditivesderivedfromherbs,spicesandotherplantsarebeingscaledforglobalusetohelpfarmersmeetthedemandformeat,milkandeggswhileimprovinganimals’digestivehealthandreducingtheirenvironmentalimpact(Cargill,2021).Anothermajorareaofinnovationisreplacingfossilfuelswithbiofuels,whicharelow-carbonproducts.COFCOpioneeredthemassproductionofethanolfuelthroughco-processingwithalternativecrops(cropsotherthancorn),suchascassava,agedwheat,andagedrice.From2016totheendofSeptember2022,COFCOprocessed11.5milliontonsofalternativecropstoproduce3.15milliontonsofethanolfuel,indirectlyreducingthecrudeoilimportsbynearly1.5milliontonsandemissionsby5milliontonsofCO2e,69percentlowerthantheemissionsofregulargasolinewhenusedasautomobilefuel(COFCO,2022).■Promotingacirculareconomy:Somecompaniesareswitchingtoeco-friendlypackagingthatisrecycled,recyclableandnaturallybiodegradable.Aspackagingaccountsforapproximately30percentofitsoverallcarbonfootprint,Coca-ColalaunchedtheWorldWithoutWasteinitiativein2018,focusingoneliminatingpackage-re-latedimpact.Coca-Colaisredesigningitsbeveragepackaging,settinglightweight,renewable,andrecycledmaterialsasitstoppriorities.Bytheendof2021,90percentofCoca-Cola’sbeveragepackagingwasrecyclableand23percentusedrecycledmaterialsforallpackagingtypes(and13.6percentforplastics),avoidinghalfamilliontonsofvirginplasticusage.Coca-Colaisalsohelpingcreateaclosed-looprecyclingsystemgloballybyinvestinginrecyclinginfrastructureandeducationprograms.In2021,61percentofusedbottlesandcanswerecollectedforrefillingorrecyclingglobally(TheCoca-ColaCompany,2021).InChina,MengniuGroupaimstocut300tonsofemissionsbyapplyingPost-ConsumerResin(PCR)asouterpackagingfilmforitsproductsfrom2023.Mengniuhasalsojoinedhandswithitsauxiliarymaterialsupplierstoreplacetraditionalcartonswitheco-friendlyPolypropylene(PP)crates,whichcanbereused29multipletimesandleaveacarbonfootprint57.5percentsmallerthanthatoftraditionalpapercartons.ItisestimatedthatthePPcratescanreplaceupto670millionpapercartons,indirectlyreducingconsumptionof103,000tonsofvirginpaper,andreduceGHGemissionsby80,000tonsperyear(MengniuGroup,2022).Meanwhile,othercompaniesarereturningorganicwastetothesoilorfeed.OloloFarmMSBTi,asmallregenerativefarminKenya,Africa,modelleda“farmtoforktofarm”programwhere50percentoffoodproducedonthefarmisconsumedatthelodgeand100percentofthefoodwasteisupcycledintohigh-valueorganicplantnutrientsandanimalproteinforthefarm.Thiscircularfoodmodelhelpsreducethefarm’scarbonemissionsby50percent.ThefarmalsocollaboratedwithitssupplychainpartnerstointegrateBlackSoldierFlyfarmingtechnology—usinginsectstotransformorganicwasteintohigh-valueprotein.Thisinitiativeisexpectedtoslashthefarm’sGHGemissionsby90percent(OloloFarm,2022).304.2ManufacturingManufacturingisamajorcontributortoglobalGHGemissions.Atthesametime,themanufac-turingindustryistheinfrastructurethatconnectingandunderpinningmanyotherindustries’upstreamanddownstream.Naturally,manufacturingcompanieshavealargedemandforrawmaterials,andproductsofthissectorareubiquitousineverydaylife,frommaterialssuchassteeltoend-userproductslikedomesticequipmentandcars.Therefore,corporatesmustrealizethateveryactiontheytaketocountercarbonemissionsisparamounttothesurvivaloftheplanet,andtheymustadoptimmediatemeasurestomovetowardtheirclimategoals.Raw-materialsupply(production,transportation,andstorage),processing,andtheuseoffinishedproductsarethethreehighest-emissionactivitiesinmanufacturing.Scope1andScope2accountforthemajorityofemissions,mainlyfromprocessing,includingdirectemissionsfromfossilfuelcombustion,theuseofrefrigerantsonsite,andelectricity.Emissionsrelatedtoproductprocessingaccountforroughly40to60percentofthetotalreportedemissions.InScope3,emissionsrelatedtorawmaterialsandtheassociatedlogisticsaccountforaround10to20percentoftotalreportedemissions;downstreamemissions(resultingfromtheuseofsoldproducts)accountforanother10to20percent;bothshouldbeviewedasmajordecar-bonizationlevers.Manufacturingcompaniesareencouragednotonlytofocusonreducingemissionsinoperations,butalsototaketheleadindrivingdecarbonizationacrosstheentirevaluechain.WehaveseenfourdirectionsthatpioneersaretakingontheirwaytoreachNet-Zero:1.ManufacturingprocessdecarbonizationManufacturingproductionlinesinvolveheavydemandforenergyconsumptionandhighGHGemissions.Thankfully,leadingplayershavediscoveredvariousmeasurestoreduceemissionsfromoperations.■IncreasingtheshareofRE:PurchasinggreenelectricityviaPPAsandREcertificates,andinvestinginconstructingREsystems,arethemostcommonapproaches.LONGiMandJinkoSolar,bothworld-leadingPVsystemmanufacturers,aremembersofRE1008andarecommittedtograduallyincreasingtheshareofREto100percentby2028and2025,respectively.In2021,LONGi’sshareofrenewableelectricityreached40.19percent,thankstoitsimplementationofacombinationofon-sitepowergenerationfacil-ities,purchasesfromthird-partypowergenerationfacilities,andPPAs(LONGi,2022).JinkoSolaroperatesthree100-per-centREfactoriesinLeshanandChuxionginChina,andPenanginMalaysia(JinkoSolar,2022).KlabinMSBTi,oneofthelargestpaperand8.RE100istheglobalcorporaterenewableenergyinitiativeledbyTheClimateGroup,bringingtogetherhundredsoflargeandambitiousbusinessescommittedto100percentrenewableelectricity.31pulpproducersandexportersinBrazil,sourced89.5percentofenergyfromREin2021.Theimpressiveprogresswasmadepossiblebyusinglow-carbontechnologiessuchasbiomassboilers,biomassgasificationandcrudetalloilplants,aswellastheprocessefficiencyimprovements.ThePumaunit,oneofthetwolargestindustryunitsofKlabin,isnowself-sufficientbygeneratingenoughREforitsownoperationsandsupplyingtheexcessof820,490MWtotheBrazilianenergymatrixannually(Klabin,2021).■Improvingenergyefficiency:Applyingnewmanufacturingtechnologyisoneofthemanyeffectivewaysthatmanufacturingcompaniescanimproveenergyefficiency.EatonMSBTi,anintelligentpowermanagementcompany,implementedcapitalprojectsthatconserveelectricitythroughmoreefficientandautomatedmanufacturingequipmentandtechnologiesaswellasbuildingenvelopeandsystemimprovements,reducingenergyuseatmanufacturingsitesby11percentfrom2018to2022(Eaton,2021).EnvisionGroup,acleanenergycompanyinChina,investedintechnologiesthatincreaseenergyefficiencyinproduction.In2021,Envisionplantsacrossthecountryachievedacarbonemissionreductionof13,000tonsCO2e,equivalentto11percentofthegroup’sannualoperatingcarbonemissions(EnvisionGroup,2022).Itspeer,LONGiSolar,hadinstalledenergymanagementsystemsineightofthe28productionfacilitiesasof2021,increasingtheenergyefficiencyby54percentcomparedto2015(LONGi,2022).ChinaBaowuSteelGroupM,oneofthelargeststeelproducersinChinaandintheworld,isapplyingthebestavailabletechnologiestoincreaseefficiencyalongthesteelproductionlineinitssubsidiaryBaosteel,resultinginenergysavingsof460,000tonsofstandardcoalinthepastfiveyears.Keymeasuresincludedbetterinteractioninterfaceefficiency,aloweriron-to-steelratio,andimprovedsystemcapacity(ChinaBaowuSteelGroup,2022).■Recoveringenergyfromproductionwaste:Thisisapowerfulinitiativefordecarbon-ization.Baowu,initssubsidiaryBaosteel,successfullyappliedthesensibleheatrecoverytechnologyofcokeovenrisingpipewastegasandthedeeprecoverytechnologyofsinteringwasteheatin2020.Theirtechnologyreadinesslevelreachedthestageofoperationandevaluationandhavebeenpromotedrapidlyinthegroup(ChinaBaowuSteelGroup,2022).EnvisionGroupimplementedaseriesofupgradestotheJiangyinfactoryin2021,includingawasteheatrecoverysystemforsteamcondensateinthecoatingoven(EnvisionGroup,2022).2.Climate-friendlysupplychainmanagementTheupstreamofthemanufacturingindustryinvolvesintenseGHGemissionsfromactivitiessuchasmetalsmelting.Selectingsupplierswithclimateadvantageisonlythefirststep;managingandempoweringsupplierstobecomeforerunnersinclimateactionisessentialtoreducingScope3emissionsandenhancingtheoverallsustainabilityofthesupplychain.■Optimizingprocurementofrawmaterials:Sourcingsustainablerawmaterialsisessentialforstartingtheproductlifecycleinalow-carbonway.Leadingplayersoftenspecifytheirsustainabilityrequirementsforrawmaterialsalongtwodimensions—low32carbonfootprintandhighbiodegradability/recyclability.ElectroluxMSBTi,aSwedishhomeappliancemanufacturer,initiatedasignificantshiftinrawmaterialsfromiron-oresteeltoscrap-basedsteelfrom7percentin2013to24percentin2018,whichhasreducedtheaverageannualcarbonemissionspertonofsteelfrom2.1to1.7tonsofCO2,andcuttheannualCO2emissionsby251,000tons.(Electrolux,2018).■Evaluatingandtrackingsuppliers’climateperformance:Toimprovetheclimateawarenessoftheirsuppliers,manycompanieshavestartedtoincorporateclimateindicatorsintotheirsuppliers’codeofconductand/orevaluationcriteria.Thefirststeptoevaluationisensuringdatatransparency—requiringsupplierstoprovideprimarydataforanalysisandauditinganddiscloseemissiondataoninternationallyrecognizedplatformssuchastheCDP.EatoninvitesasubsetofTier1suppliers,chosenbasedonriskandspend,todiscloseemissionsdatathroughtheCDPSupplyChainProgram.In2021,Eatonscoredan‘A’forsupplychainsupplierengagementfromCDPwithanincreaseinsupplierengagementby56percent(Eaton,2021).Thesecondstepisevalu-atingthesuppliersbasedonclimateperformance,inarisk-basedapproach.Asof2022,Klabinengages56percentofcriticalsuppliersintheSustainableSupplyChainManage-mentProgram(Klabin,2021),whichevaluatesandrankssuppliersthroughtheEcoVadismethodology,withenergyconsumptionandGHGasoneofprimaryenvironmentalcriteria(EcoVadis,2020).In2022,Klabinupgradedtheprogramtoincludeanassess-mentofGHGemissionsmanagementmaturityforallstrategicsuppliers,collectingandevaluatingsuppliers’climateperformance,includingScope1,2,and3emissions,SBTistatus,anddisclosureinCDP(Klabin,2022).3.ClimatecollaborationwithecosystempartnersAchievingNet-Zerotakesthecollectiveeffortsofplayersacrosstheentirevaluechain,includingrawmaterialsuppliers,technologyandequipmentproviders,logisticscompanies,etc.■Settingemissionreductiontargetstogetherwithecosystempartners:Thefirststeptogalvanizingecosystem-widecollaborationiscommittingtoacommonclimatetarget.Atits2021supplierconference,LONGilaunchedthe“LONGiGreenSupplyChainDecarbonizationInitiative”with150suppliers,callingonsupplychainpartnerstoactonclimatecommitments.AsanimportantupstreampartnerofLONGi,AsiaSiliconjoinedtheinitiativeandcarriedoutrenovationprojectsincludingwasteheatrecoverythatsavedsteamconsumptionof4.12metrictons/houroflow-pressuresteam,equivalentto2.4millionkWhofelectricityannually.AsiaSiliconalsoreplaceditselectrolyticcellswithenergy-savingcells,whichhelpedsave1.8millionkWhofelectricityeveryyear(LONGi,2022).In2021,Electroluxsecuredcommitmentsfrom281topdirectmaterialsuppliers(correspondingto78percentofitsdirectmaterialspend),aswellas14globallogisticscompanies(30percentofitstotallogisticsspend),todiscloseemissionsandsettargetsthroughtheCDPSupplyChainProgram(Electrolux,2020).PhilipsMSBTiishelpingsuppliersdecarbonizebyintegratingtheirclimatecommitmentsintoPhilips’ownclimateKPI—encouragingatleast50percentofsupplierstojoinSBTiby2025.Philipshascreatedapyramidframeworktoprovidetargetedsupporttosuppliersinkeyareas,33suchastrainingandon-siteenergyscanstohelpidentifydecarbonizationbottlenecks.Asofthefirstquarterin2022,35percentofitssuppliershadjoinedSBTi(Philips,2022).■Co-developinganddeployingdecarbonizationtechnologieswithecosystempartners:Cutting-edgetechnologiesaccelerateclimateprogress.Plentyofdecarbon-izationtechnologieshasemergedovertheyears,andthedeploymentofthesetechnol-ogiescouldsignificantlymoderatecarbonemissionsthroughoutthevaluechain.Eatonhasalonghistoryofworkingwithecosystempartnerstodevelopnewtechnologiesinenergyandtransportation.Intherealmofenergy,EatonjoinedtheBreakthroughEnergyVenturestoinvestinthegridtechnologycompany,ReactiveTechnologies.Theorganization’sinnovativeGridMixtechnologycanhelpaddresschallengesaroundgridinstability,whichcanoccurwithrenewableenergysources,suchaswind,solarandbatterystorage.Intransportation,EatonpartneredwithBallardFuelCellSystemsandtheNationalRenewableEnergyLaboratorytodevelopheavy-dutytruckfuelcelltechnology.Eaton’sTwinVorticesSeries(TVS)superchargertechnologycouldimprovethefuelcellefficiency(Eaton,2021).Intheironandsteelindustry,leadersareunitingglobaltalents.In2021,ChinaBaowuSteelGroupannouncedtheestablishmentoftheGlobalLow-CarbonMetallurgicalInnovationAlliancewithindustrypartnersandglobalecosystempartners.Baowualsoestablisheda50-billion-yuanNet-ZeroFund,withthefirstphaseof10billionyuan,committingtofundingtheestablishmentofagreenandlow-carbonecosystemandadvancingtheR&Dandimplementationofgreentechnol-ogiesintheChinasteelindustry(ChinaBaowuSteelGroup,2022).Today,mostofthehydrogenisgeneratedfromtraditionalfossilfuels,whichleadstohighGHGemissionsintheproductionprocess.Hence,greenhydrogenbecomesanotherfieldofinnovationinthespotlight.Totacklethisproblem,LONGiimproveditstechnologytoproduce“greenhydrogen”,byusingREinelectrolysis.In2021,SinopecMannouncedthefirst10,000-tongreenhydrogendemonstrationproject,thelargestgreenhydrogenprojectinChinaandglobally.LONGiisparticipatinginthisprojectandplanningtoinstalla300MWPVstationwhichproduces618millionkWhofelectricityperyear,aswellasanelectrolysiswaterhydrogenproductionplantwithanannualproductioncapacityof20,000metrictons.Itisexpectedthataftercompletionin2023,theplantwillproducegreenhydrogentopartiallyreplacetheexistinggreyhydrogenproductioncapacity,reducingemissionsby485,000tonsofCO2eperyear(LONGi,2022).4.ProductinnovationandrecyclingManyproductsdevelopedbythemanufacturingsectorareheavycarbonemittersthemselves.Greenandlow-carbonproductdesigncouldslashthecarbonemissionsgeneratedfromdown-streamproductusage.■Developingandlaunchinggreen/low-carbonproducts:Manyleadingcompaniesarefocusingonproductdesignthatminimizescarbonemissionsthroughouttheproductlifecycle.Revolutionaryproductdesignisagame-changer.BROADGroupMdevelopedanewtypeofbuildingmadefromultimatelightweightstructuralmaterial-stainlesssteelB-Coreslabs.FloorslabsmadefromstainlesssteelB-Coreslabsandbeams/34columnsmadefromstainlesssteelsectionstogetherformtheuniquefactory-madeHolonBuilding.HolonBuildingisdesignedperNearly-ZeroEnergyBuildingStandardandisequippedwithvariousthermalinsulationmeasures(22cmthermalinsulatedwalls,4-panedglasswindows,exteriorshades,interiorshades,andfreshairwithheatrecovery),whichmakesthebuilding90percentmoreenergyefficientthantraditionalones(BroadGroup,2022).JinkoSolarhadsoldmorethan100GWofPVsystemscumulativelyasofthefirstquarterin2022,producing130billionkWhofREeveryyearandreducingcarbondioxideemissionsbyabout130milliontonsforcustomers,whichisequivalenttothecarbonemissionfromburning52.52milliontonsofstandardcoal,orthecarboncapturefromplantingabout7.02billiontrees(JinkoSolar,2022).Inthefieldofenergymanagement,EnvisionGrouplaunchedtheAIoT9operatingsystemEnOSplatform,anewgenerationofintegratedsolutionsforproductionandmarketing,withasuiteofconnectivityanddevicemanagementtoolsandapplicationsfordecarbonizationanddigitalization,includingassetmonitoring,operationalperformancetracking,equipmenthealthanalysisbasedonbigdataandAI,windandsolarpowerforecasting,asmartenergytradingterminal,source-grid-load-storageoptimization,multi-sourcesynergisticoptimizationetc.,tocontinuallypromotethelow-costproductionofmoreRE.Inthefieldofcarbonemissionsmanagement,EnvisionGroupdevelopedtheEnvisionArkpoweredbytheEnOSplatform,anenergyandcarbonemissionsmanagementsystembasedonAI,IoT,bigdata,andblockchain.Itoffersreal-timecarbonfootprintmonitoring,generatescarbonemissionreports,simulatesandoptimizesemissionreductionpathways,andprovidesaccesstogreenelectricity,REcertificates,carbonsink,CCER10andothercarboncredits,realizingcarbonoffsetandcomplianceatthelowestcost,viaonestop,andinaclosedloop.Asof2022,thesoftwarehashelpedcustomersreduceandmanagemorethan1billiontonsofCO2e(EnvisionGroup,2022).■Promotingacirculareconomy:Aresource-efficientcirculareconomyiscriticaltodecarbonizingtheentirevaluechain,mainlybecauseitlowersdemandforvirginmaterialsandenergyconsumptioninproduction.CorporatesinB2B11businessaregenerallyfocusedondivertingwastefromlandfillortraditionalincinerationthroughavarietyofinitiatives.NIOM,incollaborationwithbatterysupplierContemporaryAmperexTechnologyCo.,Limited(CATL),ispioneeringEVbatteryrecycling.NIOcollectsbatteriesthroughanetworkofbatteryswapstations,whileCATLdecomposesthebatteriestorecycle,reachinga50percentcomprehensiverecyclingrateinChina(CATL,2022).AsakeysubsidiaryofCATL,HunanBrunpiscurrentlythelargestrecyclingbaseforusedbatteriesinChina,withatotalofmorethan6,000tonsofusedbatteriesrecycledandprocessedannually(CnEVPost,2021).B2C12companies,ontheotherhand,havecommittedtoincreasingtherecyclabilityofproductsandlaunchingrecyclingprograms.9.ArtificialIntelligenceofThings,thecombinationofartificialintelligence(AI)technologiesandtheinternetofthings(IoT)infrastructure.10.ChinaCertifiedEmissionReduction,emissionsreductionactivitiesconductedbycompaniesonavoluntarybasisthatarecertifiedbytheChinesegovernment.Suchactivitiesincluderenewablepowergenerationandwaste-to-energyprojects,aswellasforestryprojects.11.B2Bstandsforbusiness-to-business,referringtothebusinessbetweencorporates.12.B2Cstandsforbusiness-to-consumer,asinbusinessthattakesplacebetweenacorporateandanendcustomer.35Electroluxexperimentedwithcircularconceptsonseveralproducts,includingthefirstbioplasticconceptfridgemadefromrecycledpolyethylenethathasan80-per-centlowercarbonfootprintthanthatofconventionalplastics(Electrolux,2018),andavacuumcleanermadeof90-per-centrecycledmaterialsoriginatingfromconsumerelectronicproducts.In2021,Electroluxused8,600metrictonsofrecycledplasticinproductsandlauncheda“sustainabletrade-inprogram”inVietnam,enablingconsumerstotradeintheiroldwashingmachinesforadiscountonnewones(Electrolux,2021).364.3Technology,MediaandTelecomTheTMTindustryhasrevolutionizedtheworld,fromthewayspeoplecommunicateanddobusinesstoeveryaspectoflife.AnimmensequantityofinformationistransmittedthroughtheInterneteveryday,assistedbyadvancedtechnologies,andthiselectronicleviathanhasbecomeanindispensablepieceofinfrastructureformodernsociety.CompaniesintheTMTindustryare,ingeneral,notheavyScope1emitters—suchemissionsmainlycomefromthegasolineordieselcombustioninvehicles.ForTMTcompanies,emissionsfromthesupplychainanduseofend-productscanmakeupmorethan90percentofthetotalemissions.1.ProductionprocessanddatacenterdecarbonizationTMTcompanieshavegenerallystartedtheirdecarbonizationeffortsfromtheirownfactoriesanddatacenters.■IncreasingtheshareofRE:Electricityoccupiesthelion’sshareofTMTcompanies’internaloperationalenergyconsumption.PPAsandREcertificatesarethemostcommonmethodsviawhichcorporatesgainaccesstogreenelectricity.CogecoMSBTi,aCanadiantelecommunicationsandmediacompany,increasedREconsumptionby50percentbypurchasingREcertificatesandgreenutilitytariffsinVirginiaandMaine,andreducedScope1and2emissionsby23percentin2021,comparedwith2019(Cogeco,2021).SopraSteriaMSBTi,aEuropeantechconsultingandsoftwaredevelopmentcompany,achieved99.2percentrenewableelectricityconsumptionin2021viapurchas-ingelectricitydirectlyfromsuppliersandusingeitherGuaranteeofOrigincertificatesorInternationalRenewableEnergyCertificates(SopraSteria,2022).■Improvingenergyefficiency:Manycompanieshavereducedtheenergyconsumptionoftheirfactoriesoron-sitedatacentres.Somecompanieshaveinstalledadvancedtechnologies,suchasuniformcomputinginfrastructure,customizedbladeservers,consolidatedstorage,andadvancedpowersupplyunits.HonorM,aChineseleadingsmartdeviceprovider,appliedenergy-savingconceptstothedesignofitsHonorIntelli-gentManufacturingIndustrialParkinShenzhen.Theindustrialparkwasinstalledwithadvancedenergymonitoringandmanagementsystems,includingthebuildingauto-mationsystem,chillerplantcontrolsystem,andaircompressorgroupcontrolsystem.Withthesupportofthesesystems,thissiteisexpectedtosavemorethan2millionkWhofelectricityperyear(Honor,2022).OrangeMSBTi,aleadingtelecommunicationscompanyinEurope,launchedtheGreenITandNetworks(ITN)programtoreplaceoldnetworkinfrastructurewithmoreeco-efficientequipment,avoidingapproximatelythreemilliontonsofCO2emissionsbetween2010and2019.Itslatestdatacentres,openedin37ChartresandValdeReuilinNormandy,employfreecooling—atechnologythatreducestheuseofartificialairconditioningby80percent(Orange,2022).2.Climate-friendlysupplychainmanagementElectronicdevicesrequireverycomplexmaterialdesign.Upto69elementsfromtheperiodictablecanbefoundinelectronics(UNITAR,2020).Climate-friendlysupplychainmanagementisthereforeparticularlyimportantintheTMTindustry.■Optimizingraw-materialprocurement:Recyclableorlow-carbonmaterialscanbesourcedandusedmoreinelectronicdevices.ThemajorityofmetalpartsindevicestranslateintotonsofGHGemissionsreleasedduringthemining,refining,smeltingandcastingprocesses.Usinglow-carbonmaterials,ontheotherhand,couldbedifficultbuthugelybeneficialtotheenvironment.NokiaMSBTiisincreasingtheuseofrecycledmaterialcontentinitsproductsfromthedesignstage.In2021,72percentofits28,000tonsofcastaluminumpartscontainedrecycledcontent.Nokiaisalsoexpandingthisworktolookattheclosedloopforgold,withplanstobroadentocopperandhasworkedtoincreasecircularityofplasticusedinproducts(Nokia,2022).Whileexpandingtheuseof100percentrecycledaluminumintheenclosuresofproductsin2021,AppleSBTiprioritizedtheuseofaluminumwhichsmeltedbyusinglow-carbonsourcesofelectricityratherthanfossilfuels.Thesechangesalonehavedecreasedthecarbonemissionsassociatedwiththeuseofaluminum,whichrepresentaquarterofproductmanufactur-ingfootprint,by68percentsince2015(Apple,2022).■Optimizingpackagingdesign:Similartocompaniesinthefoodandagricultureindustry,TMTplayershavebeenre-designingtheirconsumerproductpackagingasalevertoreduceemissions.Onewayistominimizetheuseofpackagingmaterialsbyreducingthepackagesizeoradoptingalightweightdesign.Anotherapproachistoenableandencouragerecyclablepackagingbyusingrecyclablematerialsorlaunchingpackagerecyclingprograms.Nokia’sfixednetworksproductpackagingreplacesfoam,rubberandplasticwrappingswithorganicmaterialslikecorrugatedcardboard.Withitsground-breakingflexiblecardboardpackagingdesign,Nokiareducedpackagesizeby50percent,garneringtheRedDotDesignAward:BestoftheBest(Nokia,2022).JD.COMMSBTi13usesreusablerecycledexpressboxes,foldableinsulationcrates,andrecycledtransitbagsinsteadofdisposableplasticpackaging.JDalsolaunchedthe“GreenStreamInitiative”in2017,whichhasreducedindustry-widedisposablepackagingusagebynearly10billionpieces.Bytheendof2021,thedisposablepackagingintheprogramhasbeenusedformorethan200milliontimes(JD.COM,2021).13.JDLogistics,asubsidiaryofJD.COM,hassetSBTsapprovedbySBTiinlinewiththe1.5°Ctrajectory.38■Decarbonizingtransportationandstorage:Optimizinglogisticsnetworksandmini-mizinginventoriesforbothrawmaterialsandfinishedgoodscanreduceemissionsfromtransportationandstorage.Amazonuseselectricvehicles,e-cargobikesandwalkers,whichhavelessclimateimpactthanthetraditionaldeliveryvans,forlast-miledelivery.In2021,morethan100millionpackagesweredeliveredbyzero-emissionvehiclesinEuropeand30millionpackagesweredeliveredbycargobikesandwalkersinManhattan,NewYork(Amazon,2022).Meanwhile,Amazondeployedanewroutingalgorithm,CustomerOrderandNetworkDensityOptimizeR(CONDOR),toenablecarrierstodelivermorepackagestomorecustomersontimewhilereducingmilesdrivenandcarbonemissionsfromfuel.CONDORwasdeployedacrosstheUSin2021,cuttingmilesdrivenbymillions,andAmazonplanstoexpandtoothercountriesinthenextfewmonths(Amazon,2022).XiaomiMisalsoimprovingitslogisticsefficiencythroughincreasingthefullloadrateoftransportationvehiclesandoptimizingdistributionroutes.In2021,Xiaomiaskedalllogisticsserviceproviderstoincreasethevehiclefullloadratefrom60percentto70percent,andaddedeightnewdirect-lineroutesthroughdeliveryflowanalysis,reducingannualfuelconsumptionby20percentand290,000kilometersofdeliverydistance,equivalentto220tonsofCO2e.Additionally,Xiaomiusedlightweightpalletsforoverseasproductdelivery,reducingtheweightofeachpalletby7kgonaverageandtheuseofwoodby280tonsperyear,whichindirectlyreducesaviationfuelconsumptionby460tons,correspondingto1,423tonsofCO2e(Xiaomi,2022).■Evaluatingandtrackingsuppliers’climateperformance:Whileassistingtheirsupplierswithimprovingtheirclimatedatatrackingandemissionreporting,manyTMTcompanies,likeSopraSteriaandHuaweiM,havealreadystartedtousesustainabilityandclimatecriteriainmakingpurchasingdecisions.SopraSteriaincorporatedcarbonperformanceintoitssupplierevaluationsystem,requiringsupplierstodisclosetheircarbonfootprintandreductionactionplantoensurealowenvironmentalimpactfromsourcedproductsandservices.SopraSteriacommitsthat70percentofitssuppliersbyemissionswillmanagetheirGHGemissionsand90percentofthesesupplierswillhaveGHGreductiontargetsby2025(SopraSteria,2022).Huaweihasincorporatedenviron-mentalandsustainabilityrequirementsasthecoreofitsprocurementstrategy.Factorssuchasclimateimpactarefullyconsideredandroutinelyevaluatedintheentireprocessofsupplieradmission,certification,selection,performanceevaluationandmanagement.InMay2021,HuaweihelditsSupplierCarbonEmissionsReductionConference,engagingmorethan1,000representativesfrom400majorsuppliers,toexplainitsstrategyandrequirementsforsavingenergyandreducingcarbonemissionsthroughoutthesupplychain.Huaweisuccessfullyencouraged98percentofthetop100suppliersbyspendingandsupplierswithhighenergyconsumptiontosettargetsonreducingemissions(Huawei,2021).393.ClimatecollaborationwithecosystempartnersGiventhenotableemissionsfromsupplychainanduseofend-products,climatecollaborationwithintheecosystemisessential.■Settingemissionsreductiontargetstogetherwithecosystempartners:Settingacommongoalofemissionsreductionwithsuppliersandcorporateclientsisthefirststeptowardsclimatecollaboration.CogecoincreasedthenumberofsupplierscommittedtoSBTifrom13percentofprocurementspendin2019to22percentin2021(Cogeco,2021).Similarly,in2021,TelefónicaMSBTi,aleadingtelecommunicationscompanyinSpain,hasencouraged262supplierstojointheCDPSupplyChainProgramme,whichaccountsfor90percentofemissionsinthesupplychain(Telefónica,2022).Formorethan10years,Nokiahasengagedsuppliersinenvironmentalimprovementprogramstoencouragethemtodisclosetheirclimateimpactsandsetcarbonreductiontargets.In2021,296suppliershadactivetargetsforemissionreductionand154ofthemarealignedwithSBTi.Inaddition,80suppliersproposedreductioninitiativesandcollabora-tionopportunitieswithNokia(Nokia,2021).■Co-developingdecarbonizationtechnologieswithecosystempartners:Collaborationofecosystempartnersiskeytosparkinnovationincarbonreductiontech-nologies.ApplehasworkedwithCarnegieMellonUniversity’sBioroboticsLabonnewapproachesandmethodsforrecycling,includingdevelopingmachinelearningmodelstosortelectronicwaste(e-waste)atscale,incorporatingX-rayimagingwithRGBimagingtoimprovetheaccuracyofdisassemblyandrecoveryofmaterials,andenablingarobotto“feel”byusinghigh-frequencyforcefeedbackandmachinelearning.Thiscollabora-tioncanpotentiallydelivermajoradvancesindevelopingtrulyintelligentrecyclinganddisassemblytechnology(Apple,2022).In2017,MicrosoftMSBTistartedtheAIforEarthprogram,empoweringindividualsandorganizationstodevelopinnovativesolutionstomonitor,modelandmanageEarth’snaturalsystemthroughgrants,technology,andaccesstodata.Thisprogramhassupported950projectsanddeployedmorethan20impactfulsolutions.In2020theprogramevolvedtobuildingthePlanetaryComputer,aplatformthatenablesscientists,developers,andpolicymakerstouseandbuildapplicationsthatmonitorandmanageenvironmentandclimateimpactsbyprovidingcomputingenvironment,APIs,andpetabytesofdata(Microsoft,2022).■Establishingaclimatechangefund:Tofurthercontributetotheecosystem,somelargecorporateshavesetupadedicatedclimatechangefundtoencourageinnovation.OrangelaunchedthefirstEuropeansingle-investorcarbonfund,OrangeNature,inDecember2021.Withaninvestmentof50millionEuros,thefundwillfinanceglobalcarboncaptureprojects,includingreforestationandrestoringnaturalecosystems,tocreatecarbonsinksthatnaturallyandsustainablyabsorbtheCO2intheatmosphere(Orange,2022).In2019,AmazoncreatedtheRightNowClimateFund,a100millionUSDfundfornature-basedsolutionstorestoreandconserveforests,wetlands,andgrasslandsaroundtheworld.Furthermore,inJune2020,AmazonannouncedtheClimatePledgeFundwithaninitialinvestmentof2billionUSDtosupportthedevelop-40mentofsustainableanddecarbonizingtechnologiesandservices.Asoftheendof2021,Amazonhadinvestedin13companiesinvariousindustries(Amazon,2022).Microsofthaslauncheda1billionUSDClimateInnovationFundtoacceleratetechnologydevel-opmentanddeploymentofnewclimateinnovations.Focusingonareassuchasdirectcarbonremoval,digitaloptimization,advancedenergysystems,industrialmaterials,thecirculareconomy,andsustainableagriculture,Microsofthashelpedandinvestedin23companies(Microsoft,2022).4.ProductinnovationandrecyclingNowadays,technologyactsasasocialinfrastructureandisacriticalforceinpushingforwardthedigitalizationanddecarbonizationofalmostallindustries.InnovativegreenproductsandproductrecyclinghavebecomethekeyfocusofmanyTMTcompanies.■Developingandlaunchinggreen/low-carbonproducts/services/solutions:Effortstoreduceproductenergyconsumptioncouldbemadeinproductdesignorevenafterproductlauncheswithsubsequentupgrades.TelefónicadevelopedasmartWi-Firouterthatconsumes30percentlessenergyandweighs40percentlessthanthepre-ex-istingsolution,usingthereforefewermaterialssuchasplasticsormetals.Inaddition,TelefónicareusestheequipmentandmaterialsofthenetworktransformationanddecommissioningprocessthroughMAIA,aninternaldigitalplatformlaunchedin2020thatallowsvisualizationofavailableequipmentandconnectwithotheroperatorstoencourageitsinternalreuse.Thankstothisinitiative,Telefónicahasmanagedtoreusemorethan73,000piecesofequipment,aligningwiththeindustry’sgoalofbecomingaZeroNetworkWastecompanyby2025(Telefónica,2022).Moreover,someTMTcompaniesprovidedigitaltoolsandsolutionsasalevertohelpwithdecarbonizationatanevenlargerscale.ChinaMobileMtookanactiveroleinharnessingthecarbonreductioneffectofdigital-intelligenttechnologiessuchas5G,IoT,CloudComputing&BigDataandArtificialIntelligencetobuild“Intelligentandeco-friendly”solutions,facilitatinghigherenergyefficienciesacrosssectorsandindustriestoreduceemissionsacrossthesociety.ChinaMobile’s9-Oneplatformsadvancedtothe2.0erain2021,withdeeplyintegrated5G+AICDEcapabilities,industry-specificdata,know-howandbusinessprocessestoempowerdigitalandintelligenttransformationofsectorslikeindustrials,healthcare,finance,andsmartcity.In2021,ChinaMobileleverageditsITproductsandsolutionstohelpreduce115kgofCO2emissionsforeveryTBofinternettrafficinsociety(ChinaMobile,2021).LeveragingitscapabilitiesincloudcomputingandAI,HuaweiisfacilitatingtheevolutionofSmartAgriculture,whichcouldfundamentallychangehowagriculturalactivitiesarecarriedoutandreducetheirclimateimpact,bothinChinaandoverseas.In2020,HuaweipartneredwithChinaMobiletodeploythefirst5GsiteontheHefengUnmannedFarminZibo,China(Huawei,2020).OnOctober4th2022,HuaweiandDronetech,Austria’slargestdroneserviceprovider,announcednewapplicationsin5Gsmartfarmingfacilities,showcasinghow5GandIoTtechnologiescanadvancesustainabilityintheagriculturefield(Huawei,2022).Alphabet,theparentcompanyofGoogle,isprovidingsolutionstoboostconsumerclimateawarenessandmakemoresustainablechoices.IntheUS,Canada,andEurope,GoogleMapshasrolled41outeco-friendlyrouting,whichindicatesthemostfuel-efficientroutebasedondrivers’enginetype.ThisfunctionalityhelpedremovemorethanhalfamilliontonsofcarbonemissionssincelaunchingintheUSandCanada(Alphabet,2022).GoogleTravelnowprovidesestimatedcarbonemissionsforflightsandmarkshotelswithaneco-labeltoenableconsumerstomakegreenertravelplans(Alphabet,2022).In2022,Googlesearchenginestartedtoshowemissionsestimatesforcarmodelsandmarkpre-ownedclothingwitheco-labelstoassistconsumersseekingtomakeclimate-awarepurchasingdecisions(Alphabet,2022).■Promotingacirculareconomy:Increasingamountofe-wasteposessignificantriskstotheenvironmentandhumanhealth.Yetonly17.4percentof54milliontonsofe-wasteareproperlycollectedandrecycledglobally(UNITAR,2020).LeadingTMTcompaniesaretacklingthisissuebylaunchingproductrecyclingprogramstopromoteacirculareconomy.Telefónicaisapioneerinrecyclingelectronicdevices.Itsrecyclingprogramhasgivennewlifetonearly4.7milliondevices,saving381,569tonsofCO2e(Telefónica,2022).Applecollectsdevicesforrefurbishingandreusethroughseveralprograms,includingitsAppleTradeIn,theiPhoneUpgradeProgram,AppleCare,andthecorporateHardwareReuseprogram.InFY2021,Applesent12.2milliondevicesandaccessoriestonewownersforreuse.Applealsorecyclesend-of-lifeproductsin99percentofthecountrieswhereitsellsproducts.Appledirectedmorethan38,000tonsofe-wastetorecyclinggloballyinFY2021(Apple,2022).Xiaomilauncheditsglobalrecyclingandtrade-inprogramstoreducee-wasteandpromoteacirculareconomy.Xiaomialsoformulatedastrictproductprotocoltoensurethatwastewashandledproperly.In2021,Xiaomirecycledover650,000smartphonesworldwide(about197tons),80to90percentofwhichwereresoldandreused(Xiaomi,2022).Similarly,OPPOM,aChineseconsumerelectronicsprovider,hasestablishedarecyclingsystemandconductedatrade-inbusinessinChineseandinternationalmarketstopromotetherecyclingandreuseofusedmobilephones.In2021,1.2millionmobilephoneswererecycledintheChinesemarket(OPPO,2021).42435.RepresentativeCorporateDeepDiveUNPhoto/ElmaOkic445.1DanoneMSBTi—FoodandAgriculture1.CompanyBackgroundDanoneisaleadingglobalfoodandbeveragecompany,aimingtobringhealththroughfoodtoasmanypeopleaspossible.2.TargetSettingBy2030,DanonecommitstoreduceScope1,2and3emissionsintensityby50percentandtoachieveanabsolutereductionofScope1and2emissionsby30percent,froma2015baseline.BothtargetswereofficiallyapprovedbySBTiin2017underthe2°Cscenario,makingDanoneoneofthefirst100companiestoalignitscarbonreductiontrajectorywiththeParisAgreement.Furthermore,inSeptember2019,DanonestrengtheneditscommitmentsthroughthesignatureoftheBusinessAmbitionfor1.5°Cpledge(Danone,2022).3.ClimateActionandGlobalCollaborationHighlightsInoperations,throughrenewableenergyandefficiencyimprovement,DanonereduceditsScope1and2CO2emissionsby48.3percentin2021comparedto2015(Danone,2021).Inaddition,twoofDanone’sMizoneplantsinChinaachievedcarbonneutrality14in2022andtheremainingonesareexpectedtobecarbonneutralby2023(DanoneChina,2022).■IncreasingtheshareofRE:BeingamemberofRE100,Danonecommittedtouse100percentrenewableelectricityby2030.Withcontinuouseffortsglobally,Danone’sshareofrenewableelectricitypurchasedreached68.5percentin2021(Danone,2021).Moreremarkably,in2021,itstwopilotcarbon-neutralplantsinChinaachievednotonly100percentrenewableelectricitybutalso100percentgreenenergy.Therenewableelectricityisprovidedbyon-sitesolarpanelsandpurchasedgreenpower,supplemented14.InScopes1and2.Note:OnlySDGsrelevanttothecasestudyarepresentedhere.45withrenewableenergycertificates.Andtheirsteamdemandsaremetviapurchasingcleansteamheat,suchasbiomasssteamatQionglaifactory(DanoneChina,2022).■Improvingenergyefficiency:Initsdailyoperationsandmanufacturing,Danonehasalsoactivelyandcontinuouslyimplementedaseriesofprojectstoimproveenergyefficiencyandreduceenergyconsumption.Forexample,Danone’smanufacturingplantinZhongshan,China,replacedthetraditionalairconditionerswithadvancedabsorptionheatpumptechnology,saving230,000kWhofelectricityand76,000cubicmetersofnaturalgasannually.Inaddition,theheatrecoveryprojectlaunchedin2015canreducesteamconsumptionby46,000tonseveryyear.Furthermore,thelowmoldtemperaturebottle-blowingtechnologyco-developedwithsuppliersreducesthemoldtemperatureby20°C,reducingsteamdemandinthebottle-blowingprocess.Withtheaboveandotheradvancedinitiatives,Danone’sMizoneproductsachievedanaveragedecreaseof70.5percentinenergyconsumptionfroma2004baseline(DanoneChina,2022).Inthevaluechain,DanonereducedScope3emissionsfrom24,974tonsin2020to23,733tonsin2021,a4.1percentreductionachievedthroughmultipleinitiativesthatpromotecollab-orationintheecosystem(Danone,2021).■Evaluatingandtrackingsuppliers’climateperformance:Asafoundation,allsuppliersofDanonearerequiredtoadheretoDanone’sSustainabilityPrinciplesforBusinessPartners.Assetforthintheprinciples,allsuppliersshallworkatmeasuringdirectandindirectGHGemissionsandminimizeoverallGHGemissions(Danone,2022).Tomakesurethatthedecarbonizationeffortsareassociatedwithmeasurableoutcomes,DanoneiscollaboratingwithsuppliersthroughplatformslikeCoolFarmTool.CoolFarmToolisadecisionsupportandengagementtoolthatenablesfarmerstobenchmarkandassesstheircarbonfootprint.Itkeepsfarmersinformedontheircarbonfootprint,allowsformoredatatransparency,andencouragesclimate-friendlypractices.InFrance,DanonemeasuredtheresultsofLes2PiedssurTerreprogram,whichhelpedFrenchfarmersintheircarbonfootprintreductionjourneywithtraining,diagnosisandtechnicalsupport.Overall,around1,400farmersparticipatedinthisprogram,andthepartnerfarmsachieved10percentdecreaseinemissionfactorcomparedto2016(Danone,2021).■Optimizingpackagingdesign:Danoneaimstomakeitspackaging100percentcircularby2025,keepingmaterialsinuseandoutofnature.Asof2021,84percentofitspackagingisdesignedtoberecyclable,reusableorcompostableand34percentcomesfromrecycledmaterials(Danone,2021).DanoneChinatakespackagingdesignoptimizationevenfurtherinbeverageproducts.Whilekeepinghigh-qualitycustomerexperience,thecompanysuccessfullyreducedtheplasticweightoftheMizonebottleby30percentvs.the2004levelthroughlight-weightdesign,andthebottlewasmade100percentrecyclableby2021.Meanwhile,DanoneiscollaboratingwithLanzaTechtoproducesustainablepolyethyleneterephthalate(PET)bottlesfromcapturedcarbon.Thisinnovativetechnologyconvertscarbonemissionsdirectlyintomonoethyleneglycol(MEG),whichreducescarbonemissionssignificantlycomparedtotraditionalprocesses(DanoneChina,2022).46■Promotingacirculareconomy:Besidescircularpackaging,wastemanagementisanotheressentialactionbyDanonetodrivethebuildingofacirculareconomy.Withits7R(regulation,recognise,reduce,reuse,recycle,recover,refuselandfill)wastemanage-mentprinciples,DanoneMizoneplantsinChinaavoided257tonsofwasteandrecycledmorethan7,827tonsin2021.Alltheplantssuccessfullygainedthehighestthree-starawardofTÜVRheinlandZeroWastetoLandfillManagementSystemin2021,whichmeansthatmorethan99percentofwastewasfullyrecycled,embodyingthecirculareconomy(DanoneChina,2022).■Decarbonizinglogisticsdistribution:Danoneactivelypromotestheelectrificationofdistributionvehicles.BeginningwiththefirstfivepilotcitiesinChina(Xi’an,Zhengzhou,Chengdu,Shenzhen,Haikou),morethan80percentofthecitieswilluseelectricMizonedistributionfleetby2022.DanoneWatersChinaplanstoexpandtheutilizationofelectricvehiclestoalltheplantsandcitieswhereadistributioncenterisbasedby2024.Meanwhile,DanoneWatersChinaisactivelyreplacingforkliftswithlithiumelectricdrivevehicles,whichare30percentmoreenergyefficient.Theinitiativewillsaveabout380,000kWhofelectricityperyearandreduceDanone’scarbonfootprintinlogistics(DanoneChina,2022).■Reducingemissionsfromlanduseandfarmingactivities:Asafoodcompanywith60percentofemissionscomingfromagriculture,Danoneengagesinreducingemissionsfromlanduseandfarmingasaleaderinregenerativeagriculture,bothdirectlyimplementingdecarbonizationinitiativesandsharingtheknowledgewiththefarmingcommunity.IntheUS,Danonehasacomprehensiveregenerativedairyprogramthatreduced80,000tonsofCO2eandsequesteredmorethan20,000tonsofCO2ethroughpracticeslikereducingtillageandchemicalpesticidesandexpandingcovercrops(Danone,2021).TheDanoneEcosystemFundco-createdmorethan45projectswithNGOstohelpfarmerstransitiontoregenerativeagriculture(Danone,2021).Danonecarefullydocumentedthelessonslearnedfromtheseprojects.ByworkingwithWWFFrance,technicians,andagroupofenvironmentalandagriculturalexperts,DanonecreatedtheDanoneRegenerativeAgricultureScorecardandtheDanoneEnvironmentalHandbooktodefinebestregenerativepractices(Danone,2022).In2021,DanonelaunchedtheDanoneRegenerativeAgricultureKnowledgeCenter,anopen-sourcewebsitededicatedtosharingknowledgefromthefieldonavarietyofproductions(dairy,plant-based,fruits,vegetables,cereals,etc.),withfarmers,farmadvisors,fieldtechni-ciansandtechnicalpartners(Danone,2022).■Co-developingbestdecarbonizationpracticeswithecosystempartners:Danoneisworkingwithawiderangeofpartners,designinganddeployingsustainablesolutionswithresearchers,consumers,NGOs,healthprofessionals,famers,suppliers,retailersandgovernmentagencies(Danone,2022).Bothpeer-to-peerlong-termcollaborationsandsmallerprojectswithpartnersareconductedcongruently.Athree-yearcollabora-tionbetweenFrieslandCampinaSBTiandDanonehasledtoover17percentreductioninGHGemissionsfrom2015to2020,realisedthroughimplementingsustainablefarmingpracticesandgreenenergyprojects(FrieslandCampina,2022).Parallelly,theDanone47Ecosystemprogramprovidesknow-how,technicalexpertise,andfinancialsupporttosmallerprojectsintheecosystems,mainlyfocusingonresponsiblesourcingandcirculareconomy(Danone,2022).LessonsforOtherCorporates■Standardizethesuppliermanagementprocess:Managingadiversebaseof100,000suppliersand59,000dairyfarmersandtrackingtheirclimateperformancemaybeadauntingtask,butDanonehasdiscoveredawaythatsavestimeandacceleratesimpact(Danone,2021).Danonespendstimeandresourcestoidentifytheirkeyneedsinmanagingsuppliers,selectthetoolsthatmeettheirneeds,suchastheCoolFarmTool,anddeliverthetoolstosupplierssothattheycouldimprovetheirclimateperformanceindependently.Thismethodallowsforanautomatedprocessofengagement,poweredbydigitalizedsolutionsthatgeneratedatatoinformsupplierevaluationanddrivefurtheroptimization.■Scaleandreplicatethesolutions:Asamultinationalconglomerate,Danoneattachesgreatimportancetojointinnovationandproblem-solving.IntheDanoneEcosystemandmanyotheraffiliatedprograms,Danoneidentifiesthebestpracticesandtechnologicalinnovations,testsandadoptsthem,andconsolidatestheknowledgeforotherstolearn.TheproliferationofclimaterelateddataandcontenthasgeneratedunprecedentedvalueforbothDanoneanditsecosystempartners,allowingthemtoscaleandreplicatethesolutionsasneeded.Throughthisapproach,Danonehasbecomeaclimateleaderintheindustry.48495.2MarsMSBTi—FoodandAgriculture1.CompanyBackgroundMars,Incorporatedisaglobalfamily-ownedbusinessthatoperatesacrossconfectionery,food,andpetcareproductsandservices,withthemissionoftrans-forming,innovating,andevolvingtomakeapositiveimpactontheworld.2.TargetSettingIn2017,MarssetabsolutetargetstoreduceScope1,2and3GHGemissionsby27percentby2025and67percentby2050froma2015baseyear.Withinthatgoal,thecompanycommitstoreducescope1and2emissionsby42percentby2025and100percentby2040.Thosenear-termtargetsfor2025areapprovedbySBTiinlinewiththe1.5°Ctrajectory(SBTi,2022).In2021,Marscommittedtoachievenet-zeroemissionsby2050andwillsoonsetatargetfor2030(Mars,2022).3.ClimateActionandGlobalCollaborationHighlightsThroughitseffortsinbothoperationsandthevaluechain,Marshada6.1percentreductioningreenhousegasemissionsin2021,comparedtoits2015baseline.Inoperations,Marshasbeenfocusingprimarilyonswitchingtorenewableandlow-carbonenergy,whileitcontinuestopursueinnovativesolutionstoreduceenergyuseinitsdirectoper-ationsthroughenergy-efficientsolutions.■IncreasingtheshareofRE:Marsistakingstridestowardstransitioningtorenewables,andnowsource100percentrenewableelectricityfordirectoperationsin11markets,accountingformorethan53percentofitselectricityglobally.Marsplanstomaketheswitchto100percentrenewableelectricityindirectoperationsinanothereightmarketsby2025.■Optimizingrefrigerationsystems:Marsusesrefrigerationequipmentforbuildingairconditioning,factoryproductionprocesscooling,andpoint-of-saleunitslikeicecreamNote:OnlySDGsrelevanttothecasestudyarepresentedhere.50freezersandvendingmachines.Somecoolingequipmentutilizessyntheticrefrigerantgaseslikehydrofluorocarbons(HFCs),whicharepotentGHGiftheyescapeintotheatmosphere.TheGWP-100ofHFCscanbeupto14,60015timeshigherthanthatofCO2.Tomakefuturerefrigerationsystemsmoresustainable,MarsiscommittedtostopinstallingmoreHFC-basedsystems.By2021,theproportionofnaturalrefrigerantsinitsfactoryrefrigerantinventoryexceeded50percent.InMarch2022,MarscommittedtomorerigorousclimateactiontoavoidadditionaluseofHFCsinitsbusiness,whichincludeusinglow-orzero-globalwarmingpotentialgasesintheconfectioneryvendingmachines.(Mars,2022).Inthevaluechain,Marsprimarilyfocusesonreducingtheimpactoflanduseandpackaging.Intheupstream,Marsischallengingmorethan20,000supplierstotakeclimateactionandtosetmeaningfultargets.Intheecosystem,Marsalsoemphasizescollaborationwithpartnerstoinnovate,developandapplytechnologiesthatchangethelandscape.■Reducingemissionsfromlanduse:AtMars,80percentofcarbonemissionsarefromitsagriculturalvaluechains,whichincludesapproximately42percentfromlandusechangeand38percentfromagriculture.Toreduceemissionsinthisarea,bothdeforestationpreventionandimprovementsinagriculturepracticeswereimplemented.Indeforestationprevention,Marshascommittedtodeforestation-freesupplychainsinfivekeycommoditiesby2025andistransformingsupplychainstodeliverthistarget.MarsisapartoftheConsumerGoodsForum’s(CGF)ForestPositiveCoalition,callingforanti-deforestationactionbeyonditsdirectsupplychainandworkingwithpeerstoreporttransparently.Inagriculture,Marsisadvocatingthebestpracticestoimproveproductivityandyieldswithoutpermanentlydestructingtheland.Toimproveproductiv-ity,Marsworkswithfarmersandsupplierstopromoteimprovedagriculturalpractices,includingclimate-smartandregenerativeagriculture;partnerswithsuppliers,civilsocietyandothercompaniestopromotesustainablelanduse;andsupportsscienceandtechnology,suchasgenomicsresearch,thatproducesmoreresilientandhigheryieldingcropstoreduceattrition.Asaresult,whilekeepingbusinessstrong,Marshasachievedareductioninlanduseby3.1percent,resultinginan8.9percentreductioninGHGemissionsby2021(Mars,2021).■Optimizingpackagingdesignandpromotingacirculareconomy:Marsintendstocontributetoacirculareconomywheremostpackagingmaterialneverbecomeswaste.Marsisinvestinghundredsofmillionsofdollarsineliminatingand/orredesigningmorethan12,000packagingcomponentstoensureitisusing100percentrecyclable,reusableorcompostablepackaging.Eliminatingunnecessarypackagingisanessentialpillarinachievingthegoal.InChina,Marssaved450tonsofplasticbyreducingtheamountofpackagingmaterialusedinDovechocolatecontainers,andhasdeployedeightprogramssofartotestreusablepackagingandinnovativereusemodelsinmarkets,ontracktoreachthegoalof10programsby2025.In2021,MarslaunchedM&MColorWallswithFrenchretailerCarrefourMSBTi,enablingconsumerstofillreusablecontain-15.AccordingtoIPCCAR6,theGWP-100valueofHFC-23is14,600.51erswiththeM&Mcoloroftheirchoice.Additionally,Marsisredesigningnecessarypackagingforcircularity.Almosthalfofitspackagingportfolioisundergoingaredesigntobecomecompostableorfitwithintherecyclinginfrastructure.AsapilotexampleofMars’explorationofalternativepackagingmaterials,morethan90percentofthepackaginginalmostamillionBalistobarsinGermanywaschangedtopaper.Moreover,Marsisinvestingtoclosetheloop.Workingtowardsusing30percentrecycledcontentacrossitsplasticpackagingportfolio,itishelpingtocreatedemandforrecycledmaterialsandencourageinvestmentintorecyclingsystems.In2020,MarslaunchedSHEBApetfoodpouchmadefromrecycledplastic,thefirstinthepetfoodindustrytousefood-saferecycledmaterialinwet-foodflexiblepackaging.InOctober2022,itsKINDbrandintheUnitedKingdomandIrelandannounceditwouldmovetoamono-materialpackagingthatincorporated30percentadvanced(chemical)recycledfilmplasticmaterial.InThailand,Mars’SWAPRecyclingprogramofferedpetownersdiscountsforreturningtheiremptypetfoodbags,whichresultedintherecoveryofmorethan35,000bagsofusedplasticpetfoodpackagingin2021(Mars,2021).■Co-developingdecarbonizationtechnologieswithecosystempartners:MarsiscollaboratingwithpartnersonallthreeinitiativesthatarekeyleverstoMars’ownclimateperformance—thermalenergy,regenerativeagriculture,andcircularpackaging.Thermalenergymakesupnearlytwo-thirdsofMars’currentenergydemandindirectoperations.MarspartneredwiththeRenewableEnergyBuyers’AllianceandotherstolaunchtheRenewableThermalCollaborative,acoalitionforscalinguprenewableheatingandcoolingsolutions.Thecoalitionisworkingonlow-carbon(suchascertainbiomassoptions)andzero-carbon(suchassolarthermal)energysourcesatprojectandstructurallevels,tomakeiteasierforallcompaniestoprocureandsourcelow-carbonthermalenergy(Mars,2022).Inregenerativeagriculture,MarsischairingtheSustainableMarketsInitiative’sAgribusinessTaskForcetouncoverwhatactionsareneededfromeachpartofthevaluechaintomakeregenerativeagricultureano-brainerbusinessdecisionforfarmers.Forcircularpackaging,congruentwithMars’internalinitiatives,italsoforgedtwo-yearpartnershipwithDanimerScientific,aleadingdeveloperandmanufacturerofbiodegradablematerials,todevelopinnovativeindustrialandhome-compostablepackagingstartingintheUS.DanimerScientificandMarsalsoplantointroduceNodaxpolyhydroxyalkanoate(PHA)intoflexibleandrigidpackagingthatreliablybreaksdowninbothindustrialcompostingfacilitiesandbackyardcompostunits,offeringanenhancedvaluepropositionforenvironmentallyconsciousconsumersandretailers.NodaxPHAisproducedthroughnaturalfermentationprocessesusingplantoilssuchassoyandcanolaandbiodegradesinbothsoilandmarineenvironmentsandcanserveasanalternativetotraditionalpetrochemicalplastic,exertingamuchlowerclimateimpact(Mars,2021).52LessonsforOtherCorporates■Decoupleemissionsfrombusinessgrowth:Marssetcredibleclimatetargetsandworktoimplementthembydecouplingtheiremissionsfrombusinessgrowth,whichmeansthatallclimateactionsareprioritizedbasedonscience,notonbusinessobjectives.Marsincludesallthreescopeswhensettingclimategoalsandmarks5-yearmilestonestotrackprogress.Marsisconcernedaboutnotonlythebusinessvaluesfrompartnershipsinthevaluechain,butalsothelong-termclimateprogressofitssuppliersandpartners.■EmbedGHGreductionsinthebusinessagenda:Marsunderstandsthecriticalityofdelivering“long-termvalue”beyondprofit.Todrivedirectimpact,MarshasembeddeditssustainabilityagendaintotheMarsCompass,thecompany’sshareholderobjectives,ensuringfromstarttofinishthattheirinitiativesarebeneficialforboththebusinessandtheworld,forgenerationstocome.Forexample,executiveremunerationforthecompany’stop300leadersisweightedbasedonnotjustfinancialbutalsoemissionsandpackaginggoals.Thisiscriticalforconsistentlydeliveringresultsonclimategoals.■Buildcross-industrypartnerships:Marsrecognizesthatbusinessescannotfightclimatechangealone;fixingclimateissuesisagenerationalchallenge,soitisimperativetobuildlastingpartnershipswithNGOs,governmentsandindustrypartners,tohelptransformthesystemsthathaveresultedinpervasiveandintractablechangestotheclimate.Fosteringandjoiningcoali-tions,suchasForestPositiveCoalitionandRenewableThermalCollaborative,couldcreatesynergyinthecollaborationswithpartnersupanddownthevaluechainandacceleratetheprogresstowardstheclimategoals.53545.3SchneiderElectricMSBTi—Manufacturing1.CompanyBackgroundSchneiderElectric(SE)isaleadingcompanyinenergymanagementandautomation,withthepurposeofempoweringalltomakethemostofourenergyandresources,bridgingprogressandsustain-abilityforall.2.TargetSettingSEhascommittedtoreduceitsabsolutecarbonemissionsacrossthevaluechainby25percentfroma2021baseline,by2030.SEalsotargets“net-zeroready”operations(scopes1and2)by2030,acommitmenttoreduceitsoperationalcarbonfootprintbyatleast90percent(comparedwithits2017baseyear)andremoveresidualemissions.This2030targetisvalidatedbytheSBTiaspartofa1.5°CambitionandtheirNet-ZeroCorporateStandard.The2040goalistoreachcarbonneutralityacrossitsfullend-to-endfootprint(scopes1,2,and3)(SchneiderElectric,2022).3.ClimateActionandGlobalCollaborationHighlightsInoperations,SEreducedcarbonemissionsby60percentbetween2017and2020,targetingNet-Zeroby2030(SchneiderElectric,2022).■IncreasingtheshareofRE:Since2017,SEhasacceleratedthesourcingofREthroughPPA,renewablecertificates,andgreentariffs.Theinstallationofon-sitesolarpanels,coupledwithSE’smeteringandpowerarchitectures,alsoeffectivelydecoupledSEfromnon-renewablesourcesofenergy.By2021,about200SEsitesused100-per-centRE,and47siteshadon-sitesolarpower.Asof2021,SEwassourcing82percentofelectricityfromrenewablesources,asignificantimprovementfrom2percentin2017(SchneiderElectric,2021).Note:OnlySDGsrelevanttothecasestudyarepresentedhere.55■Improvingenergyefficiency:Paralleltorestructuringitssourcesofenergy,SEwasalsodeterminedtoincreaseenergyproductivity,whichistheeconomicoutputfromeveryunitofenergyconsumed.TheSchneiderEnergyActionprogramengagessiteenergyexpertsalongwithSchneider’sSustainabilityBusinessconsultingteamtoreportandanalyzeenergyconsumption.Thisprogramhelpsidentifyenergy-savingopportunitiesanddeployactions.ThisagilemechanismimprovedtheproductivityofSEproductionlinesandhelpedSEachievea76-per-centenergyproductivityincreasein2021,comparedwiththe2005baseline(SchneiderElectric,2021).Inthevaluechain,SEismakingaclimateimpactbothupstreamanddownstream.■Optimizingprocurementofrawmaterials:Rawmaterialsareresponsibleforabout20percentofupstreampurchasingScope3emissions.Definingthestandardsofgreenmaterialspullsthethreadthatunleasheschangethatcanbemeasuredandevaluated.Startingwithsteel,aluminum,andplastics—materialsthatconstituteabout30percentofSE’sentirepurchasingvolume,SEconsultedexpertstosetreasonableyetrigorousstandardsbasedoncarbonemissionscut-off,degreesofrecyclabilityandotherclimateandresourceindicators.In2022,SEsources14percentofmaterialsthatmeetthegreenstandards(SchneiderElectric,2022).■Settingemissionreductiontargetstogetherwithecosystempartners:ThesuppliernetworkofSEaccountsforemissionsofmorethan7milliontonsofCO2peryear(SchneiderElectric,2021).AsSEbegantoauditandmanagetheclimateperformancesoftheirsuppliers,theyrealizedthatmanylackedtheresourcesandtools,albeitbeingawareofclimateissues,totakeclimateaction.Toovercomethisinertia,SElaunchedtheZeroCarbonProjectaspartofthe2021-2025SchneiderSustainabilityImpactprogram,engagingthetop1,000suppliersfrom64categoriesacrossdirectmaterial,indirectmaterial,andprojectprocurement.TheprojectrequiresparticipatingsupplierstomakecommitmentstoreduceandquantifytheirScope1and2emissionsandsharetheirprogresswithSE(SchneiderElectric,2021).ByAugust2022,70percentofsuppliershavedisclosedtheircarbonfootprintand30percenthadsetclimatetargets,asignificantimprovementfromlessthan30percentdisclosingtheirfootprintinApril2021(SchneiderElectric,2022).■Co-developingdecarbonizationtechnologieswithecosystempartners:Fromtheonset,SEhasjoinedforceswithmanylong-timeindustrypartnersingreenco-innova-tion—Microsoft,CiscoSystemsMSBTi,andSAPMSBTi,tonameafew.Moreover,SEestab-lishedopen-accessplatformsandprogramsfordigitalcollaborationwithecosystempartners,bringingtogetherthetoptalentsfromtheentireindustrytosolvereal-worldsustainabilityandefficiencychallenges.Membersoftheplatformcouldexchangeideasongreentechnology,shopthemarketplacefordigitalsolutions,accessdeveloperresourcessuchasdatasets,APIs,andSDKs,andengageindialogueswithaglobalnetworkofpeers(SchneiderElectric,2022).Theopenecosystemhadattractedmorethan650,000members,reaching300apps,and100communitiesasof2021(SchneiderElectric,2021).56■Deliveringdecarbonizationservicesandsolutionstocustomers:HelpingcustomersdecarbonizeisatthecoreofSE’svaluesandalignswithSE’svisionofbuildingamoresustainableworld.AtthecoreoftheofferingistheEcoStruxureplatform—anIoT-enabledarchitecturethatcollectsdatafromsensorsandanalyzesdatatodiscovermeaningfulinsights.Toquantifytheimpact,SEcalculatedcarbonemissionssavedandavoidedforcustomersthroughastandarddevelopedwithecosystempartnersandmaterialexperts.Perthecalculation,SEhashelpedcustomerssaveandavoid347MtCO2esince2018(SchneiderElectric,2021).SEalsooffersconsultingservicesforcustomerswhowishtodecarbonizetheirsupplychain.TheEnergizeInitiativewillhelp10pharmaceuticalgiantsreduceemissionsintheirsupplychainbyaggregatingdemandfrominterestedsupplierstopurchaseREsothatcompaniescanbenefitfromeconomiesofscale(SchneiderElectric,2022).LessonsforOtherCorporates■Takeastep-by-stepapproach:Schneiderhassetspecific,measurable,andrealisticgoalsinfivecompanyprograms(2005-2008,2009-2011,2012-2014,2015-2017,and2018-2020).Theseprogramsaretrackedandpublishedquarterlyandauditedannually.Bytheendofeachcycle,theleadershipreviewstheprogressanditeratesthetargets.Thecompanysecuresthelow-hangingfruits,suchassourcingREfirstandaggregatesmallstepsintoaremarkableimpact.By2021,SEpassedthehalfwaypointtoNet-Zerowithinoperationsandembarkedonthe2021-2025plan(SchneiderElectric,2022).■Trickle-downtheincentives:Bothshort-termandlong-termincentivesatSEincludeclimateasanimportantcomponent.Inshort-termincentives,SEembedsallaspectsofsustainabilityundersixpillars,oneofwhichisclimate.Since2011,sustainabilityperformancecriteriahavebeenembeddedintheincentivegoalsforgroupexecutives.TheyaredirectlylinkedtotheSchneiderSustainabilityImpact(SSI)targets.From2019,theweightoftheSSIcriteriahasincreasedfrom6percentto20percentinthecollectivepartoftheannualshort-termincentive,furtherhighlightingtheimportanceofsustainabilityonSchneiderElectric’sbusinessagenda.About64,000managersinthegrouphaveshort-termincentiveslinkedtotheachievementof11sustainabilitygoals,includingshort-termclimatetargets.Similartotheshort-termincentive,thelong-termincentiveplanalsohasaportionoftheawardsubjecttotheachievementofsustainabilityobjectives,includinglong-termclimatetargets(SchneiderElectric,2022).■Leadwithopenness:Breakingthesilos,opennessandcollectiveeffortareingrainedintheDNAofSE.Overtheyears,SEhassharedinsights,innovations,andresourcesacrosstheecosystem,asevidencedbythe17trainingsessions57engagingmorethan1,300suppliersandpartnersin2021.Toturntheone-offengagementsintosystematicpartnerships,SEestablishedopen-accessplatformsandprogramstocollaborateseamlesslywithecosystempartnersongreeninnovationsandshareideasinrealtime.Thispivotalmoveformedacoalitionofindustrypartnerswithclimateadvantagesandacceleratedtheclimateprogressoftheentirevaluechain(SchneiderElectric,2021).■Thinkonestepahead:ForSE,climateactionisnotmerelyoneofthestrategictargets.Rather,itrepresentsalong-termvisionandagroup-leveltransformation.Tostart,SEhassetanexamplefortheindustrybystayingaheadinsettingandfulfillingclimatetargets.SEdoesnotstopthere—itaimsto“Empoweralltomakethemostofourenergyandresources”(SchneiderElectric,2022).Eachyear,SEdevotes4to5percentofrevenuetodevelopegreenerproductsandsolutionsforitsoperationsandtheecosystem(SchneiderElectric,2022).Asaclimatesolutionprovider,SEempowerscustomerstosaveandavoidcarbonemissionswithdigitalsolutionsandfieldexpertise.585.4SiemensAGMSBTi—Manufacturing1.CompanyBackgroundSiemensisaglobaltechnologypowerhousefocusingonintelligentinfrastructure,automationanddigitalization,andintelligentmobilitysolutions.ViaitsmajoritystakeinSiemensHealthineersMSBTi,italsoprovidesmedicaltechnologyanddigitalhealthservices.Withexpertiseindigita-lization,electrificationandautomation,Siemensstrivestopioneerasustainablefutureacrosstheglobe.2.TargetSettingSiemenscommittedtoreduceabsoluteScope1and2GHGemissionsby50percentby2030,withanear-termtargetof1.5°C.Inthevaluechain,Siemensalsocommittedto15percentemissionsreductionby2030comparedto2019andtoaNet-Zerosupplychainby2050.The“D”inSiemensenvironmental,social,andgovernance(ESG)strategicframeworkDEGREEreferstodecarbonization,representingthecompany-levelcommitmenttothe1.5°Cglobalwarmingtarget(Siemens,2021).3.ClimateActionandGlobalCollaborationHighlightsInoperations,Siemensreduceditscarbonfootprintby54percentbetween2014and2020.Mostrecently,Scope1and2emissionswereslashedby12percentfrom2020to2021(Siemens,2021).■IncreasingtheshareofRE:ForSiemens,REissourcedprimarilythroughpurchasinggreenelectricity.InFY2021,morethan78percentofpurchasedelectricitywasfromrenewablesources.Comparedwiththeaverageelectricitymix,Siemenssuccessfullyreducedemissionsbyatotalof518,000metrictonsofCO2eperyear.Togainmorecontrolofitsenergysources,Siemensisalsoexploringothermeans,includingsigningPPAsforwindpoweranduseofbiogas.In2021,Siemensreducedcarbonemissionsby225,000metrictonsofCO2ecomparedtothebasecaseofusingconventionalnaturalgas(Siemens,2022).Note:OnlySDGsrelevanttothecasestudyarepresentedhere.59■ConstructNet-Zerosites:TofulfillthecommitmentsofEP100,aninitiativebytheClimateGroup,SiemenshaschosenthepathwayofNetZeroCarbonBuildings:Byowning,occupying,anddevelopingbuildingsthatareNet-Zeroinoperationandembodiedcarbonby2030(TheClimateGroup,2022).Leveragingtheexpertiseonpowermanagementandautomation,Siemensisbuildingnewcarbon-neutralbuildings,mod-ernizingexistingbuildings,andleasingofficespacewiththelowestpossibleemissions.AsofSeptember2022,32SiemenslocationshaveachievedNet-Zeroemissionsinoperations(Siemens,2022).In2022,SiemensputintooperationtheDigitalNativeFactoryinNanjing,ahighlyenergy-efficientandsustainableproductionsitewithdedicatedPVpower,automaticLEDlighting,andhigh-efficiencypumps,fansandcoolingelements.Thefactoryisprojectedtosave5,000,000kWhofelectricityand3000tonsofCO2eperyear,comparedwithtraditionalproductionsites(Siemens,2022).Inthevaluechain,Siemensreducedemissionsby7.6percentfrom2020to2021.Todecar-bonizethevaluechain,Siemenshasunderscoredtheimportanceofproductlifecycleassess-mentbydevelopingaframeworkofRobustEco-Design,whichgovernstheentireprocessfromprocurement,manufacture,sales/service,use,reuse,torestoration/recycling.Theprogramaimstoupgradethedesignofproducts,services,andsolutionstomeetstrictstandardsofenvironmentalcompatibility.Siemenssparesnoeffortinthisprogram:inFY2021,26percentofSiemens’productswerealignedwiththeRobustEcoDesigncriteria,andthegoalistorollitouttoallproductsby2030.■Optimizingprocurementofrawmaterials:Attheprocurementstage,Siemensfocusesonincreasingtheproportionofsecondaryrawmaterials—recycledmaterials—formetalsandplastics,therebydecouplingfromnaturalresources.In2021,38percentofprocuredmetalswassecondary.Forindustrialplastics,becauserecyclingchainshavenotyetbeenfullyestablished,Siemensistakingtheleadinpublishingguidelinesforpurchasingsecondaryplasticsinternally.BymaintainingclosecontactwithrecyclingpartnersandasamemberoftheEuropeanCircularPlasticsAlliance,Siemenshopestofurtherdevelopandpublicizeeco-friendlyproductspecificationsandmaterialstandardsforindustrialplastics(Siemens,2022).■Settingemissionreductiontargetstogetherwithecosystempartners:Siemensstartedtheroll-outofthe“CarbonReduction@Suppliers”programinJanuary2021,andbythesummerof2022,theprogramhadengagedapproximately10,000suppliers.Suppliersarekeentoparticipate,andtheresponseratewasmorethan50percentin2022.AttheheartoftheprogramistheCarbonWebAssessmenttool,acomprehensivetoolthatallowssupplierstoassesstheircarbonfootprintandunderstandwhichtargetswouldprovemostefficientinreducingtheircarbonemissions(Siemens,2022).Tostart,thedigitaltoolembodiestwoelements:ittrainssuppliersonthebasicsofdecarboniza-tionandcollectstheiremissionsdataperiodicallythroughquestionnaires.Afterperiodicengagementswithsuppliers,thetoolanalyzesthedataandsuggestsaboutpossibledecarbonizationmethods,comparingsupplierdatawithsectoraverages.In2021,theaverageemissionreduction(againstcalculatedsectoraverage)was7.6percentpersupplier(Siemens,2022).60■Deliveringdecarbonizationservicesandsolutionstocustomers:TheEnvironmentalPortfolioofSiemensconsistsofproducts,solutions,andservicesthatenablecustomerstoreducetheircarbonemissions,lowerlifecyclecosts,andprotecttheenvironment.Theofferingsincludecomponentsforsmartanddistributedpowergrids,frequencyconverters,railtransportationofpassengersandgoods,andbuildingtechnology.TherevenuesgeneratedontheSiemensEnvironmentalPortfolioamountedto€19.1billioninthepastFY,accountingfor31percentoftotalrevenue.WithalltheEnvironmentalPortfolioelementsinuse,Siemenshelpedcustomersreduce87.5millionmetrictonsofCO2einFY2021(Siemens,2022).LessonsforOtherCorporates■Decarbonizetheentireproductlifecycle:TheRobustEcoDesignprogrammanifestsSiemens’sdeterminationtodecarbonizeeverystageoftheproductlifecycle,andexhibitsthecompany’sstrongproductstewardship.Thisprogramensuresthatcorporateclimateperformancecanbeevaluatedonaproductbasis,ensuringacleardelineationofresponsibilities,andincreasingtheeffectivenessofclimateactions.■Understandsuppliersandguidethemtotheanswer:Ascorporatesextendtheirrangeofclimateactions,Scope3,especiallysupplychaincarbonemissions,hasbeguntotakecenterstage.In2018and2019,Siemenssurveyed9,000suppliersin93countries,askingiftheyhadtransparencyintheircarbonfootprint,andonly15percentcouldshowresults.Themajorpainpointofsupplierswasdatatransparency:measuringandmonitoringtheirownfootprintsregularlyandsettingreasonableclimatetargets.Moreover,ittakespreparedguidancewithregularcheck-instomakeareverberatingimpact.WiththeCarbonWebAssessmenttoolthathelpssuppliersgetoutoftheshadows,SiemensnotonlyshedslightonitsownScope3,butalsomitigatesvaluechainrisksandstrengthensclimateleadership.■Harnessthepowerofdigitalization:Digitaltechnologieshaveproventobeapowerfultoolfordecarbonizationinoperations,andforupstreamsuppliersanddownstreamcustomers.Inoperations,Siemensisdesigningthenextgen-erationofdigitalfactories,connectingthedotsintheoperationstomaximizeefficiencyandminimizecarbonfootprint.Inthesupplychain,theCarbonWebAssessmenttoolmanifeststhevalueofdigitalconnectivity.Forcustomers,Siemensisprovidinglow-carbondigitalsolutions,whichcouldbeappliedtovariousscenariosinindustriesthatarekeytoclimateaction—energy,construction,transportation,andsoforth.AlltheprogressSiemenshasmaderevealsthepotentialofdigitalizationinNet-Zeroinitiatives.61625.5LenovoMSBTi—Technology,MediaandTelecom1.CompanyBackgroundLenovoisamultinationaltechnologycompanyinpersonalcomputer(PC),server,storage,mobile,solutionsandservices,focusedonavisiontodeliversmartertechnologyforallandbuildamoreinclusive,trustworthy,andsustain-abledigitalsociety.2.TargetSettingLenovocommittedtoreducingabsoluteScope1and2GHGemissionsby50percentandtheemissionintensitiesofthethreelargestScope3categoriesby25percentbyFY2029/30fromtheFY2018/19baseline.ThesetargetswereapprovedbySBTiinlinewiththeParisAgreement’s1.5°Ctrajectory.Additionally,inMarch2022,LenovosignedtheSBTicommitmentletter,committingtoavisiontoachieveNet-Zeroby2050(Lenovo,2022).Lenovo’sNet-ZerotargetsarecurrentlyunderreviewbySBTiforalignmenttotheirNet-ZeroStandard.3.ClimateActionandGlobalCollaborationHighlightsInoperations,Lenovohasimplementedmorethan190operationalenergy-efficiencyprojectsworldwideandincreasedtheamountofon-sitegeneratedandpurchasedRE.Lenovo’sabsoluteScope1and2GHGemissionswerereducedby15percentinFY2021/22fromtheFY2018/19baseline,aremarkablesteptowardsthe50percenttargetinFY2029/30.In2021,Lenovolauncheda“CarbonNeutralFactory”project,theTianjinSmartInnovationServiceIndustrialPark,alighthouseprojectthatautomatesupto60percentoftheproductionlinethroughIoT,AI,andDigitalTwintechnologies,equippedwithdistributedPVpanelsproducing2,630,000kWhperyear(Lenovo,2022).InSeptember2022,theTianjinSmartInnovationServiceIndustrialParkwasofficiallyputintooperation.■IncreasingtheshareofRE:Lenovohassetatargettoobtain90percentofitsglobaloperation’selectricityfromrenewablesourcesbyFY2025/26.Itplanstoachievethroughtheinstallationofon-siteREgenerationunits,signingofPPAagreements,andthepurchaseofrenewableenergycertificates(Lenovo,2022).Note:OnlySDGsrelevanttothecasestudyarepresentedhere.63■Improvingenergyefficiency:Toboostproductionefficiency,Lenovodevelopedanddeployedavarietyofenergy-savingtechnologies,includinglow-temperaturesoldering(LTS)andcryogenicnitrogengeneration.Notably,theLTStechnologyledtoacarbonemissionreductionofmorethan10,000metrictonssinceitslaunch.Tofurtherdecarbonizetheproductionline,LenovoalsodevelopedtheLenovoAdvancedProductionSchedulingSystem(LAPS),asmartresourcedispatchsystemwhichslashedcarbonemissionsbymorethan2,000metrictonsofCO2eperyearbyincreasingproductivityanddecreasingtheequipmentvacancyrate(Lenovo,2022).Inthevaluechain,Lenovo’sScope3emissionsintensityfrompurchasedgoodsandservicesanduseofsoldproductsdecreasedby7percentand2percent,respectively,inFY2021/2022fromabaseyearofFY2018/19.LenovohasalsocommittedtoeliminatingonemilliontonsofGHGemissionsfromthesupplychainbyFY2025/26fromabaseyearofFY2018/19.■Empoweringandevaluatingsuppliers’climateperformance:InLenovo’s“SupplierCodeofConduct”,suppliersarerequiredtosetclimatetargets.Climatechange-re-latedindicatorsareaddedtotheSupplierESGScorecard,includingtheindicatorof“committedorhavesetscientificclimatetargets”.Thescorecardisupdatedeveryquarter,andtheprocurementteamfollowsupontheprogressofsuppliers’ESGperformanceincludingclimatetargetsettingandprovidesthenecessarysupport.In2021,Lenovo’ssupplierengagementeffortscoveredthetop94percentofprocurementspend;92percentofsuppliersbytotalprocurementspendhadpublicGHGreductiongoals,and54percentbytotalprocurementspendhadREgoals(Lenovo,2022).■Developingandlaunchinglow-carbonproducts/services/solutions:Lenovohasdemonstratedthatelectronicproductshaveahighpotentialtobemoresustainable.In2022,LenovolaunchedtheYogaSlim9i,alaptopcertifiedforcarbonneutralitybyTÜVRheinland(TÜVRheinland,2022)andENERGYSTAR,alsoratedasSilverEPEAT.Forthefuture,Lenovohassetagoalofincreasingtheenergyefficiencyofitsdesktopsandserversby50percentandnotebookandMotorolaproductsby30percentbyFY2029/30,comparedtoFY2018/19.Inservices,LenovooffersaCO2offsetservicethatCCERcanbepurchasedatpointofsalefortheestimatedcarbonemissionsassociatedwithselectdevicesovertheirentirelifecycle,includingrawmaterials,manufacturing,shipping,andusage.Neptuneliquid-coolingtechnologyisoneofLenovo’sflagshipsolutionsforlow-carbondatacenters.Lenovohasinstalledmorethan50,000liquidcoolingnodesindatacentersaroundtheworld.Thisenergy-efficienttechnologyhasbeenappliedtomultiplemilestoneprojectsincludingdecarbonizingdatacentersofChina’sEast-to-WestComputingResourceTransferProject,supportingtheBeijingMete-orologicalBureauduringthe2022WinterOlympics,andcontributingcomputingpowertothefirstimageoftheblackholeatthecenterofourgalaxy.Theliquid-cooleddatacenterscanattainaPUE16oflessthan1.1,reducingenergyusageandcarbonemissionbymorethan42percentcomparedwithothermethodsofcooling(Lenovo,2022).16.Powerusageeffectiveness,theratioofthetotalamountofpowerusedbyacomputerdatacenterfacilitytothepowerdeliveredtocomputingequipment.64■Optimizingpackagingdesign:Decarbonizationofpackagingisachievedthroughtwoinitiatives:reducingpackagingmaterialsandsizebydesignandupgradingthepackagingwithmoresustainablematerials.InFY2021/22,Lenovoreducedtheuseofpackagingmaterialsby497metrictons.Inaddition,throughinnovativepackagingtechnologiessuchasbamboofiberandtapelessboxdesign,ThinkPadX1andZseriespackagingbecame“zeroplastic”(Lenovo,2022).■Collaboratewithpartnersondecarbonization:Lenovobelievesthatcollaborationiskeytoamoresustainablefuture.LenovodevelopedtheLowTemperatureSoldering(LTS)methodforproductmanufacturingin2018.LTSisaversatiletechnologythatcanbeusedtoreducetheemissionscreatedduringthemanufacturingofcomputerpartssuchasthemotherboard,RAM17,SSD18,touchpad,andWLAN/WWAN19.In2020,Lenovolaunchedtheindustry’sfirstLTSmemoryincollaborationwithanupstreamsupplier.Afterachievingmassproductionin2020,Lenovosharedthetechnologywithotherupstreampartners,resultinginfivemillionunitssold,reducingcarbonemissionsbyfourpercentcomparedwithtraditionalsolderingmethod.Lenovoplanstocollaboratewithmorepartnerstodrivetheentirevaluechaintowardslow-carbontransformation(Lenovo,2022).Intheprocess,Lenovohasrealizedthateffectivecollaborationrequireswell-writtenindustrystandards.InSeptember2022,the“GeneralSpecificationsforAssessmentofCarbonNeutralityFactory”wasofficiallypublishedbyanallianceofacademiaandindustry,includingcompaniessuchasLenovoandresearchinstitutionssuchasChinaElectronicsStandardizationInstitute,afteratest-runattheLenovo(Tianjin)SmartInnovationServiceIndustrialPark(CesiCertificationCo.,LTD.,2022).Earlierin2022,LenovolaunchedacollaborativeinitiativecalledLenovo360Circlewithdownstreamecosystempartners.Lenovoaimstoempoweritschannelecosystemtoinfluenceandsupportnewmarketneedswhileacceleratingdecarbonization.Lenovoisbuildingthiscommunitytobreakdownbarriersandencouragecollaborationaroundsustainability.Sincetheendof2021,Lenovohasbeenpartneringwithkeychannelplayerstodevelopanindustryblueprintaroundproductlifeextensionandproducttransformation.Raisingawarenesswhileensuringcollectivelearningwillacceleratethetransitiontomoresustainablebusinessmodelsandsupportclimatechangemitigationefforts.■Promotingcirculareconomy:Lenovo’sapproachtocirculareconomyisprimarilyfocusedonproductend-of-lifemanagement(PELM),aprogramwhichreducestheinputofrawmaterialsthroughproductrecyclingandproduct/componentrefurbishment.In2021,5.5percentofallwastewasreusedasproductsorcomponents,and88.2percentwasrecycled.InJanuary2021,Lenovotooktheleadinmass-producingchargerswith95percentPostConsumerRecycledContent(PCC),whereasthePCindustrygenerallyuses25-50percent,andincreasedtheratioto97percentinbatterypackenclosureand98percentinthespeakerenclosure.Intotal,Lenovoreducedcarbon17.Random-accessmemory,thehardwareinacomputingdevicewheretheoperatingsystem,applicationprogramsanddatainusearekeptsotheycanbequicklyreachedbythedevice’sprocessor.18.Solid-statedrive,asolid-statestoragedevicethatusesintegratedcircuitassembliestostoredata19.Wirelesslocal-areanetwork/Wirelesswideareanetwork.65emissionsbyabout1,600tonsin2021andisexpectedtoachieveacarbonreductionofabout2,800tonsin2022.Additionally,Lenovocontinuestoexploretheuseofrecycledmetalsandothermaterials,usingrecycledaluminumandmagnesiumalloysforselectcoversinselectproducts.Forexample,in2021,Lenovointroduced75percentrecycledaluminumfortheA/CcoversoftheThinkPadZ13Gen1andThinkPadZ16Gen1,and50percentrecycledaluminumfortheAcoveroftheYoga6Gen7,and90percentrecycledmagnesiumfortheA/CcoversoftheThinkPadX13sGen1.Plasticrecyclingisalsobecomingacriticalcomponent.Asastartingpoint,Lenovoused“zerovirginplastic”fornotebookadaptersandbatteryproducts.Additionally,thepackagingofThinkPadL14Gen2/3andL15Gen3productsismadeof90percentrecycledmaterialsand30percentofOceanBoundPlastic(OBP)20.Lenovoestimatesthatitwilluse70to80tonsofOBPannually,whichequals4millionsupermarketshoppingbags.Additionally,in2021,Lenovoexpandedtheapplicationofclosed-looppost-consumerrecycledplastics(CLPCR)to248products,upfrom103productsthepreviousyear(Lenovo,2022).LessonsforOtherCorporates■Plannear-,mid-,andlong-termtargetssystematically:Lenovohasunveiledaroadmapbrokendownintothreemajortopics:climatechange,circulareconomy,andsustainablematerials.Foreachtopic,Lenovohassetmeasurablegoalsbasedonpriority,furtherbrokendowntooperationallevels.Specifically,LenovohassetclimatechangeKPIsforitsdirectoperations,supplychain,andproducts;circulareconomyKPIsforrepairs,recyclingandreuseofproducts;andsustainablematerialsKPIsfordifferentproducttypes(Lenovo,2022).■Empowerthevaluechain:Lenovocollaborateswiththeindustryandsharesexperiencesandlessonslearnedwithvaluechainpartners.Theinitiativeshavemobilizedindustry-wideefficiencyimprovement,sustainablemanufacturingpractices,anddigitalizationupgrades.Bydrivingupstreamanddownstreampartnersonaglobalscale,LenovoisworkingtowarditsNet-Zerovision.■Bolstercross-industrycollaboration:Lenovohasexemplifiedtheintegrationofdigitalandrealeconomiesandlow-carbondevelopmentthroughexternaliz-ingitsownexperienceinthelow-carbontransitionjourney.Asof2022,Lenovopartneredwithautomobilemanufacturing,petroleumandpetrochemicals,energy,electronicsmanufacturing,andotherindustriestoachievedecarbon-ization,empoweringmorethan300companiesinChina.Lenovo’spioneeringeffortswillattractmoreattentionandsupportforlow-carboninnovationsandinitiatives(Lenovo,2022).20.OceanBoundPlasticsgenerallyreferstoabandonedplasticwasteofallsizesfoundwithin50kmfromshore.66675.6HewlettPackardEnterpriseMSBTi—Technology,MediaandTelecom1.CompanyBackgroundHewlettPackardEnterpriseCompany(HPE)isamultinationalcompanythatdeliversunique,openandintelligenttechnologysolutionsasaservice,withofferingsspanningCloudServices,Compute,HighPerformanceComputing&AI,IntelligentEdge,Software,andStorage.2.TargetSettingInthenearterm,HPEcommitstoreducingabsoluteScope1and2GHGemissionsby70percentandScope3by42percentby2030.HPE’slong-termtargetistoreduceabsoluteScope1,2,and3GHGemissionsby90percentandachieveNet-Zeroby2040.Boththenearandlong-termreductiontargetsareapprovedbySBTiinlinewiththe1.5°Ctrajectory(HPE,2022).3.ClimateActionandGlobalCollaborationHighlightsEmissionsinoperationsonlyaccountedfor3percentofHPE’stotalemissions.From2020to2021,HPEreducedScope1and2emissionsby16percentgloballyfrom193,747to162,770tonsofCO2e,throughsourcingrenewableelectricity(from278,315mWhin2020to292,772mWhin2021)andupgradesinbuildingefficiency,operations,occupancy,vehicleemissions,etc.(HPE,2022).■IncreasingtheshareofRE:Totransitiontocleanenergy,HPEhastakenahybridapproachthatincludesownedrenewableassets,on-siteandoff-sitePPAs,greentariffprograms,greencontracts,andbundledandunbundledRECs.In2021,HPEsourced49percentofelectricity(292,772mWh)fromrenewablesglobally,with56,045mWhsourcedintheAsiaPacificandJapan.Aspartoftheclimatetarget,HPEaimstosource50percentrenewableelectricityinoperationsby2025and100percentby2030(HPE,2022).Note:OnlySDGsrelevanttothecasestudyarepresentedhere.68■Deployingelectricvehicles:HPEregularlyreplacescompanyvehiclestominimizeenvironmentalimpact,includingimplementinghybridandelectricvehiclesinmarketswithmaturedEV-infrastructure.In2021,HPEbeganintegratingbothfullyelectricandplug-inhybridelectricvehicles(PHEV)intoitscorporatefleetofmorethan7,000vehiclesin31countries.ThegoalistotransitionthemajorityofitsfleettoeitherEVsorPHEVsby2030inmarketswithmaturedinfrastructure,proventechnology,andeconomicfeasibility.Theinitiativeisexpectedtosignificantlyreducethecarbonfootprintinlogisticsandtransportation(HPE,2022).Emissionsinthesupplychainaccountedfor31percentofHPE’stotalemissions,whileuseofproductsandsolutionscontributedtherest66percent.Toabatetheemissionsintheseareas,HPEiscollaboratingupanddownthevaluechaintoreducecarbonfootprintwhilededicatingeffortstoreduceemissionsfromproduct/solutionuse,minimizingtheimpactontheenvironment(HPE,2021).■Empoweringandevaluatingsuppliers’climateperformance:In2017,HPEannouncedacomprehensivesupplychainmanagementprogram.Thelandmarkinitiativedemon-stratedamodelingeffortofsupplychainmanagement,developedaglobalstandardforsupplierGHGmanagementandabatementandprovidesitssupplierswithtoolstodevelopacustomizedplantoreduceemissions.Theprogramrequires80percentofHPEproductionsuppliersbyspendtosetscience-basedemissionsreductiontargetsintheiroperationsby2025.In2021,HPEhostedengagementswith50percentofitsmanufacturingsuppliersbyspend,addressingdifferentESGissues.130representativesfromamongHPEdirectsuppliersattendedsuppliertraining,withanadditional568participantsattendingfromtheextendedsupplychain.Thetrainingraisedawarenessofclimatechangeandempoweredsupplierstousetoolstodevelopemissioninventoryandsetclimatetargets.Buildinguponthesuccessfullaunchofthesupplychaindatamanagementsoftware—builtandhostedbyOptera—HPEbegansharingsupplier-fac-ingGHGemissionsmanagementdashboards.Todate,80percentofitsmanufacturingsuppliersbyspendcanaccessthesoftware’scustomizabledashboardwhichprovidesthemwithcompany-specificemissionsdata,modeledscience-basedGHGemissionsreductiontargets,theabilitytotrackprogresstowardtheirpubliclystatedemissionsreductiongoals,andbenchmarkperformanceagainstthatoftheirpeers.HPEfurthercustomizedaperformancedashboardforsupplierstotracktheirindividualGHGperfor-manceagainstasetofHPE-definedrequirements.TheserequirementsarepartofitssupplierSocialandEnvironmentalResponsibility(SER)scorecardsandarereferencedinkeyprocurementdecision-making(HPE,2022).■Decarbonizinglogisticsanddistribution:ByusingEVsinoperations,HPEisdedicatedtoreducingthecarbonfootprintoflogisticsanddistribution,usingbothshort-termandlong-terminitiatives.Intheshortterm,HPEisencouragingmodalshiftoflogisticsanddeployingzero-/low-emissionvehiclesforfinal-miledeliveriesinselectedmarkets.Inthelongterm,HPEisdeployingadvancedtechnologyvehiclesandcollaboratingwithpartnersinaviationtousefuel-efficientaircraftandsustainableaviationfuel.InMay692021,tohelpboostsuppliers’ambitionsinclimateandsustainability,HPErecognizedoutstandingclimateperformancebyawardingthe“SustainableLogisticsPartneroftheYear”.Overthepastfiveyears,HPEhasreducedlogistics-relatedcarbonemissionsby20percent.InSeptember2021,GebrüderWeissM,alogisticsserviceproviderofHPEbasedintheEU,starteddeliveringmorethan50percentofitsfinal-miledeliveriesintoSlovakiaviaelectrictrucks.Between50to100HPEshipmentspermonthmovedfromtheGebrüderWeisshubinViennatoASBIS,HPE’slargestcustomerinSlovakia.ThisEVtransitionhashelpedavoidapproximately100metrictonsofGHGemissionseveryyear(HPE,2022).■Developingandlaunchinglow-carbonproductsandservices:TherearefourIT-re-latedefficiency-raisingpillarsinHPE’sapproachtoreducingemissionsfromproduct/solutionuse:energyefficiency,equipmentefficiency,resourceefficiencyandsoftwareefficiency.HPEfocusesondeliveringthevalueofthesepillarsbundledasaservicetohelpclientstackleITefficiencychallenges.HPEGreenLakeisanopenandsecureEdgetoCloudPlatformthatbringsthehybridcloudtocustomers.ItcanreducetheenvironmentalimpactofITbyenablingcustomerstoflexiblyscaletheirITtomeettheirneeds.Onecustomer,AucklandTransport,transitioneditsvideomanagementsystem(VMS)toHPEGreenLakeplatform,resultingina41percentrackspacereductionanda37percentdecreaseinenergyconsumption.ThepotentialenvironmentalbenefitsofHPEGreenLakearefurthermagnifiedwhencombinedwithenergy-effectiveITsolutions.Forinstance,composableinfrastructuresolutionssuchasHPESynergyhaveloweredcustomerITinfrastructurecostsby22percent.HPEMoonshotsystemsbuiltonHPEGreenLakeuse25percentlesspowerthantraditionalserverdesigns.CombiningHPEhigh-performancecomputingsolutionsandHPEGreenLakeenablescompaniestoaccesshigh-performantprocessingpowerandrunsimulationswithareducedcarbonfootprint.Forinstance,high-performancesystemsintheHPEApollo,HPESGI,andHPECrayfamiliesareavailablewithdirectliquidcoolingasastandardfeature,whichreducespowerconsumptionfromcoolingsignificantly,offeringapotential84percentreductioninemissionsaccordingtoanestimatefromarecentfinancialservicescustomer(HPE,2022).■Promotingacirculareconomy:HPEhasthelargestITmanufacturerrefurbishingfacilitiesintheworld,oneintheUSandoneinScotland.Multipleprograms—HPERenew,HPEAssetupcyclingservices,HPEcertifiedpre-ownedproducts—supporttheglobalsocietyintransitioningtocirculareconomy.HPEhasestablishedmorethan80ITassetrecyclingstationsinmorethan50countriesandregionsaroundtheworld,whichnotonlyrecycleHPEassetsbutalsorefurbishandsellIThardwarefromothermanu-facturers,sharingthevaluewithcustomers.In2021,HPEprocessedmorethanthreemillionITassets,weighingnearly27millionpounds,ofwhich85percenthasbeenre-furbishedandresold.Toreducewaste,HPEalsoprovidesITassetassessmentservices,includingauditingtheinventoryofITassetsandissuingcirculareconomyreportstohelpcustomersoptimizeresourceusageanddisposal(HPE,2022).70■Collaboratingwithecosystempartnerstodevelopdecarbonizationtechnologies:Tohelpreduceunintendedroadblocksandencouragetheaccelerationofbreakthroughsforlow-carbontechnologies,HPEco-launchedtheLow-CarbonPatentPledgein2021withfoundingpartnersFacebookM21andMicrosoft.Morethan400patentsthatcouldsupportlow-carbonsolutionsforgenerating,storing,anddistributinglow-carbonenergyhavebeenmadeavailableforroyalty-free.Thiscollaborativeinitiativehasthepotentialtoattractpatentsfromacrossindustriesandopenthedoorforadditionalsharingofknowledge,technology,andresourceseffortstoaddresstheworld’sclimateemergency(HPE,2022).■Givingbacktothecommunitythroughbusinessstrategy:HPEhasatraditionofleveraginginternaltalentstosupporttechnon-profitsthataddressthecriticalneedsoftheworldandhelpthecommunitybuildresilience.Since2019,HPEhasorganized“Ac-celeratingImpact”annualcampaigninwhicheachHPEemployeereceivedacreditfromtheHPEFoundationtogivetoonetechnon-profitoftheirchoice.Inthe2021campaign,morethan28,000employeesaroundtheworlddirectednearly$1.3millioninHPEFoundationfundsto40technon-profits(HPE,2022).LessonsforOtherCorporates■Embedclimatestrategyintocorporatestrategy:HPEbelievesthatclimatestrategydoesnotworkindependentlybutisanintrinsicpartofthecorporatestrategyandshouldeffectivelyengagewithit.HPEfocusesondevelopingandofferingmoreenergy-efficientandenvironmentallyfriendlyproductsandsolutionssuchasHPEGreenLake,notonlyreducingcarbonemissionsinallthreeScopesbutalsosupportingthelong-termgrowthofthebusinessatlarge.■Drivetop-downimplementation:Toclosethegapbetweenstrategyandimplementation,HPEbelievesthatallleaderscarrytheresponsibilitytopioneerchanges.In2021,HPErequiredallitsexecutive-levelemployeestocompleteclimatetrainingonhowtofullyalignwiththecompany’semissionsreductionstrategyandensuretheyincorporateclimateintobusinessprinciples.ThisinitiativealsomarkedthefirsttimeHPEtiedclimatestrategydirectlytotheincentivesoftheexecutiveteam.■Mobilizeemployeestoaccelerateimpact:HPErecognizesthatapartofthepurposeasalargecorporateisbeingaforceforgoodandusingtechnologytoadvancethewaypeopleliveandwork.HPEfulfillsthispurposethroughdis-tributingsupportfortechnon-profitsthroughitsemployees.The“Accelerating21.FacebookhaschangeditsnametoMetaPlatformsasofOctober2021.71Impact”annualcampaignmobilizedemployeestobringtolightthebesttech-nologiesandinvestinthem,fullyleveragingthepowerofindividualstofundtransformativetechnologiesandaccelerateclimateaction.ThisinitiativenotonlyraisesawarenessofclimateissuesamongemployeesbutalsoallowsHPEtobeinvolvedinpromisingclimatetechnologiesatanearlystage,creatinganoverallmoreconduciveenvironmentforinnovation.725.7ChinaEnergyConservationandEnvironmentalProtectionGroupM1.CompanyBackgroundAsacentrallyadministeredstate-ownedenterprisewiththemissionof“makingtheskybluer,mountainsgreener,waterclearer,andlifebetter”,ChinaEnergyConservationandEnvironmentalProtectionGroup(CECEP)aimstobecomeaworld-leadingcarbonneutralsolutionprovider,andiscommittedtobecomingaleaderinhigh-qualitydevelopmentofgreenindustriesandasourceoflow-carbon,zero-carbonandcarbon-negativetechnologies.CECEPstrivestoenhanceitstechnologicalinnovation,intellectualsupplyanddemonstrationcapabilities,andtobecomeanimportantparticipant,aprominentcontributorandanactiveleaderinachievingcarbonpeakingandcarbonneutralityinChina(CECEP,2022).2.TargetSettingCECEP’s“3060”goals(nationalcarbonpeakingby2030,carbonneutralityby2060)canbesummarizedinthreesteps.Thefirststepistobecomeaworld-leadingproviderofcarbonreductionsolutionsby2030,expandingitsservicesfromtraditionalfieldstonewinfrastructureandotheremergingfields.Thesecondstepistostriveforoperationalcarbonneutrality.Thethirdstepistostrivetorealizecarbonneutralityinthesupplychain(CECEP,2022).3.ClimateActionandGlobalCollaborationHighlightsInoperations,CECEPisvigorouslypromotingadigitaltransformationstrategy,acceleratingtheimplementationoflow-carbonremodificationsofoperationalfacilitiesandzero-carbonpilotwork,buildinganintelligentdigitallow-carbonoperationandcarbonassetmanagementsystem,tappingoperationalmanagementpotentialtocontinuallyreducecarbonemissions,andNote:OnlySDGsrelevanttothecasestudyarepresentedhere.73encouragingemployeestoadoptgreenandlow-carbonbehaviors—allinordertocreateamodelof“3060”carbonactionforlowandmedium-emissionenterprises(CECEP,2022).■Buildinganintelligentdigitalcarbonassetmanagementsystem:CECEPisestab-lishingacarbonassetmanagementsystemthatintegratescarbonmonitoring,carbonemissionverification,carbonemissionreduction,carbonassetdevelopment,carbontradingandcarbonfinancialservices,whileexploringtheestablishmentofaninternalinvestmentcarbonpricingmechanism,andgraduallydevelopingcarbonassetmanage-menttechnologyservice(CECEP,2022).■Tappingoperationalmanagementpotentialtocontinuallyreducecarbonemissions:CECEPGuozhen,asubsidiaryofCECEP,hasproposedamanagementimprovementprojecttobuildanddevelop“low-carbonwateroperations.”Fourlow-car-bonworkinggroups,eachfocusingonanareasuchaselectricitysaving,low-carbon,phosphorusremovalorsludgedrying,areworkingtop-downtodemonstratebenchmarktechnologicalrefinement,modelreplicationanddissemination,toestablishanevalu-ationframeworkandtoupgradetheoperationalmanagementsystemandeventuallyimprovedthelow-carbonperformanceofthewastewatertreatmentsystem.In2021,thecompany’swateroperationscostspertonofwastewatertreatedfellby5.7percentyear-on-year,withyear-on-yearannualcarbonemissionsreducedbymorethan70,000tons(CECEP,2022).■Encouragingemployeestotakegreenandlow-carbonactions:CECEPiswidelypromotingthe“CECEPEmployees’GreenandLow-CarbonBehaviorInitiatives”(“TenRulesforCECEPEmployees”)andexploringtheestablishmentofinternalcarbonrewardsandothermechanismstoincentivizeemployeestoparticipateincarbonreduction(CECEP,2022).Inthevaluechain,CECEPplaysaleadingroleinreducingsupplychainemissionsandcontinuestopromotetheiterativeinnovationoftechnologyandservicesolutions,topushforwardtheapplicationofadvancedtechnologyandequipment,andtoacceleratetheshifttodigitalintelligenceincarbonneutralservices,inordertotechnologicallyempowerthedriveforcarbonpeakingandcarbonneutrality(CECEP,2022).■Empoweringandevaluatingsuppliers’climateperformance:CECEPisdevelopinggreen,low-carbonprocurementstandardsandpromotingtheestablishmentofagreen,low-carbonsupplychainsystemfor“greendesign,greenmaterials,greenmanufac-turing,greenprocurement,greenpackaging,greentransportation,wasterecyclinganddisposal”,toactasamodel“3060”actionplanforlowandmedium-emissionenterpris-es(CECEP,2022).■Developingandlaunchinglow-carbonproductsandservices:CECEPiscommittedtofurtherdevelopinginnovativelow-carbontechnologies,strengtheningcutting-edgezero-carbontechnologiesandtheirdissemination,andlayingthegroundforfor-ward-lookingnegative-carbontechnologies(CECEP,2022).74■Furtherdevelopinginnovativelow-carbontechnologiesinthreeareas.Thefirstareaislow-carbonenergy-saving,whereeffortsarefocusedonmakingbreakthroughsincoreenergy-savingtechnologiesinthefieldofnewinfrastructureandstrengtheningtheR&Dandmanufactureofkeyequipment.CECEPisstrengtheningtheresearch,developmentandoptimizationofkeytechnologiesforintegratedsolutionsforregionalenergysystems.Thesecondareaislow-carbongreenbuilding.Respondingtothedevelopmentneedsofgreenlow-carbonparksandecologicalcities,CECEPisworkingtoimprovegreenbuildingtechnologiesandrelatedR&Dsystems.CECEPisputtingsignificantresourcesintoR&Dandappliedresearchinnewgreenbuildingtechnology.Thethirdareaoffocusislow-carbonenvironmentalmanagementtechnologiesthatforgreatervaluereclamationandhigh-valueapplicationsofresources,aswellasrecyclingofretirednewenergydevices.CECEPisalsoadvancingtheapplicationofnewtechnologiesinareassuchassolidwasteandwastewaterprocessing.TheCECEPGuiyangFutureArkprojectcreativelyappliedtheregionalriver/sewage-sourceheatpumppowersupplytechnologyatlargescaleforthefirsttimetosetupacombinedenergysupplysystemthathasvarioussources,includingriver-sourceheatpumps,sewage-sourceheatpumps,heatsourcetowers,gasdrivenCCHPsystemandetc.Byintegratingmultipletechnologies,theprojecthasachievedmulti-energycomplementarity,interconnectedpipelinenetworkandintelligentpowermanagementplatformthatallowsforintelligentcontrolofpowerstationstoeffectivelymonitoroperationsandenergysavings.Theprojectsaves219,942tonsofstandardcoalandreduces53,844tonsofCO2eperyear.(CECEP,2022).■Improvingcutting-edgezero-carbontechnologiesrelatedtobothenergysourceandenergystorage.Intermsofenergysources,CECEPisactivelyexploringhigh-efficiencyPVmodules,windpowerandgeothermalpowergener-ationtechnologies.Intermsofzero-carbonenergystoragetechnology,CECEPisactivelyresearchinghydrogenpowerandpowerstorageapplications.TakingtheCECEPHangzhouEnergyandEnvironmentIndustrialPark—agreenener-gy-savingandlow-carbondemonstrationpark—asanexample.CECEPappliedanumberofeffectivegreenbuildingtechnologiestoreducethepark’senergycon-sumptionandproducegreenenergytooffsetcarbonemissions.Asalow-carbondemonstrationprojectinthepark,theCECEPHangzhouGreenBuildingScienceandTechnologyMuseumhasadoptedstate-of-the-artbuildingenergy-savingsystemstoreduceenergyconsumptioneffectively,suchasaself-shadingsystem,passiveventilation,environmentalperimeterprotection,smartexternalshading,independenttemperatureandhumiditycontrolairconditioning,REgeneration,energyregeneratingelevators,rainwatercollection,wastewaterreuse,intelligentcontrol,anditemizedenergy-usemonitoring.In2020,theelectricityconsumptionoftheScienceandTechnologyMuseumwasonly42percentofthelimitsetbytheNationalEnergyConsumptionStandardforCivilBuildings,equivalenttoareductionincarbondioxideemissionsofnearly136tons.Inaddition,thereisa2MWrooftopPVgrid-connectedgeneratorintheCECEPHangzhouEnergyandEn-vironmentIndustrialPark,whichisthefirstmegawatt-classrooftopPVgrid-con-75nectedpowerplantinChina.Thisprojecthasdeliveredacumulativecarbondioxideemissionreductionofmorethan12,000tonssinceitwascompletedandconnectedtothegridin2009(CECEP,2022).■Layingthegroundforforward-lookingnegative-carbontechnologiesintwoareas.Thefirstareaiscarboncapture,utilizationandstorage(CCUS).CECEPisstrengtheningthetrackingandexploratoryresearchintonegativecarbontechnol-ogies,prospectivelyinitiatingR&DinCCUSrelatedtechnologiesaswellastheirapplications,takingtheleadinexploringbiomasscoupledwithcarboncaptureandstoragetechnology(BECCS),waste-to-energycoupledwithCCUS,andotherdemonstrationprojects.Thesecondareaiscarbonsink.CECEPissettingupR&Dinnewecologicalcarbonstorageproductsandmaterials,exploringacarbonsinkecosystemsolutioncombiningwithcarbon-richagriculturaltechnologyandforestcarbonsinkdevelopment,andworkingtofurtherenhancetheverticalgreeningofbuildingsandland-usetechnologyforgreeninglargespaces(CECEP,2022).■Promotingacirculareconomy:CECEPHangzhouEnergyandEnvironmentIndustrialParkhassetupgarbagesortingandcollectionpointsinnewlow-carbonbuildings,whichcantransformorganicwastefromcanteensintobio-sedimentforfertilizeruseandrecyclesallkindsofrecyclablematerials.Italsohasseparaterecyclingpointsforwastebatteries,paper,glass,plasticandmetal(CECEP,2022).LessonsforOtherCorporates■Useinnovationtodrivenewintegratedenergyservices:Explorenewzero-carbonenergyreplacementsolutionsforbuildings,industryandtranspor-tationbasedondigitizationandadvancedenergy-savingtechnologies.■Explorethesynergybetweenpollutionreductionandcarbonreduction:Creatingnewenvironmentalmanagementsolutionsthatreducepollution,reduceharm,andreclaimresourceswillgivenewmomentumtogreenandlow-carbondevelopment.■Improvedecarbonizationcapabilityofsmartsupplychain:Activelyadvanceresearchandestablishmentofcarbon-relatedstandards(CECEP,2022).76CompanyNameDanoneMarsSchneiderElectricSiemensAGLenovoHPECECEPSustainableDevelopmentGoals(SDGs)TenPrinciplesofUNGlobalCompactPrinciple7:Businessesshouldsupportaprecautionaryapproachtoenvironmentalchallenges;Principle8:undertakeinitiativestopromotegreaterenvironmentalresponsibility;Principle9:encouragethedevelopmentanddiffusionofenvironmentallyfriendlytechnologies.Exhibit2.HowrepresentativecorporatesmeettheSDGsandtheTenPrinciplesoftheUNGlobalCompact77786.KeyTakeawaysforCorporatesMovingTowardsaNet-ZeroFuture22.AsofSeptember16,2022,theparticipatingcompaniesareA.S.WatsonGroup,BeijingJiankangzhijia,ChinaMengniuDairyCompanyLtd.,ChinaMobileCommunicationsCo.,Ltd.,CHINTGLOBAL/ZhejiangChintElectricsCo.,ENGIEAsia(MiddleEastandAfrica),EsquelGroupofCompanies,EuroportsGroupBV,Fusi(Shenzhen)EducationalTechnologyCo.,HangzhouGreen&CleanEnvironmentalTechnologyCo.,Ltd.,HuaweiTechnologiesCo.Ltd.,InnerMongoliaYiliIndustrialGroupCo.,Ltd.,JaSolarTechnologyCo.,Ltd,JD.com,JinkoSolarHoldingCo.,Ltd.,LeverageLimited,LopalTechCo.,Ltd.,MEBOInternational,NIOInc.,Novozymes,PioneerLogisticsCo.,Ltd.,Qihua(Huizhou)PrecisionManufacturingTechnologyCo.,Ltd.,SenseTrainingHouseLimited,ShandongNollvetecLightweightEquipmentCo.,Ltd.,ShenzhenKstarScience&TechnologyCo.,Ltd.,ShenzhenSolarunEnergyCo.,Ltd.,SungrowPowerSupplyCo.,Ltd.,Tingyi(CaymanIslands)HoldingCorp.,ZetaScience&Technology(Shanghai)Co.,Ltd.FourkeytakeawaysaresummarizedforcorporatestoembraceaNet-Zerofuture.1.SetaNet-Zerotarget:Amongexistinginternationaltargetsettingstandards,SBTi,alignedwiththeParisAgreement1.5°Cpathways,ishighlyrecommended.Meanwhile,itisimperativethatcorporatesareuptospeedwithgovernmentalpoliciesandalignwithgovernmentalstandards.TohelpacceleratethejourneytosettingSBT,theUNGlobalCompacthaslaunchedtheClimateAmbitionAccelerator(CAA),asix-monthprogramtoequipcorporateswiththeknowledgeandskillsneededtosetSBT.Participatingcompanieswillgainaccesstoglobalbestpractices,peer-to-peerlearningopportunities,capacity-buildingsessions,andon-demandtraining22.2.IdentifythemajorGHGemittersandthecorrespondingdecarbonizationinitiatives:Corporatesshouldcarryoutdecarbonizationinawell-definedandtargetedmanner,un-derstandingtheirmajoremissionsourcesfromanindustry-specificorcompany-specificperspective.PrioritizingactionstotacklethesekeychallengescouldsignificantlycontributetoachievingNet-Zerointime.3.Engagewithandwinsupportfromkeystakeholders,especiallythegovernment:Complyingwithgovernmentalregulationsandleveragingpreferentialmeasuressuchastaxrelieftoreducethecostofdecarbonizationarejusttwoofthemanypossibleways.Boldactionsandstrongpoliciesgotogether.4.Takethe“T”approachtodecarbonization:Besidesdrillingdownverticallyintointernaloperations,corporatescouldtaketheleadinmobilizingecosystempartnershorizontallyacrossthevaluechain—engagingsupplierstosetclimategoals,collaboratingontechnologicalinno-vations,launchinggreen/low-carbonproducts,andcarryingoutrecyclingprograms,etc.Intheracetoreduceemissions,technologyisthepillarofclimateactions.UNGlobalCompactandBCGjointlypublishedCorporateNet-ZeroPathwayreportinJuly2021,inwhichweselectedandexplainednineprospectivetechnologiesthatcorporatesandinvestorscouldwatchclosely:79■Autonomousdriving■CarbonCapture,UtilizationandStorage(CCUS)■Electricvehicles■Energystorage■Hydrogenandfuelcells■Insulationmaterials■Materialsforhigh-efficiencysolarcells■Offshorewind■SuperconductingtechnologyWhilewitnessingtechnologicalbreakthroughsinthesenineareas,itisworthhighlightingtwoprospectiveareasofcross-industryglobalcooperation.■AIoT23-basedenergyandcarbonemissionsmanagementsolutionsusereal-timedatacollectedfromsensorstooptimizetheuseofenergyanddynamicallyadjustthesystemtothemosteffectiveandsustainableenergyconsumptionstrategy.Thissolutionallowsthedigitalizationandautomationofmeasuring,monitoring,andabatingcarbonemissionsindifferentsettingssuchasdatacenters,shoppingmalls,andofficebuildings.AIactsasthe“brain”,whileIoTis“thenervoussystem”,togetherdrivingthesystemtowardsNet-Zero.Thesuccessfuldevelopmentandevolutionofthistechnologyisdependentuponcross-industry,multidisciplinarycollaboration.Themanufacturingindustryspecializesinprovidingthebackbone—thesensors,devices,andotherhardwaresystems—thatenabledatacollectionandreal-timeadjustmentstoenergyuse,whiletheTMTindustrydevelopsthethreadthatweavestogethertheparts,includingthesoftware,computingpower,andalgorithms.Downstreamindustriesimplementthesolutionsindifferentreal-worldsettingsandprovideconstructivefeedbacktooptimizethesolutions.■Regenerativeagricultureisaphilosophyoflandmanagementthatconsidersallaspectsofagricultureconnectedasaweb—anetworkofentitiesthatgrow,enhance,exchange,distribute,andconsumegoodsandservices—insteadofalinearsupplychain(NRDC,2021).Inthisrealm,oneincreasinglypopularapproachisprecisionagriculture,whichisaseriesoftargetedkeyinterventionsthatimproveproductivityandyieldswhilereducingtheneedforinputssuchasartificialfertilizersandpesticides,reducingN2Oemissionsandincreasingcarbonsequestrationinsoils.Introducingdigitalizationto23.ArtificialIntelligenceofThings,thecombinationofartificialintelligencetechnologies(AI)andtheinternetofthingsinfrastructure(IoT).80farming,precisionagricultureleveragestechnologiesfromtheTMTindustry—remotesensors,unmannedaerialvehicles(UAVs),IoT,AI,andcloudcomputing—tomaketargetedchangesinthefoodandagricultureindustrywhilereducingcarbonemissionsandpreservingthehealthoftheland(UNDP,2021).Lookingforward,scientistsaredivingintothefundamentalsofplantphysiology,morphology,andmetabolismthroughnanotechnology,usingnanoparticlestogeneratepositivechangesinyield,chlorophyllcontent,andgeneexpressioninplants(Kumari,Bhinda,Sharma,&Parihar,2022).817.ConclusionOvertheyears,wehavewitnessedincreasingawarenessofclimateissues.Corporatesarerecognizingtheimpactclimatechangehasandwillhaveontheiroperationsandvaluechain,whichnecessitatesrapidgrowthinclimatecommitmentsandsolidtechnologicaladvance-mentstofollowthroughonthecommitments.However,theworldisstillalongwayawayfromachievingthewell-below-2°Cgoal,letalonethe1.5°Cgoal.Wecannotaffordtocontinuealongcurrentpath.AchievingtheobjectivesoftheParisAgreementrequirescorporatestostepuptheirambitionandfollowthroughwithcredibleandconsistentactions.Thankfully,thebattleswehavefoughthaverewardeduswithanewwaveoftechnologicalinnovation,especiallyindigitalinterconnectivity,whichallowsustoconnectacrosstheplanetandshareresources,networks,andinsightsatanunprecedentedlevel.TheGDI,establishedtoacceleratetheimplementationoftheUN2030Agenda,encouragesglobalcollaborationandaddsmomentumtoclimateaction.Corporatesshouldseekglobalcollaborationopportunitiesinsuchinitiativesandstriveforamoreambitiousandinclusiveclimatetarget,backedbysci-ence-basedactions.Corporateswhoreachbeyondtheoperationalboundary,beyondthevaluechain,andbeyondgeographicborderswillstandabetterchanceofbuildingresilienceandeffectivelymobilizingtheglobalcommunitytowardsNet-Zero.82Photo:UNPhoto/MarkGarten83ReferencesAlphabet.(2022,September20).Findmoresustainabletraveloptionswithnewsearchtools.RetrievedfromGoogle:https://blog.google/products/travel/find-more-sustainable-travel-options-with-new-search-tools/Alphabet.(2022,September07).MorewaystodrivesustainablyandsavemoneywithGoogleMaps.RetrievedfromGoogle:https://blog.google/around-the-globe/google-europe/eco-friendly-routing-in-europe/Alphabet.(2022,September28).Newwaystomakemoresustainablechoices.RetrievedfromGoogle:https://blog.google/products/search/new-ways-to-make-more-sustainable-choices/Amazon.(2022).Sustainability-Environment-TheClimatePledgeFund.RetrievedfromAmazon:https://sustainability.aboutamazon.com/environment/the-climate-pledge-fundAmazon.(2022).Sustainability-Environment-Transporation.RetrievedfromAmazon:https://sustainability.aboutamazon.com/environment/transportationAmazon.(2022,August24).Thesciencebehindgroupingpackagedeliveries.RetrievedfromAmazonScience:https://www.amazon.science/latest-news/the-science-behind-grouping-amazon-package-deliveriesApple.(2022).AppleEnvironmentalProgressReport2022.Apple.ArcherDanielsMidland.(2021).ScalingImpact-2021CorporateSustainabilityReport.ArcherDanielsMidland.BroadGroup.(2022,March8).Thecreaterofgreenandlow-carbonbuildings:BroadGroup.RetrievedfromChinaFederationofIndustrialEconomics:http://www.cfie.org.cn/index/information/show/id/2118.htmlBunge.(2022).Bunge2022GlobalSustainabilityReport.Bunge.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JECTSTEERINGCOMMITTEE,PROJECTTEAMANDACKNOWLEDGEMENTProjectSteeringCommitteeOleHansen,UnitedNationsGlobalCompact,ChiefofGlobalOperationsLilaKarbassi,UnitedNationsGlobalCompact,SeniorProgrammerOfficer,ChairoftheSBTiExecutiveBoardMengLiu,UnitedNationsGlobalCompact,Head,ChinaOfficeYoumaycontactherbyemailatliu@unglobalcompact.orgXinyiWu,BostonConsultingGroup,ManagingDirectorandSeniorPartnerYoumaycontacthimbyemailatwu.xinyi@bcg.comChenYu,BostonConsultingGroup,ManagingDirectorandPartnerYoumaycontacthimbyemailatyu.chen@bcg.comMengyaLin,BostonConsultingGroup,PrincipalProjectteamMasonZhou,BostonConsultingGroup,ConsultantIrisHui,BostonConsultingGroup,ConsultantFeiTong,UnitedNationsGlobalCompact,SeniorManager,OperationsandStrategicPartnerships,tong@unglobalcompact.orgDavidFu,UnitedNationsGlobalCompact,Consultant,ClimateandEnvironmentProgramme,penghao.fu@unglobalcompact.orgBenLiu,UnitedNationsGlobalCompact,Consultant,GenderEqualityProgramme,ben.liu@unglobalcompact.orgAcknowledgementsThisreportwasdevelopedbytheUnitedNationsGlobalCompactanditsProjectKnowledgePartnerBostonConsultingGroup.TheprojectteamwouldliketoacknowledgeBCG’sCenterofClimateActionandthefollowingindividualsandexpertswhohaveprovidedinsightfulinput:AndreaMuiñoLópez,AnnaKruip,AnthonyDarcy,AutumnFox,CambetteDominique,ChloéBaumes,ChristineBlack,CocoLiu,DanyunWang,DiLin,FelipeBroilo,FredericPinglot,FuweiYan,GuilhermeConorCoraiola,HuiYang,IanKnight,JayoungPark,Jean-PhilippeRoux-Groleau,JenitaMcGowan,JiayuZhang,JingLin,KevinGetobai,LinoLong,LucasRibeiro,MengdiWang,OliveLiu,QiangSong,QinzuoWen,TracyWang,VolkerHessel,WanqingHuang,WeihuaHuo,WeiweiSun,WeiyongMou,XiaomingHao,XuanWang,YingLi,ZhemingZhangAbouttheUNGlobalCompactAsaspecialinitiativeoftheUNSecretary-General,theUnitedNationsGlobalCompactisacalltocompanieseverywheretoaligntheiroperationsandstrategieswithTenPrinciplesintheareasofhumanrights,labour,environmentandanti-corruption.Launchedin2000,theUNGlobalCompactguidesandsupportstheglobalbusinesscommunityinadvancingUNgoalsandvaluesthroughresponsiblecorporatepractices.Withmorethan20,000companiesandnon-businessparticipantsbasedinover170countries,itisthelargestcorporatesustainabilityinitiativeintheworld.TheUNGlobalCompactisunparalleledinitsabilitytounitecompanieswitheverystakeholdergroupworkingtoadvancesustainabledevelopment,includingtheUnitedNations,Government,civilsociety,investorsandacademia.Together,throughboldactionsandcollaborationbetweenallsectorsofsociety,wecanendextremepovertyandhunger,fightinequalitiesandaddressclimatechange,ensuringnooneisleftbehind.Visitunglobalcompact.orgtolearnmore.Formoreinformation,pleasefollowUNGlobalCompactonsocialmediaplatforms:UNGCWeChatUNGCShortVideoUNGCTwitterAbouttheUNGlobalCompactClimateAmbitionAcceleratorTheUnitedNationsGlobalCompactin2021launchedtheClimateAmbitionAccelerator,asix-monthlearningprogrammetoequipmorecompanieswiththeknowledgeandskillstheyneedtohelphalveglobalemissionsby2030andtoreachNetZeroby2050.TheAcceleratoraimstoscale-upcredibleclimateactionacrosscompaniesofallsizes,sectorsandregionstoenablethemtosetanddeliveronmeaningfulcommitmentstoreduceemissionsanddeliverontheParisClimateAgreement.ThroughtheGlobalCompactLocalNetworksaroundtheworld,companiesparticipatingintheClimateAmbitionAcceleratorgainaccesstobestpractices,peer-to-peerlearningopportunities,capacitybuildingsessionsandon-demandtraining.TheprogrammebuildsontheworkoftheUNGlobalCompacttodevelopandpromotetheScienceBasedTargetsinitiativeandtheBusinessAmbitionfor1.5°Ccampaign.ItalsocomplementstheexistingenvironmentalsustainabilityeffortsoftheGlobalCompactsuchastheActionPlatformonClimateAmbition,theSustainableOceanBusinessActionPlatformandtheWaterResilienceCoalition,whichinturncontributetotheRacetoZeroandRacetoResiliencecampaignsintheleaduptoCOP27.AboutBostonConsultingGroupBostonConsultingGrouppartnerswithleadersinbusinessandsocietytotackletheirmostimportantchallengesandcapturetheirgreatestopportunities.BCGwasthepioneerinbusinessstrategywhenitwasfoundedin1963.Today,weworkcloselywithclientstoembraceatransformationalapproachaimedatbenefitingallstakeholders—empoweringorganizationstogrow,buildsustainablecompetitiveadvantage,anddrivepositivesocietalimpact.Ourdiverse,globalteamsbringdeepindustryandfunctionalexpertiseandarangeofperspectivesthatquestionthestatusquoandsparkchange.BCGdeliverssolutionsthroughleading-edgemanagementconsulting,technologyanddesign,andcorporateanddigitalventures.Weworkinauniquelycollaborativemodelacrossthefirmandthroughoutalllevelsoftheclientorganization,fueledbythegoalofhelpingourclientsthriveandenablingthemtomaketheworldabetterplace.Formoreinformation,pleaseemailGCMKT@bcg.comorfollowBCGonChinesesocialmediaplatform:BCGWeChatBCGInsightsBCGShortVideo©2023UnitedNationsGlobalCompact685ThirdAvenueNewYork,NY10017,USAAboutthe17SustainableDevelopmentGoals(SDGs)The2030AgendaforSustainableDevelopment,adoptedbyallUnitedNationsMemberStatesin2015,providesasharedblueprintforpeaceandprosperityforpeopleandtheplanet,nowandintothefuture.Atitsheartarethe17SustainableDevelopmentGoals(SDGs),whichareanurgentcallforactionbyallcountries—developedanddeveloping—inaglobalpartnership.Theyrecognizethatendingpovertyandotherdeprivationsmustgohand-in-handwithstrategiesthatimprovehealthandeducation,reduceinequalityandspureconomicgrowth—allwhiletacklingclimatechangeandworkingtopreserveouroceansandforests.1.NoPoverty2.ZeroHunger3.GoodHealthandWell-being4.QualityEducation5.GenderEquality6.CleanWaterandSanitation7.AffordableandCleanEnergy8.DecentWorkandEconomicGrowth9.Industry,InnovationandInfrastructure10.ReducingInequality11.SustainableCitiesandCommunities12.ResponsibleConsumptionandProduction13.ClimateAction14.LifeBelowWater15.LifeOnLand16.Peace,Justice,andStrongInstitutions17.PartnershipsfortheGoalsVisitsdgs.un.org/goalstolearnmore.AbouttheTenPrinciplesoftheUNGlobalCompactCorporatesustainabilitystartswithacompany’svaluesystemandaprinciples-basedapproachtodoingbusiness.Thismeansoperatinginwaysthat,ataminimum,meetfundamentalresponsibilitiesintheareasofhumanrights,labour,environmentandanti-corruption.Responsiblebusinessesenactthesamevaluesandprincipleswherevertheyhaveapresence,andknowthatgoodpracticesinoneareadonotoffsetharminanother.ByincorporatingtheTenPrinciplesoftheUNGlobalCompactintostrategies,policiesandprocedures,andestablishingacultureofintegrity,companiesarenotonlyupholdingtheirbasicresponsibilitiestopeopleandtheplanetbutalsosettingthestageforlong-termsuccess.TheTenPrinciplesoftheUnitedNationsGlobalCompactarederivedfrom:theUniversalDeclarationofHumanRights,theInternationalLabourOrganization’sDeclarationonFundamentalPrinciplesandRightsatWork,theRioDeclarationonEnvironmentandDevelopment,andtheUnitedNationsConventionAgainstCorruption.HumanRights1Businessesshouldsupportandrespecttheprotectionofinternationallyproclaimedhumanrights;and2makesurethattheyarenotcomplicitinhumanrightsabuses.Labour3Businessesshouldupholdthefreedomofassociationandtheeffectiverecognitionoftherighttocollectivebargaining;4theeliminationofallformsofforcedandcompulsorylabour;5theeffectiveabolitionofchildlabour;and6theeliminationofdiscriminationinrespectofemploymentandoccupation.Environment7Businessesshouldsupportaprecautionaryapproachtoenvironmentalchallenges;8undertakeinitiativestopromotegreaterenvironmentalresponsibility;and9encouragethedevelopmentanddiffusionofenvironmentallyfriendlytechnologies.Anti-corruption10Businessesshouldworkagainstcorruptioninallitsforms,includingextortionandbribery.Visitunglobalcompact.org/what-is-gc/mission/principlestolearnmore.FormoreinformationaboutUNGlobalCompact,pleaseemailungc.china@unglobalcompact.org.TheTenPrinciplesoftheUnitedNationsGlobalCompactarederivedfrom:theUniversalDeclarationofHumanRights,theInternationalLabourOrganization'sDeclarationonFundamentalPrinciplesandRightsatWork,theRioDeclarationonEnvironmentandDevelopment,andtheUnitedNationsConventionAgainstCorruption.

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