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Tag: net-zero

Mars on a Procurement Pathway to Net-Zero

Posted on by dishanth
Mars on a Procurement Pathway to Net-Zero

Mars has published its open-source action plan to accelerate the drive towards achieving Net Zero emissions, including a new target to cut carbon in half by 2030 across its full value chain. The strategy also involves investing US$1bn over the next three years alone to drive climate action

The strategy incorporates an understanding of how supplier engagement, supply chain and procurement impacts their environmental footprint, as 80% of it comes from their inputs such as raw materials, packaging and logistics.

“The carbon footprint of our entire supply chain from farming through to the end of life of our packaging and everything in between is the same as that of a small country – Finland has almost exactly the same footprint,” explains Barry Parkin the Chief Procurement and Sustainability Officer at Mars Inc. “When we look at where our footprint was ten years ago, 70% or more of it is embedded in the goods or services we buy. So, procurement is therefore absolutely critical.”

This means the role of procurement, supply chain, and supplier engagement is integral to the company reaching their ambitious sustainability targets, and Parkin is acutely aware that means it is essential for them to do things differently. “Our job is to re-imagine and re-design supply chains so that they have a dramatically lower carbon footprint,” he says. “To put it another way, unless we change what we buy, or where we buy it or how we buy it we are not going to really change our carbon footprint. ”

Their roadmap involves removing approximately 15 million metric tons by 2030 and then another 15 million metric tons by 2050 when they reach net zero.  Since 2015 Mars have already reduced emissions by 8%, whilst growing the business by 60%, showing that it is possible to decouple emissions from growth and success of a business.

 

Supplier relationships 

As for any major organisation trying to address their sustainability strategy, it is impossible for Mars to make significant progress with their carbon footprint without the help and buy-in from their enormous supply networks.

“As a global company, we rely on suppliers across our value chain as essential partners in our journey to reach net zero,” says Parkin.  “Like most companies, addressing our Scope 3 emissions is challenging because of their indirect nature and our lack of direct control or visibility. Only by working with our Tier 1 suppliers can we make progress with them on their own emissions and on their upstream emissions with our Tier 2 suppliers and beyond.”

Mars was a founding member of the Supplier Leadership on Climate Transition coalition, that is a dedicated body for instigating climate action through industry-wide supply chains.  This allows companies like Mars to use their scale and influence to guide, mentor and train suppliers with emissions strategies and also celebrate their best practice.

This reflects the collaborative approach Mars is trying to adopt with all their stakeholders to reach their climate targets.  “Suppliers that demonstrate substantial progress in reducing their environmental footprint are recognised and rewarded with additional business,” explains Parkin. “This metrics-driven strategy ensures that our suppliers have a significant role in our journey towards sustainability, aligning their efforts with our commitment to addressing the climate crisis.”

To achieve this relationship, Mars sets clear expectations for suppliers regarding emissions reduction, renewable energy adoption, and sustainable sourcing. They then incorporate those climate performance metrics into some of their biggest supplier’s evaluation criteria.

 

Recipe optimisation 

For one of the global leaders in food products, pet supplies and confectionery, they are also able to leverage product design and ingredients into their net-zero strategy.  Mars describes that as ‘optimising recipes’ and procurement is again integral in making that aspect of the plan a success.

“Our procurement team actively collaborates with suppliers to identify and source new ingredients in a way which lowers emissions and advances our sustainability goals,” says Parkin. “This collaborative approach helps improve our supply chain sustainability performance, including the procurement of ingredients that have a reduced carbon footprint.”

This approach of working closely with the suppliers who provide the ingredients, allows Mars to enhance their product offerings while at the same time finding new ways to reduce the emissions associated with the recipes.

 

Buying-in to the road map 

Parkin is praising the positive reaction from their suppliers to the Net Zero Roadmap, but that is also because many of those partners have been on a sustainability journey with the company for a number of years, since setting out their first scope 3 targets for their full value chain back in 2017.

“Suppliers have expressed their appreciation for the transparency and specificity of our roadmap,” explains Parkin.  “It has enabled them to better understand our expectations and how their contributions fit into the broader picture of achieving net zero emissions. The roadmap’s emphasis on collaboration and collective responsibility has resonated with our suppliers, fostering a spirit of partnership in our shared journey towards sustainability.”

The partnership allows procurement partners to take proactive steps in their organisations and strategies to address their emissions, and be part of a collective responsibility to finding both a sustainable future and a productive business relationship.

Aside from the influence such an ambitious net-zero strategy has on the culture and direction of a company like Mars Inc, it also creates a larger impression on other companies in their business ecosystem as other brands and businesses look to follow their lead.

Barry Parkin is aware of the value of that influence, and how their procurement and supply chain can help lead others to greater sustainable achievements.

“Global companies like Mars play an important role in shaping sustainability standards and advancing climate action at scale,” he explains. “Our influence extends across the globe, allowing us to inspire change on a wider scale. When companies set high sustainability standards, it encourages others in their industries to follow suit.”

He adds: “Companies like Mars have the resources, expertise, and innovation capabilities needed to pioneer sustainable practices and technologies.

“We can invest significantly in research and development, pilot groundbreaking initiatives, and implement sustainable solutions beyond the reach of smaller organisations. This proactive approach not only benefits the environment but also builds a positive reputation with environmentally conscious consumers and attracts like-minded partners.”

If a globally recognised brand like Mars can leverage their sprawling supply and procurement network for better environmental outcomes, it can only help to bring others on the same journey. “This ripple effect fosters industry-wide transformation, promoting a more sustainable future,” finishes Parkin. “If a business such as Mars can halve it’s footprint by 2030, that matters.”

 

 

 

Source   Sustainability

Walmart and General Mills build a sustainable food supply

Posted on by dishanth
Walmart and General Mills build a sustainable food supply
Working as partners in regenerative agriculture projects, Walmart and General Mills are working with authorities to create a more sustainable food system

Disruption of the food supply chain is perhaps the single most impactful event that can have detrimental effects globally. Also, the emissions that are produced as a result of the global food supply are just as impactful to our future and the shortage of food itself.

According to 2018 data from the United States Department of Agriculture (USDA) meat, eggs and nuts are the primary sources of food across the states while vegetables are the third largest and fruit is at the bottom. However, from what we’ve seen over recent years, many would suggest the meat supply chain accounts for a large proportion of the industry’s emissions and is therefore unsustainable in its current mass-production form.

Now, this is not to blame the humble cow or any other animal for climate change, but more the processes in which meat is reared and distributed across the US. With certain regenerative principles in place—and the support from the public to reduce consumption—farms are known to provide higher quality goods that are nutritionally beneficial.

How does regenerative agriculture support a sustainable food system?

This is neither a slight of common habits, nor a simple task to conduct. In order to make the food system sustainable economically, consistent, and less impactful to the climate, examples of regenerative agriculture show the impacts of more mindful farming.

On the 17th October 2023, General Mills and Walmart announced a joint effort that will likely spark further consideration as the organisations advance regenerative agriculture across 600,000 acres of US soil by 2030. This project is about reducing the emissions and resource-drain from farming, improving soil health and, in turn, product quality.

The primary projects will be supported through grant funding from the National Fish and Wildlife Foundation (NFWF) and will reshape the process for growing crops like wheat across the Northern and Southern Great Plains.

Based on the research from the USDA, grains are the second most-consumed foods in the country after the meat, eggs, and nuts group.

These two corporations will also collaborate with Sam’s Club, a division of Walmart that offers superior quality and pricing for millions of items supplied to the US and Puerto Rico.

“Through this partnership, we will work hand-in-hand with Walmart and Sam’s Club to help regenerate the acres of land in the key regions where we source ingredients for our shared business,” says Jon Nudi, Group President, North America Retail at General Mills.

“We are excited by the opportunity to bring our products, including Pillsbury refrigerated dough and Blue Buffalo pet food and treats, to Walmart shelves more sustainably, with the help of our merchants and farmer partners.”

The three organisations believe that regenerative agriculture holds the key to emissions reduction in the supply chain and tackles many of the challenges within the modern food system. They also recognise their collective footprint and overall impact on the industry, and therefore will set the benchmark for regenerative agriculture implementation in the wider industry.

Walmart’s and General Mills’ sustainability alignment

Both organisations are impacted by the fate of the planet. As influential businesses in the food supply chain—Walmart operating across many facets of consumer goods—sustainability is now at the core of their future projects. Walmart’s net-zero emissions target is set for 2040 and will be driven by a number of investments into clean energy, providing 100% renewables to its facilities by 2035. The path to net-zero in Scope 3 requires further action to support its partners, suppliers, and customers to deliver on their own emissions targets.

When it comes to securing the food supply chain, Walmart dedicates much of its support to preserving land for regenerative projects and in investing deforestation-free product sourcing, which was recognised as one of the key downfalls of the meat supply chain—limited space resulting in deforestation.

“We’re committing to making the everyday choice the more sustainable choice for consumers,” says John Laney, Executive Vice President, Food at Walmart US.

“This collaboration is an example of how we are working across our value chain on intentional interventions to help advance regenerative agriculture and ensure surety of supply for these essential food products for the long term.”

As a key supplier of food globally, General Mills owns some of the much-loved brands and will continue to ensure that these products are delivered at lower impact to the planet. Also focusing on regenerative agriculture, energy sourcing and packaging innovation will also allow the company to drive healthier approaches in the food supply chain.

 

 

 

 

Source   Sustainability

Insects find their way onto Italian plates despite resistance

Posted on by dishanth
Insects find their way onto Italian plates despite resistance

In a small room near the Alps in northern Italy, containers filled with millions of crickets are stacked on top of each other.

Jumping and chirping loudly – these crickets are about to become food.

The process is simple: they are frozen, boiled, dried, and then pulverised.

Here at the Italian Cricket Farm, the biggest insect farm in the country, about one million crickets are turned into food ingredients every day.

Ivan Albano, who runs the farm, opens a container to reveal a light brown flour that can be used in the production of pasta, bread, pancakes, energy bars – and even sports drinks.

Eating crickets, ants and worms has been common in parts of the world like Asia for thousands of years.

Now, after the EU approved the sale of insects for human consumption earlier this year, will there be a shift in attitudes across Europe?

“We will oppose, by any means and in any place, this madness that would impoverish our agriculture and our culture,” Deputy Prime Minister Matteo Salvini wrote on Facebook.

But is that all about to change? Several Italian producers have been perfecting cricket pasta, pizza and snacks.

“What we do here is very sustainable,” says Ivan. “To produce one kilo of cricket powder, we only use about 12 litres of water,” he adds, pointing out that producing the same quantity of protein from cows requires thousands of litres of water.

Farming insects also requires just a fraction of the land used to produce meat. Given the pollution caused by the meat and dairy industry, more and more scientists believe insects could be key to tackling climate change.

At a restaurant near Turin, chef Simone Loddo has adapted his fresh pasta recipe, which dates back nearly 1,000 years – the dough is now 15% cricket powder.

It emanates a strong, nutty smell.

Some of the diners refuse to try the cricket tagliatelle, but those who do – including me – are surprised at how good it tastes.

Aside from the taste, cricket powder is a superfood packed with vitamins, fibre, minerals and amino acids. One plate contains higher sources of iron and magnesium, for example, than a regular sirloin steak.

But is this a realistic option for those who want to eat less meat? The main issue is the price.

“If you want to buy cricket-based food, it’s going to cost you,” says Ivan. “Cricket flour is a luxury product. It costs about €60 (£52) per kilogram. If you take cricket pasta for example, one pack can cost up to €8.”

That’s up to eight times more than regular pasta at the supermarket.

For now, insect food remains a niche option in Western societies, as farmers can sell poultry and beef at lower prices.

“The meat I produce is much cheaper than cricket flour, and it’s very good quality,” says Claudio Lauteri, who owns a farm near Rome that’s been in his family for four generations.

 

Diners at the Turin restaurant that serves the insect pasta are trying cricket-based products out of curiosity

 

But it’s not just about price. It’s about social acceptance.

Across Italy, the number of people living to the age of 100 and beyond is rising fast. Many point to the Mediterranean diet as the Holy Grail for a healthy lifestyle.

“Italians have been eating meat for centuries. With moderation, it’s definitely healthy,” says Claudio.

He believes that insect food could be a threat to Italian culinary tradition – which is something universally sacred in this country.

“These products are garbage,” he says. “We are not used to them, they are not part of the Mediterranean diet. And they could be a threat for people: we don’t know what eating insects can do to our bodies.

“I’m absolutely against these new food products. I refuse to eat them.”

While insect farming is increasing in Europe, so too is hostility towards the idea.

The EU decision to approve insects for human consumption was described by a member of Italy’s ruling far-right Brothers of Italy party as “bordering on madness”.

Prime Minister Giorgia Meloni, who has referred to Italy as a “food superpower”, created a Made in Italy ministry when she was elected, with the aim of safeguarding tradition.

“Insect products are arriving on supermarket shelves! Flour, larvae – good, delicious,” she said in a tone of disgust in a video.

Amid concerns that insects might be associated with Italian cuisine, three government ministers announced four decrees aimed at a crackdown. “It’s fundamental that these flours are not confused with food made in Italy,” Francesco Lollobrigida, the agriculture minister, said.

 

Cricket tagliatelle served with zucchini, zucchini cream, crispy bacon, parmesan and basil

 

Insect food is not just dividing opinions in Italy.

In Poland, it has become a hot topic ahead of an election this year. In March, politicians from the two main parties accused each other of introducing policies that would force citizens to eat insects – the leader of the main opposition party, Donald Tusk, labelled the government a “promoter of worm soup”.

Meanwhile, Austria, Belgium and the Netherlands are more receptive to eating insects. In Austria, they eat dried insects for aperitivo, and Belgians are open to eating mealworms in energy shakes and bars, burgers and soups.

“Unfortunately there’s still a lot of misinformation about eating insects,” says Daniel Scognamiglio, who runs the restaurant that serves the cricket tagliatelle.

“I have received hate, I have been criticised. Food tradition is sacred for many people. They don’t want to change their eating habits.”

But he has identified a shift, and says more people – often out of curiosity – are ordering cricket-based products from his menu.

With the global population now exceeding eight billion, there are fears that the planet’s resources could struggle to meet the food needs of so many people.

Agricultural production worldwide will have to increase by 70%, according to estimates by the UN’s Food and Agricultural Organisation.

Shifting to eco-friendly proteins – such as insects – might become a necessity.

Until now, the possibilities for producing and commercialising insect food had been limited. With the EU’s approval, the expectation is that as the sector grows, the prices will decrease significantly.

Ivan says he already has a lot of requests for his products from restaurants and supermarkets.

“The impact on the environment is almost zero. We are a piece of the puzzle that could save the planet.”

 

 

 

 

Source   BBC

 

Crocs pushes net-zero target back from 2030 to 2040

Posted on by dishanth
Crocs pushes net-zero target back from 2030 to 2040

Crocs, which is based in the US and sells shoes globally, posted the updated climate in its latest environmental, social and governance (ESG) report late last week.

The report states that Crocs’ initial commitment to net-zero across by 2030, made in 2021, was “neither fast nor vast enough”.

Nonetheless, it has amended the commitment to net-zero across all emissions scopes by 2040. The report states that, when the initial 2030 goal was announced, Crocs had not completed its acquisition of HEYDUDE nor had it completed a comprehensive baseline of its greenhouse gas emissions.

The acquisition pushed Crocs’ baseline emissions up and the baselining activity revealed a higher-than-expected starting level of emissions.

Crocs estimated its value chain emissions in 2021 at 538,037 tonnes of CO2e. The estimate for 2022 is 45.5% higher at 782,774 tonnes of CO2e. At least 193,000 tonnes of these 2022 emissions are attributable to the HEYDUDE acquisition.

Crocs’ report states that the new 2040 goal is “still ambitious” but “more credible and realistic”.

A commitment to halve the carbon footprint of each pair of Crocs Classic Clogs between 2021 and 2030 has been retained, and extended to the HEYDUDE ‘Wendy’ and ‘Wally’ models. Increasing the share of bio-based content within shoes to 50% by 2030 will play a key role in reducing associated carbon. At present, the proportion is just 2.2%. An interim target has been set to reach 20% by the end of 2023.

Some commentators have questioned whether this approach is enough, and whether the brand should, instead, be looking at selling fewer pairs of shoes that last for longer. Crocs solar some 115.6 million pairs of shoes in 2022, up from 103 million in 2021.

Circular economy thought-leader Paul Foulkes-Arellano wrote on LinkedIn of a “lack of genuine commitment” from the footwear sector on climate and circularity, followed by “backtracking”.

 

 

 

 

Source edie

Carlsberg ramps up regenerative farming practices across barley supply chain

Posted on by dishanth
Carlsberg ramps up regenerative farming practices across barley supply chain

Carlsberg, which is targeting a net-zero value chain by 2040, has confirmed that three of its brands in the UK, Finland and France will source barley from regenerative farming practices.

Last year, the company set a target to ensure that 30% of raw materials are sourced using regenerative agricultural practices by 2030, so that, by 2040 100% of all raw materials are sourced this way. Those targets have since been enshrined in a new zero farming footprint ambition within its recently launched ESG programme.

The Group states that using regenerative farming practices will help farmers promote biodiversity, restore soil health and carbon sequestration, and is therefore an important tool to help combat the climate crisis.

Carlsberg’s senior director of sustainability and ESG Simon Boas Hoffmeyer said: “We cannot reach our targets alone. Partnerships are vital across the value chain, which is why we are collaborating closely with local farmers, traders, maltsters, agronomists and NGOs who provide expertise in the transition to regeneratively grown barley.

“Over time this will allow us to offer our consumers and customers lower-carbon beers and contribute to improving the ecosystems we rely on. We will cooperate with all relevant stakeholders to ensure that we as a company and our industry as a whole, strives towards a ZERO Farming Footprint.”

Progress is already happening. In collaboration with barley malt supplier Soufflet, Carlsberg has used barley that has been cultivated using organic and regenerative agricultural practices. Cover crops were introduced in the barley fields to assist with regenerative farming processes. Soufflet is a key member of the supply chain for the Group’s Kronenbourg 1664 brand.

The aim is that, by 2026, Kronenbourg 1664 Blonde will be brewed with 100% barley malt sourced from this new agricultural value chain, with 250 partner farmers producing 5,000 hectares of responsibly sourced barley that is traceable using blockchain technology, the Group has this week announced.

Now, the company has unveiled two extra new initiatives to build towards its regenerative target.

In the UK, Carlsberg Marston’s Brewing Company (CMBC) has committed to 100% regenerative barley for Carlsberg Danish Pilsner by 2027, and for all UK brands by 2031. The Group has contracted the first 23 farmers to begin work on producing 7,000 tonnes of regenerative barley this year alone.

In Finland, suppliers are producing regenerative barley to Sinebrychoff, a Carlsberg Group company, for its annual KOFF Christmas Beer.

 

 

 

 

Source edie

Compass Group meets EV goal early, increases climate targets for food-related emissions

Posted on by dishanth
Compass Group meets EV goal early, increases climate targets for food-related emissions

The British company has this week published its first in-depth climate impact report, developed to communicate progress towards its 2030 net-zero goal that it unveiled in 2021. The goal entails reducing absolute emissions across all scopes by at least 69% by 2030. against a 2019 baseline. It has been validated in line with the Science-Based Targets Initiative’s (SBTi) 1.5C trajectory.

Compass Group UK&I will finalise a plan to neutralise residual emissions in 2023, detailing its approach to insetting and offsetting.

According to the report, Compass Group UK&I has delivered a 6.46% reduction in absolute emissions since 2019. The business has grown, but it has posted significant decreases in emissions across all Scopes – more than 57% for Scope 1 (direct) emissions; more than 81% for Scope 2 (power-related) emissions and more than 20% for food-related indirect emissions (Scope 3).

On Scope 2 emissions, the report confirms that Compass Group UK&I delivered its ambition to procure 100% renewable electricity by 2022 on time. This is a significant change, given that, in 2019, just 2% of the company’s electricity mix was renewable.

The report also confirms that Compass Group UK&I has achieved its EV ambitions, set for 2024, two years early. The business had pledged to introduce an electric policy for cars by 2024 but this was brought in last year. All cars on order are pure electric. One-third of the firm’s car fleet is now pure-electric and a further 18% are hybrid.

 

Lower-carbon menus

Like most food businesses, Compass Group UK&I sees a significant majority of its emissions footprint – more than 77% – arising from indirect (Scope 3) sources. More than 64% of its overall emissions footprint lies in the lifecycle of ingredients and foods.

In setting its net-zero target, Compass Group UK&I pledged to switch at least 40% of its food offerings to plant-based proteins by 2030, with an interim target of at least 25% by 2025. It has also forged ahead with plans to source more meat, dairy and produce from regenerative farms and to source more locally and seasonally to reduce transport-related emissions.

Work so far has resulted in emissions from animal proteins falling more than one-third since 2018.

The report reveals that Compass Group UK&I’s 4,000+ chefs have either delivered – or are in the process of delivering – more than 90,000 recipe reformulations in support of this work. It also confirmed that more than 25,000 frontline catering staff have completed carbon training, which is now being rolled out on a mandatory basis.

New targets

Compass Group UK&I’s director of delivery for net-zero, Carolyn Ball, said: “As knowledge and understanding continues to grow within our teams, our clients, suppliers and partners, we are seeing a gear shift across our entire value chain. There is a long way to go and no shortcuts to get there, but our responsibility and opportunity to act is as clear as it is compelling.”

One shift in knowledge for businesses procuring goods from agriculture supply chains is the introduction of specific Forest, Land and Agriculture (FLAG) Guidance from the SBTi. The guidance clarifies how companies that are linked to land-intensive activities across the value chain can account for emissions reduction and removal.

Following the launch of initial guidance last year, the SBTi is set to provide an update this year.

As such, Compass Group UK&I has increased its emissions targets. It has now pledged to deliver a 72% reduction in FLAG emissions by 2030 and 90% reduction in non-FLAG emissions by 2030, against a 2019 baseline.

The report also includes new commitments to end deforestation in the supply chains of directly-sourced deforestation-linked commodities by 2025 and to increase non-food-waste recycling on all sites where Compass manages the contract by 2030.

 

 

 

 

Source edie

L’Oréal launches Net-Zero Salons programme across the UK

Posted on by dishanth
L’Oréal launches Net-Zero Salons programme across the UK

L’Oréal is partnering with climate action platform Net-Zero Now to develop the Net-Zero Salons Programme. The new initiative helps salons calculate, track and reduce emissions by setting carbon reduction plans. The overarching goal is to certify establishments as a “net-zero salon”.

With around 31,000 hair salons on UK highstreets, L’Oréal believes the initiative can help reduce emissions across the industry. The programme estimates that the average salon appointment produces 3.1kg of greenhouse gas emissions and will aim to reduce it to a 2kg benchmark. Doing so, L’Oréal states, would reduce emissions from the industry by a third if all salons signed up.

L’Oréal and Net-Zero Now will offer guidance on improving energy efficiency, switching to renewables and revamping waste treatment and management. Water consumption, heating and encouraging employees to travel more sustainably are also key areas of guidance offered through the programme.

L’Oréal UK & Ireland’s managing director Thierry Cheval said: “As market leaders we recognise the important role we play in empowering our business ecosystem such as our salon partners to be more sustainable.

“We are committed to supporting the future of the sector and we look forward to having salons from across the UK and Ireland join the programme as the industry seeks to take climate reduction action.”

In 2020, L’Oreal unveiled a sweeping set of sustainability targets, pledging to reach carbon neutrality by 2025, halve carbon emissions, use 100% renewables and ensure all plastic packaging comes from recycled or bio-based sources.

A €100m fund for the regeneration of the natural environment has also been set up. A €50m Fund for Nature Regeneration will be used to finance marine and forest ecosystem restoration projects that also create new social and economic development opportunities for the populations that depend on these ecosystems.

The Net-Zero Salons Programme forms part of this sustainability roadmap and contributes to an existing “Hairstylists for the Future programme” that has helped salons reduce water usage and waste. L’Oreal partnered with the Green Salon Collective and will provide salons with a water-saving showerhead, which will be rolled out this year.

Commenting on the announcement, the British Beauty Council’s chief executive Millie Kendall said: “Now more than ever – especially post-pandemic – salons play an essential role on our British high streets and local communities; with the power to not only inspire confidence and promote wellbeing, but to be an advocate for positive change – not only from a business perspective but extending to influencing consumer habits on important topics such as sustainability.

“This new Net-Zero Salons Programme, coupled with L’Oréal’s new educational offerings to help upskill hairdressers on sustainability, is really empowering the salon sector to play its role and take action.”

 

 

 

 

Source edie

 

UK Plc gets first look at ‘gold standard’ for net-zero transition plans

Posted on by dishanth
UK Plc gets first look at ‘gold standard’ for net-zero transition plans

The Transition Plan Taskforce (TPT) was launched by the Treasury this April, then-Chancellor Rishi Sunak used his platform at COP26 to pledge that large businesses in high-emission sectors would be subjected to new net-zero disclosure requirements from 2023. The requirement is around net-zero transition plans, which support long-term corporate emissions goals with interim milestones and outline the necessary steps to change business models and investment. Plans should also detail how workers will be supported and the need for upskilling and reskilling addressed.

Today, the TPT has published its first proposal for a ‘gold standard’ for net-zero transition plans. It was asked to draw up such a standard to ensure that disclosures are meaningful, unified, and would deliver the emissions reductions they tout.

The proposal consists of a framework, recommending how companies should develop plans and the key elements they should include; and an implementation guidance document. The guidance includes advice on when, where and how to provide net-zero transition plans.

The TPT is proposing that companies should have to publish one transition plan next year, then an update in 2026. In 2024 and 2025, information material to the plan should be included in financial reporting, it is recommending.

Regarding the content of a ‘gold standard’ plan, the TPT recommends that organisations should state high-level ambitions to mitigate emissions as well as top-line plans on climate adaptation. This information should be built upon with a list of actions to be taken in the short, medium and long-term and plans to finance these actions.Organisations should also clearly set out how their governance is set up for the net-zero transition.

There are also close ties to TCFD-aligned reporting in the TPT’s proposal. It wants to see businesses assessing the material risks it causes to the natural environment and to communities, and the opportunities it could bring about by reducing and eliminating these harms.

The guiding principles of the proposed framework are “ambition, action and accountability”. Ambition involves “preparing for and contributing to a rapid and orderly economy-wide net-zero transition”. Action involves bolstering long-term goals with interim milestones and making sure financial flows enable their deliver. Accountability covers governance.

The Bank of England’s executive director for financial sustainability Sarah Breeden said that the resources published today “will be key in building out the transition infrastructure necessary for supporting the financial sector to allocate capital efficiently, enabling the real economy transition to net zero.”

Breeden said: “Climate change poses risks to the stability of the financial system and to individual firms. Actions taken by the private sector today will determine the size of future risks which is why it is crucial financial and non-financial firms develop and disclose robust transition plans with a focus on concrete short-term action.”

There is no word yet on which month in 2023 net-zero transition plan disclosures are set to become mandatory, and which businesses will be covered by the mandate. Some firms, including Centrica, SSE and British American Tobacco have already published net-zero transition plans on a voluntary basis.

Commenting on the TPT’s publications, EY UK & Ireland’s managing partner for sustainability Rob Doepel said: “Fundamentally, implementation of the Disclosure Framework (pending consultation) will force the hand of businesses to produce and implement rigorous net-zero plans to deliver on the bold pledges and promises they have made to date.

“Not only is this a huge step towards making the UK a net-zero economy but is a significant step towards the world’s progression to net-zero, elevating the UK into a leadership position in the global economy on holding companies to account on action. Other G20 countries are likely to stand up and take notice of the UK’s progressive approach and it could well create a ripple effect where other countries follow a similar path.

“The guidance suggests that businesses should produce a “maximalist” plan covering not only their own decarbonisation plans, but how their plans fit into the UK and the world’s transition to net zero. TPT guidance goes further than TCFD requirements and potentially a long way beyond what many businesses have considered in their net zero planning to date.”

 

 

 

 

Source edie

How an approach based on strategy and policy can help you secure sustainability grants and incentives

Posted on by dishanth
How an approach based on strategy and policy can help you secure sustainability grants and incentives

For many companies, a net zero transition will prove a complex and expensive pathway, despite the importance of this change.

Governments worldwide have made ambitious net zero commitments. They are using fiscal policies to encourage this business transformation in their jurisdictions and beyond.

Some of these policies are incentives – both discretionary (e.g. grants) or statutory (e.g. tax credits) – that are made available to support a business journey towards net zero.

However, these incentives are many and varied, and getting lost in the complicated and crowded landscape is easy. Additionally, many discretionary programmes are competitive, with limited funding. Therefore, only the ‘best’ projects receive funding.

How, then, can a business effectively approach access to discretionary incentives?

 

1) Understand Government priorities

Rather than tackling individual funding competitions in isolation, your business should look to understand how its long-term strategy aligns with Government priorities.

Alignment of your plans to Government policy benefits the development of grant applications. This is because grants and other incentives are designed to enforce policies that drive the economy in a particular direction.

For instance, the UK Ten Point Plan for a Green Industrial Revolution lays out actions in key areas such as hydrogen, carbon capture and storage, and offshore wind to transition the UK to a net zero future.

Government funding is therefore to prioritise and facilitate this transition. This can be by stimulating innovation to close knowledge gaps and by improving the return on investment on technologies that are not currently economically attractive.

Being able to effectively express alignment with Government sustainability plans is key to a successful application.

 

2) Think “outside in” to express your value

Most companies think “inside out” when they apply for funding – presenting their challenges and funding needs as the central driver for the grant request.

However, focusing on public priorities, rather than just the need for funding, enables an “outside-in” approach. This looks at the challenges the country needs to overcome to reach its objectives. It then allows the application to show how the proposed project contributes to the solution.

For instance, if the high cost of storage limits the amount of renewable energy that can be used on the grid, developing a new low-cost, efficient and rapidly deployable storage solution can positively impact renewable energy uptake, and would therefore be aligned with Government priorities.

 

3) Engage with funding consultations and policymakers

Governments often design incentive programmes in consultation with industrial players who are likely to bring priority-aligned solutions.

To take the earlier example around the amount of renewable energy that can used on the grid, energy companies may highlight that to be able to offer more of this resource, they need storage solutions more urgently than better solar panels. This could then lead to funding availability for these solutions in priority to other areas.

For a business engaging with policymakers, it is vital to connect with the right stakeholders and make pro-active contributions to funding consultations as this is likely to lead to better opportunities in the future.

There is an ever-evolving and competitive landscape for discretionary sustainability incentives and it is critical that businesses take a coordinated approach to incentives. Demonstrating how your strategy aligns with Government sustainability priorities can provide access to more funding opportunities, expedite application preparation, and improve your chance of application success.

 

 

Source Edie

Aviation sector supports new net-zero transition strategy

Posted on by dishanth
Aviation sector supports new net-zero transition strategy

A new report delivered by the Mission Possible Partnership (MPP) and the Clean Skies for Tomorrow Coalition (CST) has outlined a transition strategy for the aviation sector to reach net-zero emissions by 2050. The report is backed by major companies including Airbus, American Airlines, easyJet and Shell.

The report, which is backed by 27 airlines in 19 countries, 1,950 airports in 185 countries, 10 aircraft producers and suppliers, 21 fuel producers & upstream energy providers, notes the steps the aviation sector can take to reach net-zero emissions by 2050, including short-terms targets.

According to the report, reaching net-zero will require a “doubling of historical fuel efficiency gains of aircraft” that will support the development of more innovative – yet contested – solutions.

The report calls for the market entry of novel propulsion aircraft such as hydrogen or electric by the mid-2030s.

Additionally, the sector will need to invest in SAFs, which have been met with criticism by some green groups who claim that a lot of feedstocks for the fuel can’t be considered sustainable. Earlier this week the European Parliament voted to clarify what constitutes as SAFs, with bans imposed on some biofuel feedstocks.

According to the report, 10–15% of the final jet fuel demand needs to come from SAFs by 2030 in order to allow a scaling up of the technology to reach net-zero by 2050. This, the report states, requires a ramp-up of the current SAF project pipeline by a factor of 5–6.

While fuel costs for the sector are expected to increase as a result of the net-zero transition, the report states that the cost of flying could remain stable due to increased efficiency gains.

The average annual investments are estimated at $175bn annually up to 2050, at which point the aviation sector could account for 10% of global renewable electricity demand and up to 30% of hydrogen demand. The sector would likely need to capture around 600–850 Mt CO2 from the atmosphere are part of offsetting and balancing mechanisms.

The Mission Possible Partnership’s chief executive Matt Rogers said: “MPP is mapping critical strategies on how to turn the paper goals of annual climate summits into action. An unmitigated aviation sector would be responsible for 22% of emissions by 2050. This transition strategy outlines plans and projects that are high on the agenda of ambitious companies, including the ‘nuts and bolts’ of how to build 300 Sustainable Aviation Fuel plants by 2030.”

The aviation industry accounts for around 3% of global emissions and could rise to 22% by 2050 if left unmitigated.

In 2020, members of the UK Sustainable Aviation pledged to achieve net-zero carbon emissions in the sector by 2050, to assist with the UK’s overall net-zero strategy.

A roadmap to accompany the launch suggests the sector believes it can accommodate a 70% increase in passengers by 2050, while reducing carbon emissions from more than 30 million tonnes a year to net-zero. New aircraft and engine technology and smarter flight operations have been heralded as some of the solutions to support the transition.

The use of “robust carbon offsets and investment in innovative carbon removal solutions” will be vital to address residual UK aviation emissions by 2050, the report notes.

Globally, the International Air Transport Association (IATA) has supported a resolution calling for the global sector to reach net-zero by 2050, unveiling plans that rely on SAFs for 65% of emissions cuts.

Notably absent from IATA’s plans are any scenarios in which global passenger numbers decline.

Commenting on the new pathway report, Johan Lundgren, chief executive of easyJet, said: “We believe that novel propulsion technologies, including hydrogen, can offer the most sustainable solution for a short haul airline like easyJet.

“The adoption of these technologies will help reduce the climate impact of our operations while preserving the immense economic and social benefits that aviation brings to the world. We therefore support the Mission Possible Partnership Aviation Transition Strategy.”

 

 

Source Edie