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1、The“No-Excuse”Frameworkto Accelerate the Path to Net-Zero Manufacturing and Value ChainsW H I T E P A P E RJ A N U A R Y 2 0 2 3Industry Net Zero Accelerator InitiativeContentsForewordExecutive summary1 Industry net zero in context 1.1 What is net zero?1.2 The current state of net zero in manufactur

2、ing industries and value chains1.3 Business drivers and opportunities for achieving net zero1.4 Barriers to achieving net zero in manufacturing industries and value chains2 Net-zero transformation:A guiding framework for collaborative action 2.1 Stage I:Build the foundations2.2 Stage II:Change the g

3、ame internally2.3 Stage III:Drive systemic collaboration2.4 Stage IV:Make it simple,inclusive and exciting3 Industry Net Zero Accelerator initiative:Next stepsContributorsEndnotes3577810111314162935373840Cover:Jasmina007,Getty Images Inside:Getty Images 2023 World Economic Forum.All rights reserved.

4、No part of this publication may be reproduced or transmitted in any form or by any means,including photocopying and recording,or by any information storage and retrieval system.DisclaimerThis document is published by the World Economic Forum as a contribution to a project,insight area or interaction

5、.The findings,interpretations and conclusions expressed herein are a result of a collaborative process facilitated and endorsed by the World Economic Forum but whose results do not necessarily represent the views of the World Economic Forum,nor the entirety of its Members,Partners or other stakehold

6、ers.The“No-Excuse”Framework to Accelerate the Path to Net-Zero Manufacturing and Value Chains2ForewordWhile many leading companies have already started their journey towards achieving net-zero emissions namely,cutting their greenhouse gas emissions as much as possible and balancing the remaining by

7、removing it from the atmosphere no single business can reach net zero by itself.Systemic collaboration across and between value chains is fundamental to aligning and upgrading corporate strategies and industrial policies,and all stakeholders even competitors can find mutual benefit in ensuring their

8、 industries can continue operating in the future.Industry has a significant role to play in achieving global carbon reduction targets as it encompasses all manufacturing and value chains and represents nearly 30%of global greenhouse gas emissions.To better understand how to accelerate the transition

9、 to net zero,the World Economic Forum Industry Net Zero Accelerator initiative team consulted extensively with experts from business,academia and government within the framework of the World Economic Forum Centre for Industry Transformation.This background research has given the team clear insight i

10、nto where industry stands in its net-zero journey,the innovative strategies being implemented in manufacturing operations and value chains,the opportunities that companies see in the transition,and the barriers they face.While individual organizations can make important contributions towards net zer

11、o,no company can manage the net-zero transformation of its manufacturing facilities and value chains alone if both individual and collective targets are to be achieved,in line with announcements during the United Nations Climate Change Conference of 2021(COP26)and 2022(COP27).Systemic collaboration

12、is a vital component of the journey and needs to be prioritized at the supply-chain and cross-sectoral levels,as well as between the public and private sectors.In particular,several firms are demonstrating that driving decarbonization in their supply chains and supporting small and medium-Achieving

13、net zero in manufacturing and value chains is a global endeavour.Systemic collaboration is fundamental to accelerating the change.Francisco Betti Head,Shaping the Future of Advanced Manufacturing and Value Chains,World Economic ForumRoshan Gya Chief Executive Officer,Capgemini InventDavid Leal-Ayala

14、 Deputy Head,Policy Links Unit,IfM Engage,University of Cambridge;Research Fellow,Shaping the Future of Advanced Manufacturing and Value Chains,World Economic ForumCedrik Neike Member of the Managing Board,Siemens;Chief Executive Officer,Digital IndustriesBlake Moret Chairman and Chief Executive Off

15、icer,Rockwell AutomationThe“No-Excuse”Framework to Accelerate the Path to Net-Zero Manufacturing and Value Chains3sized enterprises are essential components of a successful strategy for driving the industry net zero journey which results in mutual economic benefits,environmental benefits and risk mi

16、tigation.More collaborative efforts are necessary to address the challenges ahead.In this context,the World Economic Forum has launched the Industry Net Zero Accelerator initiative in collaboration with Cambridge Industrial Innovation Policy(Institute for Manufacturing,University of Cambridge),Capge

17、mini,Rockwell Automation and Siemens.The initiative provides a cross-industry,precompetitive and neutral platform to support businesses and other stakeholders to upgrade their net-zero strategies by enabling the dissemination of knowledge,best practices and experience all focused on how to unpack th

18、e net-zero equation and aimed at accelerating the transition.As the initiatives first output,this White Paper proposes a framework and reference guide to help shape and implement“no-excuse”strategic actions and encourage manufacturing ecosystem collaboration in achieving net zero.This framework repr

19、esents a compendium of the key building blocks of successful industry net zero roadmaps,illustrated through real-world examples of existing firm-level and collaborative initiatives and strategies.The scale of the challenge ahead ultimately requires a new mindset of innovation and action where succes

20、sful industrial companies can lead by example.The initiatives team hopes this paper can inspire more businesses to join this community and play a role in the collaborative effort to exchange knowledge and best practices,and to stimulate and accelerate the transition towards net zero across industria

21、l sectors.The“No-Excuse”Framework to Accelerate the Path to Net-Zero Manufacturing and Value Chains4Executive summaryAlthough the need for climate action is a growing concern for businesses,the move from talk to“no-excuse”action is still hindered by limited access to detailed information on how busi

22、nesses can operationalize their commitments and address their carbon-emission challenges throughout their operations and supply chains.Because getting to net-zero manufacturing and value chains covers many areas of action across functions within an organization and in diverse sectors,companies often

23、 find themselves discussing various issues,strategies and solutions in isolation and unable to consider all the related factors.What technological solutions are readily available in the market?What support schemes exist in specific sectors and countries?What regulations are likely to affect future b

24、usiness operations?System-level collaboration is a vital tool for finding the right answers to these questions,through interacting and collaborating with peers at the cross-industry level or with governments and other expert bodies.To facilitate access to evidence and shape the dialogue between lead

25、ers and decision-makers,this White Paper proposes a reference framework one that is core to the World Economic Forum Industry Net Zero Accelerator initiative that brings together the relevant building blocks of successful industry net zero roadmaps.The framework aims to be a central tool for the ini

26、tiative to engage leaders across industry sectors,government,academia and civil society to jointly shed light on global insights and best practices in response to the net-zero“how-to”challenge.Complemented by real-world examples of initiatives and projects,the framework is based on 10 action pillars

27、 grouped into four stages:Stage IBuild the foundationsBuild a net-zero corporate strategySet the capability for carbon footprint monitoring12Accelerate energy efficiency in operations and transport and decarbonize energy sourcesPursue material efficiency in operations34Rethink product design and bus

28、iness modelsDevelop carbon capture solutions and offset mechanisms56Stage IIChange the game internallyDrive value-chain decarbonization(upstream and downstream)Mobilize ecosystems for net-zero infrastructure and innovation78Address net-zero data and digital standards9Stage IIIDrive systemic collabor

29、ationImplement and drive the net-zero culture and practices10Stage IVMake it simple,inclusive and excitingThe“No-Excuse”Framework to Accelerate the Path to Net-Zero Manufacturing and Value Chains5Each stage of the framework consists of a combination of research-based insights,well-established action

30、 areas observed from companies across different manufacturing and value chains,and emerging themes where firms are seeking solutions and partnerships to move from concept to action.Although various industrial sectors have different contexts and drivers behind their emissions,this framework is intend

31、ed to be applicable across key industries and geographies.All action areas within the framework are considered as interlinked and mutually supporting themes that are likely to be deployed in combination as part of any net-zero roadmap.This White Paper constitutes the first output of the Industry Net

32、 Zero Accelerator initiative and includes the inputs from various stakeholders within the World Economic Forum International Centre for Industry Transformation.Forthcoming work by the initiative will bring together a larger community of action to pursue the collection of insights,methodologies,best

33、practices and experiences on net-zero cross-industrial challenges.These could include,for example,manufacturing operations,experiences with data standards,indirect emissions(i.e.Scope 3)traceability,material efficiency and circularity,supply chain decarbonization support,new business models or net-z

34、ero compatible digital strategies.While this paper is targeted at supply chain and operating officers,further resources are available for chief executive officers at the Alliance of CEO Climate Leaders.1The Industry Net Zero Accelerator initiative is partnering with the Estainium Association2 to add

35、ress value-chain data sharing challenges(e.g.product carbon footprint;carbon capture,storage,utilization and compensation)and will continue leveraging the net-zero framework presented here as a basis for further dialogue between private-and public-sector stakeholders.The“No-Excuse”Framework to Accel

36、erate the Path to Net-Zero Manufacturing and Value Chains6Industry net zero in context1Net zero is at the top of most company agendas and is an important theme of public discourse.The term is now synonymous with climate action.But what does net zero mean?Where are industries in their transformation

37、journey,and what drives businesses to address the key opportunities and barriers?Net zero refers to the balance between the amount of greenhouse gases(GHGs)produced and the amount removed from the atmosphere.3 It is the internationally agreed-upon goal for mitigating global warming:the United Nation

38、s Intergovernmental Panel on Climate Change(IPCC)has determined the need for net-zero CO2 by 2050 to avoid catastrophic climate change.The IPCC acknowledges that reducing all emissions to absolute zero by 2050 will be difficult,requiring not only significant emission cuts but also more intensive rem

39、oval of CO2 from the atmosphere.At the industrial organization level,the Science Based Targets initiative(SBTi)has reported that reaching a state of net-zero emissions for companies implies two conditions:4 Achieving a level of value-chain emissions reduction consistent with the depth of abatement a

40、chieved in scenarios that limit warming to 1.5C with no or limited overshoot Neutralizing the impact of any source of residual emissions that remains unattainable by permanently removing an equivalent amount of atmospheric CO2GHG emissions are categorized into three groups or“scopes”by the Greenhous

41、e Gas Protocol(Figure 1).5What is net zero?1.1The“No-Excuse”Framework to Accelerate the Path to Net-Zero Manufacturing and Value Chains7When looking at historical emissions,global net anthropogenic CO2-equivalent emissions grew 54%from roughly 38 billion tonnes in 1990 to nearly 59 billion tonnes in

42、 2019.6 If this trend continues,the world will likely experience a temperature increase of between 4.1C and 4.8C by the year 2100.7 Under the Paris Agreement,all economic sectors need to adhere to the 2C or 1.5C carbon reduction pathway,which translates into reducing global carbon-equivalent emissio

43、ns from above 50 billion tonnes to net zero.That is the scale of the challenge faced by industry and other economic sectors.When looking at the context of individual industrial subsectors,CO2-equivalent emissions attributed to energy use in industry accounted for 24.2%of total global emissions in 20

44、16,in addition to 5.2%CO2-equivalent emissions generated from direct industrial processes(mostly from the production of cement,chemicals and petrochemicals)for a total of 29.4%of global emissions(Figure 2).It is clear that different industries face different challenges(Figure 3).Whereas industries l

45、ike cement,steel and mining have low Scope 3 emissions,this category becomes significant for other industries such as chemicals,electronics,automotive and food,which means that any net-zero efforts in those sectors are likely to require intense cooperation from suppliers,manufacturers and consumer b

46、rands.The current state of net zero in manufacturing industries and value chains1.2GHG emission scopes in the manufacturing value chain and product life cycleFIGURE 1Source:Capgemini,based on the concept presented in A Corporate Accounting and Reporting Standard:Revised Edition,World Resources Insti

47、tute and World Business Council for Sustainable Development,2004.Scope 3 upstreamemissions from purchased materials(such as raw materials,components and consumables)and services;product transported from suppliers facilitiesScope 3 downstreamwaste disposal,use of sold products and their end-of-life m

48、anagement,distribution investments,leased assets and franchisesOther Scope 3business travel,employee commutingProductdesignIndustrializationManufacturing,quality,maintenanceInbound logisticsMaterials procurementPlanning&schedulingProduct end of lifeIn-service product useOutbound logisticsContinuous

49、improvementScope 2 indirect emissions from the generation of purchased electricity,steam,heating and cooling consumed by the reporting companyScope 1direct emissions from owned or controlled sources(fuel combustion,company vehicles,fugitive emissions)The“No-Excuse”Framework to Accelerate the Path to

50、 Net-Zero Manufacturing and Value Chains8CO2-equivalent emissions by scope for selected industries,2019(%)FIGURE 3Source:Extracted from World Economic Forum,Net-Zero Challenge:The Supply Chain Opportunity,Insight Report,January 2021.Industry contribution to global GHG emissions(in blue),sectorial vi

51、ew,2016 data(%)FIGURE 2Source:World Economic Forum Industry Net Zero Accelerator initiative,adapted from information on the Our World in Data website and based on data from Climate Watch and the World Resources Institute.Energy(73.2)Energy use in industry(24.2)Transport(16.2)Fugitive emissions from

52、energy production(5.8)Unallocated fuel combustion(7.8)Iron&steel(7.2)Other industry(10.6)Road transport(11.9)Residential buildings(10.9)Aviation(1.9)Rail(0.4)Pipeline(0.3)Commercial(6.6)Shipping(1.7)Paper&pulp(0.6)Machinery(0.5)Non-ferrous metals(0.7)Food&tobacco(1)Chemical&petrochemical(3.6)Energy

53、in agriculture&fishing(1.7)Agricultural soils(4.1)Crop burning(3.5)Cropland(1.4)Wastewater(1.3)Chemicals(2.2)Livestock&manure(5.8)Rice cultivation(1.3)Cement(3)Landfills(1.9)Deforestation(2.2)Grassland(0.1)Energy use in buildings(17.5)Industry(5.2)Waste(3.2)Agriculture,forestry&land use(18.4)CementS

54、teelMiningElectronicsAutomotiveFoodChemicals904646252940303025146151877513828983Scope 1Scope 2Scope 3Drivers for actively pursuing and achieving net-zero targets can include a combination of external and internal factors(Figure 4).8 Business drivers and opportunities for achieving net zero1.3Busines

55、s drivers for change and business opportunities of net zeroFIGURE 4As an example of cultural pressure,the United Nations Development Programmes Peoples Climate Vote survey covering 50 countries and over half of the worlds population showed that 64%of respondents agreed that climate change is a globa

56、l emergency.9 As a recent example of regulatory development,large companies and financial institutions in the United Kingdom are required to disclose climate-related financial information on a mandatory basis starting from April 2022.10Given these changes,an industry survey carried out by Make UK,on

57、e of the countrys largest industrial associations,showed that nearly half of manufacturers see the transition to net zero as offering key opportunities,which include:11 Increasing access to finance through innovation grants and fiscal incentives targeted at encouraging investment in the green econom

58、y Improving process efficiency and productivity that could lead to cutting both carbon emissions and operational costs Maximizing innovation to develop and manufacture new products and services that target changing consumer preference for greener products and help to generate new revenue and access

59、new markets Developing new supply chains to sustain new products and markets and access new revenue(e.g.biorefining;carbon capture,utilization and storage;hydrogen supply chain;circular steel supply chain)Attracting talented new workers to support industrys green transformationSource:Modified from L

60、loyds Bank,From Now to Net Zero:A Practical Guide for SMEs,2022,and Make UK,Manufacturing Sector Net Zero Roadmap,2022(both accessed 24 November 2022).External factorsDrivers for changeOpportunities of net zeroUniversal cultural pressure and demandRegulatory( zero,electric vehicles)Internal factorsI

61、nternal culture(value and mission to be environmentally sustainable)Commercial(e.g.saving money,making money through new opportunities,contracts,meeting customer/supplier demand)Access to finance through innovation grants and fiscal incentivesImproved process efficiency and productivity;cutting oper

62、ational costAccess to new markets and revenue through innovation in greener products and servicesAttract talented new workersThe“No-Excuse”Framework to Accelerate the Path to Net-Zero Manufacturing and Value Chains10Putting principles into“no-excuse”practice,firms face three key barriers financial,t

63、echnical and organizational that hinder their ability to transition to net zero at the right pace and scale(Figure 5).Barriers to achieving net zero in manufacturing industries and value chains1.4Barriers to net zero in manufacturing operations and value chainsFIGURE 5Source:Cambridge Industrial Inn

64、ovation Policy(Institute for Manufacturing,University of Cambridge);World Economic Forum Industry Net Zero Accelerator initiative consultations with industry leaders and experts.FinancialKey barriersExperiences from operations leaders conducting net-zero transformations Increased operational expendi

65、ture Additional capital expenditure for demonstration pilots and industrial deployment Perception that technologies are too expensive Limited access to funding Lack of awareness of technologies and their potential financial benefitsElectronics and automation“We make a lot of investment,but one huge

66、challenge is the benefit and cost sharing across the value chain.”Mining,metals and materials“While 20-year visibility is needed when we invest in new industrial equipment,it is a big challenge to forecast future green energy availability(electricity,gas,biomass,hydrogen)and make the right technolog

67、ical choice.”Chemicals and pharma“It is difficult to forecast the reward to get greener in an industry not yet pressurized by customers for greener products.”Mining,metals and materials“We need sector-level R&D investment to decarbonize our processes in many cases it also requires custom solutions d

68、epending on our industrial legacy.”Technical Lack of common language,knowledge gap and culture Technical difficulty integrating new technologies into existing plants Shortages in skills(information and communications technology;specialized manufacturing activities and processes;technology adaption a

69、nd integration;data analysis;managerial)Management of geographical diversityIndustrial equipment manufacturer“Difficulty to have harmonized data sharing of product carbon footprints across the value chain:the stake is to explain that confidential data exchange is possible without impacting IP for co

70、mpanies.”Mining,metals and materials“The heterogeneity of laws,subsidies and taxes between geographies makes it difficult to implement decarbonization measures as fast as we want.”Chemicals and pharma“High improvements in digitalization are needed to set measurements and monitor carbon emissions.”El

71、ectronics and automation“The technology roadmap and the related investment intensity are still unclear we need guidance on carbon capture for example.”Electronics and automation“We face a difficulty in the cultural change:prioritize projects,educate and communicate within the organization.”Organizat

72、ional Partnerships with external ecosystems Support of value-chain decarbonization Organizational and individual resistance to change Unclear implementation strategy Top-down implementation management approaches with little involvement of workers Lack of cooperation among business functions and depa

73、rtmentsMining,metals and materials“Net zero is all about partnerships:they are necessary at every level,from governments,supply chain or energy solutions providers.”Mining,metals and materials“Operations have a major responsibility in enabling the journey to net zero moving responsibility from corpo

74、rate to supply chain leaders makes a big difference.”Electronics and automation“We need to collaborate with other industries at the country level to work together with governments to provide the energy,infrastructure and technical support needed.”Chemicals and pharma“Upstream supply chain hot spots

75、relate to logistics and packaging:we need to work on smaller packages and take-back,but many healthcare regulations do not allow it today.”The“No-Excuse”Framework to Accelerate the Path to Net-Zero Manufacturing and Value Chains11Barriers at the firm level are generally linked to gaps in contextual

76、enablers,which may include regulatory or societal barriers,absent or insufficient entrepreneurial and innovation systems,inadequate institutional frameworks,and limited physical and digital infrastructure.Although some of the key technologies underpinning net-zero operations already exist,others are

77、 still in early stages of development without clear roadmaps for entry into the market.“Ensuring that these technologies are successfully integrated and scaled-up into commercially available products and solutions represents a hurdle.Even if these applications manage to get to the market,creating aw

78、areness and demonstrating their functionality among industrial users remains a challenge.”12The net-zero challenge is,finally,a global orchestration challenge.Net zero is hard to achieve,but use cases,solutions and approaches can already help companies cut emissions.Private-sector players,the public

79、 sector and civil society need to align on key priorities and relentlessly collaborate to overcome barriers and drive the net-zero transformation.The“No-Excuse”Framework to Accelerate the Path to Net-Zero Manufacturing and Value Chains12Net-zero transformation:A guiding framework for collaborative a

80、ction2Many businesses in global industries have not only committed to a net-zero future but have started implementing action plans,technologies and practices that could provide guidance for the broader industrial community.Recognizing that businesses are at different stages of the journey towards ne

81、t zero,the World Economic Forum Industry Net Zero Accelerator initiative team has created a framework that can serve as a reference guide to support awareness on mitigation actions,inspire strategic-level decisions and structure the dialogue between private-and public-sector stakeholders,thus facili

82、tating further collaboration.The framework is based on 10 action pillars grouped into four stages(Figure 6):The“no-excuse”framework for industrial decarbonizationFIGURE 6Source:World Economic Forum Industry Net Zero Accelerator initiative.Stage IBuild the foundationsBuild a net-zero corporate strate

83、gySet the capability for carbon footprint monitoring12Accelerate energy efficiency in operations and transport and decarbonize energy sourcesPursue material efficiency in operations34Rethink product design and business modelsDevelop carbon capture solutions and offset mechanisms56Stage IIChange the

84、game internallyDrive value-chain decarbonization(upstream and downstream)Mobilize ecosystems for net-zero infrastructure and innovation78Address net-zero data and digital standards9Stage IIIDrive systemic collaborationImplement and drive the net-zero culture and practices10Stage IVMake it simple,inc

85、lusive and excitingThe“No-Excuse”Framework to Accelerate the Path to Net-Zero Manufacturing and Value Chains13Each stage of the framework is comprised of research-based insights,well-established action areas observed among manufacturing and value chains,and emerging themes where firms are starting t

86、o seek solutions and partnerships to move from concept to action.Although industrial sectors possess different drivers of carbon emissions and contextual circumstances,this framework seeks to be applicable across all industries and geographies.All action areas within the framework are considered as

87、interlinked and mutually supporting themes that are likely to be deployed in combination and as part of any net-zero roadmap.Stage I:Build the foundations2.1Basic steps that could help firms create a net-zero corporate strategy include establishing their carbon footprint baseline,setting carbon redu

88、ction targets and creating a reduction roadmap based on a strong business case.Several publicly available tools,methodologies and resources can help firms diagnose their starting point and set a direction for their journey.Evaluate the firms carbon footprint and set targetsThe first step is to deter

89、mine the firms total GHG emissions generated annually,and which parts of the business are the major sources of emissions(e.g.processes,supply chain,logistics,product use).While metrics can be complex and uneven across industries,focusing on two main ones CO2-equivalent reduction per volume produced

90、and direct CO2-equivalent reduction allows to quantify roadmaps and track achievements.Initiatives such as the SBTi provide clear guidelines on how to set near-and long-term science-based targets.According to the SBTi,setting a science-based target includes the following key steps:13 Commit:submit a

91、 letter establishing the intent to set a science-based target Develop:work on an emissions reduction target in line with the SBTis criteria Submit:present the target to the SBTi for official validation Communicate:announce the target and inform stakeholders Disclose:report company-wide emissions and

92、 track target progress annuallyBuild a net-zero corporate strategyAction pillar 1Examples of tools,methodologies and standards for assessing carbon emissions:Greenhouse Gas Protocol Corporate Standard Scope 3 Evaluator Tool Carbon footprint tool(Bilan Carbone)of the French Agency for Ecological Tran

93、sition(ADEME)Organisation Environmental Footprint(OEF)standard Carbon Trusts Carbon Footprint Calculator SME Climate Hubs Cool Climate Calculator International Organization for Standardization(ISO)net-zero guidelinesThe“No-Excuse”Framework to Accelerate the Path to Net-Zero Manufacturing and Value C

94、hains14Create a net-zero roadmap with a clear governance structure,centred on opportunities and risksAs with any transformation programme,a roadmap is needed to identify and prioritize key net-zero levers.The roadmap helps to investigate,manage and communicate the linkages between specific initiativ

95、es and investments,product developments,business objectives and market opportunities.Net-zero roadmaps should have a governance and oversight process that drives the vision and allows for clear tracking of progress and carbon trajectory milestones.Addressing first the question of“what are the low-ha

96、nging fruits to start the net-zero journey”will help build confidence.In addition,decarbonization can begin with energy and materials efficiency with interesting returns on investment(ROIs)before implementation of complex technology.14Build a net-zero business caseTypical net-zero projects are funde

97、d by a combination of internal investment,government incentives and correct pricing for increased consumer and customer benefits.Several industries are using the classic business case approach,quantifying not only energy cost reduction but also other benefits associated with decarbonization(e.g.mark

98、et share increase,talent retention,reduced risk).15 According to the IPCC,several emission-reducing options in the industrial sector are cost-effective and profitable,such as energy and material efficiency.16Some companies apply an internal carbon price by tonne of emitted CO2-equivalent(for the com

99、pany,by country or by industry line).This practice can help prioritize projects internally,considering existing or future carbon taxes in some countries.17 Considering sustainability as a profit centre could also serve to capitalize savings.For instance,savings achieved through efficiency programmes

100、 can be used to help fund more complex projects.18Set the capability for carbon footprint monitoringAction pillar 2Measuring and monitoring carbon emissions can be a demanding challenge for business and industry,particularly when looking at indirect Scope 2 and 3 emissions from external sources.This

101、 is,however,the most important step on the journey to net zero,as it provides clarity on priority areas of intervention and helps to monitor progress towards specific goals.Although developing internal capabilities for carbon footprint monitoring is important,firms must partner with independent supp

102、liers that can certify performance for compliance with current regulations.Create an internal capability and a digital platform to report and monitor GHG emissionsOperationally,consulted industrial leaders have reported that in most cases new capabilities had to be set internally to support carbon-e

103、mission monitoring.This included setting up various small teams located at corporate,supply chain and/or procurement levels,dedicated to set the digital platforms and data standards to measure,track and trace emissions,identify the hot spots,frame the action plan and monitor results.In particular,so

104、me companies are developing capabilities to overcome the challenge of data integrity through precise guiding principles on emission factors.19 Comply with existing or upcoming carbon reporting requirementsLeading countries that have adopted legal commitments to achieve net-zero carbon emissions by 2

105、050 have started requiring proof of carbon reduction commitments from businesses willing to engage in government procurement contracts.Carbon reduction plans need to be completed according to best industry practice by,for example,adhering to the Greenhouse Gas Protocols Corporate Accounting and Repo

106、rting Standard20 and should be conducted to a satisfactory level of assurance.The mainstream standards ISO 14064-3 and International Standard on Assurance Engagements(ISAE)3410 can verify GHG emission reports,and these could be audited in the near future in various countries.For example,firms willin

107、g to bid for central government contracts in the United Kingdom are required to submit carbon reduction plans according to key standards,make them public and get them approved by corresponding authorities.These plans must include the suppliers current carbon footprint and its commitment to reduce em

108、issions to achieve net zero by 2050.They should record and report Scope 1 and 2 emissions on an annual basis and introduce additional reporting against a subset of Scope 3 emissions.This measure is consistent with the UK governments commitment under the Climate Change Act and will play a significant

109、 role in the decarbonization of the United Kingdom as a whole.21The“No-Excuse”Framework to Accelerate the Path to Net-Zero Manufacturing and Value Chains15Unilever Fast-moving consumer goodsUnilever,the multinational fast-moving consumer goods manufacturer,pledged to halve the overall GHG impact of

110、its products by 2030.Given the variety of its products and industrial plants,and the wide distribution of its products across countries,the company needed to rely on reliable,robust and standardized data and reporting methodology in order to track and trace CO2 emissions and monitor improvements.Sin

111、ce 2008,the company has developed an Environmental Performance Reporting(EPR)tool to report CO2 emissions on two levels:products and manufacturing sites.A team continuously updates the tool and ensures the most accurate data is used.At the product level,GHG emissions are calculated for 12 categories

112、 of products(beverages,deodorants,dressings,etc.),nine stages of the life cycle(primary packaging,secondary packaging,ingredients,inbound transport,manufacturing,distribution,storage at retail,consumer use and disposal),and across 14 countries where products are distributed.The GHG impact is calcula

113、ted for a sample of each product category accounting for 80%of the sales volume,consolidated at country level and then at group level.According to Unilever,for each representative product,“internal and external data sources are used to describe the various life cycle activities and inputs(e.g.specif

114、ication of product,energy for site of manufacture,consumer use data).Scope 3 consumer use is determined based on either consumer habit studies or on-pack recommendations and often varies by country.”CO2 impacts of purchased components(ingredients and packaging)are obtained from external databases or

115、 internal expert studies.At the factory level,energy use data(gas,oil,electricity,steam)is collected from meter reads or invoices and aggregated as CO2 emission reports in the EPR system at site,regional and global levels,leveraging emission factors from existing standards(IPCC,GHG protocol,Internat

116、ional Energy Agency IEA).In 2021,250 manufacturing sites in 64 countries reported their environmental performance.STORYData-driven CO2 emission reporting for Scopes 1,2 and 3Source:Unilever,“Unilever Basis of Preparation 2021”,2021;Unilever,“Climate Transition Action Plan”,2021(both accessed 21 Nove

117、mber 2022).Stage II:Change the game internally2.2Accelerate energy efficiency in operations and transport and decarbonize energy sourcesAction pillar 3Accelerate energy efficiencyEnergy accounts for at least 5%of an average manufacturing companys costs(or higher for energy-intensive sectors)and,whil

118、e manufacturing firms are continuously searching for cost improvements,energy-efficiency measures could save between 10%and 30%of those energy costs.22,23 In terms of carbon savings,the IPCC suggests that industry could achieve reductions of 15-30%compared to a baseline scenario.24 The IEA goes even

119、 further,suggesting that energy efficiency measures could represent more than half of all industrys carbon-emission reduction contributions by 2050,with over 80%of these savings occurring in low-and medium-income countries.25Research conducted among manufacturing companies across three sectors found

120、 that“environmental performance between manufacturing plants differed up to 500%between worst and best performing factories which make similar products using similar technology”.26 Making energy and waste visible in the factory through analytical energy consumption mapping within the process,utiliti

121、es,building and logistics and leveraging benchmarks between processes,time frames,product mix and sites,with external suppliers can help target effective improvements.Introducing the concepts of“value-added energy”on the shop-floor and leveraging known lean management practices can also help to supp

122、ort change management.27 The“No-Excuse”Framework to Accelerate the Path to Net-Zero Manufacturing and Value Chains16Energy savings can be generated from various sources,including:The improved sizing,control,optimization or retrofitting of existing generic carbon-intensive equipment and processes(e.g

123、.motors,drives,boilers,furnaces,compressors,ventilation and heating systems),28 and for common energy-intensive equipment in plants(Figure 7)Energy management systems and standards(e.g.ISO 50001)Energy recovery systems(e.g.waste heat recovery in process industry)Smart use strategies(e.g.internet of

124、things IoT-based smart metering to monitor and regulate energy consumption)and equipment optimization(e.g.simulation or artificial intelligence AI models to optimize energy use)A better selection of equipment in production lines to support further efficiency improvement(e.g.longer lifetime,repairabi

125、lity,green energy source,energy and materials efficiency,capacity to separate scrap,etc.)29The“No-Excuse”Framework to Accelerate the Path to Net-Zero Manufacturing and Value Chains17Examples of energy efficiency levers for common energy-intensive equipment in industrial plantsFIGURE 7DryersPeople aw

126、areness and training:training,shopfloor awareness,communication,etc.Optimize declogging,check insulation integrity and chambers sealing Optimize the rate of start and stop,drying specifications,compression pressure Install a heat recovery system and reuse the energy for preheating,predrying or other

127、 Consider alternative drying processes:contact drying,radiation(infrared,high-frequency,microwave),solar energy(sun drying/solar panels),etc.Equipment enhancement(maintenance&capital expenditure):first-level maintenance,reliability-centred maintenance,green asset management,etc.Energy management sys

128、tem(e.g.ISO 50001):energy efficiency team,governance,organization,etc.Smart metering and energy performance management:smart metering policy,automated regulation,energy efficiency metrics,real-time monitoring,sharing best practicesProcess control:statistical process control,standby mode,peak managem

129、ent,root-cause analysis for process parameter deviation,etc.“Green”sourcing:energy contract optimization,energy production-mix optimization vs demand,procurement of greener equipment,etc.Transversal leversExamples of equipment-specific levers(non-exhaustive)Industrial utilitiesProcessBuilding&wareho

130、usingHeating,ventilation,air conditioning&lighting Set up a temperature and pressure control according to needs Detect and fix leaks Optimize the temperature and ventilation levels according to spaces(production,offices,etc.)Limit new air intake and hot air extraction Optimize infrastructure thermal

131、 insulation and door openings Set proper air renewal rate frequency Install air destratifiers for high heights Install an energy recovery system on the output air to preheat the incoming air Install a variable speed on the ventilation to monitor its pressure,flow rate and air temperature Deploy a LE

132、D lighting planOvens Monitor the smoke composition and temperature Optimize the door openings Optimize the fuel quantity and process yield Install a heat recovery system and reuse the energy for preheating the oven or in other usage Apply a high emissivity ceramic coating(improved heat transfer and

133、distribution)Compressed air Perform preventive maintenance(compressors,condensate drains,filters,etc.)Detect and fix leaks Optimize use of compressors,use smaller compressors for reduced needs(e.g.during nights or weekends)Divide the network into areas to adapt the pressure accordingly Install an el

134、ectronic speed variator Limit pressure loss(optimizing diameters of the pipes,length of the network,etc.)Ensure the freshest air suction possible Install more efficient dryers or compressors Install heat recovery to reuse energy for heating rooms or hot waterSteam productionLever typeControl and fir

135、st-level maintenance Check steam traps frequently Ensure appropriate management of purges Identify and fix leaks on the steam network Reduce the network pressure when possible Insulate the feedwater tanks Install a heat recovery system of the heat lost during purges Set a micro-modulating burner to

136、improve boiler efficiency Install a steam accumulator for variable demand Set an economizer to preheat water Install osmosis for higher boiler reliability and enhanced yieldRefrigeration Use free-cooling when possible Control and repair leaks on the circuits Manage door types and openings to minimiz

137、e air entry,ensure air distribution Control and fix the cooling circuits insulation Set up a low-pressure/high-pressure float control Adjust the defrosting strategy Optimize the temperature and pressure according to process needs Install a variable speed on compressors,pumps,refrigerant flow control

138、,etc.Optimize the evaporator and condenser sizing Use a heat-recovery system on the cooling unit Prefer evaporative or hybrid condensers rather than dry condensers for heavy installationsPumps Maintain engines(lubrication,ventilation,coating,etc.)Check the network integrity and identify leaksOptimiz

139、eModify Optimize flow control(valves,bypass circuit,variable speed,etc.)Optimize the networks energy performance(use high-efficiency motors,turn off unnecessary pumps,etc.)Limit pressure loss(pipe sizing,network length,etc.)Optimize motor performance(e.g.class IE3 or IE4)Source:Capgemini,adapted fro

140、m resources from the French Agency for Ecological Transition(ADEME).The“No-Excuse”Framework to Accelerate the Path to Net-Zero Manufacturing and Value Chains18Guidewheel/Nation Media Group Success in decarbonization requires building solutions that work well for smaller manufacturers and manufacture

141、rs in all global contexts.As a public benefit corporation,Guidewheel provides a plug-and-play,affordable energy and factory operations platform,originally built across Stanford University(USA)and Nairobi,Kenya,and now growing globally quickly.The platform is structured to work within the constraints

142、 of industrial sites in more challenging global locations and supports small and medium-sized enterprises along with larger manufacturers.By including its entire cost,including hardware,in a subscription that can pay for itself within operating expenditure(OpEx)budgets,the technology has been made a

143、ccessible to smaller factories that can quickly achieve OpEx savings through active use of the platform.The platform uses sensors that work for older machines or machines without existing information technology(IT)and operational technology.The clip-on sensors measure the electrical draw of the equi

144、pment to track and monitor energy use in real time.The platform can also leverage the Long-Term Evolution standard if broader internet connectivity is unavailable.Guidewheel collaborated with the printing plant of Nation Media Group,the biggest independent media house in East and Central Africa,loca

145、ted in Kenya.Alongside other sustainability efforts for solar energy and waste management,the company wanted to gain real-time visibility on energy across the plant,machines and utilities to realize further energy-saving potential.By focusing on reducing both its peak demand and energy waste from id

146、ling machines,the Group is achieving more than$30,000 in annual energy savings,equivalent to 42 tonnes of CO2 per year.STORYAn inclusive approach to energy efficiencySource:Consultation with Guidewheel.Decarbonize heat and power sourcesThe decarbonization of heat and power is imperative to achieve c

147、arbon emission reduction targets.Decarbonizing process heat alone can mitigate about one-fifth of global CO2 emissions.30 Most of the industrial heat(and its associated CO2 emissions)is generated through the combustion of coal,natural gas and oil for direct or indirect use via steam to drive process

148、es such as fluid heating,distillation,drying and chemical reactions.31 Using zero carbon heat,electrifying heat production,switching to low-carbon fuel or optimizing heat management could lead to significant reductions in this area(Figure 8),although key technoeconomic barriers will need to be addre

149、ssed to approach parity with traditional fossil fuel-powered alternatives.With respect to renewable electricity,the share of renewables in global electricity generation stood at 28.7%in 2021,still far from the 60.9%target.32 A much faster deployment of all renewable electricity technologies is neede

150、d across all economic sectors,including manufacturing,and all regions of the world to address industrys needs.A 12%annual expansion would be needed between 2022 and 2030 to achieve the net-zero scenario goal set by the IEA;manufacturing has a key role to play in both the use of renewable electricity

151、 and the scale-up of global renewable generation capacity.33 To this extent,some industries are developing their own renewable electricity means(e.g.solar parks,wind farms)in partnership with public authorities to cover their existing and future needs.Decarbonize logistics and transportIn logistics

152、and transport,beyond the efficiency obtained by optimizing routes and maximizing the filling of trucks,using low-carbon substitutes for fuel(ethanol,natural gas,biofuels,hydrogen and electricity)help decarbonization.The Center for Climate and Energy Solutions notes:“Challenges to full electrificatio

153、n include upfront costs of batteries and lack of charging infrastructure.Several countries,including the United Kingdom,China,and France,have announced bans on sales of cars and trucks that use petroleum,beginning in 2040.At the same time,major automakers like GM,Toyota,and Volvo have announced plan

154、s to electrify their entire offerings by the mid-2020s.”34 Collaboration with ecosystems of partners helps to identify transport-sharing opportunities.When possible,the switch to rail and navigation could support further reduction in carbon emissions.35The“No-Excuse”Framework to Accelerate the Path

155、to Net-Zero Manufacturing and Value Chains19Overview of levers and technologies for heat decarbonization and the main challenges for industrial implementationFIGURE 8Note:N/A=not applicableSource:Adapted from Thiel,Gregory,and Addison Stark,“To decarbonize industry,we must decarbonize heat”,Joule,20

156、21(accessed 21 November 2022).TechnologyKey challengesTechnologyKey challengesTechnologyKey challengesTechnologyKey challenges Zero-carbon HeatLimited top temperature,intermittency,low areal densityUp-front risk,high-resolution resource understanding,deep resource accessLimited top temperature,safet

157、y,scaleSolar thermalGeothermalNuclearElectrification of HeatIndustrial Heat PumpsLimited top temperature,high up-front costs,scaleN/AResistive HeatingSwitch to Low-carbon FuelsHydrogenCombustion stability,production cost,storage and handlingCombustion properties,production cost,control of nitrogen o

158、xideLife-cycle emissions,production costs,handling of materialsAmmoniaBiofuels CO2-derived HydrocarbonsDirect air carbon capture and production costs,synthesis technology and scalabilityCapital cost,system efficiency,aerial efficiencyBetter Heat ManagementThermomechanical stability of materials,high

159、 temperature stabilityHigh process capital cost,low yield,exergetically limitedHigh capital cost,limited to local integration,low economic value relative to material integrationRadiative CoolingBetter InsulationHeat UpgradingProcess Integration for Heat Recovery&ReuseThe“No-Excuse”Framework to Accel

160、erate the Path to Net-Zero Manufacturing and Value Chains20ArcelorMittal/Capgemini Materials and metals On its pathway to net zero,ArcelorMittal,an international leader in steel manufacturing,wanted to drastically reduce the waste heat across its manufacturing processes.In France,the French Agency f

161、or Ecological Transition(ADEME)estimates that 51 terawatt-hours(TWh)of heat(above 100C)is wasted in industry,equivalent to 10%of Frances consumption of electricity.Implementing waste heat recovery in industrial installations,however,presents real difficulties,which include the complexity,cost and re

162、liability of recovery solutions.ArcelorMittal forged a partnership with Capgemini and the French government to launch a heat recovery analysis project.The project developed a holistic approach(process,simulation models,AI algorithms and digital applications)to analyse a site industrial context,its o

163、perational data,and technical and economic data from solutions suppliers to deliver a report on the technical-economic and ROI performance of heat recovery solutions.The solution allows operations leaders to quickly identify the suitable technical solution for each site,evaluate the ROI,assess the r

164、eduction in CO2 emissions and evaluate the recoverable energy that can be reclaimed.The energy savings for ArcelorMittal have been estimated to be 10%per plant,corresponding to 0.67 TWh per year across all French plants.The model developed can be scaled to other process industries that are subject t

165、o waste heat.STORYTackling the waste heat recovery challengeSource:ADEME,“ANAGREEN:ANAlyse Globale de Rcuperation dENergie”,2021;Capgemini,“ArcelorMittal Uses Data and Analytics to Pursue Energy Efficiency”,2021(both accessed 21 November 2022).Pursue material efficiency in operationsAction pillar 4M

166、aterial efficiency and circularity,namely the practice of encouraging reuse,recycling or sustainability in consumption and manufacturing,represent a significant opportunity to abate industrial emissions given the high energy intensity of materials production.Estimates of carbon emissions per tonne o

167、f material produced for the five most emitting materials(steel,cement,plastic,paper and aluminium)suggest that they could further reduce their emission intensity by 25-50%depending on various factors,such as future technical innovations in primary and secondary production and recycling rates.36 Each

168、 of these strategies deserves careful exploration by businesses,especially as they could affect each other.For example,reducing yield losses might translate into lower availability of materials for recycling.Reduce yield losses in operationsStudies on yield losses along the metals supply chain show

169、high accumulated deficits.For example,for sheet metal-based products,nearly half of all liquid metal becomes scrap on its journey to a final product.37 Comparable losses exist across other industrial processes and could be further explored;one study found that 90%of the resources processed to produc

170、e goods do not reach the person they are made for.38Manufacturers must search for occasions to reduce yield loss within operations and along the production chain(Figure 9).Key opportunities include working with suppliers on material shapes and geometries that minimize waste,or promoting research and

171、 development(R&D)of new manufacturing processes that cut yield losses.For example:“Blanking and deep drawing cause the biggest waste of sheet metal for both steel and aluminium and can be replaced already by laser cutting and spinning”.39The“No-Excuse”Framework to Accelerate the Path to Net-Zero Man

172、ufacturing and Value Chains21Overview of material losses along the product life cycle and examples of waste prevention leversFIGURE 9Prevent tool wear(e.g.maintenance)Prevent loss of cutting fluids and solventsPrevent trim loss and byproducts(e.g.optimize trim loss or the cutting stock)Prevent inven

173、tory shrinkage(reduce damage in storage from oxidation,moulding,dust accumulation and deformation,among others)and transport damagePrevent process rejects in the start-up phase(e.g.reduce changeover rate,assembly errors)Prevent process rejects in normal operation(e.g.process monitoring mechanisms,op

174、timize product design changes)Prevent waste after use phase:incentive systems or buy-back systems for users to return productsPrevent internal/in-network packaging losses(e.g.reusable packaging,biodegradable)Reverse logisticsRefurbishable productsMissing parts,obsolescence packagingLogisticsDelivere

175、d products PackagingUse phaseReturned productsDamage/wear disposalInitial supply chain(Re-)Manufacturing siteWearAuxiliary materialRaw materialProcessed partsGood partsSold productsProcess rejectsDamage,shrinkageRepeated useConsumablesTrim loss,by-productsSource:World Economic Forum Industry Net Zer

176、o Accelerator initiative;Sheehan,Erin,et al.,“Improving Material Efficiency for Ultra-efficient Factories in Closed-loop Value Networks”,Procedia CIRP,vol.40,December 2016,pp.455-462(accessed 21 November 2022).Foxconn ElectronicsThe electronics manufacturer Foxconn realized that Scope 3 represented

177、86%of its emissions and that 20%of them came from aluminium and stainless-steel alloy consumption.Understanding that significant improvements could be made from better waste management in its supply chain,Foxconn organized a reverse logistics process with suppliers to collect manufacturing aluminium

178、 debris from the companys sites and reuse it in its suppliers melting process.This approach reduced the amount of raw aluminium used and required establishing a strong traceability system for the debris to verify its reuse and recycling in new products.This was achieved through a digital platform sh

179、ared with suppliers,which allowed to track recycling rates together with products carbon footprint.The collaboration brought the parties multiple benefits.For Foxconn,material costs were reduced,as were the products carbon footprint,allowing an increase in its market share in the electric vehicle an

180、d the computer/communication/consumer electronics(3C)industries.For its suppliers,the project guaranteed 100%traceable recycling and achieved 70%carbon emission reductions compared with outsourcing manufacturing.Foxconns broader supplier engagement model related to digital empowerment improved energ

181、y efficiency,and joint-process R&D allowed it to achieve additional efficiency benefits.STORYCompact supply chains to reduce Scope 3 emissionsSource:Consultation with Foxconn.Rethink product design and business modelsAction pillar 5Explore new product design strategiesThe material efficiency strateg

182、ies mentioned above can be supported by formalizing design and business approaches across departments and functions that could help businesses move from linear to circular economy models.A useful framework helps to categorize the various types of strategies(Figure 10).At the product level,quantifyin

183、g carbon emissions embedded within a product is possible through a life-cycle assessment.This methodology assesses the total environmental impact of a product,process or service through all stages of its life cycle,often taken to be from the extraction of raw material to the final disposal of the pr

184、oduct(cradle to grave).Identifying emission hotspots through the product life can help to shape design decisions for carbon reduction.Explore new business modelsMore examples of manufacturing firms exploring the commercial opportunity of leasing rather than selling goods have emerged in recent years

185、.This could lead to reduced carbon emissions if the total number of products is reduced.Risks arise,however,if consumers engage in behaviour that involves multiple ownership contracts.Car-sharing services and document management systems for office use are representative examples of this trend.This a

186、nd other circular business models are included in a useful framework(Figure 11).Enable recycling and reuse in operations and across the supply chainStrategies to pursue material circularity in operations include increased recycling and reusing materials and components in good condition.Recycling met

187、als,paper and some plastics can save energy compared with producing new materials,but opportunities remain limited by technical challenges and the amount of material from end-of-life products available to recycle.40 Developing waste sorting and recycling systems within factories is therefore an impo

188、rtant lever.For example,a systematic segregation of metal waste at the equipment level can support later debris collection by suppliers,who can reuse the waste in their processing.41Component reuse is currently a rare practice due to“incompatibility between past and present designs,and the relativel

189、y high cost of product disassembly and used-component management”.42 Potentially,products could also be used for a longer period of time if these components could be replaced easily and affordably.The“No-Excuse”Framework to Accelerate the Path to Net-Zero Manufacturing and Value Chains23Circular and

190、 low-carbon product design strategiesFIGURE 10Source:Modified from Bocken,Nancy,et al.,“Product design and business model strategies for a circular economy”,Journal of Industrial and Production Engineering,vol.33,no.5,2016,pp.308-320(accessed 21 November 2022).Design long-life productsEnsuring a lon

191、g utilization period of products by designDesign for customer attachment and trust Creating products that will be loved,liked or trusted longerDesign for reliability and durability Ensuring physical durability,for example the development of products that can take wear and tear without breaking down

192、and experiencing failureDesign for product-life extensionIntroducing service loops to extend product life,including reuse of the product itself,maintenance,repair and technical upgrading,and a combination of theseDesign for a technological cycleDeveloping products in such a way that the materials ca

193、n be continuously and safely recycled into new materials or products;suitable for products that deliver a serviceDesign for ease of maintenance and repairEnabling products to be maintained and/or repaired to retain functional capabilitiesDesign for upgradability and adaptabilityEnsuring ability of a

194、 product to continue being useful under changing conditions by improving the quality,value and effectiveness or performanceDesign for standardization and compatibilityCreating products with parts or interfaces that also fit other productsDesign for dis-and reassemblyEnsuring that products and parts

195、can be separated and reassembled easilyDesign for a biological cycleDesigning with safe and healthy materials(biological nutrients)that create food for natural systems across their life cycle(biodegradability);suitable for products that are consumed or wear during useExtend product lifeCircular mate

196、rial lifeThe“No-Excuse”Framework to Accelerate the Path to Net-Zero Manufacturing and Value Chains24Circular and low-carbon business model strategiesFIGURE 11Source:Modified from Bocken,Nancy,et al.,“Product design and business model strategies for a circular economy”,Journal of Industrial and Produ

197、ction Engineering,vol.33,no.5,2016,pp.308-320(accessed 21 November 2022).Design strategies to maximize product lifeAccess and performance modelProviding the capability or services to satisfy user needs without needing to own physical productsExamples:car sharing;launderettes;document management syst

198、ems(e.g.Xerox,Kyocera);leasing jeans and phonesExtending product valueExploiting the residual value of products from manufacture to consumers,and then back to manufacturing or collection of products between distinct business entitiesExamples:automotive industry remanufacturing parts;Gazelle offering

199、 consumers cash for electronics and selling refurbished electronics;clothing return initiatives(e.g.H&M,Marks&Spencer Shwopping)Encourage sufficiencyUsing solutions that actively seek to reduce end-user consumption through principles such as durability,upgradability,service,warrantees and reparabili

200、ty,and a non-consumerist approach to marketing and sales(e.g.no sales commissions)Examples:premium,high-service and quality brands,such as Vits and Patagonia;energy service companiesClassic long-life modelAdopting business models focused on delivering long product life supported,for example,by desig

201、n for durability and repairExamples:white goods(e.g.Mieles 20-year functional life span of appliances);luxury products claiming to last beyond a lifetime(e.g.luxury watches,such as Rolex or Patek Philippe)Business models to close resource loopsExtending resource valueExploiting the residual value of

202、 resources:collecting and sourcing otherwise“wasted”materials or resources to turn them into new forms of valueExamples:Interface collecting and supplying fishing nets as a raw material for carpets;RecycleBank providing customers with reward points for recycling and other environmentally benign acti

203、vities Industrial symbiosisEmploying a process-oriented solution,concerned with using residual outputs from one process as feedstock for another process,which benefits from geographical proximity of businessesExamples:Kalundborg Eco-Industrial Park;AB sugar and other sugar refiners internal“waste=va

204、lue”practicesThe“No-Excuse”Framework to Accelerate the Path to Net-Zero Manufacturing and Value Chains25Flex Manufacturing companyFlexs plant in Sorocaba,Brazil developed a holistic ecosystem that uses Fourth Industrial Revolution technologies to transform e-waste and reintroduce repurposed material

205、s into the supply chain.Flex implemented solutions to enable circular economy services and eco-efficient operations throughout Brazil.They included:A cloud-based collaborative reverse logistics system,which enabled multiplayer collaboration and reduced service time and costs A circular materials lab

206、,which provided material input identification to ensure the right quality of output materials Automatic separation equipment for minimum contamination of material IoT-based collection bins to display the correct time to collect containers filled with e-waste A digital e-commerce platform,which helpe

207、d to commercialize excess inventory and bring repaired and refurbished products to market A digital market platform for waste-enabling industrial symbiosis to increase material volumes and reduce material costsThe company also implemented operational CO2-emission dashboards to provide visibility of

208、environmental savings for its customers.Flexs Sorocaba factory was zero waste certified in 2018,with a 100%diversion rate.The process for remanufactured plastic parts enabled savings of up to 82%on energy usage and a 74%reduction in GHG emissions.These technologies also achieved more than 44,000 ton

209、nes of CO2-equivalent credits.Over 90%of recovered material goes back into the supply chain(1,300 tons of recycled material used in new products,11,000 tons of recycled industrial waste and 16,000 tons of post-consumer recycled e-waste),with a raw material(plastic)cost reduction of more than$3.2 mil

210、lion.Additionally,more than 180 direct and 300 indirect green jobs were generated.STORYCircular economy services driven by Fourth Industrial Revolution technologiesSource:Consultation with Flex.The“No-Excuse”Framework to Accelerate the Path to Net-Zero Manufacturing and Value Chains26Renault Automot

211、ive original equipment manufacturer(OEM)In the context of profound changes in the automotive industry and an evolution towards the decarbonization of cars and mobility-as-a-service,the French automotive OEM Renault set a strategy to become a“circular mobility”provider and developed new preservation

212、mechanisms to reduce exposure to scarcity for fleet electrification.Renault reimagined an entire plant in Flins,France,and created the Refactory an 11,000 m2 plant dedicated to its vehicle revalorization business models.The Refactory is Europes first circular economy factory dedicated to mobility.Th

213、e plant has a four-pole structure:Retrofit:extend vehicle life by repairing,remanufacturing and retrofitting Re-energy:extend and optimize battery life and develop hydrogen-based mobility solutions Recycle:valorize spare parts through remanufacturing of vehicle parts,material recycling and battery r

214、epairing Restart:invest in systemic collaboration for innovation by establishing centres for process innovation,3D printing and retrofitting,and creating an ecosystem with start-ups,academics and industrial partnersBy the end of 2021,the plant already had 700 employees,reconditioned over 1,500 vehic

215、les and repaired 2,000 batteries.The plant will dismantle an average of 10,000 vehicles annually,recondition 45,000 vehicles per year by 2023 and repair 20,000 electrical batteries per year by 2030.STORYA new“plant of the future”for circular economy business modelsSource:Renault Group,“Refactory:The

216、 Flins Site Enters the Circle of the Circular Economy”,25 November 2020;Renault Group,“Refactory Flins”,2022(both accessed 21 November 2022).Develop carbon capture solutions and offset mechanismsAction pillar 6Assess carbon capture,utilization and storage opportunitiesCarbon capture and sequestratio

217、n(CCS)is a set of technologies that can help remove carbon emissions from difficult-to-eliminate sources.For emission-intensive manufacturing subsectors such as cement,chemicals,steel and aluminium,CCS represents a potentially significant solution to abate the impacts of existing processes while oth

218、er low-carbon alternatives mature.Although this approach relies on common(non-critical)raw materials,sustained investment and support is needed to build the enabling infrastructure and to scale-up related supply chains at a global level.43Most decarbonization pathways created by international organi

219、zations,such as the IPCC and IEA,include CO2 removal as a necessary mitigation approach to avoid a global temperature increase beyond 1.5 C.Commercial-scale carbon capture facilities are being built around the world,led by the United States and driven in part by a combination of tax credit incentive

220、s for carbon sequestration and federal R&D investments.The United States had 13 commercial-scale carbon capture facilities,half of worldwide capacity,in early 2021.44 More efforts are needed,however,to expand carbon capture capacity around the world,and the manufacturing industry has a key role to p

221、lay in this endeavour.Implement offset mechanismsBesides carbon capture,offsets and trading mechanisms are also being used around the world for regulatory reasons(plying to the European Union Emissions Trading System)or as voluntary corporate action.The“No-Excuse”Framework to Accelerate the Path to

222、Net-Zero Manufacturing and Value Chains27 On the regulatory level,schemes such as the European Union Emissions Trading System(EU ETS)place limits on the right to emit specified pollutants(including GHGs)over an area,and companies can trade emission rights with that area.Covering about 36%of the EUs

223、total GHG emissions,the EU ETS sets a limit on emissions from emission-intensive activities within the European Economic Area,such as electricity and heat production,cement manufacture,iron and steel production,oil refining and other industrial activities.45 Although the success of such schemes is c

224、onstantly debated,the annual European Environment Agency(EEA)briefing“Trends and projections in the EU ETS”,published in January 2022,projected that ETS emissions will continue to decrease in the coming decades,albeit at a slower pace than historically.46 On the voluntary level,several trading mecha

225、nisms exist around the world.For example,the United Nations Carbon Offset Platform for e-commerce allows a company,organization or regular citizen to purchase units(carbon credits)to compensate GHG emissions or to simply support action on climate.Applied to manufacturing,this means a firm can buy ca

226、rbon offsets to finance someone else to purchase and install equipment,to supply facilities with clean energy or to carry out other process changes not available to the buyer.Proceeds from carbon offset sales can fund diverse types of abatement activities,such as:47 Installing carbon capture technol

227、ogies in industrial facilities and landfills Building renewable energy installations at scale(e.g.wind,solar and geothermal plants)Installing battery storage capacity to use renewable energy during the night-time or peak demand timesSABIC ChemicalsSABIC,a global leader in diversified chemicals,set t

228、argets to reduce its GHG intensity by 25%and material loss intensity by 50%by 2025 from its 2010 baseline.In its industrial plants,CO2 forms as an inevitable by-product of the ethylene glycol process.Rather than viewing carbon emissions as purely a challenge,the company identified an opportunity to

229、create greater value by valorizing emissions into commercial products.The company built a mega carbon capture and utilization plant that opened in 2015 at United,a SABIC affiliate.The plant uses SABICS proprietary technology to capture up to 500,000 metric tonnes of CO2 per year from the production

230、of ethylene glycol that would otherwise be emitted into the atmosphere.Taking advantage of the close proximity to its other Saudi Arabian manufacturing facilities,the plant purifies the collected CO2 and sends it to other SABIC manufacturing affiliates to convert it into feedstock for valuable indus

231、trial applications:urea,a key agrinutrient that enables more plentiful harvests;methanol,a building block use daily for many other materials;and liquefied CO2,used widely in the food and beverage industry.This project exemplifies the Saudi governments drive to turn carbon emissions into sources of v

232、alue by using the nations vast hydrocarbon resources wisely and developing a“circular carbon economy”.STORYTurning CO2 emissions into valueSource:Consultation with SABIC.The“No-Excuse”Framework to Accelerate the Path to Net-Zero Manufacturing and Value Chains28Stage III:Drive systemic collaboration2

233、.3Drive value-chain decarbonization(upstream and downstream)Action pillar 7Support suppliers decarbonization journeyAccording to the Carbon Disclosure Projects(CDP)Global Supply Chain Report 2021,carbon emissions in a companys supply chain are,on average,11 times higher than its operational emission

234、s.48 While 75%of companies reported their Scope 1 and 2 emissions and took actions to reduce them,only 20%of firms reported data for Scope 3,and only a minority asked their suppliers to report data,set targets and perform emissions abating actions.49As these numbers indicate,Scope 3 supply chain dec

235、arbonization needs to be driven fast and at scale through improved procurement processes and training.This is obviously not a straightforward task,as supply chains could include hundreds or even thousands of firms.Some steps that could kick-start this transformation,as suggested by the CDP,include:5

236、0 Leverage buying power to drive transparency by requesting environmental disclosure from suppliers,considering their maturity(e.g.SBTi-validated targets for most mature suppliers)Set clear expectations and strategically engage with vendors to drive action beyond pure data collection by asking suppl

237、iers to set carbon reduction targets and embedding key performance indicators into the supplier management process Cascade science-based targets through the supply chain by directly training suppliers through webinars and other activities Join forces with other purchasers to push suppliers to set th

238、eir own targets,accelerate action and build momentumThe consultations with industrial leaders highlighted some best practices,such as applying internal“green”scores for materials,certification schemes for suppliers conducting important decarbonization efforts,and extensive collaboration on product d

239、esign to reduce material quantity,use more sustainable materials,reuse and recycle carbon-intensive materials or reduce use of packaging.51Influence consumer behaviourOn the consumer side,the relationship between consumer behaviour and climate change is complex and most consumers are not capable of

240、determining which behavioural changes are worth making.52 A recent literature review of the growing body of evidence on this subject suggests that consumers need considerable assistance if they are to change to a climate friendly way of life.The same review suggests“the biggest focus of governments

241、and companies should be on making the climate friendly behavior the easy behavior by securing a correct reflection of carbon footprint in prices,climate friendly products that compare favorably to climate unfriendly alternatives,and trustworthy and comprehensible carbon labeling to make it easier to

242、 make climate friendly choices”.53 This also emphasizes the need to build trustworthy product carbon footprints across value chains to better shape consumer decisions.The“No-Excuse”Framework to Accelerate the Path to Net-Zero Manufacturing and Value Chains29Estainium AssociationAs much as 90%of“crad

243、le-to-gate”emissions originate in the supply chain,but upstream transparency is limited.Calculating product carbon footprints(PCF)with existing tools requires great effort,starting with gathering trustworthy and accurate data across supply chain partners.Estainium is an open and non-profit associati

244、on that precisely aims to resolve that challenge.Its mission is to drive industrial decarbonization holistically in a precompetitive,cross-industrial and cross-functional ecosystem that includes academia,small and medium-sized enterprises and large corporations alike.It builds on the technology of d

245、ecentralized trust to avoid high cost,maintain data sovereignty and enable quick expansion with trustworthy information that can be shared along the supply chain with verifiable credentials.The association selects a base infrastructure and operating model and develops necessary extensions for using

246、the infrastructure for PCF and broader environmental,social and governance data sharing.It also aims to achieve interoperability between different PCF standards and reporting schemes and to develop a digital approach to connect carbon sink providers with manufacturers.Certifiers are included in the

247、ecosystem as trust anchors to make PCF verifiable.The associations work is initially performed in three working groups that address the most pressing challenges:1)Technology and Infrastructure;2)Standards and Norms Compatibility;and 3)Carbon Capture,Use,Storage and Compensation.That unique constella

248、tion enables Estainium to develop practical solutions to overcome current and future challenges,for all stakeholders.STORYTackling the challenge of value-chain product carbon footprintSource:Consultation with Estainium Association.Mobilize ecosystems for net-zero infrastructure and innovationAction

249、pillar 8Identify opportunities to support net-zero infrastructure developmentIn a broad view,key assets comprising future net-zero infrastructure include the power system,industry,buildings,transport and digital/telecommunications.From an industrial perspective,achieving net-zero targets will requir

250、e substantial changes to existing infrastructure for energy supply,hydrogen,heat networks and carbon capture.For example,estimates for the United Kingdom alone suggest investments of 40 billion per year are required in new low-carbon and digital infrastructure over the next 10 years,which is double

251、the current capital requirements for UK infrastructure investments across energy,water and telecoms.54As suggested by the Leadership Group for Industry Transition,an initiative launched by the Governments of Sweden and India at the UN Climate Action Summit in September 2019 and supported by the Worl

252、d Economic Forum,“the decarbonization of heavy industry calls for public-private cooperation to enable the following changes:The replacement of blast furnaces with a new system around hydrogen direct reduction for steel,shifting from fossil feedstock to electric feedstock for chemicals,or rebuilding

253、 cement kilns for capturing CO2 from flue gases,The use of biomass as an energy source for many applications in industry,with varying needs for further processing and substituting fossil feedstock for the chemical industry,and The building of infrastructure for supporting the supply of new energy ca

254、rriers at scale,such as electricity,hydrogen or biogenic CO2 and the abandonment or repurposing of old infrastructure(e.g.harbours for coal,pipelines,oil storage sites)”.55The“No-Excuse”Framework to Accelerate the Path to Net-Zero Manufacturing and Value Chains30A large share of net-zero infrastruct

255、ure investments is likely to require patient capital as well as public-private partnerships to address development and deployment barriers for key technologies.56 Facilitating the deployment of large-scale solutions,such as renewable energy sources,hydrogen,heat networks and CCS,will also require th

256、e development of entirely new assets.Some of these technologies,however,remain in a stage too early for infrastructure investment capital,with high technology risk,business model uncertainty,lack of clarity about revenue models and high upfront development capital.57 The development of net-zero infr

257、astructure for industry offers direct opportunities for manufacturing firms,including:Participate in developing and manufacturing infrastructural technologies and components Adopt key technologies and solutions to decarbonize energy supply and/or capture carbon as a result of the enabling infrastruc

258、ture being in place Adapt key technologies and solutions to particular firms needs and contextMobilize industrial ecosystems to drive net-zero innovationAs suggested by the IPCC,systemic approaches and collaboration within and across industrial sectors at different levels,such as sharing of infrastr

259、ucture,information,waste and waste management facilities,heating and cooling,may provide further mitigation in certain regions or industry types.The formation of industrial clusters,industrial parks and industrial symbiosis represent emerging trends in this area.58As mentioned by consulted stakehold

260、ers,several companies are already involved in collaborations on sector-level innovation and/or external partnerships with suppliers,other industries,academia and energy providers to co-develop the low-carbon processes needed for their net-zero targets,thus mitigating risks and sharing the costs and

261、further benefits.Eramet Materials and metals As an international miner and manufacturer of manganese,titanium,ferronickel and lithium,Eramet is at the forefront of industry decarbonization by providing the raw materials necessary for the energy transition.By developing low-carbon activities and impl

262、ementing measures to decrease its emissions,the group reduced its Scope 1 and 2 carbon intensity by 39%compared to 2018 and has now decided to speed up the process by setting a new 15-year target to reduce total Scope 1 and 2 emissions by 40%by 2035(compared with 2019 levels)and achieve carbon neutr

263、ality by 2050.Beyond energy efficiency and the use of decarbonized energy sources,the company has set a priority to use bioreductants in manganese alloy production to replace fossil carbon with the challenge to access sustainably managed bioreducers compatible with its process constraints and the de

264、velopment of CCS where cost remains an obstacle.To overcome the technological and cost barriers of both solutions,the company established a set of intelligent collaborations on disruptive innovation with other industrial sectors that bring mutual benefits:For CCS,a partnership with Air Liquide is un

265、der way for a multi-year contract to build a pilot CO2 capture installation from the combusted gas of two manganese alloy-producing furnaces.Air Liquide brings the technology to firstly concentrate the CO2 up to 60%after adaptation to the process in the pilot,and later reach over 99%in the industria

266、l process by adding a cryogenic step.In the industrial installation,the liquefied CO2 will be sent to storage in a profound geological layer.For bioreductants,the company needed to establish the knowledge to allow production of biocarbons with characteristics suited to production of manganese alloys

267、 in its current industrial furnaces.Eramet carried out R&D in cooperation with research institutes and academia in Norway and launched a demonstration project in 2021 to test the substitution of fossil fuels by a significant amount of biocarbon in industrial operations.Cooperation with other industr

268、ial partners has led to equipment and process pilots,paving the way for demonstration plants(provided funding will be obtained).STORYSystemic collaboration for disruptive innovationSource:Consultation with Eramet.The“No-Excuse”Framework to Accelerate the Path to Net-Zero Manufacturing and Value Chai

269、ns31Address net-zero data and digital standardsAction pillar 9Ensure data availability,data integrity and the use of standards in carbon footprint accountingA lack of shared reporting standards for carbon emissions across industry leads to low comparability and robustness in carbon accounting approa

270、ches,which could derail existing and future net-zero efforts.In addition to consistent standards and methodologies,technical solutions are needed that can enable seamless and secure data exchange between organizations and regulators.Ensuring data availability,integrity and confidentiality are paramo

271、unt.Availability in a manufacturing sense means ensuring that key systems and assets to monitor an organizations carbon footprint are operating effectively and reliably.Integrity stands for guarding against improper information modification or destruction,and includes ensuring information authentici

272、ty,whereas confidentiality is to prevent the unauthorized release of information.59 Several key principles are required for carbon footprint monitoring to be successful(Figure 12).Standards such as the Organisation Environmental Footprint(OEF)and the Product Environmental Footprint(PEF)are ongoing a

273、ttempts by the European Commission to harmonize the calculation of the environmental footprint of products and organizations(including carbon).Once widely adopted,they could provide a good basis for cross-industry carbon footprint accounting.60Key principles for successful carbon footprint monitorin

274、gFIGURE 12Source:Adapted from UK Government,Department for Environment,Food and Rural Affairs(DEFRA),Guidance on how to measure and report your greenhouse gas emissions,2009(accessed 21 November 2022).RelevanceEnsure monitored GHG emissions appropriately reflect the emissions of the organization and

275、 serve the decision-makingCompletenessMeasure and report on all GHG emission sources and activities from the businesses/operationsConsistencyUse consistent methodologies to compare emissions over timeTransparencyAddress issues in a factual and coherent manner,keeping a record of assumptions,calculat

276、ions and methodologies usedAccuracyEnsure reported GHG emissions data reflects actual emissions;seek to reduce uncertainties in reportsCarbon Footprint Monitoring PrinciplesThe“No-Excuse”Framework to Accelerate the Path to Net-Zero Manufacturing and Value Chains32Upgrade digital systems for net-zero

277、 transformationWorking towards a lower-carbon future will demand action on operational efficiency,improved production tactics and minimized waste all of which can be accomplished with more intensive digitalization,analytics and AI technologies.Existing information technology(IT)/operational technolo

278、gy(OT)systems can already support the transformation.Enterprise resource planning(ERP)and manufacturing execution systems(MES)provide the yield information to visualize and eliminate waste.Equipment control systems and IoT sensors measure energy consumption.Several industries leverage energy managem

279、ent platforms coupled with smart metering to allow more comprehensive energy data monitoring and control in energy-intensive areas.Digital twins help accelerate the redesign of products and processes.AI and simulation applications support process energy,the optimization of materials consumption or l

280、ogistics forecasting.Some industries are already testing digital simulation tools to make cost-benefit-CO2 emission trade-offs in supply chain strategic decisions(e.g.relocation of sites,network design).Western Digital Corporation Digital products manufacturerWestern Digitals Shanghai manufacturing

281、site engages in R&D,packaging and testing of advanced flash memory products.In the context of growing demand,the company doubled the sites petabyte(PB)output between 2017 and 2021 while reducing its environmental footprint per PB to achieve corporate objectives.This result was enabled by multiple Fo

282、urth Industrial Revolution use cases,such as machine learning to dynamically optimize the performance of the water recycling plant and consumption prediction to detect abnormal energy consumption based on real-time operating data.These measures reduced water consumption by 62%and energy consumption

283、by 51%per PB.STORYAI to enhance energy efficiencySource:Consultation with Western Digital Corporation.Schneider Electric Electronics and automationSchneider Electrics Le Vaudreuil site has implemented industrial internet of things sensors connected to digital platforms,including real-time digital tw

284、ins of plant installations,such as heating pumps and the lighting system.They unlock data to optimize energy management(-25%),reduce material waste(-17%)and minimize CO2 emissions(-25%)with the objective to be net-zero carbon by 2025,without offset and ahead of Schneider Electrics global pledge.The

285、smart factory is also equipped with a zero-reject water recycling station connected to cloud analytics and monitored by an AI model to forecast process drifts,leading to 64%water reduction.STORYReal-time digital twin for sustainabilitySource:Consultation with Schneider Electric.The“No-Excuse”Framewo

286、rk to Accelerate the Path to Net-Zero Manufacturing and Value Chains33Consider the carbon footprint of digital IT and OT systemsEnterprise IT,including manufacturing IT and OT systems,contributes significantly to the worlds carbon footprint.In 2019,53.6 million tons of e-waste were generated worldwi

287、de,an increase of 21%in five years.Moreover,89%of organizations recycle less than 10%of their IT hardware.61“Green IT”describes an environment-focused approach to the design,use and disposal of computer hardware and software applications and the design of accompanying business processes.It extends t

288、o activities such as responsible mining of rare metals used to develop IT hardware,water conservation and the application of circular economy principles across the technology life cycle.According to Capgemini research,green IT use cases must be applied and are associated with cost savings.They inclu

289、de introducing an auto switch-off hardware/feature(14%cost saving),switching to a green architecture and framework(19%cost saving),rationalizing applications and data(11%cost saving),and managing data-centre cooling using AI to optimize data-centre utilization(9%cost saving).Green procurement of ser

290、vers also leads to cost savings.Best-implementation practices include defining a sustainable IT strategy that aligns with the organizations sustainability strategy and creating a robust governance approach with a dedicated sustainable IT team.62Despite significant growth in the carbon footprint of I

291、T,only a minority of companies have a comprehensive sustainable IT strategy with well-defined goals and timelines.Siemens Energy and automationTo address sustainability challenges,Siemens Electronics Works Amberg,which the World Economic Forum recognized as a digital lighthouse,elaborated a specific

292、 framework that allows for breaking down corporate sustainability targets.This holistic view,referred to as the 5Ps of sustainability,considers the public ecosystem,plant infrastructure,people and culture,process and the product within the supply chain.This framework supports the commitment to achie

293、ve net zero by 2030,and even goes beyond that.Action taken on the five levels are as follows:Public ecosystem:Public transportation is balanced with production shift schedules to support commuting,and public awareness for sustainability is supported by public presentations.Plant infrastructure:Sieme

294、ns implemented a holistic energy management system via a digital twin of the factory.The factory runs with green electricity,and all new buildings are certified by the Leadership in Energy and Environmental Design rating system.Digital dashboards were set up to monitor energy consumption,GHG emissio

295、ns,waste and water.People:Siemens installed an electric vehicle(EV)charging station for employees;the company also provides sustainability awareness training and climate neutral food in the canteen.Process:At the factory level,digitalization supported greater energy efficiency through AI models to o

296、ptimize such areas as production,inventory,waste and testing efforts.The energy management software CO2 cockpit helps to monitor energy consumption and matches this data with the production data to calculate the CO2 emissions per product.A digital name plate system helps to connect a product to its

297、online representation,such as technical data,certificates and manuals.This saves tons of paper and plastic that enclose the final packaging,and the system serves to prepare future circularity models.Product:Siemens developed a blockchain-based dynamic PCF management tool for secure and trustworthy e

298、nd-to-end PCF requesting,aggregating and sharing along the supply chain.This supports Siemens as well as the industry in managing the PCF and in decarbonizing.Thanks to those transformations,direct energy consumption was reduced by 5%(43%per volume produced),GHG emissions were reduced by 58%(77%per

299、volume produced)and total material waste was reduced by 6%(43%per volume produced).STORYDriving decarbonization through holistic digital transformationSource:Consultation with Siemens.The“No-Excuse”Framework to Accelerate the Path to Net-Zero Manufacturing and Value Chains34Stage IV:Make it simple,i

300、nclusive and exciting2.4Implement and drive the net-zero culture and practicesAction pillar 10Achieving net zero is a complex and unprecedented transformation that requires a genuine growth mindset and a profound transformation of business practices and culture.It involves all resources available ac

301、ross the entire supply chain,from suppliers to consumers,and at all levels,from CEOs to technicians.According to author Peter Drucker,“Culture eats strategy for breakfast.”It is therefore no surprise that recurring cultural barriers have been identified regarding industrial energy efficiency and,mor

302、e broadly,decarbonization projects.Typical barriers include a lack of shared vision and role model leadership;limited incentives to encourage action in the short,middle and long term;and insufficient sustainability stakes anchored in the company culture.63 To overcome this challenge,businesses must

303、rally their entire organization behind a compelling vision and keep positive momentum along the net-zero journey.Based on research by the Industry Net Zero Accelerator initiative team,leading businesses are leveraging the following best practices to address this need and accelerate their progress:Cr

304、eate a compelling vision and drive it inclusively.Because culture change cannot be achieved through top-down mandates but rather through trust,conviction and optimism,the vision needs to be relevant to both the heads and hearts of all stakeholders.Examples include highlighting how decarbonization wi

305、ll help differentiate a firms products,increasing consumer loyalty,encouraging employee pride and mitigating the exponential operational risks related to climate change.Another important element is to formally embed the net-zero vision into the companys corporate objectives and priorities so that su

306、stainability becomes the way people do their jobs and not a separate project.Finally,progress in sustainability must be integrated into the reward system so that every employee feels both empowered and accountable to contribute to the journey with the right sense of urgency.Develop green skills and

307、talents.This starts with the upskilling of the incumbent workforce.The need is particularly visible in the automotive industry,where the transition to EVs requires existing employees to acquire new skills in EV manufacturing,battery production or energy storage.Beyond the significant adaptation of t

308、heir training programmes(upskilling is as much about unlearning as it is about learning),it is equally important that companies adapt their recruiting and career development systems to attract and retain the diverse spectrum of talent needed to drive this green transition.Demand for green talent wil

309、l indeed soon outpace supply;according to LinkedIn research,the share of green talent in the global workforce increased from 9.6%in 2015 to 13.3%in 2021(a growth rate of 38.5%),and new climate policies and commitments are expected to create millions of new jobs in the next decade.64 Make the journey

310、 exciting.To keep people inspired,energized and thriving all along the complex journey to net zero,leaders should:1.Foster a growth mindset,promoting learning,creativity and agility at all levels keeping in mind that the net-zero journey is inherently volatile,uncertain,complex and ambiguous2.Break

311、down the journey,developing a high-level roadmap to keep the organization focused not just on the end vision but also on the various phases of progress expected along the way3.Relentlessly educate and communicate,using a blend of storytelling and analogies to decipher the often cryptic and intimidat

312、ing aspects of net-zero language4.Celebrate progress,not just in the output metrics but also in capability areas,whether they relate to upskilling organizations,upgrading infrastructure or establishing new systems;and visibly recognize and reward employees efforts,making them feel at the heart of th

313、e process to improve sustainability.65The“No-Excuse”Framework to Accelerate the Path to Net-Zero Manufacturing and Value Chains35Procter&Gamble Fast-moving consumer goodsIn 2007,Procter&Gamble(P&G)set its first goal to reduce GHG emissions from its manufacturing facilities.The company has expanded a

314、nd accelerated these efforts to address GHG emissions across the life cycle of its products and operations.In 2021,P&G set a new ambition to achieve net-zero GHG emissions across its supply chain and operations,from raw materials to retailer distribution,by 2040,as well as interim 2030 goals to make

315、 meaningful progress in this decade.The companys conviction was that“the task ahead is urgent,difficult,and much bigger than P&G alone,but were ready to take on the challenge”.P&G decided to not only focus on reducing its footprint but also to leverage its scale to foster unprecedented collaboration

316、 across its value chain.It established a new Product Supply Innovation Center as a hub for collaboration for a network of local suppliers,tech companies,R&D institutions and leading universities to accelerate the development of supply chain decarbonization solutions that are global,scalable and modu

317、lar.By leveraging a culture of total employee involvement combined with the P&G Integrated Working System,which focused on eliminating losses and investing in technology to upgrade the companys processes,P&G has achieved a 56%reduction in Scope 1 and 2 GHG emissions,exceeding its SBTi-validated goal

318、 of 50%reduction versus the 2010 baseline.Understanding the power of collective collaboration,the company extended the Its Our Home campaign from consumers to employees and external partners.P&Gs internal Its Our Home Sustainability Awards programme recognizes individuals,businesses and regions who

319、are leading work to deliver the companys Ambition 2030 sustainability goals and reinforces the integration of sustainability as running through,rather than just attached to,the business.STORYThe net-zero journey and the imperative of corporate organizational culture and operational frameworkSource:C

320、onsultation with P&G;P&G,“Environmental Sustainability”;P&G,“Environmental”;P&G,Ambition 2030:Its Our Home,2021;P&G,“Its Our Home:Net Zero 2040”,2021;P&G,“P&G Accelerates Action on Climate Change Toward Net Zero GHG Emissions by 2040”,2021(all accessed 21 November 2022).The“No-Excuse”Framework to Ac

321、celerate the Path to Net-Zero Manufacturing and Value Chains36Industry Net Zero Accelerator initiative:Next steps3Collaboration is fundamental to upgrading net-zero strategies and unlocking the full potential of net-zero efforts.Companies have shown that rethinking operations and business models hel

322、ps to improve their efficiency and enhance their competitive advantage.Achieving net zero,however,is something no company can achieve alone.System-level collaboration is a vital component of the journey,whether it occurs at the cross-industry,value-chain,governmental or organizational level.This vie

323、w was confirmed in the initiatives interviews with leaders from industry,government and academia.Many companies have already demonstrated that collaboration in an industrial ecosystem can result in mutual economic and environmental benefits as well as risk dilution for example,sharing technologies o

324、r developing reverse logistics within a value chain to reuse and recycle material waste.Some companies are even partnering with their competitors to tackle the most challenging barriers,such as creating partnerships to co-innovate and to develop low-carbon products,green energy infrastructure,and ca

325、rbon capture and storage infrastructure.To address climate change,future collaborative efforts will be necessary.The World Economic Forum Industry Net Zero Accelerator initiative will continue to engage leaders across industry sectors as well as government,academia and civil society to jointly shed

326、the light on global insights and best practices in response to the industry net zero challenge.Forthcoming work includes:Bringing together a community of action to organize problem-solving activities on the toughest cross-industrial challenges of net zero;these include topics prioritized by the comm

327、unity,such as data standards,Scope 3 carbon emissions traceability,material efficiency and circularity,supply chain decarbonization support,new business models and a net-zero compatible digital strategy The initiative is partnering with the Estainium Association to address value-chain data sharing c

328、hallenges,such as product carbon footprint,carbon capture,storage and utilization,and compensation.The Estainium Association has launched a series of“Emission-to-Sink Process”publications to create synergies to address the challenges.66 Pursuing the collection of insights,methodologies,best practice

329、s and experiences from the industrial community and academia that will benefit the broader community to decarbonize operations and value chains,including leveraging the net-zero framework presented in this White Paper that serves as a basis for dialogue between private-and public-sector stakeholders

330、 Celebrating the successes of industrial leaders who demonstrate outstanding progress in their journey to net zero,as a means of inspiring the broader industrial community Promoting private-and public-sector efforts in supporting net zero in areas and geographies that require additional resources to

331、 move at the same pace as larger companies,notably among small and medium-sized enterprises and those in developing countriesRecognizing the complexity and scale of the net-zero challenge,the aim is to help businesses and governments upgrade their net-zero strategies and update industrial policies b

332、y providing a neutral platform for collaboration and knowledge dissemination.There has never been a more urgent time to make a difference.The hope is that this White Paper can inspire more businesses to join this community and play a role in the collaborative effort to exchange knowledge and best pr

333、actices to stimulate and accelerate change across industrial sectors.The“No-Excuse”Framework to Accelerate the Path to Net-Zero Manufacturing and Value Chains37ContributorsLead authors Eric EnselmeIndustry Fellow,Shaping the Future of Advanced Manufacturing and Value Chains,World Economic ForumDavid Leal-AyalaDeputy Head,Policy Links Unit,IfM Engage,University of Cambridge;Research Fellow,Shaping