Corporate Social Responsibility Archives - Inergency https://inergency.com/topics/corporate-social-responsibility/ An online hub for emergency and natural disaster solutions Thu, 28 Mar 2024 11:19:19 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.3 https://i0.wp.com/inergency.com/wp-content/uploads/2023/11/cropped-Copia-de-inergency-logo-1.jpeg?fit=32%2C32&ssl=1 Corporate Social Responsibility Archives - Inergency https://inergency.com/topics/corporate-social-responsibility/ 32 32 227046876 Alumni in the spotlight: Matt Wise https://inergency.com/alumni-in-the-spotlight-matt-wise/ Thu, 28 Mar 2024 11:19:19 +0000 https://inergency.com/alumni-in-the-spotlight-matt-wise/ Alumni in the spotlight: Matt WiseMatt Wise is the Head of Strategy and Business Development at ABB in the Electrification Service division, leading the energy transition in industrial automation by supporting customers to improve the sustainability and reliability of electrical power. Read on and watch the video as he provides an overview of his time as a participant in WBCSD’s […]]]> Alumni in the spotlight: Matt Wise


Matt Wise is the Head of Strategy and Business Development at ABB in the Electrification Service division, leading the energy transition in industrial automation by supporting customers to improve the sustainability and reliability of electrical power. Read on and watch the video as he provides an overview of his time as a participant in WBCSD’s Leadership Program and the practical solutions he brought back to advance ABB’s sustainability journey. 

Key takeaways 

  • Since participating in the Leadership Program, Matt has taken action to ensure sustainability is not just an extension of traditional business strategy but rather an integral component, deeply ingrained in the fabric of decision-making processes. 

  • Embracing innovation and appointing a dedicated sustainability team, Matt supports ABB’s prioritization of research and development aimed at delivering sustainable products and services while optimizing operational efficiency through energy-saving measures. 

  • In pursuing sustainability, Matt emphasizes the importance of embracing progress over perfection. 

What motivated you to join the Leadership Program? 

At the time, I was looking after strategy for our electrification business area, which is a $15 billion business area with a presence in over a hundred countries, and sustainable development topics were turning from a trickle into an avalanche. Every discussion you might have with business leaders covered sustainability from all angles, from supply chain and raw material sourcing to operations and net-zero to sales and evolving customer needs around sustainability. I realized that to be able to do my job correctly, I needed to have a baseline level of familiarity with sustainability concepts, frameworks and ways of thinking, including decoding the “alphabet soup” of sustainability. The Leadership Program appealed to me to help build a foundational level of sustainability knowledge and integrate what I learned into my work.  

Before I joined ABB, I was a strategy consultant. The classic Milton Friedman doctrine of business was drilled into us from the very beginning – the imperative of shareholder value creation, the link to intrinsic value for the company, generating free cash flows and returns above the cost of capital – and that this was the sole basis to make strategic decisions. I wanted to have the chance to challenge this notion that I had of shareholder primacy and returns maximization and find a way to alter my way of thinking to incorporate stakeholder value and sustainable development concepts. 

What steps did you take at ABB after the Leadership Program? 

Around the time the program finished, I started a new role in the Electrification Service Division at ABB. As the Global Head of Strategy and Business Development, one of my top priority tasks when I joined that division was developing and defining our strategy.  

The Leadership Program helped crystalize my belief that strategy should incorporate sustainability; in a modern business, a business strategy is not just supplemented by a sustainability strategy that comes afterward. Our mindset from the beginning was that sustainability should be an embedded part of the business strategy. When looking at the market drivers that influence our resource decisions, we’re strongly taking into account how our customers think about sustainability, as well as environmental and social regulatory and organizational contexts. Sustainability is a key driver that we integrate into our development of strategic frameworks.  

Secondly, how do we capture our sustainability ambitions and how is that consistent with our other business ambitions? In addition to shareholder returns, we want to ensure that we embed sustainable development principles and have a stakeholder-oriented mindset when thinking about the strategy’s ambitions. In making resource allocation decisions and choosing where to invest, sustainability is a core part of the strategy, not something we bolt on at the end. 

Concretely, we hired a dedicated sustainability lead and we had concrete initiatives to invest in sustainability as part of the strategy, not as a tick box exercise, but to make more money generally. We’re investing more in R&D to develop sustainable solutions for our customers, developing environmental product declarations because we see an evolving customer need, looking for ways to save cost in our operations by reducing energy use and switching to cheaper electricity sources like on-site renewables, and looking for ways to grow our business aligned to these market trends of sustainability. 

A final message for business leaders who are watching 

The other mindset that I’ve tried to embed in the strategy that we have in our business is not letting “perfect” get in the way of “good.”  

ABB has a very ambitious target, for example, to switch its fleets to 100% electric vehicles by 2030. As part of the initiative, every site in ABB will have an electric vehicle charger in the next five years. In some countries and use cases, however, we can’t get battery electric vehicles yet for a whole host of reasons, including insufficient charging infrastructure, unavailability of the suitable models, etc. Instead of giving up completely, we have explored the option of getting a plug-in hybrid for these situations. We have assessed the use case for shorter distances, for example, or routes with frequent opportunities to charge.  

When faced with such challenges, we are always thinking through whether there is a way that we can make a little bit of progress rather than doing nothing because we can’t get to the furthest extent of the end goal. Let’s not let “perfect” get in the way of “good”, and continue to tick over, continue to demonstrate progress, and bring the organization and the business as long as we go. 

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Tackling Deforestation and Forest Degradation in Agricultural Supply Chains https://inergency.com/tackling-deforestation-and-forest-degradation-in-agricultural-supply-chains/ Wed, 27 Mar 2024 22:22:36 +0000 https://inergency.com/tackling-deforestation-and-forest-degradation-in-agricultural-supply-chains/ Tackling Deforestation and Forest Degradation in Agricultural Supply ChainsEU imports between 1990-2008 accounted for 36% of global crop products linked to deforestation1. To mitigate those impacts, the European Commission introduced the EU Deforestation Regulation (EUDR) as an important part of the EU Green Deal. The EU Deforestation Regulation2 came into force on 29 June 2023, and aims to guarantee that selected products EU […]]]> Tackling Deforestation and Forest Degradation in Agricultural Supply Chains


EU imports between 1990-2008 accounted for 36% of global crop products linked to deforestation1. To mitigate those impacts, the European Commission introduced the EU Deforestation Regulation (EUDR) as an important part of the EU Green Deal.

The EU Deforestation Regulation2 came into force on 29 June 2023, and aims to guarantee that selected products EU citizens consume do not contribute to deforestation or forest degradation. It covers seven main commodities and products that originate from or are a part of these commodities. This blog provides an overview of the contents of the regulation and preparatory steps for compliance for companies established in the EU.

What is in Scope?

Companies importing the products listed in the Regulation2 to the European market need a proof of origin (geolocation of all plots of land) and proof that the imported good did not cause any deforestation and forest degradation after 31 December 2020. Additionally, sourcing and production of goods needs to comply with relevant local regulations, going beyond environmental protection, including, for instance, land-use rights.

 

What is the Due Diligence Process?

The robustness of the risk assessment depends on the sourcing country and associated sustainability risk profile (low-, standard-, or high-risk). For products from standard-risk and high-risk countries, companies need to conduct a risk assessment, assessing the origin against 14 risk criteria, including environmental and human rights. Any identified risk needs to be mitigated before goods can be imported to the EU.

 

Who Needs to Comply and By When?

The EUDR covers both the commercial activities of operators (importing the goods on the EU market) and traders (commercializing, e.g., processing, distributing, and selling already imported goods).

Actors further down the supply chain may refer to due diligence performed earlier in the supply chain, though they may still retain legal responsibility in the event of a breach of the regulation.

  • Non-SMEs: 30 December 2024
  • SMEs: 30 June 2025
  • Exception: Timber products: 31 December 2027

In case of non-compliance, companies may face penalties and sanctions such as suspension or refusal of import or fines of up to 4% of company turnover within the EU. Additionally, scrutiny by private parties may also occur. The EUDR allows for the possibility for private parties, e.g., NGOs, to submit substantiated concerns.

 

Three Key EUDR Requirements Companies Need to Prepare for

1.   Collecting the right data:  A comprehensive understanding of the supply chain complexity is required to be able to assess the scope of goods falling under the due diligence process. Companies may need to ensure traceability down to farm-level for all products in scope of the regulation that are being placed on the market. A supplier engagement mechanism will be key for the data collection and ensuring compliance. Companies procuring the in-scope products from importers may need to include new requirements in their procurement processes.

2.   Establishing a risk assessment: 

The EUDR requires an ongoing, at least annual, risk assessment for imports from standard-risk and high-risk countries. The risk assessment criteria may require a deep understanding of country of origin, the supply chain, and historic events. Establishing a risk management and identifying reliable data sources for the risk assessment may be an essential tool to assist with this analysis.

3.   Preparing for risk mitigation: Companies may need to set up an approach and strategy for adequate and proportionate risk mitigation measures in case risks have been identified. For this, capacity building and investments may be needed to enable the additionally required data collection and reporting. By establishing policies, controls, responsibilities, and procedures, and including them in the risk management process, companies can help react quickly to emerging risks.

 

Conclusion

The EUDR poses companies with global agricultural value chains active on the EU market with new challenges to increase supply chain traceability and risk management. It will not only be relevant for EU companies, but non-EU companies may also be asked by their customers to provide the necessary information. While the new data requirements call for significant additional efforts in supply chain management, the new traceability requirements can boost companies’ progress toward resilient and nature-positive value chains and unlock synergies between Scope 3 abatement and nature-risk and opportunities assessments.

 

How Guidehouse Can Help

Guidehouse can support your company in identifying your exposure to EUDR compliance, mapping your supply chain, setting up a data collection system, and a supplier engagement mechanism to obtain the needed information. As a next step, we can help you prepare for the risk assessment for medium- and high-risk countries and support you in developing a risk mitigation strategy. We work to leverage the synergies present between your ongoing data collection efforts for greenhouse gas accounting, forest, land, and agriculture targets, abatement roadmaps, Science Based Targets Network, and risk assessments in preparation for the Corporate Sustainability Reporting Directive or Taskforce on Nature-related Financial Disclosures.

 

Writers & Contributors

Wiktoria Beckman, Senior Consultant

Lina Fromme, Consultant

Michèle Koper, Director

 

Footnotes

1. “The Impact of EU Consumption on Deforestation: Comprehensive Analysis of the Impact of EU Consumption on Deforestation Final Report.” n.d. Accessed December 6, 2019. https://doi.org/10.2779/822269.
2. “REGULATION (EU) 2023/1115 of the EUROPEAN PARLIAMENT and of the COUNCIL of 31 May 2023.” n.d. https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32023R1115.
3. Review of Union Market and the Export from the Union of Certain Commodities. 2023. Official Journal of the European Union, June. https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32023R1115.
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VELUX Group joins the World Business Council for Sustainable Development https://inergency.com/velux-group-joins-the-world-business-council-for-sustainable-development/ Wed, 27 Mar 2024 10:46:45 +0000 https://inergency.com/velux-group-joins-the-world-business-council-for-sustainable-development/ VELUX Group joins the World Business Council for Sustainable DevelopmentGeneva, Switzerland, 27 March 2024 – VELUX – a global leader in roof windows and accessories – has joined over 200 forward-thinking companies as the newest member of the World Business Council for Sustainable Development (WBCSD). VELUX has initially joined the Built Environment Pathway, a crucial initiative geared toward cutting emissions from the built environment […]]]> VELUX Group joins the World Business Council for Sustainable Development



Geneva, Switzerland, 27 March 2024 – VELUX – a global leader in roof windows and accessories – has joined over 200 forward-thinking companies as the newest member of the World Business Council for Sustainable Development (WBCSD).

VELUX has initially joined the Built Environment Pathway, a crucial initiative geared toward cutting emissions from the built environment and changing how we design and construct buildings to successfully respond to the climate crisis, nature loss, and growing inequality. The built environment is responsible for 40% of global carbon emissions, over 30% of global final energy consumption, and nearly half of the world’s natural resources, so it holds immense significance for systems transformation.

The VELUX Group has set targets to reduce its emissions by 2030. These targets include achieving a complete elimination of scope 1&2 emissions, compared to 2020 levels, which is the baseline year. Additionally, the company aims to reduce CO₂ emissions from its value chain by 50% compared to 2020 levels. This aligns with the scope of WBCSD Built Environment Pathway.

According to Velux, as people live, work, and engage in recreational activities within buildings, these spaces must promote health and well-being. VELUX roof windows and accessories play a pivotal role in fostering such environments.

“VELUX recently fully integrated sustainability into their corporate strategy to ensure that sustainability is at the heart of the business and incorporated in all decisions and actions. We have set ambitious decarbonization targets for our operations, value chain, and products. Therefore it makes perfect sense to be a member of the WBCSD and combine forces with and learn from our peers. WBCSD’s pathway for the built environment is an area where we can greatly contribute with our extensive knowledge and years of expertise,” says Fleming Voetmann, Vice President, External Relations & Sustainability, the VELUX Group.

“We extend a warm welcome to VELUX as they join WBCSD. We eagerly anticipate the opportunity to collaborate with them in driving impactful sustainability solutions within the built environment. Through this partnership, VELUX is poised to leverage its expertise and commitment to sustainability, aiming to make substantial contributions to global endeavors toward fostering a more sustainable and resilient built environment,” said Peter Bakker President & CEO of WBCSD.

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WBCSD convenes first gathering of a new Chief People Officer Network https://inergency.com/wbcsd-convenes-first-gathering-of-a-new-chief-people-officer-network/ Wed, 27 Mar 2024 03:48:09 +0000 https://inergency.com/wbcsd-convenes-first-gathering-of-a-new-chief-people-officer-network/ WBCSD convenes first gathering of a new Chief People Officer NetworkTop executives overseeing people and culture from close to 30 members of the World Business Council for Sustainable Development (WBCSD) have come together to explore and advance the critical role of the human resource community in driving corporate sustainability. As sustainability continues to cement itself in the mainstream, and as companies across all sectors make […]]]> WBCSD convenes first gathering of a new Chief People Officer Network



Top executives overseeing people and culture from close to 30 members of the World Business Council for Sustainable Development (WBCSD) have come together to explore and advance the critical role of the human resource community in driving corporate sustainability.

As sustainability continues to cement itself in the mainstream, and as companies across all sectors make bold commitments to fundamentally transforming the way their business is conducted, WBCSD and its members have identified an urgent corresponding need to ensure that leaders and practitioners are equipped with the vital skills and qualities needed to drive action and sharpen accountability around sustainability goals. 

More and more companies are realizing that if genuine transformation in support of sustainable development is to be realized, virtually all employees throughout the business will need to be fluent in sustainable development and equipped with the right adaptive skills to support its realization.

This will be essential not only for the business’s long-term success but also to ensure that the workforces of today and tomorrow are empowered to thrive in the evolving world of work.

Meeting for the first time in March 2024, WBCSD’s new Chief People Officer Network has undertaken to explore and align around leading practice regarding how people and culture teams can maximize their potential to support the implementation of robust sustainability strategies. At the same time, the group will also scope the development of new tools and frameworks that will help to ensure the competencies needed to deliver on sustainability ambitions can be nurtured and effectively embedded into corporate culture.

The Network will also play a critical role in shaping and steering WBCSD’s offerings in the field of sustainability education, supporting the organization in its mission to empower a new generation of leaders who can drive change within their organizations and contribute to a sustainable and equitable world.

WBCSD’s Chief Education Officer, Rodney Irwin, said: “As the global demand for sustainability-related skills takes off, there is an urgent need for a workforce equipped with the knowledge and tools to effect change. WBSCD is delighted to be able to count on the leadership of its new Chief People Officer Network as we collectively work towards the realization of a world in which sustainability is embedded within mainstream business and executive education, training and learning.”

For more information or to explore the Chief People Officer Network membership, please contact gomme@wbcsd.org.

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CLP Strengthens Decarbonisation Target to Power Orderly Energy Transition https://inergency.com/clp-strengthens-decarbonisation-target-to-power-orderly-energy-transition/ Tue, 26 Mar 2024 21:25:11 +0000 https://inergency.com/clp-strengthens-decarbonisation-target-to-power-orderly-energy-transition/ CLP Strengthens Decarbonisation Target to Power Orderly Energy TransitionThe CLP Group (CLP) has updated its Climate Vision 2050, the Group’s blueprint to transition the business towards its net-zero goal by mid-century. Following an extensive review of its decarbonisation targets and commitments that concluded in early 2024, CLP published a new edition of Climate Vision 2050, featuring the Group’s newly strengthened greenhouse gas emissions […]]]> CLP Strengthens Decarbonisation Target to Power Orderly Energy Transition



The CLP Group (CLP) has updated its Climate Vision 2050, the Group’s blueprint to transition the business towards its net-zero goal by mid-century.

Following an extensive review of its decarbonisation targets and commitments that concluded in early 2024, CLP published a new edition of Climate Vision 2050, featuring the Group’s newly strengthened greenhouse gas emissions intensity target for 2030.
The latest update details key actions CLP is taking to decarbonisie its business and ensure an orderly energy transition, with the Group remaining committed to its existing climate targets including phasing out coal-fired power assets before 2040, and achieving net-zero greenhouse gas emissions across the value chain by 2050.

“As a power company operating across Asia Pacific, we fully appreciate that we are at the front end of the value chain to enable reduced emissions to address climate change across a broad spectrum of the economy,” T.K. Chiang, Chief Executive Officer of CLP Holdings Limited, says in the updated Climate Vision 2050.

Integral to CLP’s broader climate strategy, the updated Climate Vision 2050 sets out the Group’s approach to climate scenario analysis and assessment of climate-related risks and opportunities, referencing requirements in the new International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures.

To enable closer alignment with international efforts to limit global warming to 1.5°C above pre-industrial levels, CLP is committed to reviewing its climate transition plans and targets at least every three years.

The update of Climate Vision 2050 coincided with the publication of CLP’s latest Annual Report and Sustainability Report, as the Group continued to assess and disclose material topics key to its business sustainability from both the financial and impact perspectives. This is the third year in which CLP has adopted the double materiality approach.

The newly published reports were restructured to frame the discussion on sustainability-related impacts, risks and opportunities with reference to the IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures. This reflects CLP’s commitment to continuous improvement in its reporting with the aim of providing stakeholders with greater insight into the Group’s strategies to build a sustainable, purpose-aligned business in an ever-changing operating landscape.

While the Annual Report focuses on the financial effects of material topics that may affect the Group’s business, including cash flow, access to finance and cost of capital, topics that have a material impact on people, the environment and the economy are covered in the Sustainability Report.

A new dedicated chapter in this year’s Sustainability Report also focuses on how CLP manages nature-related impacts, in response to growing interest in this important topic from stakeholders.

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Cultivating Change: Preliminary Lessons of the Farmer First Clusters Initiative and Interactive Map https://inergency.com/cultivating-change-preliminary-lessons-of-the-farmer-first-clusters-initiative-and-interactive-map/ Tue, 26 Mar 2024 18:08:48 +0000 https://inergency.com/cultivating-change-preliminary-lessons-of-the-farmer-first-clusters-initiative-and-interactive-map/ Cultivating Change: Preliminary Lessons of the Farmer First Clusters Initiative and Interactive MapThe Farmer First Clusters (FFC) initiative provides a mix of solutions to support producers in tackling soy-driven deforestation and native vegetation conversion in four key Cerrado landscapes: Western Mato Grosso, Southern Maranhão, Western Bahia and Tocantins. The five implementing partners of the FFC deliver financial incentives, technical assistance and capacity-building to producers, to drive down […]]]> Cultivating Change: Preliminary Lessons of the Farmer First Clusters Initiative and Interactive Map


The Farmer First Clusters (FFC) initiative provides a mix of solutions to support producers in tackling soy-driven deforestation and native vegetation conversion in four key Cerrado landscapes: Western Mato Grosso, Southern Maranhão, Western Bahia and Tocantins. The five implementing partners of the FFC deliver financial incentives, technical assistance and capacity-building to producers, to drive down deforestation rates and conserve native vegetation.  

In collaboration with ABIOVE and the initiative’s implementing partners, the Soft Commodities Forum (SCF) is pleased to present its initial lessons learned from the field, with quantitative results on farmer engagement, farm area covered by each solution and area of native vegetation conserved, alongside insights on producer engagement. To amplify access to knowledge acquired through the deployment of the FFC, the SCF is unveiling an interactive map through which a broad audience can visualize impacts and lessons learned from the field.   

 

 FFC Interactive Map Launch  

 The FFC interactive map (link to interactive map) allows users to visualize impacts in each municipality of the program’s priority landscapes. It provides stakeholders with a dynamic tool to track progress and witness the transformative impact of the FFC.   

 Click below to access the interactive map:

 

Sharing Lessons Learned  

The FFC initiative has 41 farms enrolled across its four priority landscapes, representing a total area of nearly 200,000 hectares, an area larger than the municipality of São Paulo. Furthermore, over 40,000 hectares (more than 120 times the size of New York’s Central Park) of the total area are areas of native vegetation conserved. Through its notable engagement efforts in Western Bahia, the FFC enrolled 19 farms, spanning over 114,000 hectares, with 16% of this area dedicated to the conservation of native vegetation to date.

Monitoring fields by Parque Vida Cerrado’s team in Western Bahia  

Several key lessons emerged regarding producer engagement. Access to rural registry data proves crucial for assessing forest assets, while aligning producer engagement with regional off-season is key to optimize engagement efforts. When it comes to restoration of native vegetation, strict adherence to the schedule of restoration projects is imperative, as planting in the region necessitates alignment of soil preparation and scheduling well in advance with farm teams. Demonstration Units prove instrumental in engaging producers by showcasing tangible results and addressing producers’ doubts regarding longer-term solutions. Lastly, engagement strategies must adapt to regional and local farm profiles, as well as climate and political changes.  

 As the initiative progresses, concerted efforts have started yielding positive outcomes, with all implementing partners actively engaged in field operations. Despite initial challenges, such as slower engagement rates during the harvest period, momentum has since picked up as producers’ receptiveness increased during the off-season. The initiative’s impact on native vegetation management is also noteworthy, with over 40,000 hectares already under management – a significant milestone. 

The progress of the FFC underscores the initiative’s commitment to climate and nature stewardship and marks a substantial step toward forest-positive landscape transformation through multi-stakeholder collaboration. From farmer engagement to grassroots organizations, the FFC is dedicated to amplifying the voices of those on the frontlines of sustainable agriculture.  

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Interview with Rodrigo Castro: Solidaridad Network Brazil Country Director https://inergency.com/interview-with-rodrigo-castro-solidaridad-network-brazil-country-director/ Tue, 26 Mar 2024 17:25:25 +0000 https://inergency.com/interview-with-rodrigo-castro-solidaridad-network-brazil-country-director/ Interview with Rodrigo Castro: Solidaridad Network Brazil Country Director“Through our initiative, we’re not just conceptualizing ideas; we’re implementing real-world solutions on the ground”  In this interview, Rodrigo Castro, Brazil Country Director at Solidaridad Network, delves into the complexities and potential surrounding sustainable agriculture and pasture restoration in Tocantins. He emphasizes the critical role of engagement with platforms such as the Soft Commodities Forum (SCF), […]]]> Interview with Rodrigo Castro: Solidaridad Network Brazil Country Director



“Through our initiative, we’re not just conceptualizing ideas; we’re implementing real-world solutions on the ground” 

In this interview, Rodrigo Castro, Brazil Country Director at Solidaridad Network, delves into the complexities and potential surrounding sustainable agriculture and pasture restoration in Tocantins. He emphasizes the critical role of engagement with platforms such as the Soft Commodities Forum (SCF), whose goal is to eliminate soy-driven deforestation from high-risk landscapes.  In this article, Rodrigo also highlights the SCF’s Farmer First Clusters (FFC) initiative as a transformative approach to scaling integrated farming systems in the region.  

Q: Can you provide an overview of Solidaridad’s mission and its specific goals in Brazil, especially regarding sustainable agriculture and deforestation- and conversion-free (DCF) production, and the role of the SCF in achieving these?  

In Brazil, we have been implementing strategies for the last 15 years that specifically focus on promoting the socio-economic inclusion of farmers and fostering agricultural production in balance with nature. We support farmers with technical assistance and with adoption and transition to DCF and low-carbon agricultural systems.   

The SCF is a strategic partner and catalyst in advancing Solidaridad’s agenda with the private sector and among investors. By investing in the transition to more sustainable and responsible food production, the SCF can have a catalytic effect in terms of influence, by shaping and driving the agenda toward DCF and sustainable production and investment.   

     

Q: What role do you see or might like to see in the Farmer First Clusters (FFC) initiative?   

We’re aiming for the Farmer First Clusters to promote integrated production systems (ICLF [0]. The idea is to show farmers that by doing this, they can boost their profitability while managing their soil health and land more efficiently. In Tocantins, where we are supporting FFC producers and have established integrated production systems demonstration plots, the goal is to help farmers see the opportunity to recover degraded or underproductive pastureland[1].  

In Brazil, we have 11 to 12 million hectares of degraded land, mostly pastureland in MATOPIBA [2], that is currently underproductive or abandoned. Imagine so several hectares being brought back into agricultural production! Of course, it’s not easy. It requires technology, investment, and technical assistance, not to mention building trust with the farmers.    

During our field visits to these plots, we sit down with farmers and go through the costs and benefits openly – from what they’re spending on things like fertilizer to the upfront investments needed. By doing this, we help farmers grasp the real challenges, costs, and benefits of transitioning to integrated systems and expanding soy over degraded land. Through these demonstration plots, we share with farmers the knowledge they need to make smart choices for their farms.   

 

Q: You highlighted one of the key challenges for producers in transitioning to DCF and sustainable production is the upfront cost. Who should pay for this in those first transition years? [3]  

This is something we’ve grappled with, as we move forward with initiatives like the Farmer First Clusters and strategic landscape approaches. Addressing climate change requires a systemic change that transcends individual actions and requires collective effort and investment. It’s not just about throwing money at the problem; it’s about strategically investing in solutions and sharing the responsibility across multiple stakeholder groups.   

Take the example of low-carbon agriculture initiatives in Brazil, funded through public credit lines. How can we leverage these resources and bring in investors to de-risk the financial burden on farmers transitioning to sustainable practices?   

It’s about setting up a framework where everyone contributes in their own capacity, be it through financial support, technical assistance or creating conducive policy environments. This shared responsibility approach fosters collaboration and creates a win-win situation where players along the whole value chain and beyond are invested in the outcome.   

   

Q: What insights might you share, for SCF members to better understand farmers’ perspectives?   

It’s not just about dictating methods to farmers; rather, it’s about focusing on sustainable production objectives. With a pre-competitive forum like the SCF, your commitment goes beyond individual interests. The problem today is that we still have a commercial agenda that operates separately from the climate and sustainability agenda. Companies need to integrate their business and investment models with environmental and climate indicators so that these are part of the commercial strategy. It’s not enough to simply ensure traceability and chain of custody; we need to think bigger and envision a future where the business community thrives in harmony with the planet.   

   

Q: What might you say to Cerrado soy producers on what they are to gain by joining your programs?   

Through our initiative, we’re not just conceptualizing ideas; we’re implementing real-world solutions in the field. The cornerstone of our approach lies in the deployment of demonstration plots that serve as practical showcases of transformation from degraded pastureland to productive agricultural areas. Over a planned timeline spanning three to four years, we detail the process of restoring productivity to these lands and outline the associated costs and technical assistance required [4].  

These demonstration plots provide a clear picture of the investment needed, the efforts involved and the anticipated returns. By the fourth year, farmers witness firsthand the fruits of their labor as these once-degraded areas are revitalized for grain production. Through these real-time pilots, we offer insights into the additional income generated from previously underutilized land. While it’s undeniable that there are upfront costs, particularly in the initial stages, our demonstration plots underscore the long-term financial benefits of sustainable farming practices.   

Yet, it’s crucial to recognize that achieving this vision requires a conducive investment environment. While the benefits are clear, ensuring widespread adoption by producers and other stakeholders necessitates collaborative efforts to address existing gaps in the financial ecosystem. The transition to sustainable agriculture at scale requires active participation and support from multiple stakeholders, including governments, financial institutions, NGOs, and private sector actors. Together, we can create an environment that enables producers to embrace sustainable practices and drives positive change across agricultural landscapes. 

  

[0] Integrated production systems combine crop production, livestock raising, and forestry activities on the same land to optimize efficiency, enhance productivity, diversify income, and promote ecological resilience. (Integrated Crop-Livestock-Forestry Systems – Portal Embrapa
[1] The restoration of degraded lands is an international priority to mitigate climate change as well as protect biodiversity. (Spatial planning for restoration in Cerrado: Balancing the trade‐offs between conservation and agriculture – Schüler – 2022 – Journal of Applied Ecology – Wiley Online Library)  
[2] MATOPIBA refers to a region composed of the states of Maranhão, Tocantins, Piauí, and Bahia, which has seen significant agricultural development in recent decades, especially for crops such as soybeans, corn, and cotton. However, agricultural growth has also brought environmental challenges, such as deforestation and conversion of native vegetation.(About the theme – Portal Embrapa
[3] Early research showed that it can take 3-5 years for a farm to recover from past practices and pay off in terms of higher profits (Make Your Farm Resilient and More Profitable with Regenerative Agriculture – Center for Regenerative Agriculture and Resilient Systems – Chico State (csuchico.edu)
[4] Demonstration plots have a key role in sustainable agriculture transition initiatives such as the FFC (Demonstration farms & their role in sustainable farming projects – Farm Demo Conference – IFOAM Organics Europe
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USD $205 billion per year needed from agrifood sector to meet climate and nature targets https://inergency.com/usd-205-billion-per-year-needed-from-agrifood-sector-to-meet-climate-and-nature-targets/ Tue, 26 Mar 2024 12:55:26 +0000 https://inergency.com/usd-205-billion-per-year-needed-from-agrifood-sector-to-meet-climate-and-nature-targets/ USD 5 billion per year needed from agrifood sector to meet climate and nature targetsLondon, 26 March 2024 – The agrifood sector must play a crucial role in keeping 1.5C within reach by urgently cutting greenhouse gas emissions and scaling up nature protection solutions through their value chains, according to a series of reports launching today from the Food and Land Use Coalition, WBCSD and We Mean Business Coalition.  The […]]]> USD 5 billion per year needed from agrifood sector to meet climate and nature targets



London, 26 March 2024 – The agrifood sector must play a crucial role in keeping 1.5C within reach by urgently cutting greenhouse gas emissions and scaling up nature protection solutions through their value chains, according to a series of reports launching today from the Food and Land Use Coalition, WBCSD and We Mean Business Coalition

The Future Fit Food and Agriculture report series argues for the adoption of ambitious action plans by agrifood companies and sector-wide investments of up to USD $205 billion per year between 2025 and 2030 to unlock up to 9 gigatons of CO2 equivalent of mitigation annually by 2030. The first report aims to help agrifood companies understand the implications of current and emerging voluntary standards and the expected trajectory of regulation for climate and nature. The second report unpacks the financial costs and benefits of implementing mitigation solutions to tackle agriculture and land-use change emissions in company value chains.

The case for urgent action is clear: agricultural production emissions must decrease ~30% by 2030 to align with the Paris Agreement’s goal to limit global warming to 1.5°C by 2050.

The climate strategies of most food and agriculture companies, from input providers and food producers, through to traders and multinational companies, are not comprehensive or ambitious enough. According to the World Benchmarking Alliance, of the 350 most influential food and agriculture companies, only about half have so far disclosed Scope 3 commitments.

In light of these challenges, policymakers are increasingly mandating action on climate and nature from companies, using voluntary standards as the basis for new sustainability legislation.

Morgan Gillespy, Executive Director, Food and Land Use Coalition, commented: ‘Food and agriculture companies are facing a choice. Those striving to deliver ambitious sustainability strategies today, in close collaboration with farmers in their supply chain, will likely enjoy lower costs, stronger returns and greater agility in the face of advancing sustainability regulation. Those that stall won’t just fail to deliver on climate and nature commitments, they will face higher costs and higher supply chain risks in the long term.’

Agricultural production and land-use change emissions in company value chains account for nearly half of total food systems emissions (an estimated 10 gigatons of carbon dioxide equivalent of a total 21 GtCO2e in 2030).

Analysis from the Future Fit Food and Agriculture reports series estimates that, to mitigate up to 90% of their annual agricultural and land-use change emissions by 2030, food and agriculture companies should expect sector-wide costs of approximately USD $205 billion per year (2025-2030).
While significant, such investments are manageable for the sector as a whole and have associated co-benefits:

  • USD $205billion per year represents less than 2% of the sector’s projected USD $13 trillion average annual revenues for 2025-2030.
  • One-fifth of the USD $205 billion per year are investments in new and growing markets. These investments, estimated to be USD $40 billion per year (average annual from 2025-2030), can lead to potential additional returns of up to USD $190 billion per year by 2030.
  • Some on-farm solutions provide savings and/or increased yields worth up to USD $30 billion per year.
  • Other associated co-benefits include increased supply-chain resilience and delivery on other sustainability commitments, such as nature targets;

The burden of implementing mitigation solutions should be shared equitably across value chains. In general, the more upstream a value chain participant is, the lower its margins tend to be — farmers in particular tend to have the lowest margins of any value chain participants. It follows that companies across the value chain must work together to determine transition economics and arrive at a transparent, fair and equitable distribution of costs and benefits. They also stand to benefit from making more unified policy asks to government on what it can do to alleviate the costs for all and enable acceleration.   

The second Future Fit Food and Agriculture report shows that the costs for mitigation, as a percentage of revenues, change very significantly depending on where actors sit along the value chain. The report shares three examples to illustrate this point, including the case of a Brazilian beef farmer, for whom mitigating 30% of their Scope 1 emissions can cost as much as 17% of their revenues – an unrealistic expectation given farmers typically achieve profit margins of less than 20%.

Overcoming inequity requires food and agriculture companies to reassess how they partner with other actors in the value chain, particularly farmers, and how they engage with policymakers to incentivize and accelerate action.  Some companies are already leading the way on this, with several working together through the likes of WBCSD to identify where they can problem solve collectively, raise ambition levels, drive harmonization, and accelerate the implementation of critical solutions.

Diane Holdorf, Executive Vice President, WBCSD, said: “Food system transformation is a central solution to climate change and agrifood companies have a critical role to play. To meet net-zero targets, businesses must take concerted and ambitious action to de-risk the transition for producers and ensure the costs and benefits of mitigation are shared equitably across the value chain.”

Through the Agriculture & Food pathway, WBCSD enables members to accelerate accountability for climate and nature impacts in order take meaningful action in value chains and landscapes and influence and leverage the enabling environment. For example:

  • WBCSD scope 3 land-based emissions workstream supports companies to accelerate emissions reductions and removals associated with land-use, building on opportunities identified in the scope 3 action agenda for agri-food.
  • WBCSD Nature Positive Roadmap provides ‘how to’ guidance to support corporate nature positive strategy development, implementation and disclosure.
  • WBCSD is convening 50 members and 27 partner organizations, impacting 1100+ businesses in total – to drive convergence on holistic, outcome-based regenerative agriculture metrics.

To coincide with the Future Fit Food and Agriculture reports, WBCSD has published The Business Case for scope 3 GHG action in agriculture & food value chains which provides perspectives and case studies of different value chain actors regarding the financial costs and benefits. Based on workshops with WBCSD members, this summary report showcases the business case for individual companies in the sector to take action to decarbonize in line with the Paris Agreement and the importance of collaborative action to mobilize finance to implement scope 3 activities.

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Reflections on UNEA 6 and Key Takeaways for the Business Community https://inergency.com/reflections-on-unea-6-and-key-takeaways-for-the-business-community/ Fri, 22 Mar 2024 12:31:00 +0000 https://inergency.com/reflections-on-unea-6-and-key-takeaways-for-the-business-community/ Reflections on UNEA 6 and Key Takeaways for the Business CommunityThe sixth United Nations Environmental Assembly Conference (UNEA 6) in Nairobi, Kenyaclosed on 1st March 2024 with mixed results. As the world’s preeminent forum for environmental decision-making, UNEA convened under the banner theme: “Effective, inclusive, and sustainable multilateral actions to tackle climate change, biodiversity loss, and pollution.” Over 7,000 delegates representing 182 UN member states, alongside 170 ministers, gathered in the Kenyan capital for the […]]]> Reflections on UNEA 6 and Key Takeaways for the Business Community



The sixth United Nations Environmental Assembly Conference (UNEA 6) in Nairobi, Kenyaclosed on 1st March 2024 with mixed results. As the world’s preeminent forum for environmental decision-making, UNEA convened under the banner theme: “Effective, inclusive, and sustainable multilateral actions to tackle climate change, biodiversity loss, and pollution.” Over 7,000 delegates representing 182 UN member states, alongside 170 ministers, gathered in the Kenyan capital for the five-day Conference.

Out of the initially proposed 19 resolutions, members finally agreed to adopt 15 resolutions, two decisions, and a ministerial declaration. A notable absence is the resolution on the circular economy, initially proposed by the EU but finally withdrawn because of the lack of consensus. The wording of this resolution included the reference to the work being undertaken by WBCSD and One Planet Network (OPN) on the Global Circularity Protocol(GCP), which aims to create a voluntary framework to address key accountability and policy roadblocks to scale circularity. 

While the adoption of resolutions at UNEA 6 was heralded by several as a testament to the enduring strength of multilateralism, the reality is more nuanced. Geopolitical tensions loomed large over several negotiation sessions, casting a shadow on the proceedings. In addition, divides between the Global North and Global South, as well as between sustainability advocates and perceived “laggards,”further complicated discussions and impeded consensus. The adopted resolutions, while notable, largely feature diluted language compared to their initial proposals. 

 

WBCSD’s engagement

As a co-chair of the Business and Industry Major Group (BIMG), WBCSD has been active in coordinating the activities of the Group, coordinating the work on joint statements, and delivering the statements in plenary. WBCSD also co-organized a BIMG high-level dinnerthat featured more than 100 participants, including Inger Andersen, Executive Director of UNEP, and Dennis Francis, President of the UN General Assembly. During the dinner, the Beacon Projects Report was launched. This report compiled by BIMG members and their networks, aims to emphasize the vital contribution of businesses towards advancing the UNEA-6 theme. The report showcases BIMG’s members’ projects that advance sustainability through collaborative and innovative business-led partnerships on both global and local scales.

WBCSD showcased and promoted the work on the GCP and strengthened partnerships with various stakeholders. At the 31st IRP meeting, we discussed the main Protocol’s principles and received valuable feedback to refine our future efforts. At the 10YFP Board and SCP Partner meeting, a panel of experts discussed how the business community can make a key contribution—through the GCP—to sustainable consumption and production. We jointly decided to expand the name of the GCP to Global Circularity Protocol for Business to stress the Protocol’s primary target of addressing business accountability gaps on circularity.

WBCSD signed the Memorandum of Cooperation with the Ministry of Environment of Japan, which lays the groundwork for future collaboration and secures the participation of Japan’s government and private sector in the Protocol development process. The partnerships created can enlarge the GCP’s outreach and incorporate small and medium businesses into itsdevelopment. 

WBCSD co-organized a side event on soil health with the Moroccan government and our member company, OCP. In addition, numerous meetings with stakeholders helped position our work on circularity and enabled us to strike new partnerships and discuss potential collaboration on COP 29, nature action, agriculture, and negotiations on the UN Treaty on Plastics Pollution.  

 

So, what does this all mean for the business community?

As we look forward to a year that will host three COPs (The Climate- COP 29Biodiversity- Cop16, and Desertification- COP16) and the Summit of the Future during New York Climate Week, ambition from the business community needs to increase sufficiently to meet the multiple challenges we face. As the three major reports (Global Resources Outlook 2024Global Waste Outlook, and Used Heavy Duty Vehicles and the Environment – A Global Overview of Used Heavy-Duty Vehicles: Flow, Scale, and Regulation) launched during UNEA 6, demonstrate, we are overstepping six of nine planetary boundaries and our lives and livelihoods will dramatically change unless we act fast. 

In Nairobi, only a few businesses and members participated in person. We met with some of them to discuss and engage. We believe UNEA needs more involvement from the ambitiousbusiness community to promote future, more ambitious outcomes. After all, UNEA meetings often lay the mandate for UN treaties (as was the case for the UN Treaty on Plastics Pollutionnegotiations) or are precursors to the development of regional or national policies. If the idea of shaping future sustainability trends appeals to you, consider participating in the upcoming UNEA Conference.

 

UNEA-6 sent a message that “business as usual” is no longer an option. Businesses that embrace sustainability and contribute to solving environmental challenges will be more successful in the future. Embracing the change and seizing the first mover opportunity can significantly contribute to raising competitiveness and improving the business case for sustainability. Businesses will face increasingly stricter environmental reporting requirements to ensure transparency in their supply chains and environmental impact, and the work of WBCSD on developing the Corporate Performance and Accountability System (CPAS) for Carbon, Nature, Circularity, Plastics, and Equity will lead the way in this regard. 

We hope to have a more ambitious resolution on circularity containing a clear reference to the GCP work gaveled by the incoming president, H.E. Mr. Abdullah bin Ali Al-Amri from Oman, at the Upcoming UNEA 7 Conference in December 2025. This gives us at WBCSD a clear mandate and anorth-star to work on for the upcoming period while using intermediate global events as welcome checkpoints on that road.

Game on! 

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WBCSD Opens New Office in Wuhan to Accelerate Sustainable Transformation of Chinese Businesses https://inergency.com/wbcsd-opens-new-office-in-wuhan-to-accelerate-sustainable-transformation-of-chinese-businesses/ Thu, 21 Mar 2024 12:27:03 +0000 https://inergency.com/wbcsd-opens-new-office-in-wuhan-to-accelerate-sustainable-transformation-of-chinese-businesses/ WBCSD Opens New Office in Wuhan to Accelerate Sustainable Transformation of Chinese Businesses21 March 2023: The World Business Council for Sustainable Development (WBCSD) today announced the opening of a new office in China against the backdrop of East Lake of Wuhan in the Hubei Province. WBCSD’s investment and commitment to support sustainable development in China reflects the importance of the country, both locally and in a global […]]]> WBCSD Opens New Office in Wuhan to Accelerate Sustainable Transformation of Chinese Businesses


21 March 2023: The World Business Council for Sustainable Development (WBCSD) today announced the opening of a new office in China against the backdrop of East Lake of Wuhan in the Hubei Province. WBCSD’s investment and commitment to support sustainable development in China reflects the importance of the country, both locally and in a global context.

The region of Hubei also has strategic significance in terms of transportation, resource allocation and the Chinese economy, highlighted this month as Hubei’s imports and exports reached 102.03 billion yuan in the first two months of 2024, up 12.7 percent year on year. Five of the industries based there – optoelectronic information, new energy / intelligent connected vehicles, life and health, high-end equipment and BeiDou satellite systems – are particularly influential and relevant to sustainable development, both in China and globally.

The new office opening ceremony, held earlier this week during the ‘Cherry Blossom Viewing: Business Cooperation & Fortune 500 Dialogue with Hubei’ event, featured speeches from the Vice-chairman of the Hubei Provincial Committee of the Chinese People’s Political Consultative Conference (CPPCC), Mr Erkenjiang Tulahong, and WBCSD Vice President, Mrs. Stephanie de Heer. Mr. Joe Phelan, Executive Director of WBCSD Asia Pacific, received the registration certificate from the leadership of the Hubei Public Security Department. Stephanie expressed gratitude to Hubei Provincial Government, Hubei Public Security Department, Hubei Council for the Promotion of International Trade (CCPIT Hubei), and other relevant entities on behalf of WBCSD.

On the same day, she also met with the Vice Governor of Hubei Province, Ms Chen Ping, and discussed an upcoming event, “Two Lake Forum” proposed by WBCSD and CCPIT Hubei, which will aim to form a new bridge for business collaboration on green industrial transformation.

In early March, a delegation led by Peter Bakker, President and CEO of WBCSD, visited China to finalize plans for WBCSD’s presence and new office opening. “As the world is turning to businesses for sustainability solutions, WBCSD’s ability to promote sustainable development and collaborate across industrial and commercial sectors will expand our reach with our presence in Wuhan,” commented Mr Bakker. “We also anticipate that bringing together innovative technologies and working practices will provide more effective solutions for global challenges, such as climate change and nature loss.”

Mr. Zhou Weidong, who is the Chief Representative of WBCSD China Representative Office, believes that following WBCSD’s establishment, it will continue to introduce advanced international sustainable development concepts and practices into China. Simultaneously, it will also promote Chinese businesses to share innovative solutions from China on the international stage and actively participate in promoting major international agendas.

CCPIT Hubei, as a core partner of WBCSD in China, has provided substantial support for the opening of WBCSD’s new office. CCPIT Hubei Director Hu Zhonghai said, “We believe in WBCSD’s vision and development strategy, and hope to cooperate closely with WBCSD in the future. This should allow Chinese businesses to accelerate transformation towards sustainable development, strengthen capacity building and attract innovative sustainable development technologies to invest and develop in Hubei.”

The WBCSD Hubei Office opening highlights Hubei’s global position in green development. It will attract international resources to drive the province’s green transformation, supporting high-level opening-up and high-quality development.

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Soft Commodities Forum: Delivering Action in the Cerrado https://inergency.com/soft-commodities-forum-delivering-action-in-the-cerrado/ Wed, 20 Mar 2024 19:04:40 +0000 https://inergency.com/soft-commodities-forum-delivering-action-in-the-cerrado/ Soft Commodities Forum: Delivering Action in the CerradoIn a high-level report published on February 29, 2024, the World Economic Forum outlined a set of recommendations for the economic development of the Brazilian Cerrado. The “Cerrado: Protection and Production” white paper encourages key stakeholder groups, including collaborative private sector platforms like the Soft Commodities Forum (SCF), to monitor land conversion and secure funding […]]]> Soft Commodities Forum: Delivering Action in the Cerrado



In a high-level report published on February 29, 2024, the World Economic Forum outlined a set of recommendations for the economic development of the Brazilian Cerrado. The “Cerrado: Protection and Production” white paper encourages key stakeholder groups, including collaborative private sector platforms like the Soft Commodities Forum (SCF), to monitor land conversion and secure funding for large-scale sustainable agriculture and conservation efforts.    

Hosted by the World Business Council for Sustainable Development, the SCF welcomes the proposals formulated by the World Economic Forum, highlighting their relevance and further contextualizes them with learnings from field-level and value-chain engagement programs deployed in the Cerrado, South America’s second largest biome, in Brazil.  

 

Recovering degraded pastureland   

 There are up to 38 million hectares of degraded pastureland in the Cerrado – an area larger than Gerseveral. Soy expansion over degraded pastureland supports agricultural growth without converting native vegetation, fostering economic growth, restoring soil health and sustainably intensifying low-productivity land.   

 As highlighted by Solidaridad Network’s Director for Brazil, (link to Solidaridad interview article), the lack of technical knowledge and upfront investment are key challenges for producers to restore degraded pastureland. In collaboration with Solidaridad Network and Parque Vida Cerrado, two implementing partners of the Farmer First Clusters (FFC) initiative, the SCF is actively engaged in restoring degraded pastureland. This encompasses restoring 300 hectares per year of native vegetation on soybean farms in Western Bahia and conducting training sessions on sustainable farming for producers and rural extensionists in degraded agricultural land across Tocantins. 

   

Promoting integrated crop-livestock-forestry production Systems (ICLFS)  

ICLFS (ILPF in Portuguese) are multi-functional agricultural systems that optimize land use, enhance overall productivity, improve soil fertility, diversify income streams, and promote the ecological resilience of a farm. Rede ILPF, a public-private organization formed by agribusinesses and EMBRAPA, advances ICLF implementation in the Cerrado by providing training on integrated farming to producers, rural extensionists, and financial sector representatives.   

 Through the FFC initiative, Rede ILPF’s partnership with the SCF is expected to provide such training to 40 producers, 20 rural extensionists, and 19 financial sector representatives annually. Quantitative results and qualitative learnings from field implementers are available here (link to FFC implementation map).  

   

Avoiding native vegetation conversion  

The Cerrado has close to 100 million hectares of intact natural habitat, of which a quarter are within privately owned properties that can legally be cleared and are suitable for soy production. The biome has around 50 million hectares of land already cleared and suitable for soy that can be an opportunity for further expansion if the right incentives are in place (Agrosatélite 2020 Geospatial Analysis of Soy Crop study).  

With IPAM’s CONSERV mechanism, a financial compensation payment delivered to producers who commit to preserving their surplus legal reserve, the FFC will protect 7,000 hectares of surplus native vegetation for three years through ecosystem services payments, deployment of public policy action, and the development of a long-term business model to incentivize Cerrado soy producers.  

By securing funding for large-scale conservation efforts, the SCF implements farmer-led programs that contribute to the emergence of regenerative and forest-positive landscapes. These endeavors demand field expertise and support from producers who act as stewards of their land. The vision outlined in the World Economic Forum’s paper is aligned with the SCF’s actions in laying the groundwork for increased investment and enhanced engagement with key stakeholder groups committed to safeguarding the Cerrado’s ecological integrity and fostering its economic development. 

  

Building Partnerships for Forest Positive Landscapes 

The SCF’s FFC is an essential initiative in the transition to forest-positive landscapes in the Cerrado. Partnering with various local implementers, including IPAM, Parque Vida Cerrado, Produzindo Certo, Solidaridad Network and Rede ILPF, the SCF combats deforestation and conversion in soy landscapes. The FFC offers a mix of solutions adapted to the local environmental and socio-economic context, including financial incentives, technical support and capacity-building measures that help preserve native vegetation, restore degraded land, and promote sustainable agricultural practices.  

The FFC serves as a catalyst to explore and implement viable solutions and models, but broader collaboration is essential for regenerative and forest-positive landscapes. The SCF welcomes co-funding and investments from value chain partners and other sector players. The SCF is also open to collaboration with a diverse range of stakeholders committed to protecting the Cerrado’s natural environment and fostering sustainable economic progress. 

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CP Group – CP Foods Takes Steps to Ensure Sustainable Corn Sourcing with Zero Deforestation and Crop Burning https://inergency.com/cp-group-cp-foods-takes-steps-to-ensure-sustainable-corn-sourcing-with-zero-deforestation-and-crop-burning/ Wed, 20 Mar 2024 14:13:15 +0000 https://inergency.com/cp-group-cp-foods-takes-steps-to-ensure-sustainable-corn-sourcing-with-zero-deforestation-and-crop-burning/ CP Group – CP Foods Takes Steps to Ensure Sustainable Corn Sourcing with Zero Deforestation and Crop BurningCharoen Pokphand Group’s Feed Ingredients Trading Business Group (FIT) and Charoen Pokphand Foods Public Company Limited (CP Foods) have successfully implemented a corn traceability system to verify the sourcing of maize for feed production, which is free from forest encroachment and stubble burning. This system enables the company’s operations in Thailand to source 100 percent […]]]> CP Group – CP Foods Takes Steps to Ensure Sustainable Corn Sourcing with Zero Deforestation and Crop Burning



Charoen Pokphand Group’s Feed Ingredients Trading Business Group (FIT) and Charoen Pokphand Foods Public Company Limited (CP Foods) have successfully implemented a corn traceability system to verify the sourcing of maize for feed production, which is free from forest encroachment and stubble burning. This system enables the company’s operations in Thailand to source 100 percent of corn from deforestation-free areas, in line with international standards. CP Group has also expanded the system to its key overseas operations, including Myanmar, Laos, and Vietnam.

Paisarn Kruawongvanich, CEO of FIT, emphasized that CP Group and CP Foods have always prioritized building a sustainable food production chain, while also mitigating transboundary haze pollution. FIT is committed to purchasing raw materials only from plantations that do not encroach on forest areas, in line with their “No forest [encroachment], no [Crop] burning, we buy” corn purchasing principle. Since 2017, FIT has developed the Corn Traceability system to ensure that all corn used in CP Foods’s animal feed business in Thailand can be traced back to its origin plantations.

FIT, in collaboration with CP Myanmar, CP Group’s overseas operation, has deployed the traceability system for corn sourcing in Myanmar since 2020. Maize growers in Myanmar have registered and verified their plantation area documentation and GPS tracking, and 100 percent of the corn to be used in CP Myanmar’s feed operations has been verified as coming from plantations with zero deforestation.

Mr. Paisarn stressed that the company’s commitment to source environmentally friendly agricultural raw materials in accordance with its Sustainable Sourcing Policy ensures consumer trust. The company also encourages farmers to cultivate legal plantations and promotes business partners to collaborate to protect and restore forests and eliminate haze pollution sustainably.

CP Foods encourages maize growers in Thailand to register and verify their identity through the “For Farm” application. Additionally, FIT has adopted Blockchain Traceability Technology, which has increased transparency and confidence in Thailand’s maize for animal feed traceability system, linking the data from the plantation to the feed mill. The Company has always strictly adhered to the principle of conducting business with social and environmental responsibility, in accordance with global trade regulations.

Apart from the corn traceability system, FIT shares plantation knowledge and techniques with corn farmers to increase output and quality while simultaneously reducing dust generated during agriculture. This is part of the “Self-Sufficient Farmers, Sustainable Corn Project,” which provides farmers with in-depth information to improve their farming efficiency and produce higher-quality corn to meet market demand. The project also encourages corn farmers to engage in zero crop burning and increasing the value of corn stubble.

To combat haze pollution from the agriculture sector, the company has applied a satellite imaging system to map the burning point and harvest areas. This enables FIT’s staff to advise farmers to stop crop burning and make use of the stubble.

FIT has partnered with CP Myanmar, a subsidiary of CP Group, to implement a maize traceability system since 2020 to ensure that all corn in Myanmar can be traced back to legal plantation areas. Currently, 100 percent of purchased corn in Myanmar is traceable. All farmers that sell produce to FIT must register their land deeds and GPS tracking information in advance to confirm that the corn source does not come from forest areas.

CP Group and CP Foods are committed to ensuring a better future for farmers, a sustainable environment, and communities, with innovative traceability systems and sustainable farming practices.

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WBCSD unveils Built Environment Market Transformation Action Agenda during Buildings and Climate Global Forum https://inergency.com/wbcsd-unveils-built-environment-market-transformation-action-agenda-during-buildings-and-climate-global-forum/ Tue, 12 Mar 2024 16:29:51 +0000 https://inergency.com/wbcsd-unveils-built-environment-market-transformation-action-agenda-during-buildings-and-climate-global-forum/ WBCSD unveils Built Environment Market Transformation Action Agenda during Buildings and Climate Global ForumParis, 8 March 2024 – The World Business Council for Sustainable Development (WBCSD) is proud to announce the official launch of the Built Environment Market Transformation Action Agenda during the first Buildings and Climate Global Forum held in Paris. The Market Transformation Action Agenda brings together built environment stakeholders from all along the value chain to […]]]> WBCSD unveils Built Environment Market Transformation Action Agenda during Buildings and Climate Global Forum



Paris, 8 March 2024 – The World Business Council for Sustainable Development (WBCSD) is proud to announce the official launch of the Built Environment Market Transformation Action Agenda during the first Buildings and Climate Global Forum held in Paris.

The Market Transformation Action Agenda brings together built environment stakeholders from all along the value chain to overcome the key barriers preventing us from achieving a net zero built environment. It acknowledges that the scale of change industry needs is only possible with deep and radical collaboration, in order to achieve our climate goals of halving emissions by 2030 and reaching net zero by 2050.

The Action Agenda, co-created by several hundred representations from over 100 companies and organizations, builds on the foundational principles of the Market Transformation Levers for a Net Zero Built Environment, developed by the Global Alliance for Buildings and Construction (GlobalABC) – to adopt life-cycle thinking and Whole Life Carbon assessment across the full value chain, to integrate carbon costs in decision-making and to transform supply and demand dynamics.

The holistic and performance-based approach underlying these three market transformation levers represents an opportunity for all stakeholders to innovate and scale solutions along the value chain, adapted to their context and environment and ultimately leading to transformative change for all.

During the Global Engagement Plenary on 8 March 2024, Dame Jo da Silva, Global Director of Sustainable Development at Arup, formally presented the Market Transformation Action Agenda on behalf of WBCSD to an audience of 1’000 participants from governments, industry, finance, cities and organizations representing over 70 countries.

Benoit Bazin, CEO of Saint-Gobain, a leading global building material manufacturer, then presented the key messages from the Global Forum’s CEO Roundtable held the day before. He stressed the strong commitment and alignment of the industry to solve the major challenges that our planet is facing, and he underlined the unprecedented collaboration he is seeing across the entire value chain, evidenced in the Market Transformation Action Agenda.

On behalf of the assembled business leaders, Benoit Bazin welcomed the Ministerial Chaillot Declaration being announced on the day, endorsed by close to 70 governments, and he reiterated that the business community is ready to support it.

The Buildings and Climate Global Forum also saw the official presentation of the Buildings Breakthrough international priority actions for 2024-25. The Buildings Breakthrough aims to achieve “near-zero emissions and resilient buildings to be the new normal by 2030″. It supports accelerating decarbonization and enhancing resilience in the sector through international collaboration. Given the sector’s fragmented nature, a coordinated response from national governments is essential to steer the direction and pace of the transformation.

The Market Transformation Action Agenda and the Buildings Breakthrough strongly support each other in the implementation of actions so that the collaboration encompasses private sector and public sector stakeholders who drive progress towards a common goal.

 All the recordings and proceedings of the Buildings and Climate Global Forum will be published shortly on the Global Forum website.

We call on all stakeholders to join the Market Transformation Action Agenda because it’s not just about buildings; it’s about transforming our world. If we’re going to decarbonize, if we’re going to create resilience, if we’re going to create a world that’s fit for the future, we have to do it together.” Peter Bakker, President and CEO, WBCSD.

The Market Transformation Agenda is extremely useful as it brings structure to the vast challenge to decarbonise the built environment. There are already several initiatives and lots of good work is happening across the industry. However, radical mission-led collaboration and transparency are key to identifying scalable solutions and accelerate progress. To achieve this, ULI C Change is pleased to be working with WCBSD on the Market Transformation Action Agenda as it aligns with our approach to mobilise our members and the wider industry to identify and propose actionable solutions for key barriers to decarbonisation.” Lisette van Doorn, CEO Europe, Urban Land Institute.

“What I like about the Market Transformation Action Agenda is that it proposes very concrete actions, over the coming 3 years, to achieve our long-term goals of decarbonizing the built environment. RICS will continue to pro-actively support this initiative, taking a leading role within the first lever, which focuses on consistency, transparency and data availability. Our Whole Carbon Assessment standard, published end 2023, provides a way to consistently measure both embodied and operational carbon. We look forward to working together with other key stakeholders to develop a set of common global principles that will enable consistent and transparent measurement of carbon.” Justin Young, CEO RICS.

For more information, please contact Roland Hunziker, Director Built Environment, WBCSD

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Pernod Ricard joins World Business Council for Sustainable Development https://inergency.com/pernod-ricard-joins-world-business-council-for-sustainable-development/ Mon, 04 Mar 2024 09:12:23 +0000 https://inergency.com/pernod-ricard-joins-world-business-council-for-sustainable-development/ Pernod Ricard joins World Business Council for Sustainable DevelopmentThe World Business Council for Sustainable Development (WBCSD) announces Pernod Ricard, a global leader in the wines and spirits industry, as its newest member. Pernod Ricard is dedicated to bringing people together in a sustainable and responsible way, fostering authentic experiences, and forging new connections through its portfolio of premium wines and spirits. Built upon four key pillars – Nurturing Terroir, Valuing […]]]> Pernod Ricard joins World Business Council for Sustainable Development



The World Business Council for Sustainable Development (WBCSD) announces Pernod Ricard, a global leader in the wines and spirits industry, as its newest member.

Pernod Ricard is dedicated to bringing people together in a sustainable and responsible way, fostering authentic experiences, and forging new connections through its portfolio of premium wines and spirits. Built upon four key pillars – Nurturing Terroir, Valuing People, Circular Making, and Responsible Hosting, its 2030 Sustainability; Responsibility roadmap “Good Times from a Good Place” addresses all aspects of the business and directly supports the United Nations Sustainable Development Goals (SDGs).

As part of its membership, Pernod Ricard has also joined the One Planet Business for Biodiversity (OP2B) – an international, cross-sectoral and action-oriented business coalition on biodiversity with a specific focus on regenerative agriculture. Through this partnership, Pernod Ricard will drive transformational system change and catalyze action to protect and restore cultivated and natural biodiversity within agricultural value chains.

“We are delighted to welcome Pernod Ricard to WBCSD. By working with our community of business leaders to advance regenerative practices, Pernod Ricard is determined to foster positive change within agricultural systems. Together, we will leverage our collective expertise to drive meaningful progress towards a more resilient and regenerative future,” said Diane Holdorf, WBCSD Executive Vice President.

Maria Pia de Caro, Executive Vice President, Integrated Operations and Sustainability at Pernod Ricard added: “We are honored to join the WBCSD, collaborating with its members to drive innovation, resilience, and positive change from grain to glass. I firmly believe that collaboration and the sharing of best practices are key to making a profound impact and strengthening our collective efforts. As part of this commitment, we will also engage in the One Planet Business for Biodiversity (OP2B) initiative, focusing on scaling regenerative practices and protecting biodiversity within agriculture”.

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Championing Environmental and Social Impact in Asia-Pacific: Steward Leadership25 https://inergency.com/championing-environmental-and-social-impact-in-asia-pacific-steward-leadership25/ Fri, 01 Mar 2024 14:08:52 +0000 https://inergency.com/championing-environmental-and-social-impact-in-asia-pacific-steward-leadership25/ Championing Environmental and Social Impact in Asia-Pacific: Steward Leadership25The Stewardship Asia Centre (SAC), a non-profit organisation established by Temasek Holdings, has championed Steward Leadership since 2003. The organisation describes Steward Leadership as the genuine desire and persistence to create a collective better future.For businesses, this means integrating stewardship values into growth strategies, creating shared value and empowering all stakeholders to thrive.  In 2022, SAC established the Steward Leadership25 (SL25) list, recognising Asia-Pacific based initiatives undertaken by for-profit organisations that address global environmental and/ or social challenges whilst also contributing to sustainable business growth.  Last year, SAC recognised three WBCSD Asia-Pacific members – APRIL Group, DBS Bank, and PTT Exploration and Production Public Company Limited – highlighting their […]]]> Championing Environmental and Social Impact in Asia-Pacific: Steward Leadership25



The Stewardship Asia Centre (SAC), a non-profit organisation established by Temasek Holdings, has championed Steward Leadership since 2003. The organisation describes Steward Leadership as the genuine desire and persistence to create a collective better future.For businesses, this means integrating stewardship values into growth strategies, creating shared value and empowering all stakeholders to thrive. 

In 2022, SAC established the Steward Leadership25 (SL25) list, recognising Asia-Pacific based initiatives undertaken by for-profit organisations that address global environmental and/ or social challenges whilst also contributing to sustainable business growth. 

Last year, SAC recognised three WBCSD Asia-Pacific members – APRIL GroupDBS Bank, and PTT Exploration and Production Public Company Limited – highlighting their commitment to tackling climate change and social inequality, as well as showcasing the impact of collaboration and leadership. 

APRIL Group

In 2013, leading provider of fibre, pulp and paper, APRIL Group, established Restorasi Ekosistem Riau (RER) in Riau Province, Indonesia. Spanning an impressive 150,693 hectares on the Kampar Peninsula, the RER exemplifies effective nature-based solutions. Funded and managed by APRIL Group, RER is integrated into production forestryoperations, adopting a ‘production-protection’ approach. The initiative conserves one hectare for every hectare of plantation forest, contributing to global imperatives and aligned to itsAPRIL2030 commitments. Through committed leadership, sustained investment, and partnerships, RER demonstrates positive outcomes, showcasing the potential of nature-based solutions in achieving environmental goals.

DBS Bank

In line with its ethos as a purpose-driven bank, DBS Bank pledged up to SGD$1 billion over the next decade to significantly step up its support for vulnerable communities and underprivileged. The bank has allocated up to SGD$100 million annually for immediate needs, education, digital literacy, and emotional resilience. In addition, its workforce will commit over 1.5 million volunteer hours over the next decade to give back to society. Championing environmental and social considerations through initiatives like its Business for Impact Chapter and Community Impact Chapter, DBS’s digital inclusion efforts have reached 10,000 beneficiaries. Similarly, initiatives including the DBS 5 Million Hawker Meals and its support for at-risk communities, reiterate DBS’ commitment to creating lasting impactful change in the Asia-Pacific region.

PTT Exploration and Production Public Company Limited (PTTEP)

PTTEP leads the “Ocean for Life” project, focusing on long-term sustainability and conserving marine biodiversity in the Gulf of Thailand. Aligned with Thailand’s Ocean Health Index and UN Sustainable Development Goal 14, the project aims to create positive ocean impact, increased community income, and establish significant conservation networks. Through three workstreams encompassing sustainable operations, ocean health solutions, and community engagement, PTTEP hopes to ensure environmentally friendly practices, contribute to a comprehensive ocean database, and foster community activities for biodiversity. 

Recognitions such as the SL25 are testament to our members’ commitment to addressing global environmental and social challenges while simultaneously driving sustainable business growth in Asia Pacific. The initiatives spearheaded by these member companies – APRIL Group, DBS Bank and PTTEP – exemplify the core values of stewardship and align seamlessly with our WBCSD’s goal of harnessing the power of collaboration and leadership in advancing sustainability in the region.

Applications are now open for SL25. Find out more or apply for SL25 here. The next SL25 list exemplifying outstanding steward leadership in Asia-Pacific will be announced at the Steward Leadership Summit 2024.

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Keeping transformation on track: Navigating key trends shaping corporate sustainability in 2024 https://inergency.com/keeping-transformation-on-track-navigating-key-trends-shaping-corporate-sustainability-in-2024/ Thu, 29 Feb 2024 14:38:58 +0000 https://inergency.com/keeping-transformation-on-track-navigating-key-trends-shaping-corporate-sustainability-in-2024/ Keeping transformation on track: Navigating key trends shaping corporate sustainability in 2024For several of us in the field of corporate sustainability, the first few weeks of every year are inevitably characterized by an inbox or LinkedIn feed chock full of reports and articles highlighting an often overwhelming array of critical trends and developments that stand to impact our efforts in the year ahead.Rarely has the flow […]]]> Keeping transformation on track: Navigating key trends shaping corporate sustainability in 2024



For several of us in the field of corporate sustainability, the first few weeks of every year are inevitably characterized by an inbox or LinkedIn feed chock full of reports and articles highlighting an often overwhelming array of critical trends and developments that stand to impact our efforts in the year ahead.
Rarely has the flow of information been quite so torrential as this year, as our sustainability endeavors unfold against a backdrop of ever-growing volatility and complexity. And yet, at the same time, rarely has there been such an overwhelming sensation that we are approaching a tipping point when it comes to our efforts to deliver exponential change.

To support members and partners in navigating the headwinds and tailwinds that look set to take flight in 2024, WBCSD has compiled a short briefing document holding up a mirror to the discourse around corporate sustainability that has kicked off the year.

Drawing on an analysis of over 50 reports, articles and interviews published in recent weeks, this briefing extrapolates ten key cross-cutting themes as follows:

 

1) Delivering transformation in a volatile and fragmented world

Efforts to deliver sustainable development in 2024 will be conducted against a backdrop of continued and emerging geopolitical tension and conflict, as well as an uncertain and predominantly gloomy economic outlook.

With no end yet in sight to the war in Ukraine, the prospect of a peaceful resolution to the conflict in Gaza also remains elusive, with several potential pathways for escalation into a broader regional war also a reality.  Conflict will continue to fan inflationary flames, with several commentators predicting that interest rates will remain high and the World Bank forecasting GDP growth will slow for a third straight year.

 

2) Navigating politics everywhere all at once

More people will be going to the polls in 2024 than at any other time in modern history, with national elections scheduled to be held in countries that are home to 4.2 billion people.

This election “super-year” will generate regulatory and policy uncertainty, presenting the business community with challenges when it comes to long-term strategic planning. This highly politicized environment is also likely to see ESG increasingly leveraged as a partisan issue, as populist candidates tap into and stoke an unfolding backlash when it comes to policies relating to issues from climate change to social justice.

 

3) Reaching a tipping point on accountability

2024 looks set to usher in what ISSB Chair Emmanuel Faber calls a “tipping point” on corporate accountability on environmental and social sustainability issues.

The entry into force of the EU’s Corporate Sustainability Reporting Directive (CSRD) means that almost 50,000 companies will be subject to mandatory reporting in the 2024 financial year around topics such as climate and human rights, while the SEC in the US is also set to release its own set of rules later in the year.

Escalating emphasis on accountability looks set to spell the beginning of the end for greenwashing, with companies increasingly having to back up sustainability ambitions with solid data.

 

4) Supply chains are under more scrutiny than ever before

New disclosure requirements in 2024 will also put global supply chains under the spotlight like never before.  Companies will need to sharpen their focus on both environmental and social performance throughout the value chain, and take action to adequately understand, monitor and engage with suppliers at different tiers. This will require collaboration as well as a variety of innovative technological solutions.

 

5) Time for innovation

While it will be critical for businesses to ensure that they comply with emerging legislation in terms of disclosures, efforts to realize transformation will also hinge on 2024 seeing a substantial shift towards a more entrepreneurial mindset when it comes to corporate action on sustainability. More and more companies are realizing that sustainability is not just about achieving their net-zero targets but also about solving challenges for other organizations, which has enormous potential to be a driver of long-term value creation.

 

6) Sustainability by nature

Nature will continue be a critical topic for business in 2024. More and more companies are responding to calls to set nature targets and to step up nature-related disclosures – particularly in the run up to the COP16 on nature in Colombia in October. As momentum for nature-positive strategies grows, “nature intelligence” is also predicted to become a key area of focus as companies strive to acquire the right nature-related insights and data to inform decision-making.

 

7) The urgent need for  adaptation and resilience

As efforts to mitigate climate impacts through emissions reduction continue, 2024 will see the urgency of adapting to the physical risks of the climate crisis come into sharper focus. As the El Nino climate pattern unfolds during the first half of the year, we are likely to see extreme weather events at a potentially unprecedented scale. With political uncertainty rife in parts of the world, it will often fall on business to lead the charge when it comes to investing in crucial adaptation efforts.

 

8) Answering tough questions on social justice

Inequality continues to generate headlines and is likely to swing further into focus in a year with over 50 elections, a sluggish global economy, and potentially unprecedented climate impacts. As discussions around the development of a Taskforce on Inequality and Social-related Financial Disclosures (TISFD) continue to crystalize, it will be necessary for businesses to become more familiar with the steps they can take to address the mounting systemic risk that is global inequality, as laid out by the Business Commission to Tackle Inequality.

 

9) Closing the sustainability skills gap

There is mounting recognition that the transformation that we need to see across the global industry in support of sustainable development will only be possible if it is also supported by inner transformation – the purposeful and persistent development of skills and qualities at the individual level.

This will be essential not only for the long-term success of the business, but also to ensure that the workforces of today and tomorrow are empowered to thrive in the evolving world of work.

 

10) AI: savior or supervillain for sustainable development?

AI looks set to be a permanent source of debate throughout 2024. But what does it mean in the context of efforts to realize sustainable development?  As with all things AI, there is a challenging answer.

On the one hand, AI looks set to play an essential part in turbo-charging efforts to mitigate climate change. On the flip side, AI also carries its own environmental impacts in terms of emissions, water use, and waste, which must be managed carefully.  And, of course, there is a wide range of social impacts associated with AI that continue to provoke scrutiny and concern in terms of how it will impact the labor market, privacy, cybersecurity, misinformation, etc.

For now, the only certain thing is that AI will continue to be adopted, improved and potentially regulated throughout 2024. New ground-breaking uses (and abuses) are no doubt just around the corner.

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Quantifying Climate-related Financial Impacts in the Oil and Gas Sector https://inergency.com/quantifying-climate-related-financial-impacts-in-the-oil-and-gas-sector/ Thu, 29 Feb 2024 01:09:01 +0000 https://inergency.com/quantifying-climate-related-financial-impacts-in-the-oil-and-gas-sector/ Quantifying Climate-related Financial Impacts in the Oil and Gas SectorEstimates put the global market capitalization of the oil and gas sector at USD $6.5 trillion, which is equivalent to the combined gross domestic product of the United Kingdom and France in 2022. As the oil and gas industry transitions, this value might change and greater transparency on how this might occur is crucial to […]]]> Quantifying Climate-related Financial Impacts in the Oil and Gas Sector



Estimates put the global market capitalization of the oil and gas sector at USD $6.5 trillion, which is equivalent to the combined gross domestic product of the United Kingdom and France in 2022. As the oil and gas industry transitions, this value might change and greater transparency on how this might occur is crucial to investors.  

Why? Increasingly with government support and incentives, investors marshal the needed energy investments into an orderly energy transition to a net-zero economy with an expectation for a reasonable rate of return.  

What drives us and our members in crafting this how-to guide?  

Our purpose with this how-to guide is to help companies navigate the new regulatory disclosure requirements, enhance transparency, improve corporate carbon performance and accountability, and accelerate the journey to a net-zero economy. 

Over the last few years, the World Business Council for Sustainable Development (WBCSD) has guided energy companies on how to implement the financial and non-financial reporting recommendations provided by the Task Force on Climate-related Financial Disclosures (TCFD). Yet, despite the remarkable progress companies made on climate-related reporting, there are growing demands from investors and regulators for more granular and transparent disclosures. And our member companies are listening and acting.  

In anticipation of mandatory disclosure requirements, we continue our multi-year work by collating input and sharing best practices from leading oil and gas companies via this how-to guide. The document bridges the gap between TCFD reporting principles and the financial information needs of investors by providing detailed how-to guidance to oil and gas companies looking to take the next step in carbon performance and accountability.  

Our how-to guide will be of particular value to finance, accounting, investor relations and corporate reporting professionals in publicly listed oil and gas companies, as well as leading professionals in standard-setting and regulatory organizations. 

View the publication

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Championing Environmental and Social Impact in Asia-Pacific: Stewardship Leadership25 https://inergency.com/championing-environmental-and-social-impact-in-asia-pacific-stewardship-leadership25/ Wed, 28 Feb 2024 18:58:49 +0000 https://inergency.com/championing-environmental-and-social-impact-in-asia-pacific-stewardship-leadership25/ Championing Environmental and Social Impact in Asia-Pacific: Stewardship Leadership25The Stewardship Asia Centre (SAC), a non-profit organisation established by Temasek Holdings, has championed Steward Leadership since 2003. The organisation describes Steward Leadership as the genuine desire and persistence to create a collective better future.For businesses, this means integrating stewardship values into growth strategies, creating shared value and empowering all stakeholders to thrive.  In 2022, SAC established the Stewardship Leadership25 (SL25) list, recognising Asia-Pacific based initiatives undertaken by for-profit organisations that address global environmental and/ or social challenges whilst also contributing to sustainable business growth.  Last year, SAC recognised three WBCSD Asia-Pacific members – APRIL Group, DBS Bank, and PTT Exploration and Production Public Company Limited – highlighting […]]]> Championing Environmental and Social Impact in Asia-Pacific: Stewardship Leadership25



The Stewardship Asia Centre (SAC), a non-profit organisation established by Temasek Holdings, has championed Steward Leadership since 2003. The organisation describes Steward Leadership as the genuine desire and persistence to create a collective better future.For businesses, this means integrating stewardship values into growth strategies, creating shared value and empowering all stakeholders to thrive. 

In 2022, SAC established the Stewardship Leadership25 (SL25) list, recognising Asia-Pacific based initiatives undertaken by for-profit organisations that address global environmental and/ or social challenges whilst also contributing to sustainable business growth. 

Last year, SAC recognised three WBCSD Asia-Pacific members – APRIL GroupDBS Bank, and PTT Exploration and Production Public Company Limited – highlighting their commitment to tackling climate change and social inequality, as well as showcasing the impact of collaboration and leadership. 

 

APRIL Group

In 2013, leading provider of fibre, pulp and paper, APRIL Group, established Restorasi Ekosistem Riau (RER) in Riau Province, Indonesia. Spanning an impressive 150,693 hectares on the Kampar Peninsula, the RER exemplifies effective nature-based solutions. Funded and managed by APRIL Group, RER is integrated into production forestryoperations, adopting a ‘production-protection’ approach. The initiative conserves one hectare for every hectare of plantation forest, contributing to global imperatives and aligned to itsAPRIL2030 commitments. Through committed leadership, sustained investment, and partnerships, RER demonstrates positive outcomes, showcasing the potential of nature-based solutions in achieving environmental goals.

 

DBS Bank

In line with its ethos as a purpose-driven bank, DBS Bank pledged up to SGD$1 billion over the next decade to significantly step up its support for vulnerable communities and underprivileged. The bank has allocated up to SGD$100 million annually for immediate needs, education, digital literacy, and emotional resilience. In addition, its workforce will commit over 1.5 million volunteer hours over the next decade to give back to society. Championing environmental and social considerations through initiatives like its Business for Impact Chapter and Community Impact Chapter, DBS’s digital inclusion efforts have reached 10,000 beneficiaries. Similarly, initiatives including the DBS 5 Million Hawker Meals and its support for at-risk communities, reiterate DBS’ commitment to creating lasting impactful change in the Asia-Pacific region.

 

PTT Exploration and Production Public Company Limited (PTTEP)

PTTEP leads the “Ocean for Life” project, focusing on long-term sustainability and conserving marine biodiversity in the Gulf of Thailand. Aligned with Thailand’s Ocean Health Index and UN Sustainable Development Goal 14, the project aims to create positive ocean impact, increased community income, and establish significant conservation networks. Through three workstreams encompassing sustainable operations, ocean health solutions, and community engagement, PTTEP hopes to ensure environmentally friendly practices, contribute to a comprehensive ocean database, and foster community activities for biodiversity. 

Recognitions such as the SL25 are testament to our members’ commitment to addressing global environmental and social challenges while simultaneously driving sustainable business growth in Asia Pacific. The initiatives spearheaded by these member companies – APRIL Group, DBS Bank and PTTEP – exemplify the core values of stewardship and align seamlessly with our WBCSD’s goal of harnessing the power of collaboration and leadership in advancing sustainability in the region.

Applications are now open for SL25. Find out more or apply for SL25 here. The next SL25 list exemplifying outstanding steward leadership in Asia-Pacific will be announced at the Steward Leadership Summit 2024.

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BIMG Beacon Projects Report 2024 https://inergency.com/bimg-beacon-projects-report-2024/ Tue, 27 Feb 2024 04:06:42 +0000 https://inergency.com/bimg-beacon-projects-report-2024/ BIMG Beacon Projects Report 2024Discover the transformative initiatives showcased in the inaugural BIMG Beacon Projects Report 2024, a testament to the power of collaborative efforts in addressing global challenges such as climate change, biodiversity loss, and pollution and tackling inequality. These projects, executed by Business and Industry Major Group (BIMG) members and SMEs, exemplify innovative business-led partnerships and collaborations on […]]]> BIMG Beacon Projects Report 2024


Discover the transformative initiatives showcased in the inaugural BIMG Beacon Projects Report 2024, a testament to the power of collaborative efforts in addressing global challenges such as climate change, biodiversity loss, and pollution and tackling inequality. These projects, executed by Business and Industry Major Group (BIMG) members and SMEs, exemplify innovative business-led partnerships and collaborations on both global and local scales. 

Aligned with the theme of UNEA-6, the report emphasizes solutions at a systems level, offering insights into how businesses, alongside civil society, government, and international organizations, can drive positive, inclusive outcomes for society. 

This report illustrates the value-creation possible in developing or emerging economies and the transformative impacts that are possible in local communities. It also shows how developed economies are working with emerging ones, to overcome shared challenges. Many of these examples offer scope for further growth and have the potential to be replicated, extended and scaled. 

Explore the 35 leading Beacon Projects featured in the report, highlighting the significant impact of multilateral coordination and forward-thinking strategies. From sector-specific initiatives to local and global endeavors, these projects demonstrate the potential for creating value and opportunities across diverse economies. 

Through these examples, we aim to inspire organizations and stakeholders to embark on ambitious initiatives leveraging the latest technology and innovative thinking. Join us in accelerating the sustainability transformation and shaping a brighter future for all. 

 

Participating organizations:

Adec Innovations, Botejana Entreprises, Citeo, CLOMA, Confederation of Indian Industry, CropLife International, Ecoplastile EnerGeo, Global Dairy Platform, IFA, INDA, Ipieca, Mining Association of Canada, MYCL-Indonesia, NYC Fair Trade Coalition, SEED, Society of Entrepreneurs & Ecology, The Natural Climate Solutions Alliance, The Vinyl Institute, Vinyl Plus, WBCSD, World Coating Council, WFTO, Wuchi Wami.

Learn more about the BIMGFor more information, contact Denise Filip, filip@wbcsd.org  

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Emergence Strategy: A Systems Approach to Corporate Climate Action https://inergency.com/emergence-strategy-a-systems-approach-to-corporate-climate-action/ Wed, 21 Feb 2024 03:38:36 +0000 https://inergency.com/emergence-strategy-a-systems-approach-to-corporate-climate-action/ Emergence Strategy: A Systems Approach to Corporate Climate ActionHow can companies take advantage of the exponential changes unfolding in energy technologies and systems as they seek to achieve net zero emissions in their own businesses and value chains? Emergence strategy describes how leading companies are seizing business opportunities during this period of transformation. Recognizing that thriving businesses depend on a thriving society and planet, several of the world’s largest and most respected companies have made […]]]> Emergence Strategy: A Systems Approach to Corporate Climate Action


How can companies take advantage of the exponential changes unfolding in energy technologies and systems as they seek to achieve net zero emissions in their own businesses and value chains? Emergence strategy describes how leading companies are seizing business opportunities during this period of transformation.

Recognizing that thriving businesses depend on a thriving society and planet, several of the world’s largest and most respected companies have made long-term commitments to achieve net zero emissions of greenhouse gases. Delivering net zero will require transformative changes across virtually all economic sectors and industries, with far-reaching changes in materials, design, technologies, services, and business models. Yet several companies with net zero commitments have still not matched their strategy to the scale of both the challenge and the opportunity. 

This is increasingly risky. In a world where consumer preferences, technologies, products, and services are subject to rapid, disruptive and exponential change, missing emerging opportunitiescan have damaging business consequences. In the auto industry, China’s electric vehicle manufacturers and other early movers like Tesla are proving hard to catch even by powerful incumbents, including big auto companies in the US, Gerseveral, and Japan.

This means that leading companies today are not just sharpening their ability to sense and respond to changes linked to the climate and energy systems. They are honing their abilities to initiate systemic change. 

Since most companies cannot drive systemic change by themselves, this implies working with other stakeholders, including companies up and down the value chain as well as governments and civil society partners who can help to accelerate change. Emergence strategy applies systems thinking tools to identify new business opportunities, overcome obstacles to system transitions, and pinpoint the roles a company can play as a leader, catalyst, advocate, or collaborator in relation to other key actors in a system. 

This process differs from traditional strategy approaches that focus primarily on competition, but the two are complementary. Emergence strategy leverages corporate climate action building blocks such as science-based targets and scope-based emissions disclosures, but with an outward focus on engaging with other actors to drive and shape systems change beyond the company’s direct control. 

The emergence strategy process entails three functions that are applied iteratively: 

1. System sensing to answer the question: What are the opportunities?

Applying a system-sensing lens can help businesses assess the strategic landscape and identify an available portfolio of opportunities. Top-down sensing, informed by transition pathway analyses, can help companies survey the big picture of how markets are likely to change to meet climate change mitigation goals, while bottom-up sensing focuses on assessing avenues for reducing emissions from existing products and services and the viability of new technologies or services that can outcompete today’s offerings in a low-carbon future.

For example, Stora Enso’s pivot from a paper manufacturer to a renewable materials company reflects both top-down sensing – early recognition of the shrinking paper market, alongside their identification of the renewables market not just as a growing market but also an impact opportunity space – as well as bottom-up sensing, reflected in their decision to pursue product development within the renewable materials market that specifically built on their existing strengths in packaging, building solutions, and biomaterials. 

 System sensing: What are the opportunities?

 

2. System solutions to answer the question: What actions can accelerate change?

Once companies have used system sensing to identify one or more climate-related strategic opportunities, they can use systems transformation frameworks to help identify barriers and solutions for these opportunities. Understanding the common patterns of systems transformation and new technology adoption can help identify specific interventions that can trigger positive feedback loops and turn emerging opportunities into mature business realities.

For example, Danish energy company Ørsted and wind turbine manufacturer Vestashave forged a commercial sustainability partnership, with Ørsted committing to buy turbines produced with low-carbon steel and eventually blades for all joint offshore wind projects. Such partnerships and offtake agreements, which establish guaranteed demand,can be game-changing in early markets, which often stall due to uncertainty around futuremarket growth.

System solutions: What actions can accelerate change now? 

 

3. System roles to describe how a particular organization is best suited to act and mobilize others to drive and shape systemic change. This answers the question: How is my organization best positioned to act?

To understand the path by which a company can best influence broader systems transformation, leaders first should assess their strategic flexibility and level of system influenceStrategic flexibility reflects the internal and external factors that define the degree to which a company has permission to change, such as regulatory environments and shareholder expectations. System influence reflects the diverse ways the organization can affect the broader environment, including market share, market position, consumer relations, and more.

For example, Danone recently announced a pledge to work with its farmer suppliers to reduce methane emissions from its fresh milk supply chain by 30% by 2030. This move reflects Danone’s awareness of its own system role: as one of the world’s largest dairy companies, the company is a point of centralization in an otherwise highly decentralized supply chain. As such, it has a high degree of system influence and can leverage this influence to encourage more flexibility – that is, changed behaviors and practices from smaller upstream players to meet Danone’s goal of reducing methane emissions.

System roles: How is my company best positioned to act?

Together, these steps allow a company to assess the strategic landscape using systems thinking tools and choose where and how to collaborate and compete.

Applying emergence strategy in your company 

While the basic steps required to develop an emergence strategy in any company are straightforward, applying them requires working with partners to explore possible pathways for transformational change and building the capability to apply them. WBCSD, Deloitte and RMI teamed up with members to explore this topic at the WBCSD Council Meeting in Dubai in 2023 and we look forward to continuing the exploration of this area in 2024. 

Key messages:

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WBCSD and US Coalition on Sustainability partner to accelerate the dissemination of actionable insights to SMEs across global supply chains https://inergency.com/wbcsd-and-us-coalition-on-sustainability-partner-to-accelerate-the-dissemination-of-actionable-insights-to-smes-across-global-supply-chains/ Wed, 14 Feb 2024 10:39:22 +0000 https://inergency.com/wbcsd-and-us-coalition-on-sustainability-partner-to-accelerate-the-dissemination-of-actionable-insights-to-smes-across-global-supply-chains/ WBCSD and US Coalition on Sustainability partner to accelerate the dissemination of actionable insights to SMEs across global supply chainsGeneva, 14 February 2024: The World Business Council for Sustainable Development (WBCSD) and the United States. Coalition on Sustainability (USCS) are pleased to announce a new strategic  partnership to accelerate the sharing of sustainability-related learnings and solutions between leading multi-national corporations and small and medium-sized enterprises (SMEs). As part of this partnership, WBCSD will make a […]]]> WBCSD and US Coalition on Sustainability partner to accelerate the dissemination of actionable insights to SMEs across global supply chains



Geneva, 14 February 2024: The World Business Council for Sustainable Development (WBCSD) and the United States. Coalition on Sustainability (USCS) are pleased to announce a new strategic  partnership to accelerate the sharing of sustainability-related learnings and solutions between leading multi-national corporations and small and medium-sized enterprises (SMEs).

As part of this partnership, WBCSD will make a wide array of sustainability guidelines, tools and case studies developed by its members and partners available to the nearly 2,000 member organizations of SustainChain. This ground-breaking public service platform created by USCS, unifies cross-industry efforts, knowledge and actionable insights across the public and private sectors to support all supply chain actors to help realize the Sustainable Development Goals (SDGs).

Through a new digital portal housed on SustainChain, WBCSD and its member companies will be able to share emerging sustainable business solutions and learnings with SMEs in real-time to accelerate their learning curve and build accessible collective intelligence for the broader sustainability ecosystem.

SustainChain™ uses artificial intelligence and machine learning to cut across industry silos and dynamically surface scalable solutions, products and partnerships for its users based on their selected sustainability focus areas and SDG priorities. 

James Gomme, Director of Education and Knowledge Management at WBCSD, said: “WBCSD is delighted to be partnering with USCS to harness the potential of the SustainChain platform to accelerate private sector action in support of a net-zero, nature positive and more equitable society. This new collaboration will empower SMEs to take full advantage of the learnings and experience coming out of WBCSD’s 220+ member organizations who are leading systems transformation in support of sustainable development.

Jacqueline Corbelli, Founder of the US Coalition on Sustainability said: “WBCSD’s wonderful leadership is providing a crucial link in the chain for lifting private sector’s contribution to global sustainability. Bridging the efforts of leading multi-national corporations with those of SMEs will allow both to create more seamless, productive, collective change. Together we can create an engine for building sustainable supply chains through mass accelerated knowledge sharing and partnership potential, powered by AI.”

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Golden Agri-Resources (GAR) Joins World Business Council for Sustainable Development https://inergency.com/golden-agri-resources-gar-joins-world-business-council-for-sustainable-development/ Tue, 06 Feb 2024 03:31:47 +0000 https://inergency.com/golden-agri-resources-gar-joins-world-business-council-for-sustainable-development/ Golden Agri-Resources (GAR) Joins World Business Council for Sustainable DevelopmentGeneva, Switzerland 23 January 2024 – The World Business Council for Sustainable Development (WBCSD) announces Golden Agri-Resources (GAR), a leading global agribusiness and palm oil producer, as its newest member to join forces with a global network of 200 businesses committed to accelerating the transition to a more sustainable world.   GAR will contribute to the […]]]> Golden Agri-Resources (GAR) Joins World Business Council for Sustainable Development



Geneva, Switzerland 23 January 2024 – The World Business Council for Sustainable Development (WBCSD) announces Golden Agri-Resources (GAR), a leading global agribusiness and palm oil producer, as its newest member to join forces with a global network of 200 businesses committed to accelerating the transition to a more sustainable world.  

GAR will contribute to the Agriculture & Food Pathway, aiming to enhance collaboration across the sector and support the Equitable Livelihoods workstream. GAR’s primary focus within the workstream is to support the creation of thriving and resilient agriculture and food systems that support equitable livelihoods for all workers, placing farmers’ prosperity at the heart of food systems.  

Food systems are responsible for around one third of greenhouse gas emissions caused by human activity. Recent announcements such as the COP28 declaration on sustainable agriculture and the FAO’s global roadmap for agrifood systems demonstrate a growing global consensus about the integral role agriculture and food sectors must play in climate solutions. 

Commenting on GAR’s decision to join the organization, Peter Bakker, WBCSD President & CEO said, “We are delighted to welcome GAR to our global network and celebrate its commitment to fostering positive change in agriculture and food systems. This collaboration underscores our belief that food systems can be a vital part of the solution to the climate and nature crisis, creating value for all stakeholders—from businesses, to farmers, to financiers, and local governments. We look forward to working with GAR and leveraging the collective expertise of our community to deliver ambitious, necessary change for a more sustainable world.”  

Emphasis will be placed on Scope 3 data accounting and metrics to track and measure the contribution of agricultural practices to its climate targets, with the overarching goal of protecting, restoring, and enhancing nature’s capacity to deliver ecosystem services. 

Additionally, GAR’s participation as a member of the Council aims to advance progress on the UN Guiding Principles on Business and Human Rights, leveraging the group’s collective expertise and resources to drive positive change, while bringing a Southeast Asian business perspective to address global priorities. 

“In WBCSD, we join a global network of companies aiming to accelerate and scale sustainable practices in the areas that matter most for business, the environment and the societies where we operate,” said Jesslyne Widjaja, Executive Director, GAR. “GAR believes in the power of partnerships to tackle complex, interconnected issues, and we look forward to learning and growing alongside WBCSD and its members to deliver ambitious, necessary change that will support the transition to a more sustainable world.”   

Guided by its comprehensive Social and Environmental Policy (GSEP), GAR sets industry-leading standards for sustainable business practices across its supply chain. This commitment underscores GAR’s ethos of harmonizing economic growth, social progress, and environmental preservation. 

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Regrow Selected as Independent Verifier for Mekong River Delta Emissions Reduction Initiative in Rice Production https://inergency.com/regrow-selected-as-independent-verifier-for-mekong-river-delta-emissions-reduction-initiative-in-rice-production/ Tue, 30 Jan 2024 10:42:22 +0000 https://inergency.com/regrow-selected-as-independent-verifier-for-mekong-river-delta-emissions-reduction-initiative-in-rice-production/ Regrow Selected as Independent Verifier for Mekong River Delta Emissions Reduction Initiative in Rice Production‍Regrow Ag today shared details of its participation in the “Transforming Rice Value Chains for Climate Resilient and Sustainable Development in the Mekong Delta” project known as TRVC. Funded by the Department of Foreign Affairs and Trade (DFAT), the project manager, the Netherlands Development Organization SNV, is collaborating with stakeholders in Vietnam to design the five-year […]]]> Regrow Selected as Independent Verifier for Mekong River Delta Emissions Reduction Initiative in Rice Production


Regrow Ag today shared details of its participation in the “Transforming Rice Value Chains for Climate Resilient and Sustainable Development in the Mekong Delta” project known as TRVC. Funded by the Department of Foreign Affairs and Trade (DFAT), the project manager, the Netherlands Development Organization SNV, is collaborating with stakeholders in Vietnam to design the five-year project with the goal of shifting to low-carbon, climate resilient food systems in three provinces in the Upper Mekong River Delta: An Giang, Dong Thap and Kien Giang. Regrow’s Agriculture Resilience Platform has been selected as the program’s measurement, reporting, verification (MRV) technology.

With 80 percent of its 17 million people engaged in rice cultivation, the Mekong Delta is known as the “Rice Bowl” of Vietnam. Research conducted from 2020-2021 estimated that the region’s rice production volume reached approximately 24.8 million metric tons in a single year. Implementing and scaling climate-positive rice production practices are key to the future of the region’s agriculture and to decrease methane emissions.

To drive impact and collaboration across the value chain requires the ability to quantify and monitor sustainable practices accurately. Cost-effective, scalable MRV technology is key to achieving these outcomes. Given Regrow’s experience with supporting programs that incentivize farmers transitioning to climate-positive practices in Vietnam’s Red River Delta rice production, the company’s platform will be used in several ways to support the outcomes of the program.

Smallholder farmers have traditionally been excluded from carbon markets due to relatively low levels of infrastructure, difficulties in aggregation, and high barriers to entry in terms of record-keeping. Regrow’s platform will support the TRVC project to distribute performance-based incentives, as well as support the project’s registration on the voluntary carbon market. Regrow’s combination of remote sensing and process modeling technology will provide reliable measurement and verification of greenhouse gas emissions outcomes, enabling smallholder farmers to achieve higher economic outcomes.

Dr. Bill Salas, Chief Strategy Officer of Regrow Ag, commented, “The Government of Vietnam has made a Nationally Determined Contributions (NDC) commitment to reduce methane emissions by 30 percent by 2030, and achieve net zero by 2050.” He continued,

Ms. Thu Ha Tran, Team Leader of TRVC Project, commented “The TRVC Project will support sustainable livelihoods for 200,000 rice farming households on a scale of 200,000 hectares to contribute to the implementation of the Project 1 million hectares of high-quality rice from the Ministry of Agriculture and Rural Development. In addition, the Project pioneered the design and use of an internationally recognized GHG measurement, reporting and verification (MRV) system to generate approximately 200,000 carbon credits; contribute to Vietnam’s NDC and be ready for credit exchange from 2028 when Vietnam’s carbon exchange officially operates.”

The TRVC project will officially launch and implement the first crop in 2024. For more information about TRVC, please visit https://trvc.vn.

Details about SNV’s work in Vietnam can be accessed at https://www.snv.org/country/vietnam.  

 

About Regrow

Regrow Ag powers Agriculture Resilience for today’s leading retailers, CPGs, processors, and farmers. Named one of the TIME100 Most Influential Companies of 2023, Regrow’s rapidly growing list of partners includes Cargill, General Mills, and Kellogg’s. With Regrow’s Agriculture Resilience Platform, companies across the ag supply chain gain the ability to assure their supply chains by accelerating the needed scale of GHG emissions reduction, adoption of regenerative farming practices, and proactive adaptation to the changing climate. A World Economic Forum Innovator and member of the World Business Council for Sustainable Development, Regrow has been named the No. 1 Most Innovative Company in Agriculture on Fast Company’s list of the World’s 50 Most Innovative Companies in 2023.

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From COP to Davos: Unpacking Global Climate Dialogues https://inergency.com/from-cop-to-davos-unpacking-global-climate-dialogues/ Thu, 25 Jan 2024 15:51:04 +0000 https://inergency.com/from-cop-to-davos-unpacking-global-climate-dialogues/ From COP to Davos: Unpacking Global Climate DialoguesLast year ended with the intensity of COP28 in Dubai, only to find the new year kicking into gear with the World Economic Forum’s Annual Meeting in Davos.   In December 2023, I shared my thoughts about COP, instilling a glass half-full, half-empty type of feeling, but with the advantage of a little distance in time, […]]]> From COP to Davos: Unpacking Global Climate Dialogues



Last year ended with the intensity of COP28 in Dubai, only to find the new year kicking into gear with the World Economic Forum’s Annual Meeting in Davos.  

In December 2023, I shared my thoughts about COP, instilling a glass half-full, half-empty type of feeling, but with the advantage of a little distance in time, I have to say my overarching evaluation of the COP28 outcomes is a positive one. The clarity of the need to decarbonize is shining brighter than ever. The mobilization of all stakeholders in our economy, with almost 100,000 people attending the blue zone, is a crucial step towards taking large-scale action on climate change. As the world is turning to businesses for sustainability solutions, the participation of business representatives and the recognition of the urgent need for action is exactly what the climate action agenda requires. 

Fast forward to the Davos meetings held in the week of 15 January. Bringing together some 5,000 leaders from around the world – including several of our Members and program partners/stakeholders. It was encouraging to see meaningful bilateral discussions take place with several of you on the Davos sidelines, highlighting the importance of face-to-face dialogue to drive action. 

It was fascinating to observe the main areas of discussion that were being talked about, including: 

  • geopolitical tensions in the world and the fragmentation of a globalized economy, 
  • ongoing uncertainties in the global economy growth expectations (hard vs soft landing, interest trajectories), 
  • elections in more that 50% of the economies in the world in 2024, 
  • growing number of wars and conflicts with no multilateral governance mechanism capable of controlling them, 
  • the need for Governments and businesses to take greater accountability, echoing our WBCSD strategy 2024, 
  • and perhaps most prominently, the rapid rise of AI (Artificial Intelligence) that will drive up productivity and accelerate solutions if used responsibly. 

I was also glad to see that discussions around climate change and sustainability were central to several side events organized by forward-thinking companies and organizations. 

I left Davos with a peculiar feeling that the discussions needed were somehow missing or not taking place as they should. That it is not about discussing and predicting the various individual challenges of the list above, but it should be about taking a system-level view on how humanity must unite in its response to the ever more complex trends around us. 

 For WBCSD this means we need to double down on our efforts to work with, engage and mobilize more businesses toward the transformative actions that will drive us collectively to a net-zero, nature-positive and more equitable society. To this end, we must step up radical, results-focussed collaboration across stakeholders, moving beyond incremental change to existing business models and ways of operating.   

 Next month, I will lay out where I see the major focus areas for businesses in 2024 and 2025. You can bet it will have a lot of action and impact baked into it. 

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Identifying Hotspots and the Disclosure of Non-financial Information: Mitsubishi Shokuhin Co., Ltd. https://inergency.com/identifying-hotspots-and-the-disclosure-of-non-financial-information-mitsubishi-shokuhin-co-ltd/ Tue, 23 Jan 2024 13:09:46 +0000 https://inergency.com/identifying-hotspots-and-the-disclosure-of-non-financial-information-mitsubishi-shokuhin-co-ltd/ Identifying Hotspots and the Disclosure of Non-financial Information: Mitsubishi Shokuhin Co., Ltd.Mitsubishi Shokuhin intended to actively disclose non-financial and financial information.  Measuring Scope 3 emissions, a type of non-financial information, was an important theme that needed to be addressed early on. Terrascope helped them classify and measure a large amount of emissions data. Mitsubishi Shokuhin is a food trading company that deals mainly in processed foods, […]]]> Identifying Hotspots and the Disclosure of Non-financial Information: Mitsubishi Shokuhin Co., Ltd.


  • Mitsubishi Shokuhin intended to actively disclose non-financial and financial information. 
  • Measuring Scope 3 emissions, a type of non-financial information, was an important theme that needed to be addressed early on.
  • Terrascope helped them classify and measure a large amount of emissions data.

Mitsubishi Shokuhin is a food trading company that deals mainly in processed foods, low-temperature foods, alcoholic beverages, and sweets. With the purpose of contributing to the realisation of a sustainable society through the food business, the company is pursuing its role as a sustainable food lifeline, keeping pace with various changes in the business environment

 

Active disclose of non-financial information

Mitsubishi Shokuhin has set 2030 targets along with sustainability priority challenges to realize a sustainable society, and is working to reduce CO2 emissions to realize carbon neutrality in 2050. It has voluntarily identified Scope 1 and Scope 2 emissions and has actively disclosed its current emissions and progress made toward its reduction targets in the Integrated Report and other documents. One risk that may materialize with climate change is the “introduction of carbon pricing.” Based on an analysis that carbon pricing may have a large effect on food supply chains, the company concluded that the visualizing Scope 3 emissions early on might help with the building of a sustainable supply chain, and has been working with Terrascope to measure Scope 3 emissions, aiming for disclosure by the end of FY2023.

 

Massive amounts of Scope 3 data

The amount of CO2 emitted indirectly by a company, specifically by the supply chain (Scope 3) is atypically said to account for over 80% of the total CO2 emissions (Scope 1 + 2 +3) of a company. It was believed that the data for measuring Scope 3 was scattered across the company and that the amount of data was significant. Terrascope has studied measurement methods from transaction data collection methods, integration of different data formats up to visualization, together with major manufacturers and retailers across Japan. For example, Mitsubishi Shokuhin has over 240,000 SKUs which stand for stock keeping units, and each SKU is managed differently (e.g., at room temperature or at low temperature). Terrascope has been working with Mitsubishi Shokuhin to sort this vast amount of data with AI.

 

Measuring Scope 3 and identifying hotspots

Terrascope is a SaaS carbon measuring/management platform and is an ideal tool for measuring and managing Scope 3 emissions holistically. Mitsubishi Shokuhin and Terrascope first classified the over 240,000 SKUs into around 2000 similar product categories, then calculated the carbon foot print of each category based on the representative packaging and ingredient composition of each product category. This data was entered into Terrascope and visualized as shown below.

  • Scope 3 emissions accounts for around 99% of Mitsubishi Shokuhin’s overall emissions (Scope 1 + 2 + 3).
  • Over 80% of Scope 3 emissions are from Category 1 “Purchased goods and services.
  • By category, the frozen foods and alcoholic beverages product categories emits the most CO2.
  • The next largest share consisted of Category 4 “Upstream transportation and distribution, followed by Category 12 “End-of-life treatment of sold products” or emissions from the treatment of food waste and plastic packaging.

 

Effects and future plans

Through Terrascope’s functionality, Mitsubishi Shokuhin was not only able to visualize Scope 3 on a corporate level, but also to identify hot spots on a product category level. We hope that in addition to serving as a guide when setting reduction targets in the future, that the knowhow including templates created during this measurement will help reduce the manpower and time needed for calculating emissions and that an even more in depth measurement will be taken for FY2022 and beyond. Furthermore, the company plans to switch over to primary data based on the hotspots identified, and disclose data based on even more detailed analysis methods to further pursue ESG value.

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