2023 - Net Zero Priorities!

What a way to start 2023! Congratulations to Abu Dhabi Sustainability Week - ADSW and Masdar (Abu Dhabi Future Energy Company) who has brought together heads of state, policymakers, industry leaders, investors, entrepreneurs, and youth, to discuss, engage, and debate climate action and innovation that will ensure a sustainable world.

No doubt that 2023 will be a remarkable year as UAE will host COP28 . As the time is running out to secure a sustainable future for our planet - we need concrete actions to achieve the climate goals for 2030 (and eventually 2050).

I believe that these 3 topics will be in focus in 2023 to ensure Net Zero transition:

Decarbonizing supply chain!

On average, 70% of a company’s emissions are scope 3. Majority part of this is related to supply chain. We cannot succeed in net zero transition without decarbonising the supply chain. This can be done through partnerships, collaborations, incentives. It is vital that governments, industry, innovators, and consumers have a clear understanding of the supply chain requirements for each of the sectors for delivering net zero. According to 波士顿谘询公司 supply chains related to food, construction, fashion, fast-moving consumer goods, electronics, automotive, professional services and freight account for more than half of all global greenhouse gas emissions (WEF_Net_Zero_Challenge_The_Supply_Chain_Opportunity_2021.pdf (weforum.org).

Potential solutions could be: ?

• Revisiting product design choices
• Reevaluate geographic sourcing strategy
• Reconsider procurement standards
• Collaborate with suppliers to do explore opportunities linked to emission reductions
• Collaborate with peers to align sector targets that maximize impact
• Enhance focus on green solutions
• Define internal emission strategy where supply chain management is a key pillar

Technology and innovation

We will not get where we need to be by 2050 by only using the existing solutions and technology. According to 麦肯锡 these climate technologies can play important parts in mitigating carbon emissions (delivering-the-climate-technologies-needed-for-net-zero.pdf (mckinsey.com):

• Renewables Solar (e.g. grid innovation)
• Batteries and energy storage (e.g. long [1]duration energy storage)
• Circular economy (e.g. Battery recycling, chemical cellulosic recycling, heat recovery, plastics recycling)
• Building technologies (e.g. Geothermal heating, heat pumps, electric equipment)
• Industrial-process innovation (e.g. Electrification of heat sources, green steelmaking, green cement making)
• Hydrogen (e.g. Electrolyzers, fuel cells)
• Sustainable fuels (e.g. Advanced biofuels, e-fuels)
• Nature-based solutions (e.g. Monitoring and verification for forests, peatlands, mangroves)
• Carbon removal, capture, and storage (e.g. Point-source carbon capture, direct air capture)
• Agriculture and food (e.g. Precision agriculture, crop preservation, regenerative tech, alternative proteins)

Talent and capabilities

The challenge of climate change is urgent, but it is also a relatively nascent field given the breadth of skills required to meet the commitments for a sustainable future – and the supply of ESG professionals is not yet in line with the demand. As we know the green transition is critical for the climate action, but it is also a great economic opportunity. According to the Global Commission on the Economy and Climate, countries taking strong climate actions between 2018 and 2030 could, by 2030, generate over 65 million new low-carbon jobs, and deliver at least USD 26 trillion in net global economic benefits. Without people and talent we cannot achieve Net Zero!

Schools and educations systems will surely play a?critical role in increasing awareness of local communities on climate. However, it is also critical to build “green” skills and awareness in the workforce. LinkedIn identified ~800 “core” green skills and more than 300 green-related skills across twelve categories including pollution prevention, waste prevention, renewable energy, and sustainability ((7) Building a sustainable future requires "green" skills | LinkedIn)

Investments in upskilling employees “green skills” will be prerequisite for the green transition.

Hopefully 2023 will be the year, future generations will remember as the year of Net Zero breakthrough!