At the World Economic Forum 2024 Annual Meeting in Davos, the EVP of Europe Operations, Gwenaelle Avice-Huet, together with Martin Lundstedt, Juliet Mann, Holger Klein, and Brand Cheng, are discussing and exploring how manufacturers can successfully transition to net zero without compromising on productivity and profitability.
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Hello and welcome everyone to this live stream session at the world economic Forum annual meeting 2024 we’re looking at Net Zero Industries I’m Juliet man an anchor at cgtn and the host of talk show the agenda and I’m delighted to be here with you we’re going to be talking about
How manufacturers are going to be able to collectively harness new technology new innovation to to to Really navigate the green transition sustainably but at the same time to maintain growth because you know what this is a sector that accounts for 1if of global carbon emissions and it uses about half of the
World’s fossil fuels their energy so even though going green is the buzz of the boardroom and a lot of commitments have been made on that journey to Net Zero only one in two companies Is On Target to meet their goals now if you in the audience here that that think that’s
Not good good enough and you’d like to know what we can do about it well you are all in the right place so what is holding manufacturers back well it’s a bunch of technical financial and organizational stuff you know access to information can be limited and as we’ll hear many industrial companies are
Realizing that not that they can’t do it alone but that it makes more business sense to to partner up and collaborate along every step of the supply chain so what we’re going to do is we’re going to look at the good practices we’re going to look at the new technology and The
Innovation that’s out there and we’re going to pinpoint what needs to happen next and by the way this session is linked to the industry Net Zero accelerator initiative at the world economic Forum center for advanced manufacturing and Supply chains and if you want some bedtime reading the latest
White paper on this is the no excuse opportunities to tackle scope 3 emissions in manufacturing and value chains and what happens here is going to shape the strategy of this initiative in the year ahead so it’s important stuff important stuff so we’ve got lots to talk about and at the end there’s going
To be a chance for all of you in the audience to ask your questions so get thinking I’m going to introduce you to our panel really excited to have all of you here first of all we have Gwen iel AET who is the executive vice president of Europe operations at Schneider
Electric in France and she’s also a world economic Forum young Global leader we’ve got hogga Klein the chairman and chief of executive officer of ZF group recently back in Germany after a long stint in China and he’s also part of the alliance of CEO climate leaders another
One of those is bran Chang the chairman and chief executive officer of foxcon inter industrial internet from China and here we have Martin lunet the president and chief executive officer of Volvo Sweden another one who’s part of the alliance of CEO climate leaders so first I think we need to set the
Scene where does the manufacturing sector currently stand on the path to Net Zero brand let’s start with you all right so actually if we look at a manufacturing segment and is a supply chain actually represent about 30% of greenhouse carbon emission so it’s a lot of challenges especially
Forme because the data transparency lot might involve with CA might involve with technology challenges a lot of barriers so I think the the collaboration will become very important couple points you should raise up one is uh the the policy and regulation yeah which means in each region maybe requires some standard and
Incentive also regulation for you to follow up second thing is uh like a financial and investment so it’s still very chall as I mention the C always a concern in a business right so I think in a in the manufacturing segment we probably need more uh financial
Institute invest and also have some uh uh uh financial support to let them do the digitalization to make the data transparency number three probably is like R&D R&D by research and development and the new technologies to resolve the issue we are facing so somehow we still
In leader in each industry four is risk management platform which we need to build a common platform so everybody can follow there’s a stand out as I mentioned like that so as a joint effort I build a showcase first then with a new technology moving long and gradually we
Can hit the the commitment you know for the Net Zero eventually like that that’s my you know observation well we were talking before Martin and hul was saying that you you are leading the industry in the way you’re bringing all your suppliers with you how how how would you say that the
Big picture is for manufacturing on that path to Net Zero but I think we have of course been working with these topics for a long period of time uh not at least when it comes to scope one and scope two uh just to give one data point
I mean our biggest operation in Europe that is our Gant operation for truck assembly in Belgium became fossil Free Net Zer in 2008 uh so so the scope one and scope two journey and also when it comes to you know buying energy Etc has been ongoing for a long period of time we
Know how to do it uh and and it’s execution if I put it like that the big thing that is happening now is the discussion around scope three and that is really positive for everyone in the value chain because what is happening is that if you take Vol as an example
2040 we should deliver everything fossil free which is a huge undertaking means that we need to have material change 25 2030 uh given the fact that we are a 55 billion uh company in 190 countries and that means that drive of the scope 3 that represents almost 90 plus% of our
Emissions is just a joint effort and what we are doing now both Downstream and not at least Upstream then when it comes to the manufacturing that represent maybe 70% of our added value is to actually partner up with our key uh Partners when it comes to the tier
One structure because they can also lead the way to supporting us for for their partners and their Partners upstream and this is a big shift also when it comes to the uh the the traditional relation between uh people in in the value chain that has been rather transactional
Moving to much more of a partnership structure so Andrea f for example our chief purchase an officer is really driving a cultural change on how how do we Source how do we actually transmit the message in order to get that Journey going and how do we actually take a lead
In in some cases in order to really get the the needle moving or also ready to pay uh a premium if needed or ready to CP invest to make it happen Etc so the scope three matter here is the big shift and that is because everyone talks about
Ecosystems but at the end of the day ecosystem must be meaningful and the ecosystem in the complete value chain is a very very meaningful uh ecosystem in order to get to Net Zero so it’s not enough just to say right this is Volvo’s goal but 2024 you need to every you need
Everyone to be on the same page and to be able to take those steps as well so um gu let’s talk about those shifts that are needed for for Net Zero to be that engine for sustainability but also that engine for growth what’s the Outlook at at Schneider Electric well thank you
Very much I think you you have the right question because in the industrial sector first we think about quality we think about cost we think about productivity we think about you know delivery on time and we question about sustainability right and what we have to Showcase is that it’s hand in hand
Absolutely in reality sustainability is bringing productivity and just to give you one example within Schneider Electric we started a journey on sustainability 20 years back we have grown the business buiness by four times so it’s just good for business yes it’s good for business is it easy no it’s not
Easy because it’s a culture shift you have to Embark you know the manufacturing the industrial uh setup so that people are truly committed and that’s the big shift that we have to make first it’s not really technology because technology exist it’s scaling the technology but before that it’s
Really making sustain as a priority and making sure that we walk the talk in everything what we do in an organization and the second element uh rebounding on what you were saying earlier is that it’s not only us is every Partners customers suppliers how to Embark them
Just to give you one example when we started a journey on sustainability we wanted to Embark our suppliers so we said let’s take our 1,000 suppliers trying to reduce their emission by 50% in 2025 was that a condition of doing business with them yes it was a
Condition but we didn’t know how to achieve that and I think it’s good because in sustainability if you reach or if you determine a Target that you know how to reach you will not reinvent and the way we’re thinking about sustainability rethinking our business model rethinking the way we
Address manufacturing rethinking the way we approach suppliers so we didn’t know how to reach this Target but finally it took like two years for us to reach out to the suppliers to embar them in the journey to do training because they didn’t know how to calculate carbon
Footprint Etc and to bring them into that direction it’s just to show that at the end of the day it’s culture Beyond technology that is already existing scaling it’s embarking suppliers and customers in this Jour so in terms of that that um culture beyond the technology H go Ian who who is setting
The tone you know what best practice solutions from the private and public sector are helping make the progress to achieve that industry Net Zero yeah let me start perhaps here in the voice yeah I think we have a great commitment of the leaders here in the Voice who really
Want to make a difference with their companies yeah and I think the first move allines is one example where we go into scope three into the verticals you for example we as an automotive supplier to customers like Volvo Etc we committed on on buying 10% of our
Global Steel volume now as green steel yeah and what was something which was created here in dor and all of us now went out there and asked for green steel and that creates then the capacity in the market because otherwise it doesn’t make sense yeah there needs to be always
A business logic behind it for me the interesting building out what Martin said is now what do we master and where do we see our challenges and I would say for us as a company we by 2040 will be climate neutral in 2030 we will have reduced our emissions in scope one and
Two everything we can influence by 80% and for scope three only 40% yeah and you ask why only 40% because we need to bring the value chain along but the proof point is now not 2040 we need to measure it really year by year and if I
Look at those numbers hey it’s only 6 years from now where I need to come back here and tell you it worked yeah and this is where we are all in it together and I feel the momentum this is different from what we have perhaps seen
A couple of years ago now asking the question what does it take yeah so I give you an example my headquarter is just 2 hours North from here at beautiful Lake constants yeah and if you are out for tourism it’s beautiful come and visit yeah but unfortunately it’s a
Very remote area and we have U major sized uh component factories there so what I need now is infrastructure yeah I need green energy I need the investments into green energy I need um hydrogen and if you think about the map probably it’s not on top of the agenda of the guys who
Plan the uh infrastructure now to connect FY saen that’s the town where I have my headquarter so that’s lot to be done in public private Partnerships to create the infrastructure and regulation wise we see a huge uh diversity yeah where in China for example it’s technology open do whatever it takes to
Bring the carbon footprint down in Europe we have a lot more regulation and some of that is very very complicated and perhaps even misleading and so perhaps we need to become less complex in that so I want to talk more about that what what’s holding everyone back
CU you’re talking and you’re all chiming in with each other about how it’s important for companies to talk to each other all along the supply chain but Martin what what about what governments are doing what what policy measures are actively supporting this transition and what could do better who could do better
No but but I think I mean it’s fair to say that we have seen a number of legislations that have been highly both efficient and effective if I look at our sector for example the Euro Norms as we know with Euro 1 euro 2 Euro 3 for
Emissions not at least and for the close those by emissions no particulate matters have played very important role and now we are down to levels that are so to speak uh extremely low and we’ve had a discussion about the next step and then when you’ve had a successful
Journey you tend to hold on to that the thing is that the big shift now is going into purely fossil free Solutions when you as a spin-off effect get also zero nooks and parate matters and what I think is a big a is to continue to I mean push regulation in the Direction
Where We want to go but also de complex when it doesn’t make sense anymore because we have a tendency to add and not to do the cleaning right and I mean it’s like a corporation we know that from time to time you need to prune the portfolio in terms of product lines
Businesses geography what could be whatever we need to prune the regulatory portfolio because otherwise we will not see the forest for all the trees and the forest here is a net zero Journey that is absolutely necessary and then we need to make sure that we are concentrating
On that so that is number one number two if I take the complete deployment now of uh because scope three what is beautiful about that is everyone will come to Logistics you know everyone has to address Logistics and it could be 6% of your top line or your emissions it could
Be 20% it could be 40% doesn’t matter everyone has to do that the interesting piece about that is that you think about yes I have a truck here electric or hydrogen uh po uh fuel cell powered electric or whatever that is fals free that is the equipment
But that needs to be times and I deliberately say times infrastructure times GD capacity times green energy times reasonable TSO in terms of carbon pricing res because and it’s times and not plus because because if any one of those are zero it is zero that is mathematical proved that is
Times right and and that we need to think about and Europe in particular has not have an intentful view on their balance sheet in terms of energy systems in terms of infrastructure in terms of digital buildout in terms of a lot of different things when we look at
Countries and regions like China Korea Singapore it’s a completely and many more is a completely different view on how does the balance sheet look like in order to host this we need to come back to that discussion but the political system for many different reasons that
We cannot take today has not been able to do that because I mean we someone said wisely yesterday uh uh we know what is right to do but we don’t know how to be reelected when we do it and and I think that is a very good way of putting it and they
Also need to quite a lot of funding to be able to do that so I wonder if something that could help is maybe new technology so so let’s talk about that Gwen so the emerging technologies that that are really demonstrating that promising potential to help us on this
Journey yes well um in terms of technology I think that everybody in this forum are talking today about AI generative Etc and uh we may think about some applications but this is also applicable for n your industry from the manufacturing and we have to realize that there are plenties of application
Most of the time it starts with a hardware but then with the hardware we connect the hardware and with AI we have plenty of use cases and that’s the power of it that’s the beauty of it because each use case is developed you know on on a regular basis so we improve you
Know the the production plan we have more iot embedded Etc and that’s how we develop industry 4.0 and on that front I would like to highlight that we have been awarded by the water Forum Lighthouse which is very famous I would say um collaborative and network across across um the water Forum highlighted
That our plant in uh India which is abadabad has been awarded for that because of all of the iot inside Etc aiming to reduce the consumption for energy which important exactly by more than 57% and reducing the waste by more than 60% at the end of the de it’s reduction
Of cost Etc and everything is based first on Hardware but then it’s software it’s Ai and this is where we will see more and more development more connected products more efficiency more applications BR you agree is this um is this how AI is going to set the agenda
Oh yeah I get something to share with you for AI is so attractive and exciting recently right so actually facing the beauty of AI also we look back what’s the impact you know actually when you run a AI server to come out the computing power it canum tons of powers
Than before we used to use air coding right but air coding cannot stand for like a every GPU come with more than 400 W exactly right so you had you had tons of GBU together so you going to offer antire City in power to support Compu
Power are you going to do that no so technology works so now we come up with a new material as example in the as example in the semiconduct segment the Silicon carbine the thir generation of new material which have a better tho consumption better tho dispension lower power consumption to lower down the
Power consumption second thing use different approach for cooling this which is going to be liquid cooling system you know in addition what famous is imersion cooling the liquid cooling probably it’s going to be more popular so which reduce so we talk about how to approach this one is reduce reduce is
Reduce all this kind of power consumption uh in addition to that we have a some showcase how to reduce this uh example like we have Global factories lots of uh the air conditioners so you’re right so it w a lot of power if you don’t upgrade you air conditioning
Systems which apply with a lot of iot system to come with the data make sure the data transparency then you can by by means of the the AI power computing power then with the data you have then you can come out with the AI and help
You to save so like a 2024 probably we going to save more than 1.3 million kilow per hour and all also the second thing you can do is uh uh not only reduce also replace with renewable energy or or recycle material as you may know fi is doing a lots of high
Precisive mechanical like CNC aluminum like in automotive industry the same right so we use a lot of uh recycle aluminum so it we we see the achievement of saving like uh more than more than 2,800 R&B per t of the the the with the recycled material and rable energy for sure it
Also require the ouri for this right but more important is the resolve as I mentioned new technologies you use new material you use new approach of Technologies then you can make sure the beauty of AI otherwise AI use more power who going offer lot Power so as a clal
System you do not only think about a beauty also you need the some solution to balance it balance it then it can realize but very important the framework as we mentioned that either government or Enterprise like when we in China the government has a very supportive Str to
Support us set up the standard like we we we already passed hit the the Kon pick in 2022 and we’re going to finish the new new uh uh uh uh uh energy you knowable energy by 20 35 and going to reach Net Zero on 2050 so all this require lots of collaboration with
Industries with governments so we set a standard and so our scope three the suppliers knows where you want to go everything back to the business interest if the criteria is there they don’t fit they’re going to Lost business so there is a business interest so they could incentive to drive themselves to meet
This so I thanks to that I tell them now it’s not just activity or a goal it’s a competitiveness is agree this right inside your bond cost B material is just think about this let me build on this yeah I think two examples from our industry yeah first of all you design
The carbon footprint into the product what does that mean if you don’t start with a product design yeah you will unwillingly increase the carbon footprint I give you an example we now presented a magnet free electric engine what does that mean yeah if you look at the production and the value chain of
Magnets that’s accounts for 50% of the carbon footprint for an electric engine if you just replace that yeah by an inductive uh uh technology then you can do without so it starts with our designers and their Innovation makes makes really major steps to solve the
Problem and then I go to the other side of the site C remanufacturing and I think for us secularity becomes more and more important and it’s a super business yeah we have more than 2,000 people remanufacturing transmissions and other components yeah in over 20 uh plants worldwide and I tell you these
Remanufactured Transmissions are even better than the new ones yeah because certain things you can exclude like material failure or things like this this transmission already ran for while and as as good as new yeah so it’s a business and it saves you another but is it saving you money or is it more
Expensive because it’s one thing having all of this new technology that’s going to increase sustainability but what about growing your business too so growing the business is of course on the side where we design the new products but the aftermarket and the remanufacturing is a growth area for us
Because otherwise we don’t solve our our um problems in the value chain yeah yes to mention that uh on remanufacturing we also do we are working together on that uh hoing myself but we are also doing that and we see an increasing interest so so it’s also which is very important
To your point is an attitude change also that I mean to take a you know remanufactured engine or transmission or Turbo whatever H it’s actually seen differently than it used to be only five years ago both because we can actually prove with data uh that it’s actually functioning equally good or in some
Cases better and talking about growth this is growth because otherwise it should just have been scrapped now it’s coming into the cycle again uh so so that is a business case that is very positive and if you think about it with with uh if we can dream for a little bit
To say okay we we will have a a more Global price of CO2 will make that model even more attractive it’s already attractive H because more and more companies and customers Downstream they are incorporating also um the cost of CO2 into their sourcing decisions which is very very positive
Obviously so U yeah yeah let’s showare with you about gross yeah so one example for your reference is uh fan industrial internet was listed in Shanghai Asia in 2018 at the moment we have Revenue like $50 billion and also we come with uh like a 190,000 employee
Globally uh 5 years pasted in 2022 we finish 71 billion dollars you know which is more than 40% gross and our headon still remain at 190,000 that’s because we drive The digitalization Binding with the the ESG so Force count group we are driving a equation for sdg the sustainable
Development goal which is equal to EPS plus ESG actually EPs and E ESG like emission is complimentary I agre if you took it as part your cost right competitive need then back to us is you look at this we increase the data transparency so we know when we do plan
Do check action then we know how to collect action collect data become the the the the anesis you can divide anesis right now at the end you have for coner right so this make yourself very clear and one methodology is build a showcase then put the whole thing and
With the Milestone you have also in the supply chain they see your goal they follow you then so the Enterprise like us you know be frankly we in in the industry we also take a leading position we need to lead the entire supply chain e Coes to follow us then every industry
Do the same thing then at the end we will reach the goal so it’s being part of the ecosystem and doing it all together so I mean um so just maybe one point to rebound and to expand a little bit on the concept of circularity okay because when we talk about circularity we’re
Talking a lot about remanufacturing right which is super good um we have been awarded also by the lighthouse from the watering forum for circularity it is totally new business model and it’s also a change of mindset believe it so many many people wants to have brand new stuff they don’t want to
Reuse stuff they want brand new stuff so it’s a change of mindset but this is not only remanufacturing it’s also in our vision of circularity it’s end to end meaning it’s use better first we need to use better it’s transparency so it’s premium it’s ecodesign it’s everything embedded
Into a product so that at the end of the day the consumers knows what they are buying it’s trust transparency and envir Al performance use better then it’s used longer how to use longer product lifetime extension how to make sure that we don’t replace the Wall Equipment but
Just the part that is deficient this is repair maintenance models Etc this is the second pillar and then we have the recycling and for which it is also super critical because energy transition is consuming lots of raw materials if we want to keep the path of development we
To reuse the raw material and that’s where it comes recycling but I think circularity it’s the world ecosystem from use better use longer use again and it’s where we can track the momentum it’s not easy because regulation and Market is not always ready for it everybody here is talking about what
What their company is doing and and how they think they’re making a change but I’m wondering hogga what where would you like to see more strategic Partnerships what’s missing here that that could really change the the pace and and accelerate this journey to net um zero sustainably while maintaining growth
There might be some points I pick one yeah and I would say digital and sustainable need to go hand in hand and what do I mean yeah there are initiatives like we are driving as Industries kenina X where we are trying to measure the footprint throughout the
Value chain and what would that give us yeah I would have a bottle like this and I could tell from the iron ore to the logistics to the glass what is the carbon footprint of this bottle and then I could price it and I could tell you
Now you’re are doing good because you now pay 20 cents more but you are very conscious that you have a green product yeah and this is cross stakeholder cross value chain and that’s digital and I think that’s something where we can become better some of us got started
It’s I need to let these guys into my factory yeah because they can see my data yeah so in former times it was a nogo yeah how can I let Martin know what the real cost of manufacturing my plant is yeah but this is not the point yeah
We partner in a way that he knows exactly what the carbon footprint looks like I try to do that with my suppliers and you can take out so many inefficiencies in the supply chain that it becomes a business model again so short answer digital this kind of cross
Value chain connection Martin do you have a short answer my short answer on that just to build on very uh good example for us I mean if you look at the whole battery value chain for example mhm uh we know that uh on the truck side uh since trucks are used passenger
Cors are not used they Ed three% of the available time as you know so so the battery will lost over the whole life cycle probably uh but for a truck they are utilized 88% of of of the available time meaning that if you can track that in real time what has
Been the behavior what has been the cyclicality ETC you can have a very informed decision about so to speak what do you do by that when you’re taking it out from the truck and utilizing that for a second life and eventually for recycling because that is extending the
Life cycle but it’s also to giving a guarantee in in because trust is the ultimate human currency and in order to do that you need to say okay this is what the battery has been all about now we can utilize for stationary power or power grid Etc so that is really how the
Power of connectivity into iot then and into sort of speak informed facts that you can utilize them even more forceful than with different different levels of AI to take realtime decisions that will actually stand the life and make so to speak the use cases even better for the
First first customer and the second customer so digitalization for sure so digitalization and circular economy talking to each other more I mean we’ve had some really interesting themes come up here and I’m wondering now um if we can open this up to the audience if anyone in our audience has got a
Question for for any of our panelists go on be the first person be the first person while while you’re um glory to well um tell you what I’ll do the first question and then maybe somebody will be brave enough to put put their hand up um um I think what I want to
Talk to you about more um gu is the the center for advanced manufacturing Supply chains and how useful um it’s been um for your business this accelerator initiative has it has it opened your eyes has it given you new connection so that you could Forge New Partnerships
Yeah that that’s a very good question so first what we wanted to do is to be exemplary in our manufacturing footprint we have today 70 plant that are Net Zero and we target to be carbon neutral by 2025 so very short time frame so it means that we operate today in all our
Different geographies in digitalization electrification sustainability all embedded when we’re doing that for ourselves it’s also a showcase but you know throughout the journey we have ups and downs it’s not easy as I was mentioning in terms of Technology business model cultural shift in terms of relationship with suppliers green
Materials for example how to get green materials today not that easy not mature yet so what I think is the beauty of the initiative is to connect the thoughts to share what we are going through including sometimes it’s difficult but we share that across the board and
Therefore we can be more meaningful we can step by step make progress and that’s how we would achieve those targets one example again on green material we have an object an objective is to have 50% of green materials embedded in our products by 2025 not easy so we need to connect thoughts we
Need to have lots of discussion with many suppliers that are shaping the industry of the future in terms of material efficiency Etc so this is something that is really meaningful in this kind of environment yeah so taking a chance I want to share about the experience of a
Lighthouse Factory as well you know a lot of people think about the advantage of Lighthouse Factory is going to drive your operation efficiency yeah answer is to but not only actually we also see the effect in uh Energy Management you know energy management and Security Management so because you digitalize everything so you
Can combine all that together and with the human Centric automation with the AI Factory you know so because automation investment also huge Capa right also involve EV cost so you can with the the lighthouse Network program it means you build a showcase a company like us we have H in
14 countries uh am I going to build every country from zero no I better have a showcase so I can share I can grome so I can do title Market investor is going to challenge me if I do everything from zero right inoss especially We are rooting into the emerging countries they
May not have a so mature infrastructure so so the only way is to be a showcase for you to practice this is internally externally we see another case because of theorization capability we have by our team just last year we help a a EV company in guangong you know they by
Taking a way of a lighthouse approach they have H The Limited space for the the production but with the digitalization with with a with the visualization of the data and also a couple of lots their capacity increased from 880,000 a month to 10 100,000 a month then when the because waiting for
The new Factory it need three years you’re not going to have three years to wait for market demand right so when market demand comes TI to Market use this approach they feed that and they make a regular High every six month you know so I think the very important to
Tell us is you do the ttic of a digitalization but the goal is build uh you know human Centric AI driven you know data to to to decision uh Factory for the manufacturing you know so I I would encourage you know to use this example also a site of effect to us I
Really appreciate this effect from a lighthouse program is the whole engineers they have one target so they work on the same goal certainly they talk to each other you and reach a same goal and you see lots of uh return which you may not imer at the beginning that’s
What I like to share with you it’s like when I was talking about how the new iterations of AO inputting and upgrading and making it different when everyone talks to each other that’s how you get there do we do we have any questions yes we do this gentleman at the front can
You say who you are and who your questions for hello can you me um you can me I’m B I’m leading ver in battery manufacturing the question I have is regarding the Net Zero title for this panel because I heard a lot of good things regarding reducing the needs
Regarding being more efficient more electrified but then how do you brid the remaining Gap to the soal net zero and you haven’t spoken on off setting which was probably something that was quite Hye in the past and I’m I’m really looking forward to understand how you uh lead that in your companies because
Reducing is great electrifying is great and then for the remaining bits what do we do let’s go around the room let’s start with you hulga I mean that’s what I I said in the beginning yeah I guess for us now the Milestones are very important do we reach our milestones and
The further we go the harder it gets yeah I mean scope one and two is relatively easy compared to what we discussed with scope three and scope three has a upstream and a downstream and we talk now a lot about the Upstream which is how do we solve for example the
Steel challenge in my business steel is uh a very important uh resource and this will depend now really on do we get the capacity installed to to have green steel and that’s where we act as partners now with a first mover Alliance and we have CEOs with a commitment to
Drive this forward and this is very pragmatic that’s what I love about it that’s not PowerPoint that’s becoming real is this a challenge to come to the the pure zero at the end in 2040 absolutely yeah eventually some of us can even go positive in terms of being a
Net uh contributor yeah but uh it becomes always more difficult if you ask me we need to drive the last mile which is the most difficult together otherwise we have no chance it’s like the Quee to get through the security block before you get into is it that last bit of the
Journey Martin how about you that last mile no no but but I but I think uh great question and and and I think the whole story also about I mean really working through your uh CO2 footprint for real and understand that huge undertaking by the way and start really
To to see where you should go about it just to e what Holier is saying about this I mean we need to have uh it’s interesting also I mean I’ve been studying together with my team also the 8 9,000 companies that had actually signed for for the science based Target
Including ourselves what we see is the 2025 not super material targets to to to to be frank I mean it’s minus 15 minus 20 maybe uh 230 is a milestone that is super interesting because we need to have really changed the curve and what is good about the science-based target
Is that I mean you’re disclosing it publicly you’re getting it proved and you need also to disclose progress and corporates what is good with corporates we hate to lose H so so and you hate to see that we are not making progress and it’s not only about the executives it’s also about the
Colleagues and the teams and the teams are super excited about it and then it will be just super hard work to go through vertical by vertical and it will require Innovation it will require cooperation it will require new ways of thinking about Partnerships participating earlier in the understanding of the product designed
Together with our tier ones the tier tws we learned a lot about the semiconductor crisis how we should actually we worked a lot together no we worked a lot together and it was to to fix the shortage but we learned also that we need to connect the dots completely
Different also for Innovation what nodes are we talking about so yeah there is no uh there is no shortcut at the end of the day if you have this is the 100% And it must be 0% so no shortcuts that’s a that’s a good one to take home with us I’d like to
Quickly um go go around the room I’d like a last word from each of you um I want you to share one thing that that you would like to see global multi-stakeholder Community do to to help push going Greener cleaner more quickly so who wants to kick this off
How about you brand uh in a nutshell 20 seconds all right so I think uh to to share the information is very important so the new era is we use a new approach to resolve all issues so new technology and the new capability each Enterprise has to BU up you cannot
Forget when you are resolving the all issues forget to bring up the new capability as I mentioned like a server okay we we are doing a cooling system which we never do we are working with a shider together to how to build a nice cooling system to build a new business
Then we resolve the issue other than just reduce or repress but also resolve that’s important resolve and share information Martin no I think I mean this is a systemic change we we are moving from a brown fossil based uh platform to a Green platform that requires a system change the coordinate
Shift uh my ask would be that everyone and this is a big ask actually take the time to reflect about the holistic view about that systemic change but also understand where can I participate in that systemic change and do that well to to execute uh so we are not actually you
Know sitting and saying we didn’t do a report because they didn’t do a report but you need to understand holistic to execute on the details gu well um I think the more we can talk about uh technologies that are already existing the better it is because if we
Want to realize the 1.5 degree scenarios in reality 75% of the Technologies already exist it’s just not well known and one example I bet that we we ask the question of people and people will say renewable energy production energy production in reality there is a bulk of Technology on
Efficiency and this is where we need to communicate even more so I think technology just advocating for technology that are already existing really quickly cross stakeholder sharing of Digital Data Digital Data well this has been a really exciting and insightful um panel thank you all of you
You for taking part and thank you to the audience too um you you’ve been great um and if you want to dive deeper into this into understanding the impact of digital Technologies and sustainable transformation for Net Zero as well as collaborations on Supply chains you know
I hope you’ll be part of it do continue to keep watching what’s going on at the world economic forum and and continue to take part in panels like these thank you very much thank you