WEF Industry Net Zero Accelerator 2023

Industry Net Zero Accelerator Initiative
The “No-Excuse” Framework

to Accelerate the Path to
Net-Zero Manufacturing
and Value Chains
WHITE PAPER
JANUARY 2023
Cover: Jasmina007, Getty Images – Inside: Getty Images
Contents
3 Foreword
5 Executive summary
7 1 Industry net zero in context
7 1.1 What is net zero?
8 1.2 The current state of net zero in manufacturing industries and value chains
10 1.3 Business drivers and opportunities for achieving net zero
11 1.4 Barriers to achieving net zero in manufacturing industries and value chains
13 2 Net-zero transformation: A guiding framework for collaborative action
14 2.1 Stage I: Build the foundations
16 2.2 Stage II: Change the game internally
29 2.3 Stage III: Drive systemic collaboration
35 2.4 Stage IV: Make it simple, inclusive and exciting
37 3 Industry Net Zero Accelerator initiative: Next steps
38 Contributors
40 Endnotes
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The “No-Excuse” Framework to Accelerate the Path to Net-Zero Manufacturing and Value Chains 2
Foreword
Achieving net zero in manufacturing
and value chains is a global endeavour.
Systemic collaboration is fundamental to
accelerating the change.
Francisco Betti Roshan Gya

Head, Shaping the Future of Chief Executive Officer,
Advanced Manufacturing and Value Capgemini Invent
Chains, World Economic Forum
David Leal-Ayala Cedrik Neike

Deputy Head, Policy Links Unit, IfM Member of the Managing
Engage, University of Cambridge; Board, Siemens; Chief
Research Fellow, Shaping the Future Executive Officer, Digital
of Advanced Manufacturing and Value Industries
Chains, World Economic Forum
While many leading companies have already of the World Economic Forum Centre for Industry
started their journey towards achieving net-zero Transformation. This background research has given
emissions – namely, cutting their greenhouse gas the team clear insight into where industry stands in
emissions as much as possible and balancing the its net-zero journey, the innovative strategies being
remaining by removing it from the atmosphere – implemented in manufacturing operations and value
no single business can reach net zero by itself. chains, the opportunities that companies see in the
Systemic collaboration across and between value transition, and the barriers they face.
chains is fundamental to aligning and upgrading
corporate strategies and industrial policies, and all While individual organizations can make important
stakeholders – even competitors – can find mutual contributions towards net zero, no company
benefit in ensuring their industries can continue can manage the net-zero transformation of its
operating in the future. manufacturing facilities and value chains alone
if both individual and collective targets are to
Industry has a significant role to play in achieving be achieved, in line with announcements during
global carbon reduction targets as it encompasses the United Nations Climate Change Conference
all manufacturing and value chains and represents of 2021 (COP26) and 2022 (COP27). Systemic
nearly 30% of global greenhouse gas emissions. collaboration is a vital component of the journey
To better understand how to accelerate the and needs to be prioritized at the supply-chain and
transition to net zero, the World Economic Forum cross-sectoral levels, as well as between the public
Industry Net Zero Accelerator initiative team and private sectors. In particular, several firms are
consulted extensively with experts from business, demonstrating that driving decarbonization in their
academia and government within the framework supply chains and supporting small and medium-
sized enterprises are essential components of a As the initiative’s first output, this White Paper
successful strategy for driving the industry net zero proposes a framework and reference guide to
journey – which results in mutual economic benefits, help shape and implement “no-excuse” strategic
environmental benefits and risk mitigation. actions and encourage manufacturing ecosystem
collaboration in achieving net zero. This framework
More collaborative efforts are necessary to address represents a compendium of the key building
the challenges ahead. In this context, the World blocks of successful industry net zero roadmaps,
Economic Forum has launched the Industry Net illustrated through real-world examples of existing
Zero Accelerator initiative in collaboration with firm-level and collaborative initiatives and strategies.
Cambridge Industrial Innovation Policy (Institute
for Manufacturing, University of Cambridge), The scale of the challenge ahead ultimately
Capgemini, Rockwell Automation and Siemens. requires a new mindset of innovation and action
The initiative provides a cross-industry, where successful industrial companies can lead by
precompetitive and neutral platform to support example. The initiative’s team hopes this paper can
businesses and other stakeholders to upgrade their inspire more businesses to join this community and
net-zero strategies by enabling the dissemination play a role in the collaborative effort to exchange
of knowledge, best practices and experience – all knowledge and best practices, and to stimulate and
focused on how to unpack the net-zero equation accelerate the transition towards net zero across
and aimed at accelerating the transition. industrial sectors.
Executive summary
Although the need for climate action is a growing through interacting and collaborating with peers at
concern for businesses, the move from talk to “no- the cross-industry level or with governments and
excuse” action is still hindered by limited access other expert bodies.
to detailed information on how businesses can
operationalize their commitments and address To facilitate access to evidence and shape the
their carbon-emission challenges throughout their dialogue between leaders and decision-makers,
operations and supply chains. this White Paper proposes a reference framework
– one that is core to the World Economic Forum
Because getting to net-zero manufacturing Industry Net Zero Accelerator initiative – that brings
and value chains covers many areas of action together the relevant building blocks of successful
across functions within an organization and in industry net zero roadmaps. The framework aims to
diverse sectors, companies often find themselves be a central tool for the initiative to engage leaders
discussing various issues, strategies and solutions across industry sectors, government, academia and
in isolation and unable to consider all the related civil society to jointly shed light on global insights
factors. What technological solutions are readily and best practices in response to the net-zero
available in the market? What support schemes “how-to” challenge.
exist in specific sectors and countries? What
regulations are likely to affect future business Complemented by real-world examples of initiatives
operations? System-level collaboration is a vital tool and projects, the framework is based on 10 action
for finding the right answers to these questions, pillars grouped into four stages:
Stage I Stage II Stage III Stage IV

Build the foundations Change the game Drive systemic Make it simple,
internally collaboration inclusive and exciting
1 Build a net-zero 3 Accelerate energy 7 Drive value-chain 10 Implement and drive the
corporate strategy efficiency in operations and decarbonization (upstream net-zero culture and practices
transport and decarbonize and downstream)
energy sources
2 Set the capability for carbon 4 Pursue material efficiency 8 Mobilize ecosystems for
footprint monitoring in operations net-zero infrastructure
and innovation
5 Rethink product design 9 Address net-zero data and

and business models digital standards
6 Develop carbon capture

solutions and offset
mechanisms
Each stage of the framework consists of a of action to pursue the collection of insights,
combination of research-based insights, well- methodologies, best practices and experiences on
established action areas observed from companies net-zero cross-industrial challenges. These could
across different manufacturing and value chains, include, for example, manufacturing operations,
and emerging themes where firms are seeking experiences with data standards, indirect emissions
solutions and partnerships to move from concept (i.e. Scope 3) traceability, material efficiency and
to action. Although various industrial sectors circularity, supply chain decarbonization support,
have different contexts and drivers behind their new business models or net-zero compatible digital
emissions, this framework is intended to be strategies. While this paper is targeted at supply
applicable across key industries and geographies. chain and operating officers, further resources are
All action areas within the framework are considered available for chief executive officers at the Alliance
as interlinked and mutually supporting themes that of CEO Climate Leaders.1
are likely to be deployed in combination as part of
any net-zero roadmap. The Industry Net Zero Accelerator initiative is
partnering with the Estainium Association2 to
This White Paper constitutes the first output of address value-chain data sharing challenges (e.g.
the Industry Net Zero Accelerator initiative and product carbon footprint; carbon capture, storage,
includes the inputs from various stakeholders within utilization and compensation) and will continue
the World Economic Forum International Centre leveraging the net-zero framework presented here
for Industry Transformation. Forthcoming work by as a basis for further dialogue between private- and
the initiative will bring together a larger community public-sector stakeholders.
1 Industry net zero
in context
Net zero is at the top of most company
agendas and is an important theme
of public discourse. The term is now
synonymous with climate action. But what
does net zero mean? Where are industries
in their transformation journey, and what
drives businesses to address the key
opportunities and barriers?
1.1 What is net zero?
Net zero refers to the balance between the that reaching a state of net-zero emissions for
amount of greenhouse gases (GHGs) produced companies implies two conditions:4
and the amount removed from the atmosphere.3
It is the internationally agreed-upon goal for – Achieving a level of value-chain emissions
mitigating global warming: the United Nations reduction consistent with the depth of
Intergovernmental Panel on Climate Change (IPCC) abatement achieved in scenarios that limit
has determined the need for net-zero CO2 by warming to 1.5°C with no or limited overshoot
2050 to avoid catastrophic climate change. The
IPCC acknowledges that reducing all emissions – Neutralizing the impact of any source of
to absolute zero by 2050 will be difficult, requiring residual emissions that remains unattainable by
not only significant emission cuts but also more permanently removing an equivalent amount of
intensive removal of CO2 from the atmosphere. atmospheric CO2
At the industrial organization level, the Science GHG emissions are categorized into three groups or
Based Targets initiative (SBTi) has reported “scopes” by the Greenhouse Gas Protocol (Figure 1).5
FIGURE 1 GHG emission scopes in the manufacturing value chain and product life cycle
Scope 2 Scope 1
indirect emissions from the generation direct emissions from owned or
of purchased electricity, steam, controlled sources (fuel combustion,
heating and cooling consumed by Product company vehicles, fugitive emissions)
the reporting company design
Industrialization
Planning Materials Inbound Manufacturing, Outbound In-service Product

& scheduling procurement logistics quality, logistics product use end of life
maintenance
Scope 3 upstream Scope 3 downstream

emissions from purchased materials Continuous waste disposal, use of sold products
(such as raw materials, components improvement and their end-of-life management,
and consumables) and services; distribution investments, leased
product transported from suppliers’ assets and franchises
facilities
Other Scope 3
business travel,
employee commuting
Source: Capgemini, based on the concept presented in A

Corporate Accounting and Reporting Standard: Revised Edition,
World Resources Institute and World Business Council for
Sustainable Development, 2004.
1.2 The current state of net zero in manufacturing

industries and value chains
When looking at historical emissions, global net total global emissions in 2016, in addition to 5.2%
anthropogenic CO2-equivalent emissions grew 54% CO2-equivalent emissions generated from direct
from roughly 38 billion tonnes in 1990 to nearly 59 industrial processes (mostly from the production of
billion tonnes in 2019.6 If this trend continues, the cement, chemicals and petrochemicals) for a total
world will likely experience a temperature increase of of 29.4% of global emissions (Figure 2).
between 4.1°C and 4.8°C by the year 2100.7 Under
the Paris Agreement, all economic sectors need It is clear that different industries face different
to adhere to the 2°C or 1.5°C carbon reduction challenges (Figure 3). Whereas industries like
pathway, which translates into reducing global cement, steel and mining have low Scope 3
carbon-equivalent emissions from above 50 billion emissions, this category becomes significant for
tonnes to net zero. That is the scale of the challenge other industries such as chemicals, electronics,
faced by industry and other economic sectors. automotive and food, which means that any net-
zero efforts in those sectors are likely to require
When looking at the context of individual industrial intense cooperation from suppliers, manufacturers
subsectors, CO2-equivalent emissions attributed and consumer brands.
to energy use in industry accounted for 24.2% of
FIGURE 2 Industry contribution to global GHG emissions (in blue), sectorial view, 2016 data (%)
Waste (3.2)
Industry (5.2)
Agriculture, forestry &

Energy (73.2)
land use (18.4)
Deforestation (2.2) Grassland (0.1)
Livestock Cement
& manure (3)
Fugitive emissions (5.8) Rice
from energy cultivation Landfills
Energy use in industry (24.2) Transport (16.2) Energy use in buildings (17.5) production (5.8) (1.3) (1.9)
Unallocated fuel Agricultural Cropland Waste

Chemical &
combustion (7.8) soils (4.1) (1.4) water
petrochemical
Paper & (1.3)
(3.6)
pulp (0.6) Shipping
(1.7) Energy in Crop Chemicals
Iron & steel Other industry Road transport Residential buildings
(7.2) (10.6) (11.9) (10.9) agriculture burning (2.2)
& fishing (3.5)
(1.7)
Non-ferrous Machinery Aviation (1.9) Pipeline (0.3) Commercial (6.6)

metals (0.7) (0.5)
Rail (0.4)
Food & tobacco (1)
Source: World Economic Forum Industry Net Zero Accelerator initiative,

adapted from information on the Our World in Data website and based
on data from Climate Watch and the World Resources Institute.
FIGURE 3 CO2-equivalent emissions by scope for selected industries, 2019 (%)
6
4
29 30
61
25 30
77 82 83
90
14
46 40
25 18
13 9
5 5 8
Cement Steel Mining Chemicals Electronics Automotive Food
Scope 1 Scope 2 Scope 3
Source: Extracted from World Economic Forum, Net-Zero Challenge:

The Supply Chain Opportunity, Insight Report, January 2021.
1.3 Business drivers and opportunities
for achieving net zero
Drivers for actively pursuing and achieving net-zero targets can include a combination of external and
internal factors (Figure 4).8
FIGURE 4 Business drivers for change and business opportunities of net zero
Drivers for change Opportunities of net zero
Universal cultural Access to finance through innovation

pressure and demand grants and fiscal incentives
External
factors
Regulatory Improved process efficiency and

(e.g. net zero, electric vehicles) productivity; cutting operational cost
Internal culture Access to new markets and revenue

(value and mission to be through innovation in greener products
environmentally sustainable) and services
Internal
factors
Commercial
(e.g. saving money, making money through Attract talented new workers
new opportunities, contracts, meeting
customer/supplier demand)
Source: Modified from Lloyds Bank, From Now to Net Zero: A

Practical Guide for SMEs, 2022, and Make UK, Manufacturing Sector
Net Zero Roadmap, 2022 (both accessed 24 November 2022).
As an example of cultural pressure, the United – Improving process efficiency and productivity
Nations Development Programme’s Peoples’ that could lead to cutting both carbon emissions
Climate Vote survey covering 50 countries and over and operational costs
half of the world’s population showed that 64% of
respondents agreed that climate change is a global – Maximizing innovation to develop and
emergency.9 As a recent example of regulatory manufacture new products and services that
development, large companies and financial target changing consumer preference for
institutions in the United Kingdom are required to greener products and help to generate new
disclose climate-related financial information on a revenue and access new markets
mandatory basis starting from April 2022.10
– Developing new supply chains to sustain new
Given these changes, an industry survey carried products and markets and access new revenue
out by Make UK, one of the country’s largest (e.g. biorefining; carbon capture, utilization and
industrial associations, showed that nearly half of storage; hydrogen supply chain; circular steel
manufacturers see the transition to net zero as supply chain)
offering key opportunities, which include:11
– Attracting talented new workers to support
– Increasing access to finance through innovation industry’s green transformation
grants and fiscal incentives targeted at
encouraging investment in the green economy
1.4 Barriers to achieving net zero in manufacturing
industries and value chains
Putting principles into “no-excuse” practice, firms face three key barriers – financial, technical and
organizational – that hinder their ability to transition to net zero at the right pace and scale (Figure 5).
FIGURE 5 Barriers to net zero in manufacturing operations and value chains
Experiences from operations leaders

Key barriers conducting net-zero transformations
– Increased operational expenditure Electronics and automation

“We make a lot of investment, but one huge challenge is the benefit and cost sharing
– Additional capital expenditure for across the value chain.”
demonstration pilots and Mining, metals and materials
industrial deployment “While 20-year visibility is needed when we invest in new industrial equipment, it is a big
challenge to forecast future green energy availability (electricity, gas, biomass, hydrogen …)
– Perception that technologies are and make the right technological choice.”
too expensive
Chemicals and pharma
– Limited access to funding
Financial “It is difficult to forecast the reward to get greener in an industry not yet pressurized by
customers for greener products.”
– Lack of awareness of
technologies and their potential Mining, metals and materials
“We need sector-level R&D investment to decarbonize our processes – in many cases it
financial benefits
also requires custom solutions depending on our industrial legacy.”
– Lack of common language, Industrial equipment manufacturer

“Difficulty to have harmonized data sharing of product carbon footprints across the value
knowledge gap and culture chain: the stake is to explain that confidential data exchange is possible without impacting IP
– Technical difficulty integrating new for companies.”
technologies into existing plants Mining, metals and materials
“The heterogeneity of laws, subsidies and taxes between geographies makes it difficult to
– Shortages in skills (information and implement decarbonization measures as fast as we want.”
communications technology;
Chemicals and pharma
specialized manufacturing activities
“High improvements in digitalization are needed to set measurements and monitor
and processes; technology carbon emissions.”
adaption and integration; data
Technical analysis; managerial)
Electronics and automation
“The technology roadmap and the related investment intensity are still unclear – we need
– Management of geographical guidance on carbon capture for example.”
diversity Electronics and automation
“We face a difficulty in the cultural change: prioritize projects, educate and communicate
within the organization.”
– Partnerships with external ecosystems Mining, metals and materials

“Net zero is all about partnerships: they are necessary at every level, from governments,
– Support of value-chain decarbonization supply chain or energy solutions providers.”
– Organizational and individual Mining, metals and materials

resistance to change “Operations have a major responsibility in enabling the journey to net zero – moving
responsibility from corporate to supply chain leaders makes a big difference.”
– Unclear implementation strategy Electronics and automation
– Top-down implementation “We need to collaborate with other industries at the country level to work together with
Organizational management approaches with little governments to provide the energy, infrastructure and technical support needed.”
involvement of workers Chemicals and pharma
“Upstream supply chain hot spots relate to logistics and packaging: we need to work on
– Lack of cooperation among smaller packages and take-back, but many healthcare regulations do not allow it today.”
business functions and departments
Source: Cambridge Industrial Innovation

Policy (Institute for Manufacturing, University of
Cambridge); World Economic Forum Industry
Net Zero Accelerator initiative consultations with
industry leaders and experts.
Barriers at the firm level are generally linked to hurdle. Even if these applications manage to get to
gaps in contextual enablers, which may include the market, creating awareness and demonstrating
regulatory or societal barriers, absent or insufficient their functionality among industrial users remains a
entrepreneurial and innovation systems, inadequate challenge.”12
institutional frameworks, and limited physical and
digital infrastructure. The net-zero challenge is, finally, a global
orchestration challenge. Net zero is hard to achieve,
Although some of the key technologies but use cases, solutions and approaches can
underpinning net-zero operations already exist, already help companies cut emissions. Private-
others are still in early stages of development sector players, the public sector and civil society
without clear roadmaps for entry into the market. need to align on key priorities and relentlessly
“Ensuring that these technologies are successfully collaborate to overcome barriers and drive the net-
integrated and scaled-up into commercially zero transformation.
available products and solutions represents a
2 Net-zero transformation:
A guiding framework for
collaborative action
Many businesses in global industries
have not only committed to a net-zero
future but have started implementing
action plans, technologies and practices
that could provide guidance for the
broader industrial community.
Recognizing that businesses are at different mitigation actions, inspire strategic-level decisions
stages of the journey towards net zero, the World and structure the dialogue between private- and
Economic Forum Industry Net Zero Accelerator public-sector stakeholders, thus facilitating further
initiative team has created a framework that can collaboration. The framework is based on 10 action
serve as a reference guide to support awareness on pillars grouped into four stages (Figure 6):
FIGURE 6 The “no-excuse” framework for industrial decarbonization
Stage I Stage II Stage III Stage IV

Build the foundations Change the game Drive systemic Make it simple,
internally collaboration inclusive and exciting
1 Build a net-zero 3 Accelerate energy 7 Drive value-chain 10 Implement and drive the
corporate strategy efficiency in operations and decarbonization (upstream net-zero culture and practices
transport and decarbonize and downstream)
energy sources
2 Set the capability for carbon 4 Pursue material efficiency 8 Mobilize ecosystems for
footprint monitoring in operations net-zero infrastructure
and innovation
5 Rethink product design 9 Address net-zero data and

and business models digital standards
6 Develop carbon capture

solutions and offset
mechanisms
Source: World Economic Forum Industry

Net Zero Accelerator initiative. The “No-Excuse” Framework to Accelerate the Path to Net-Zero Manufacturing and Value Chains 13
Each stage of the framework is comprised of contextual circumstances, this framework seeks to
research-based insights, well-established action be applicable across all industries and geographies.
areas observed among manufacturing and value All action areas within the framework are considered
chains, and emerging themes where firms are as interlinked and mutually supporting themes that
starting to seek solutions and partnerships to move are likely to be deployed in combination and as part
from concept to action. Although industrial sectors of any net-zero roadmap.
possess different drivers of carbon emissions and
2.1 Stage I: Build the foundations

Action pillar 1 Build a net-zero corporate strategy
Basic steps that could help firms create a net-zero Initiatives such as the SBTi provide clear guidelines
corporate strategy include establishing their carbon on how to set near- and long-term science-based
footprint baseline, setting carbon reduction targets targets. According to the SBTi, setting a science-
and creating a reduction roadmap based on a based target includes the following key steps:13
strong business case. Several publicly available
tools, methodologies and resources can help firms – Commit: submit a letter establishing the intent
diagnose their starting point and set a direction for to set a science-based target
their journey.
– Develop: work on an emissions reduction target
Evaluate the firm’s carbon footprint in line with the SBTi’s criteria
and set targets
The first step is to determine the firm’s total GHG – Submit: present the target to the SBTi for official
emissions generated annually, and which parts of validation
the business are the major sources of emissions
(e.g. processes, supply chain, logistics, product – Communicate: announce the target and inform
use). While metrics can be complex and uneven stakeholders
across industries, focusing on two main ones –
CO2-equivalent reduction per volume produced and – Disclose: report company-wide emissions and
direct CO2-equivalent reduction – allows to quantify track target progress annually
roadmaps and track achievements.
Examples of tools, methodologies and standards for assessing carbon emissions:

– Greenhouse Gas Protocol Corporate Standard Scope 3 Evaluator Tool
– Carbon footprint tool (Bilan Carbone) of the French Agency for Ecological Transition (ADEME)
– Organisation Environmental Footprint (OEF) standard
– Carbon Trust’s Carbon Footprint Calculator
– SME Climate Hub’s Cool Climate Calculator
– International Organization for Standardization (ISO) net-zero guidelines
Create a net-zero roadmap with a clear Build a net-zero business case
governance structure, centred on opportunities Typical net-zero projects are funded by a combination
and risks of internal investment, government incentives and
As with any transformation programme, a roadmap correct pricing for increased consumer and customer
is needed to identify and prioritize key net-zero benefits. Several industries are using the classic
levers. The roadmap helps to investigate, manage business case approach, quantifying not only energy
and communicate the linkages between specific cost reduction but also other benefits associated
initiatives and investments, product developments, with decarbonization (e.g. market share increase,
business objectives and market opportunities. talent retention, reduced risk).15 According to the
Net-zero roadmaps should have a governance IPCC, several emission-reducing options in the
and oversight process that drives the vision and industrial sector are cost-effective and profitable,
allows for clear tracking of progress and carbon such as energy and material efficiency.16
trajectory milestones. Addressing first the question
of “what are the low-hanging fruits to start the Some companies apply an internal carbon price by
net-zero journey” will help build confidence. In tonne of emitted CO2-equivalent (for the company,
addition, decarbonization can begin with energy by country or by industry line). This practice can
and materials efficiency with interesting returns help prioritize projects internally, considering
on investment (ROIs) before implementation of existing or future carbon taxes in some countries.17
complex technology.14 Considering sustainability as a profit centre could
also serve to capitalize savings. For instance,
savings achieved through efficiency programmes
can be used to help fund more complex projects.18
Action pillar 2 Set the capability for carbon footprint monitoring
Measuring and monitoring carbon emissions carbon reduction commitments from businesses
can be a demanding challenge for business and willing to engage in government procurement
industry, particularly when looking at indirect Scope contracts. Carbon reduction plans need to be
2 and 3 emissions from external sources. This is, completed according to best industry practice
however, the most important step on the journey by, for example, adhering to the Greenhouse Gas
to net zero, as it provides clarity on priority areas Protocol’s Corporate Accounting and Reporting
of intervention and helps to monitor progress Standard20 and should be conducted to a
towards specific goals. Although developing satisfactory level of assurance.
internal capabilities for carbon footprint monitoring
is important, firms must partner with independent The mainstream standards ISO 14064-3 and
suppliers that can certify performance for International Standard on Assurance Engagements
compliance with current regulations. (ISAE) 3410 can verify GHG emission reports, and
these could be audited in the near future in various
Create an internal capability and a digital countries. For example, firms willing to bid for
platform to report and monitor GHG emissions central government contracts in the United Kingdom
Operationally, consulted industrial leaders have are required to submit carbon reduction plans
reported that in most cases new capabilities had according to key standards, make them public and
to be set internally to support carbon-emission get them approved by corresponding authorities.
monitoring. This included setting up various small These plans must include the supplier’s current
teams located at corporate, supply chain and/ carbon footprint and its commitment to reduce
or procurement levels, dedicated to set the digital emissions to achieve net zero by 2050. They should
platforms and data standards to measure, track record and report Scope 1 and 2 emissions on an
and trace emissions, identify the hot spots, frame annual basis and introduce additional reporting
the action plan and monitor results. In particular, against a subset of Scope 3 emissions. This
some companies are developing capabilities to measure is consistent with the UK government’s
overcome the challenge of data integrity through commitment under the Climate Change Act and will
precise guiding principles on emission factors.19 play a significant role in the decarbonization of the
United Kingdom as a whole.21
Comply with existing or upcoming carbon
reporting requirements
Leading countries that have adopted legal
commitments to achieve net-zero carbon
emissions by 2050 have started requiring proof of
STORY
Data-driven CO2
emission reporting
for Scopes 1, 2
and 3
sales volume, consolidated at country level and then at group

Unilever – Fast-moving consumer goods level. According to Unilever, for each representative product,
Unilever, the multinational fast-moving consumer goods “internal and external data sources are used to describe
manufacturer, pledged to halve the overall GHG impact of the various life cycle activities and inputs (e.g. specification
its products by 2030. Given the variety of its products and of product, energy for site of manufacture, consumer use
industrial plants, and the wide distribution of its products across data). … [Scope 3 consumer use] is determined based on
countries, the company needed to rely on reliable, robust and either consumer habit studies or on-pack recommendations
standardized data and reporting methodology in order to track … [and] often varies by country.” CO2 impacts of purchased
and trace CO2 emissions and monitor improvements. components (ingredients and packaging) are obtained from
external databases or internal expert studies.
Since 2008, the company has developed an Environmental
Performance Reporting (EPR) tool to report CO2 emissions At the factory level, energy use data (gas, oil, electricity, steam)
on two levels: products and manufacturing sites. A team is collected from meter reads or invoices and aggregated
continuously updates the tool and ensures the most as CO2 emission reports in the EPR system at site, regional
accurate data is used. At the product level, GHG emissions and global levels, leveraging emission factors from existing
are calculated for 12 categories of products (beverages, standards (IPCC, GHG protocol, International Energy Agency
deodorants, dressings, etc.), nine stages of the life cycle [IEA]). In 2021, 250 manufacturing sites in 64 countries
(primary packaging, secondary packaging, ingredients, reported their environmental performance.
inbound transport, manufacturing, distribution, storage at retail,
consumer use and disposal), and across 14 countries where Source: Unilever, “Unilever Basis of Preparation 2021”, 2021;
products are distributed. The GHG impact is calculated for a Unilever, “Climate Transition Action Plan”, 2021 (both accessed
sample of each product category accounting for 80% of the 21 November 2022).
2.2 Stage II: Change the game internally

Action pillar 3 Accelerate energy efficiency in operations and
transport and decarbonize energy sources
Accelerate energy efficiency Research conducted among manufacturing

Energy accounts for at least 5% of an average companies across three sectors found
manufacturing company’s costs (or higher for that “environmental performance between
energy-intensive sectors) and, while manufacturing manufacturing plants differed up to 500% between
firms are continuously searching for cost worst and best performing factories which make
improvements, energy-efficiency measures could similar products using similar technology”.26 Making
save between 10% and 30% of those energy energy and waste visible in the factory through
costs.22,23 In terms of carbon savings, the IPCC analytical energy consumption mapping within
suggests that industry could achieve reductions of the process, utilities, building and logistics – and
15-30% compared to a baseline scenario.24 The IEA leveraging benchmarks between processes,
goes even further, suggesting that energy efficiency time frames, product mix and sites, with external
measures could represent more than half of all suppliers – can help target effective improvements.
industry’s carbon-emission reduction contributions Introducing the concepts of “value-added energy”
by 2050, with over 80% of these savings occurring on the shop-floor and leveraging known lean
in low- and medium-income countries.25 management practices can also help to support
change management.27
Energy savings can be generated from various – Smart use strategies (e.g. internet of things
sources, including: [IoT]-based smart metering to monitor and
regulate energy consumption) and equipment
– The improved sizing, control, optimization or optimization (e.g. simulation or artificial
retrofitting of existing generic carbon-intensive intelligence [AI] models to optimize energy use)
equipment and processes (e.g. motors, drives,
boilers, furnaces, compressors, ventilation and – A better selection of equipment in production
heating systems),28 and for common energy- lines to support further efficiency improvement
intensive equipment in plants (Figure 7) (e.g. longer lifetime, repairability, green energy
source, energy and materials efficiency, capacity
– Energy management systems and standards to separate scrap, etc.)29
(e.g. ISO 50001)
– Energy recovery systems (e.g. waste heat

recovery in process industry)
FIGURE 7 Examples of energy efficiency levers for common energy-intensive
equipment in industrial plants
People awareness Equipment enhancement Energy management Smart metering and Process control: “Green” sourcing:
and training: training, (maintenance & capital system (e.g. ISO 50001): energy performance statistical process energy contract
shopfloor awareness, expenditure): first-level energy efficiency team, management: smart control, standby mode, optimization, energy
communication, etc. maintenance, governance, metering policy, peak management, production-mix
reliability-centred organization, etc. automated regulation, root-cause analysis for optimization vs demand,
maintenance, green asset energy efficiency metrics, process parameter procurement of greener
management, etc. real-time monitoring, deviation, etc. equipment, etc.
sharing best practices
Transversal levers
Dryers
– Optimize declogging, check

insulation integrity and Heating, ventilation,
chambers' sealing
air conditioning
– Optimize the rate of start and & lighting
stop, drying specifications, Examples of Building &
compression pressure Process equipment-specific levers – Set up a temperature and pressure
warehousing control according to needs
(non-exhaustive)
– Install a heat recovery system – Detect and fix leaks
and reuse the energy for
preheating, predrying or other – Optimize the temperature and
– Consider alternative
Industrial ventilation levels according to
drying processes: utilities spaces (production, offices, etc.)
contact drying, radiation – Limit new air intake and hot air
(infrared, high-frequency, extraction
microwave), solar energy – Optimize infrastructure thermal
(sun drying/solar panels), etc. insulation and door openings
– Set proper air renewal rate frequency
– Install air destratifiers for high heights

– Install an energy recovery system
on the output air to preheat the
Ovens incoming air
Compressed air – Install a variable speed on the

– Monitor the smoke composition ventilation to monitor its pressure,
and temperature flow rate and air temperature
– Perform preventive maintenance (compressors, condensate drains, filters, etc.)
– Deploy a LED lighting plan
– Optimize the door openings – Detect and fix leaks
– Optimize the fuel quantity and
process yield – Optimize use of compressors, use smaller compressors for reduced needs
(e.g. during nights or weekends)
– Install a heat recovery system – Divide the network into areas to adapt the pressure accordingly
and reuse the energy for
preheating the oven or in – Install an electronic speed variator
other usage
– Limit pressure loss (optimizing diameters of the pipes, length of the network, etc.)
– Apply a high emissivity ceramic – Ensure the freshest air suction possible
coating (improved heat transfer Refrigeration
– Install more efficient dryers or compressors
and distribution)
– Install heat recovery to reuse energy for heating rooms or hot water – Use free-cooling when possible
– Control and repair leaks on the circuits
– Manage door types and openings to
minimize air entry, ensure air distribution
– Control and fix the cooling circuit’s insulation
Pumps Steam production – Set up a low-pressure/high-pressure float
control
– Maintain engines (lubrication, ventilation, coating, etc.) – Adjust the defrosting strategy
– Check steam traps frequently
– Check the network integrity and identify leaks – Ensure appropriate management of purges – Optimize the temperature and pressure
– Identify and fix leaks on the steam network according to process needs
– Optimize flow control (valves, bypass circuit, variable speed, etc.)
– Install a variable speed on compressors,
– Reduce the network pressure when possible pumps, refrigerant flow control, etc.
– Optimize the network’s energy performance (use high-efficiency – Optimize the evaporator and
motors, turn off unnecessary pumps, etc.) – Insulate the feedwater tanks condenser sizing
– Limit pressure loss (pipe sizing, network length, etc.) – Install a heat recovery system of the heat lost during purges
– Optimize motor performance (e.g. class IE3 or IE4) – Use a heat-recovery system on the
– Set a micro-modulating burner to improve boiler efficiency
cooling unit
– Install a steam accumulator for variable demand
– Prefer evaporative or hybrid condensers
– Set an economizer to preheat water rather than dry condensers for heavy
– Install osmosis for higher boiler reliability and enhanced yield installations
Lever type
Control and first-level maintenance Source: Capgemini, adapted from

resources from the French Agency for
Optimize
Ecological Transition (ADEME).
Modify
STORY
An inclusive
approach to energy
efficiency
technology (IT) and operational technology. The clip-on

Guidewheel/Nation Media Group sensors measure the electrical draw of the equipment to track
Success in decarbonization requires building solutions that and monitor energy use in real time. The platform can also
work well for smaller manufacturers and manufacturers in all leverage the Long-Term Evolution standard if broader internet
global contexts. As a public benefit corporation, Guidewheel connectivity is unavailable.
provides a plug-and-play, affordable energy and factory
operations platform, originally built across Stanford University Guidewheel collaborated with the printing plant of Nation Media
(USA) and Nairobi, Kenya, and now growing globally quickly. Group, the biggest independent media house in East and
The platform is structured to work within the constraints Central Africa, located in Kenya. Alongside other sustainability
of industrial sites in more challenging global locations and efforts for solar energy and waste management, the company
supports small and medium-sized enterprises along with larger wanted to gain real-time visibility on energy across the plant,
manufacturers. machines and utilities to realize further energy-saving potential.
By focusing on reducing both its peak demand and energy
By including its entire cost, including hardware, in a waste from idling machines, the Group is achieving more than
subscription that can pay for itself within operating expenditure $30,000 in annual energy savings, equivalent to 42 tonnes of
(OpEx) budgets, the technology has been made accessible to CO2 per year.
smaller factories that can quickly achieve OpEx savings through
active use of the platform. The platform uses sensors that work
for older machines or machines without existing information Source: Consultation with Guidewheel.
Decarbonize heat and power sources the use of renewable electricity and the scale-up
The decarbonization of heat and power is imperative of global renewable generation capacity.33 To this
to achieve carbon emission reduction targets. extent, some industries are developing their own
Decarbonizing process heat alone can mitigate renewable electricity means (e.g. solar parks, wind
about one-fifth of global CO2 emissions.30 Most farms) in partnership with public authorities to cover
of the industrial heat (and its associated CO2 their existing and future needs.
emissions) is generated through the combustion
of coal, natural gas and oil for direct or indirect use Decarbonize logistics and transport
via steam to drive processes such as fluid heating, In logistics and transport, beyond the efficiency
distillation, drying and chemical reactions.31 Using obtained by optimizing routes and maximizing the
zero carbon heat, electrifying heat production, filling of trucks, using low-carbon substitutes for
switching to low-carbon fuel or optimizing heat fuel (ethanol, natural gas, biofuels, hydrogen and
management could lead to significant reductions in electricity) help decarbonization. The Center for
this area (Figure 8), although key technoeconomic Climate and Energy Solutions notes: “Challenges
barriers will need to be addressed to approach to full electrification include upfront costs of
parity with traditional fossil fuel-powered alternatives. batteries and lack of charging infrastructure. Several
countries, including the United Kingdom, China, and
With respect to renewable electricity, the share of France, have announced bans on sales of cars and
renewables in global electricity generation stood at trucks that use petroleum, beginning in 2040. At the
28.7% in 2021, still far from the 60.9% target.32 A same time, major automakers like GM, Toyota, and
much faster deployment of all renewable electricity Volvo have announced plans to electrify their entire
technologies is needed across all economic sectors, offerings by the mid-2020s.”34 Collaboration with
including manufacturing, and all regions of the ecosystems of partners helps to identify transport-
world to address industry’s needs. A 12% annual sharing opportunities. When possible, the switch to
expansion would be needed between 2022 and rail and navigation could support further reduction in
2030 to achieve the net-zero scenario goal set by carbon emissions.35
the IEA; manufacturing has a key role to play in both
FIGURE 8 Overview of levers and technologies for heat decarbonization
and the main challenges for industrial implementation
Zero-carbon
Heat Technology
Solar thermal Geothermal Nuclear
Limited top Up-front risk, Limited top

temperature, high-resolution resource temperature,
Key
challenges intermittency, understanding, deep safety, scale
low areal density resource access
Electrification
of Heat Technology
Industrial Heat Resistive
Pumps Heating
Limited top N/A

temperature,
Key
high up-front
challenges
costs, scale
Switch to
Low-carbon Technology
Fuels Hydrogen Ammonia Biofuels CO2-derived
Hydrocarbons
Combustion stability, Combustion properties, Life-cycle emissions, Direct air carbon

production cost, production cost, control production costs, capture and
Key
storage and handling of nitrogen oxide handling of materials production costs,
challenges
synthesis technology
and scalability
Better Heat
Management Technology Better Heat Process Integration Radiative
Insulation Upgrading for Heat Recovery Cooling
& Reuse
Thermomechanical High process capital High capital cost, limited Capital cost, system
stability of materials, cost, low yield, to local integration, low efficiency, aerial
Key
challenges high temperature exergetically limited economic value relative efficiency
stability to material integration
Note: N/A = not applicable

Source: Adapted from Thiel, Gregory, and
Addison Stark, “To decarbonize industry,
we must decarbonize heat”, Joule, 2021
(accessed 21 November 2022).
STORY
Tackling the waste

heat recovery
challenge
economic data from solutions suppliers to deliver a report on

ArcelorMittal/Capgemini – Materials and metals the technical-economic and ROI performance of heat recovery
On its pathway to net zero, ArcelorMittal, an international solutions. The solution allows operations leaders to quickly
leader in steel manufacturing, wanted to drastically reduce the identify the suitable technical solution for each site, evaluate the
waste heat across its manufacturing processes. In France, the ROI, assess the reduction in CO2 emissions and evaluate the
French Agency for Ecological Transition (ADEME) estimates recoverable energy that can be reclaimed.
that 51 terawatt-hours (TWh) of heat (above 100°C) is wasted
in industry, equivalent to 10% of France’s consumption of The energy savings for ArcelorMittal have been estimated to
electricity. Implementing waste heat recovery in industrial be 10% per plant, corresponding to 0.67 TWh per year across
installations, however, presents real difficulties, which include all French plants. The model developed can be scaled to other
the complexity, cost and reliability of recovery solutions. process industries that are subject to waste heat.
ArcelorMittal forged a partnership with Capgemini and the

French government to launch a heat recovery analysis project. Source: ADEME, “ANAGREEN: ANAlyse Globale de
The project developed a holistic approach (process, simulation Récuperation d’ENergie”, 2021; Capgemini, “ArcelorMittal Uses
models, AI algorithms and digital applications) to analyse a Data and Analytics to Pursue Energy Efficiency”, 2021 (both
site industrial context, its operational data, and technical and accessed 21 November 2022).
Action pillar 4 Pursue material efficiency in operations
Material efficiency and circularity, namely the one study found that 90% of the resources
practice of encouraging reuse, recycling or processed to produce goods do not reach the
sustainability in consumption and manufacturing, person they are made for.38
represent a significant opportunity to abate industrial
emissions given the high energy intensity of Manufacturers must search for occasions to
materials production. Estimates of carbon emissions reduce yield loss within operations and along the
per tonne of material produced for the five most production chain (Figure 9). Key opportunities
emitting materials (steel, cement, plastic, paper and include working with suppliers on material
aluminium) suggest that they could further reduce shapes and geometries that minimize waste, or
their emission intensity by 25-50% depending on promoting research and development (R&D) of new
various factors, such as future technical innovations manufacturing processes that cut yield losses. For
in primary and secondary production and recycling example: “Blanking and deep drawing cause the
rates.36 Each of these strategies deserves careful biggest waste of sheet metal for both steel and
exploration by businesses, especially as they aluminium and can be replaced already by laser
could affect each other. For example, reducing cutting and spinning”.39
yield losses might translate into lower availability of
materials for recycling.
Reduce yield losses in operations

Studies on yield losses along the metals supply
chain show high accumulated deficits. For example,
for sheet metal-based products, nearly half of all
liquid metal becomes scrap on its journey to a final
product.37 Comparable losses exist across other
industrial processes and could be further explored;
FIGURE 9 Overview of material losses along the product life cycle and
examples of waste prevention levers
Prevent waste after use phase: incentive

systems or buy-back systems for users to
return products
Use phase
Prevent internal/in-network packaging

Reverse losses (e.g. reusable packaging,
biodegradable)
logistics
Damage/wear disposal
Missing parts,
obsolescence packaging Returned products
Refurbishable
Initial
products Logistics
supply
chain Packaging
Delivered products
(Re-)Manufacturing site
Prevent tool wear

(e.g. maintenance)
Repeated
use Wear
Auxiliary
material
Consumables
Trim loss, by-products
Process rejects
Raw material
Prevent loss of Processed parts Damage, shrinkage

cutting fluids
and solvents Good parts
Sold products
Prevent inventory shrinkage

(reduce damage in storage
Prevent trim loss and Prevent process rejects in the start-up from oxidation, moulding,
byproducts (e.g. optimize phase (e.g. reduce changeover rate, dust accumulation and
trim loss or the cutting stock) assembly errors) deformation, among others)
and transport damage
Prevent process rejects in normal
operation (e.g. process monitoring
mechanisms, optimize product design
changes)
Source: World Economic Forum Industry Net Zero Accelerator initiative; Sheehan, Erin, et al., “Improving Material Efficiency for Ultra-efficient Factories in Closed-
loop Value Networks”, Procedia CIRP, vol. 40, December 2016, pp. 455-462 (accessed 21 November 2022).
Enable recycling and reuse in operations and segregation of metal waste at the equipment level
across the supply chain can support later debris collection by suppliers, who
Strategies to pursue material circularity in operations can reuse the waste in their processing.41
include increased recycling and reusing materials
and components in good condition. Recycling Component reuse is currently a rare practice due to
metals, paper and some plastics can save energy “incompatibility between past and present designs,
compared with producing new materials, but and the relatively high cost of product disassembly
opportunities remain limited by technical challenges and used-component management”.42 Potentially,
and the amount of material from end-of-life products products could also be used for a longer period of
available to recycle.40 Developing waste sorting time if these components could be replaced easily
and recycling systems within factories is therefore and affordably.
an important lever. For example, a systematic
STORY
Compact supply
chains to reduce
Scope 3 emissions
The collaboration brought the parties multiple benefits. For

Foxconn – Electronics Foxconn, material costs were reduced, as were the products’
The electronics manufacturer Foxconn realized that Scope 3 carbon footprint, allowing an increase in its market share in the
represented 86% of its emissions and that 20% of them came electric vehicle and the computer/communication/consumer
from aluminium and stainless-steel alloy consumption. electronics (3C) industries. For its suppliers, the project
guaranteed 100% traceable recycling and achieved 70% carbon
Understanding that significant improvements could be made
emission reductions compared with outsourcing manufacturing.
from better waste management in its supply chain, Foxconn
Foxconn’s broader supplier engagement model related to digital
organized a reverse logistics process with suppliers to collect
empowerment improved energy efficiency, and joint-process
manufacturing aluminium debris from the company’s sites and
R&D allowed it to achieve additional efficiency benefits.
reuse it in its suppliers’ melting process. This approach reduced
the amount of raw aluminium used and required establishing a
strong traceability system for the debris to verify its reuse and
recycling in new products. This was achieved through a digital
platform shared with suppliers, which allowed to track recycling
rates together with products’ carbon footprint. Source: Consultation with Foxconn.
Action pillar 5 Rethink product design and business models
Explore new product design strategies to grave). Identifying emission hotspots through the
The material efficiency strategies mentioned product life can help to shape design decisions for
above can be supported by formalizing design carbon reduction.
and business approaches across departments
and functions that could help businesses move Explore new business models
from linear to circular economy models. A useful More examples of manufacturing firms exploring
framework helps to categorize the various types of the commercial opportunity of leasing rather than
strategies (Figure 10). selling goods have emerged in recent years. This
could lead to reduced carbon emissions if the
At the product level, quantifying carbon emissions total number of products is reduced. Risks arise,
embedded within a product is possible through a however, if consumers engage in behaviour that
life-cycle assessment. This methodology assesses involves multiple ownership contracts. Car-sharing
the total environmental impact of a product, services and document management systems
process or service through all stages of its life for office use are representative examples of this
cycle, often taken to be from the extraction of raw trend. This and other circular business models are
material to the final disposal of the product (cradle included in a useful framework (Figure 11).
FIGURE 10 Circular and low-carbon product design strategies
Design for customer attachment

and trust
Creating products that will be loved,
liked or trusted longer
Design long-life products
Ensuring a long utilization period of
products by design
Design for reliability and durability
Ensuring physical durability, for example
the development of products that can take
wear and tear without breaking down and
experiencing failure
Extend
product life
Design for ease of maintenance

and repair
Enabling products to be maintained and/or
repaired to retain functional capabilities
Design for product-life extension
Introducing service loops to extend product
life, including reuse of the product itself,
maintenance, repair and technical Design for upgradability
upgrading, and a combination of these and adaptability
Ensuring ability of a product to continue
being useful under changing conditions
by improving the quality, value and
effectiveness or performance
Design for a technological cycle

Developing products in such a way that the materials can Design for standardization and
be continuously and safely recycled into new materials or compatibility
products; suitable for products that deliver a service Creating products with parts or interfaces
that also fit other products
Circular
material life Design for a biological cycle
Designing with safe and healthy materials (biological Design for dis- and reassembly
nutrients) that create food for natural systems across their
life cycle (biodegradability); suitable for products that are Ensuring that products and parts can be
consumed or wear during use separated and reassembled easily
Source: Modified from Bocken, Nancy, et al.,

“Product design and business model strategies
for a circular economy”, Journal of Industrial and
Production Engineering, vol. 33, no. 5, 2016, pp.
308-320 (accessed 21 November 2022).
FIGURE 11 Circular and low-carbon business model strategies
Business models to
close resource loops
Extending resource value

Exploiting the residual value of resources: collecting
and sourcing otherwise “wasted” materials or
resources to turn them into new forms of value
Examples: Interface – collecting and supplying fishing nets
as a raw material for carpets; RecycleBank – providing
customers with reward points for recycling and other
environmentally benign activities
Industrial symbiosis
Employing a process-oriented solution, concerned
with using residual outputs from one process as
feedstock for another process, which benefits
from geographical proximity of businesses
Examples: Kalundborg Eco-Industrial Park; AB sugar and
other sugar refiners – internal “waste = value” practices
Access and Extending product value

performance model
Exploiting the residual value of products – from
Providing the capability or services to satisfy user manufacture to consumers, and then back to
needs without needing to own physical products manufacturing – or collection of products between
distinct business entities
Examples: car sharing; launderettes; document
Design management systems (e.g. Xerox, Kyocera); leasing
jeans and phones
Examples: automotive industry – remanufacturing parts;
Gazelle offering consumers cash for electronics and
strategies selling refurbished electronics; clothing return initiatives

(e.g. H&M, Marks & Spencer Shwopping)
to maximize
product life Encourage sufficiency Classic long-life model
Using solutions that actively seek to reduce Adopting business models focused on
end-user consumption through principles such as delivering long product life – supported, for
durability, upgradability, service, warrantees and example, by design for durability and repair
reparability, and a non-consumerist approach to Examples: white goods (e.g. Miele’s 20-year
marketing and sales (e.g. no sales commissions) functional life span of appliances); luxury products
Examples: premium, high-service and quality brands, such claiming to last beyond a lifetime (e.g. luxury watches,
as Vitsœ and Patagonia; energy service companies such as Rolex or Patek Philippe)
Source: Modified from Bocken, Nancy, et al.,

“Product design and business model strategies
for a circular economy”, Journal of Industrial and
Production Engineering, vol. 33, no. 5, 2016, pp.
308-320 (accessed 21 November 2022).
STORY
Circular economy
services driven by
Fourth Industrial
Revolution
technologies
Flex – Manufacturing company – A digital market platform for waste-enabling industrial

Flex’s plant in Sorocaba, Brazil developed a holistic ecosystem symbiosis to increase material volumes and reduce
that uses Fourth Industrial Revolution technologies to material costs
transform e-waste and reintroduce repurposed materials into
the supply chain. Flex implemented solutions to enable circular The company also implemented operational CO2-emission
economy services and eco-efficient operations throughout dashboards to provide visibility of environmental savings for
Brazil. They included: its customers.
– A cloud-based collaborative reverse logistics system, which Flex’s Sorocaba factory was zero waste certified in 2018, with
enabled multiplayer collaboration and reduced service time a 100% diversion rate. The process for remanufactured plastic
and costs parts enabled savings of up to 82% on energy usage and a
74% reduction in GHG emissions. These technologies also
– A circular materials lab, which provided material input achieved more than 44,000 tonnes of CO2-equivalent credits.
identification to ensure the right quality of output materials Over 90% of recovered material goes back into the supply
chain (1,300 tons of recycled material used in new products,
– Automatic separation equipment for minimum 11,000 tons of recycled industrial waste and 16,000 tons of
contamination of material post-consumer recycled e-waste), with a raw material (plastic)
cost reduction of more than $3.2 million. Additionally, more
– IoT-based collection bins to display the correct time to than 180 direct and 300 indirect green jobs were generated.
collect containers filled with e-waste
– A digital e-commerce platform, which helped to

commercialize excess inventory and bring repaired and
refurbished products to market Source: Consultation with Flex.
STORY
A new “plant of the

future” for circular
economy business
models
Renault – Automotive original equipment manufacturer – Recycle: valorize spare parts through remanufacturing of
(OEM) vehicle parts, material recycling and battery repairing
In the context of profound changes in the automotive industry
and an evolution towards the decarbonization of cars and – Restart: invest in systemic collaboration for innovation by
mobility-as-a-service, the French automotive OEM Renault set a establishing centres for process innovation, 3D printing
strategy to become a “circular mobility” provider and developed and retrofitting, and creating an ecosystem with start-ups,
new preservation mechanisms to reduce exposure to scarcity academics and industrial partners
for fleet electrification. Renault reimagined an entire plant in
Flins, France, and created the Refactory – an 11,000 m2 plant By the end of 2021, the plant already had 700 employees,
dedicated to its vehicle revalorization business models. reconditioned over 1,500 vehicles and repaired 2,000 batteries.
The plant will dismantle an average of 10,000 vehicles annually,
The Refactory is Europe’s first circular economy factory recondition 45,000 vehicles per year by 2023 and repair 20,000
dedicated to mobility. The plant has a four-pole structure: electrical batteries per year by 2030.
– Retrofit: extend vehicle life by repairing, remanufacturing

and retrofitting
Source: Renault Group, “Refactory: The Flins Site Enters the Circle
– Re-energy: extend and optimize battery life and develop of the Circular Economy”, 25 November 2020; Renault Group,
hydrogen-based mobility solutions “Refactory Flins”, 2022 (both accessed 21 November 2022).
Action pillar 6 Develop carbon capture solutions

and offset mechanisms
Assess carbon capture, utilization and storage approach to avoid a global temperature increase
opportunities beyond 1.5 °C. Commercial-scale carbon capture
Carbon capture and sequestration (CCS) is a facilities are being built around the world, led by the
set of technologies that can help remove carbon United States and driven in part by a combination
emissions from difficult-to-eliminate sources. For of tax credit incentives for carbon sequestration and
emission-intensive manufacturing subsectors such federal R&D investments. The United States had
as cement, chemicals, steel and aluminium, CCS 13 commercial-scale carbon capture facilities, half
represents a potentially significant solution to abate of worldwide capacity, in early 2021.44 More efforts
the impacts of existing processes while other low- are needed, however, to expand carbon capture
carbon alternatives mature. Although this approach capacity around the world, and the manufacturing
relies on common (non-critical) raw materials, industry has a key role to play in this endeavour.
sustained investment and support is needed to
build the enabling infrastructure and to scale-up Implement offset mechanisms
related supply chains at a global level.43 Besides carbon capture, offsets and trading
mechanisms are also being used around the
Most decarbonization pathways created by world for regulatory reasons (e.g. complying to the
international organizations, such as the IPCC and European Union Emissions Trading System) or as
IEA, include CO2 removal as a necessary mitigation voluntary corporate action.
– On the regulatory level, schemes such as the Applied to manufacturing, this means a firm can buy
European Union Emissions Trading System (EU carbon offsets to finance someone else to purchase
ETS) place limits on the right to emit specified and install equipment, to supply facilities with clean
pollutants (including GHGs) over an area, and energy or to carry out other process changes not
companies can trade emission rights with that available to the buyer. Proceeds from carbon offset
area. Covering about 36% of the EU’s total GHG sales can fund diverse types of abatement activities,
emissions, the EU ETS sets a limit on emissions such as:47
from emission-intensive activities within the
European Economic Area, such as electricity – Installing carbon capture technologies in
and heat production, cement manufacture, industrial facilities and landfills
iron and steel production, oil refining and other
industrial activities.45 Although the success – Building renewable energy installations at scale
of such schemes is constantly debated, the (e.g. wind, solar and geothermal plants)
annual European Environment Agency (EEA)
briefing “Trends and projections in the EU ETS”, – Installing battery storage capacity to use
published in January 2022, projected that renewable energy during the night-time or peak
ETS emissions will continue to decrease in the demand times
coming decades, albeit at a slower pace than
historically.46
– On the voluntary level, several trading

mechanisms exist around the world. For
example, the United Nations Carbon Offset
Platform for e-commerce allows a company,
organization or regular citizen to purchase units
(carbon credits) to compensate GHG emissions
or to simply support action on climate.
STORY
Turning CO2
emissions into
value
Arabian manufacturing facilities, the plant purifies the collected

SABIC – Chemicals CO2 and sends it to other SABIC manufacturing affiliates to
SABIC, a global leader in diversified chemicals, set targets to convert it into feedstock for valuable industrial applications:
reduce its GHG intensity by 25% and material loss intensity by urea, a key agrinutrient that enables more plentiful harvests;
50% by 2025 from its 2010 baseline. In its industrial plants, methanol, a building block use daily for many other materials;
CO2 forms as an inevitable by-product of the ethylene glycol and liquefied CO2, used widely in the food and beverage
process. Rather than viewing carbon emissions as purely a industry.
challenge, the company identified an opportunity to create
greater value by valorizing emissions into commercial products. This project exemplifies the Saudi government’s drive to turn
carbon emissions into sources of value by using the nation’s
The company built a mega carbon capture and utilization plant vast hydrocarbon resources wisely and developing a “circular
that opened in 2015 at United, a SABIC affiliate. The plant carbon economy”.
uses SABIC’S proprietary technology to capture up to 500,000
metric tonnes of CO2 per year from the production of ethylene
glycol that would otherwise be emitted into the atmosphere.
Taking advantage of the close proximity to its other Saudi Source: Consultation with SABIC.
2.3 Stage III: Drive systemic collaboration
Action pillar 7 Drive value-chain decarbonization
(upstream and downstream)
Support suppliers’ decarbonization journey – Join forces with other purchasers to push
According to the Carbon Disclosure Project’s suppliers to set their own targets, accelerate
(CDP) Global Supply Chain Report 2021, carbon action and build momentum
emissions in a company’s supply chain are, on
average, 11 times higher than its operational The consultations with industrial leaders highlighted
emissions.48 While 75% of companies reported some best practices, such as applying internal
their Scope 1 and 2 emissions and took actions to “green” scores for materials, certification schemes
reduce them, only 20% of firms reported data for for suppliers conducting important decarbonization
Scope 3, and only a minority asked their suppliers efforts, and extensive collaboration on product
to report data, set targets and perform emissions design to reduce material quantity, use more
abating actions.49 sustainable materials, reuse and recycle carbon-
intensive materials or reduce use of packaging.51
As these numbers indicate, Scope 3 supply chain
decarbonization needs to be driven fast and at Influence consumer behaviour
scale through improved procurement processes On the consumer side, the relationship between
and training. This is obviously not a straightforward consumer behaviour and climate change is
task, as supply chains could include hundreds or complex and most consumers are not capable of
even thousands of firms. Some steps that could determining which behavioural changes are worth
kick-start this transformation, as suggested by the making.52 A recent literature review of the growing
CDP, include:50 body of evidence on this subject suggests that
consumers need considerable assistance if they are
– Leverage buying power to drive transparency to change to a climate friendly way of life. The same
by requesting environmental disclosure from review suggests “the biggest focus of governments
suppliers, considering their maturity (e.g. SBTi- and companies should be on making the climate
validated targets for most mature suppliers) friendly behavior the easy behavior by securing
a correct reflection of carbon footprint in prices,
– Set clear expectations and strategically climate friendly products that compare favorably
engage with vendors to drive action beyond to climate unfriendly alternatives, and trustworthy
pure data collection by asking suppliers to and comprehensible carbon labeling to make it
set carbon reduction targets and embedding easier to make climate friendly choices”.53 This also
key performance indicators into the supplier emphasizes the need to build trustworthy product
management process carbon footprints across value chains to better
shape consumer decisions.
– Cascade science-based targets through the
supply chain by directly training suppliers
through webinars and other activities
STORY
Tackling the
challenge of value-
chain product
carbon footprint
Estainium Association infrastructure for PCF and broader environmental, social and
As much as 90% of “cradle-to-gate” emissions originate in the governance data sharing. It also aims to achieve interoperability
supply chain, but upstream transparency is limited. Calculating between different PCF standards and reporting schemes and
product carbon footprints (PCF) with existing tools requires to develop a digital approach to connect carbon sink providers
great effort, starting with gathering trustworthy and accurate with manufacturers. Certifiers are included in the ecosystem as
data across supply chain partners. trust anchors to make PCF verifiable.
Estainium is an open and non-profit association that precisely The association’s work is initially performed in three working
aims to resolve that challenge. Its mission is to drive industrial groups that address the most pressing challenges:
decarbonization holistically in a precompetitive, cross-industrial 1) Technology and Infrastructure; 2) Standards and Norms
and cross-functional ecosystem that includes academia, small Compatibility; and 3) Carbon Capture, Use, Storage and
and medium-sized enterprises and large corporations alike. It Compensation. That unique constellation enables Estainium
builds on the technology of decentralized trust to avoid high to develop practical solutions to overcome current and future
cost, maintain data sovereignty and enable quick expansion challenges, for all stakeholders.
with trustworthy information that can be shared along the
supply chain with verifiable credentials.
The association selects a base infrastructure and operating

model and develops necessary extensions for using the Source: Consultation with Estainium Association.
Action pillar 8 Mobilize ecosystems for net-zero

infrastructure and innovation
Identify opportunities to support net-zero “the decarbonization of heavy industry calls for
infrastructure development public-private cooperation to enable the following
In a broad view, key assets comprising future changes:
net-zero infrastructure include the power
system, industry, buildings, transport and digital/ – The replacement of blast furnaces with a new
telecommunications. From an industrial perspective, system around hydrogen direct reduction for
achieving net-zero targets will require substantial steel, shifting from fossil feedstock to ‘electric
changes to existing infrastructure for energy supply, feedstock’ for chemicals, or rebuilding cement
hydrogen, heat networks and carbon capture. For kilns for capturing CO2 from flue gases,
example, estimates for the United Kingdom alone
suggest investments of £40 billion per year are – The use of biomass as an energy source for
required in new low-carbon and digital infrastructure many applications in industry, with varying
over the next 10 years, which is double the needs for further processing and substituting
current capital requirements for UK infrastructure fossil feedstock for the chemical industry, and
investments across energy, water and telecoms.54
– The building of infrastructure for supporting
As suggested by the Leadership Group for the supply of new energy carriers at scale,
Industry Transition, an initiative launched by such as electricity, hydrogen or biogenic CO2
the Governments of Sweden and India at the and the abandonment or repurposing of old
UN Climate Action Summit in September 2019 infrastructure (e.g. harbours for coal, pipelines,
and supported by the World Economic Forum, oil storage sites)”.55
A large share of net-zero infrastructure investments – Adapt key technologies and solutions to
is likely to require patient capital as well as public- particular firms’ needs and context
private partnerships to address development
and deployment barriers for key technologies.56 Mobilize industrial ecosystems to drive
Facilitating the deployment of large-scale solutions, net-zero innovation
such as renewable energy sources, hydrogen, As suggested by the IPCC, systemic approaches
heat networks and CCS, will also require the and collaboration within and across industrial
development of entirely new assets. Some of these sectors at different levels, such as sharing of
technologies, however, remain in a stage too early infrastructure, information, waste and waste
for infrastructure investment capital, with high management facilities, heating and cooling, may
technology risk, business model uncertainty, lack provide further mitigation in certain regions or
of clarity about revenue models and high upfront industry types. The formation of industrial clusters,
development capital.57 industrial parks and industrial symbiosis represent
emerging trends in this area.58
The development of net-zero infrastructure
for industry offers direct opportunities for As mentioned by consulted stakeholders, several
manufacturing firms, including: companies are already involved in collaborations
on sector-level innovation and/or external
– Participate in developing and manufacturing partnerships – with suppliers, other industries,
infrastructural technologies and components academia and energy providers – to co-develop
the low-carbon processes needed for their net-
– Adopt key technologies and solutions to zero targets, thus mitigating risks and sharing the
decarbonize energy supply and/or capture costs and further benefits.
carbon as a result of the enabling infrastructure
being in place
STORY
Systemic
collaboration
for disruptive
innovation
Eramet – Materials and metals – For CCS, a partnership with Air Liquide is under way
As an international miner and manufacturer of manganese, for a multi-year contract to build a pilot CO2 capture
titanium, ferronickel and lithium, Eramet is at the forefront installation from the combusted gas of two manganese
of industry decarbonization by providing the raw materials alloy-producing furnaces. Air Liquide brings the technology
necessary for the energy transition. to firstly concentrate the CO2 up to 60% after adaptation
to the process in the pilot, and later reach over 99% in
By developing low-carbon activities and implementing measures the industrial process by adding a cryogenic step. In the
to decrease its emissions, the group reduced its Scope 1 and 2 industrial installation, the liquefied CO2 will be sent to
carbon intensity by 39% compared to 2018 and has now decided storage in a profound geological layer.
to speed up the process by setting a new 15-year target to reduce
total Scope 1 and 2 emissions by 40% by 2035 (compared with – For bioreductants, the company needed to establish
2019 levels) and achieve carbon neutrality by 2050. Beyond the knowledge to allow production of biocarbons with
energy efficiency and the use of decarbonized energy sources, characteristics suited to production of manganese alloys
the company has set a priority to use bioreductants in manganese in its current industrial furnaces. Eramet carried out R&D in
alloy production to replace fossil carbon – with the challenge cooperation with research institutes and academia in Norway
to access sustainably managed bioreducers compatible with and launched a demonstration project in 2021 to test the
its process constraints – and the development of CCS where substitution of fossil fuels by a significant amount of biocarbon in
cost remains an obstacle. To overcome the technological and industrial operations. Cooperation with other industrial partners
cost barriers of both solutions, the company established a set has led to equipment and process pilots, paving the way for
of intelligent collaborations on disruptive innovation with other demonstration plants (provided funding will be obtained).
industrial sectors that bring mutual benefits:
Source: Consultation with Eramet.
Action pillar 9 Address net-zero data and digital standards
Ensure data availability, data integrity and the guarding against improper information modification
use of standards in carbon footprint accounting or destruction, and includes ensuring information
A lack of shared reporting standards for authenticity, whereas confidentiality is to prevent
carbon emissions across industry leads to low the unauthorized release of information.59 Several
comparability and robustness in carbon accounting key principles are required for carbon footprint
approaches, which could derail existing and future monitoring to be successful (Figure 12).
net-zero efforts. In addition to consistent standards
and methodologies, technical solutions are Standards such as the Organisation Environmental
needed that can enable seamless and secure data Footprint (OEF) and the Product Environmental
exchange between organizations and regulators. Footprint (PEF) are ongoing attempts by the
Ensuring data availability, integrity and confidentiality European Commission to harmonize the calculation
are paramount. Availability in a manufacturing of the environmental footprint of products and
sense means ensuring that key systems and assets organizations (including carbon). Once widely
to monitor an organizations’ carbon footprint are adopted, they could provide a good basis for cross-
operating effectively and reliably. Integrity stands for industry carbon footprint accounting.60
FIGURE 12 Key principles for successful carbon footprint monitoring
Relevance
Ensure monitored GHG
emissions appropriately reflect
the emissions of the organization
and serve the decision-making
Accuracy Completeness
Ensure reported GHG Measure and report on all
emissions data reflects Carbon GHG emission sources and
actual emissions; seek activities from the
to reduce uncertainties Footprint businesses/operations
in reports
Monitoring
Principles
Transparency Consistency
Address issues in a factual Use consistent
and coherent manner, methodologies to
keeping a record of compare emissions
assumptions, calculations over time
and methodologies used
Source: Adapted from UK Government,

Department for Environment, Food and Rural
Affairs (DEFRA), Guidance on how to measure
and report your greenhouse gas emissions, 2009
Upgrade digital systems for net-zero industries leverage energy management
transformation platforms coupled with smart metering to allow
Working towards a lower-carbon future will more comprehensive energy data monitoring
demand action on operational efficiency, improved and control in energy-intensive areas.
production tactics and minimized waste – all of
which can be accomplished with more intensive – Digital twins help accelerate the redesign of
digitalization, analytics and AI technologies. products and processes.
– Existing information technology (IT)/operational – AI and simulation applications support

technology (OT) systems can already support process energy, the optimization of materials
the transformation. Enterprise resource planning consumption or logistics forecasting.
(ERP) and manufacturing execution systems
(MES) provide the yield information to visualize – Some industries are already testing digital
and eliminate waste. simulation tools to make cost-benefit-CO2
emission trade-offs in supply chain strategic
– Equipment control systems and IoT sensors decisions (e.g. relocation of sites, network
measure energy consumption. Several design).
STORY
AI to enhance
energy efficiency
Western Digital Corporation – Digital products Industrial Revolution use cases, such as machine learning to
manufacturer dynamically optimize the performance of the water recycling
Western Digital’s Shanghai manufacturing site engages in R&D, plant and consumption prediction to detect abnormal energy
packaging and testing of advanced flash memory products. consumption based on real-time operating data. These
In the context of growing demand, the company doubled measures reduced water consumption by 62% and energy
the site’s petabyte (PB) output between 2017 and 2021 consumption by 51% per PB.
while reducing its environmental footprint per PB to achieve
corporate objectives. This result was enabled by multiple Fourth Source: Consultation with Western Digital Corporation.
STORY
Real-time
digital twin for
sustainability
to be net-zero carbon by 2025, without offset and ahead of

Schneider Electric – Electronics and automation Schneider Electric’s global pledge. The smart factory is also
Schneider Electric’s Le Vaudreuil site has implemented industrial equipped with a zero-reject water recycling station connected
internet of things sensors connected to digital platforms, to cloud analytics and monitored by an AI model to forecast
including real-time digital twins of plant installations, such as process drifts, leading to 64% water reduction.
heating pumps and the lighting system. They unlock data to
optimize energy management (-25%), reduce material waste
(-17%) and minimize CO2 emissions (-25%) with the objective Source: Consultation with Schneider Electric.
Consider the carbon footprint of digital IT and off hardware/feature (14% cost saving), switching
OT systems to a green architecture and framework (19% cost
Enterprise IT, including manufacturing IT and OT saving), rationalizing applications and data (11%
systems, contributes significantly to the world’s cost saving), and managing data-centre cooling
carbon footprint. In 2019, 53.6 million tons of using AI to optimize data-centre utilization (9% cost
e-waste were generated worldwide, an increase of saving). Green procurement of servers also leads to
21% in five years. Moreover, 89% of organizations cost savings. Best-implementation practices include
recycle less than 10% of their IT hardware.61 “Green defining a sustainable IT strategy that aligns with the
IT” describes an environment-focused approach organization’s sustainability strategy and creating
to the design, use and disposal of computer a robust governance approach with a dedicated
hardware and software applications and the design sustainable IT team.62
of accompanying business processes. It extends to
activities such as responsible mining of rare metals Despite significant growth in the carbon footprint
used to develop IT hardware, water conservation of IT, only a minority of companies have a
and the application of circular economy principles comprehensive sustainable IT strategy with well-
across the technology life cycle. defined goals and timelines.
According to Capgemini research, green IT use

cases must be applied and are associated with cost
savings. They include introducing an auto switch-
STORY
Driving
decarbonization
through
holistic digital
transformation
Siemens – Energy and automation Process: At the factory level, digitalization supported greater
To address sustainability challenges, Siemens Electronics Works energy efficiency through AI models to optimize such areas as
Amberg, which the World Economic Forum recognized as a production, inventory, waste and testing efforts. The energy
digital lighthouse, elaborated a specific framework that allows management software CO2 cockpit helps to monitor energy
for breaking down corporate sustainability targets. This holistic consumption and matches this data with the production data to
view, referred to as the 5Ps of sustainability, considers the public calculate the CO2 emissions per product. A digital name plate
ecosystem, plant infrastructure, people and culture, process and system helps to connect a product to its online representation,
the product within the supply chain. This framework supports such as technical data, certificates and manuals. This saves
the commitment to achieve net zero by 2030, and even goes tons of paper and plastic that enclose the final packaging, and
beyond that. Action taken on the five levels are as follows: the system serves to prepare future circularity models.
Public ecosystem: Public transportation is balanced with Product: Siemens developed a blockchain-based dynamic PCF
production shift schedules to support commuting, and management tool for secure and trustworthy end-to-end PCF
public awareness for sustainability is supported by public requesting, aggregating and sharing along the supply chain.
presentations. This supports Siemens as well as the industry in managing the
PCF and in decarbonizing.
Plant infrastructure: Siemens implemented a holistic energy
management system via a digital twin of the factory. The factory Thanks to those transformations, direct energy consumption
runs with green electricity, and all new buildings are certified was reduced by 5% (43% per volume produced), GHG
by the Leadership in Energy and Environmental Design rating emissions were reduced by 58% (77% per volume produced)
system. Digital dashboards were set up to monitor energy and total material waste was reduced by 6% (43% per
consumption, GHG emissions, waste and water. volume produced).
People: Siemens installed an electric vehicle (EV) charging

station for employees; the company also provides sustainability
awareness training and climate neutral food in the canteen. Source: Consultation with Siemens.
2.4 Stage IV: Make it simple, inclusive and exciting
Action pillar 10 Implement and drive the net-zero
culture and practices
Achieving net zero is a complex and unprecedented – Develop green skills and talents. This starts
transformation that requires a genuine growth with the upskilling of the incumbent workforce.
mindset and a profound transformation of business The need is particularly visible in the automotive
practices and culture. It involves all resources industry, where the transition to EVs requires
available across the entire supply chain, from existing employees to acquire new skills in EV
suppliers to consumers, and at all levels, from manufacturing, battery production or energy
CEOs to technicians. storage. Beyond the significant adaptation of
their training programmes (upskilling is as much
According to author Peter Drucker, “Culture eats about unlearning as it is about learning), it is
strategy for breakfast.” It is therefore no surprise equally important that companies adapt their
that recurring cultural barriers have been identified recruiting and career development systems to
regarding industrial energy efficiency and, more attract and retain the diverse spectrum of talent
broadly, decarbonization projects. Typical barriers needed to drive this green transition. Demand
include a lack of shared vision and role model for green talent will indeed soon outpace supply;
leadership; limited incentives to encourage action according to LinkedIn research, the share of
in the short, middle and long term; and insufficient green talent in the global workforce increased
sustainability stakes anchored in the company from 9.6% in 2015 to 13.3% in 2021 (a growth
culture.63 rate of 38.5%), and new climate policies and
commitments are expected to create millions of
To overcome this challenge, businesses must rally new jobs in the next decade.64
their entire organization behind a compelling vision
and keep positive momentum along the net-zero – Make the journey exciting. To keep people
journey. Based on research by the Industry Net inspired, energized and thriving all along the
Zero Accelerator initiative team, leading businesses complex journey to net zero, leaders should:
are leveraging the following best practices to
address this need and accelerate their progress: 1. Foster a growth mindset, promoting learning,
creativity and agility at all levels – keeping in
– Create a compelling vision and drive it mind that the net-zero journey is inherently
inclusively. Because culture change cannot volatile, uncertain, complex and ambiguous
be achieved through top-down mandates but
rather through trust, conviction and optimism, 2. Break down the journey, developing a
the vision needs to be relevant to both the high-level roadmap to keep the organization
heads and hearts of all stakeholders. Examples focused not just on the end vision but also
include highlighting how decarbonization will on the various phases of progress expected
help differentiate a firm’s products, increasing along the way
consumer loyalty, encouraging employee pride
and mitigating the exponential operational risks 3. Relentlessly educate and communicate,
related to climate change. Another important using a blend of storytelling and analogies to
element is to formally embed the net-zero vision decipher the often cryptic and intimidating
into the company’s corporate objectives and aspects of net-zero language
priorities so that sustainability becomes the
way people do their jobs and not a separate 4. Celebrate progress, not just in the output
project. Finally, progress in sustainability must metrics but also in capability areas, whether
be integrated into the reward system so that they relate to upskilling organizations,
every employee feels both empowered and upgrading infrastructure or establishing
accountable to contribute to the journey with new systems; and visibly recognize and
the right sense of urgency. reward employees’ efforts, making them
feel at the heart of the process to improve
sustainability.65
STORY
The net-zero
journey and
the imperative
of corporate
organizational
culture and
operational
framework
Procter & Gamble – Fast-moving consumer goods By leveraging a culture of total employee involvement combined
In 2007, Procter & Gamble (P&G) set its first goal to reduce with the P&G Integrated Working System, which focused on
GHG emissions from its manufacturing facilities. The company eliminating losses and investing in technology to upgrade the
has expanded and accelerated these efforts to address GHG company’s processes, P&G has achieved a 56% reduction in
emissions across the life cycle of its products and operations. Scope 1 and 2 GHG emissions, exceeding its SBTi-validated
goal of 50% reduction versus the 2010 baseline.
In 2021, P&G set a new ambition to achieve net-zero GHG
emissions across its supply chain and operations, from raw Understanding the power of collective collaboration, the
materials to retailer distribution, by 2040, as well as interim company extended the It’s Our Home campaign from
2030 goals to make meaningful progress in this decade. The consumers to employees and external partners. P&G’s internal
company’s conviction was that “the task ahead is urgent, It’s Our Home Sustainability Awards programme recognizes
difficult, and much bigger than P&G alone, but we’re ready individuals, businesses and regions who are leading work to
to take on the challenge”. P&G decided to not only focus deliver the company’s Ambition 2030 sustainability goals and
on reducing its footprint but also to leverage its scale to reinforces the integration of sustainability as running through,
foster unprecedented collaboration across its value chain. rather than just attached to, the business.
It established a new Product Supply Innovation Center as a
hub for collaboration for a network of local suppliers, tech
companies, R&D institutions and leading universities to
Source: Consultation with P&G; P&G, “Environmental
accelerate the development of supply chain decarbonization Sustainability”; P&G, “Environmental”; P&G, Ambition 2030: It’s Our
solutions that are global, scalable and modular. Home, 2021; P&G, “It’s Our Home: Net Zero 2040”, 2021; P&G,
“P&G Accelerates Action on Climate Change Toward Net Zero
GHG Emissions by 2040”, 2021 (all accessed 21 November 2022).
3 Industry Net Zero
Accelerator initiative:
Next steps
Collaboration is fundamental to
upgrading net-zero strategies
and unlocking the full potential
of net-zero efforts.
Companies have shown that rethinking operations – The initiative is partnering with the Estainium
and business models helps to improve their Association to address value-chain data
efficiency and enhance their competitive advantage. sharing challenges, such as product carbon
Achieving net zero, however, is something no footprint, carbon capture, storage and
company can achieve alone. utilization, and compensation. The Estainium
Association has launched a series of
System-level collaboration is a vital component of “Emission-to-Sink Process” publications to
the journey, whether it occurs at the cross-industry, create synergies to address the challenges.66
value-chain, governmental or organizational
level. This view was confirmed in the initiative’s – Pursuing the collection of insights,
interviews with leaders from industry, government methodologies, best practices and experiences
and academia. Many companies have already from the industrial community and academia
demonstrated that collaboration in an industrial that will benefit the broader community to
ecosystem can result in mutual economic and decarbonize operations and value chains,
environmental benefits as well as risk dilution – including leveraging the net-zero framework
for example, sharing technologies or developing presented in this White Paper that serves as a
reverse logistics within a value chain to reuse and basis for dialogue between private- and public-
recycle material waste. Some companies are even sector stakeholders
partnering with their competitors to tackle the most
challenging barriers, such as creating partnerships – Celebrating the successes of industrial leaders
to co-innovate and to develop low-carbon who demonstrate outstanding progress in their
products, green energy infrastructure, and carbon journey to net zero, as a means of inspiring the
capture and storage infrastructure. broader industrial community
To address climate change, future collaborative – Promoting private- and public-sector efforts in
efforts will be necessary. The World Economic supporting net zero in areas and geographies
Forum Industry Net Zero Accelerator initiative will that require additional resources to move at the
continue to engage leaders across industry sectors same pace as larger companies, notably among
as well as government, academia and civil society small and medium-sized enterprises and those
to jointly shed the light on global insights and best in developing countries
practices in response to the industry net zero
challenge. Recognizing the complexity and scale of the net-
zero challenge, the aim is to help businesses and
Forthcoming work includes: governments upgrade their net-zero strategies
and update industrial policies by providing a
– Bringing together a community of action to neutral platform for collaboration and knowledge
organize problem-solving activities on the dissemination. There has never been a more urgent
toughest cross-industrial challenges of net time to make a difference. The hope is that this
zero; these include topics prioritized by the White Paper can inspire more businesses to join
community, such as data standards, Scope 3 this community and play a role in the collaborative
carbon emissions traceability, material efficiency effort to exchange knowledge and best practices
and circularity, supply chain decarbonization to stimulate and accelerate change across
support, new business models and a net-zero industrial sectors.
compatible digital strategy
Contributors
Lead authors Acknowledgements
Eric Enselme The World Economic Forum thanks the following

Industry Fellow, Shaping the Future of Industry Net Zero Accelerator initiative community
Advanced Manufacturing and Value Chains, members for their contributions to this White Paper.
World Economic Forum
Pierre Bagnon
David Leal-Ayala Vice-President, Intelligent Industry; Global Head,
Deputy Head, Policy Links Unit, IfM Engage, University Smart Factory, Capgemini
of Cambridge; Research Fellow, Shaping the Future of
Advanced Manufacturing and Value Chains, Paul Baldassari
World Economic Forum Executive Vice-President, Worldwide Operations, Flex
Amira Tantaoui El Araki Janina Bauer

Director, Intelligent Industry, Capgemini; Project Fellow, Director, Sustainability, Celonis
Shaping the Future of Advanced Manufacturing and
Value Chains, World Economic Forum Gunter Beitinger
Senior Vice-President, Manufacturing, and Head,
Industry Net Zero Accelerator initiative team Factory Digitalization, Siemens
Maria Basso Frank Blaimberger

Platform Curator, Shaping the Future of Global Head, Advanced Manufacturing, TÜV SÜD
Advanced Manufacturing and Value Chains,
World Economic Forum Lauren Dunford
Chief Executive Officer and Co-Founder, Guidewheel
Francisco Betti
Head, Shaping the Future of Advanced Manufacturing Steve Evans
and Value Chains, World Economic Forum Professor and Director, Research in Industrial
Sustainability, University of Cambridge,
Tobias Ebi Institute for Manufacturing
Director, Siemens; Project Fellow, Shaping the Future
of Advanced Manufacturing and Value Chains, Charlotte Farmer
World Economic Forum Senior Vice-President and Chief Operating Officer,
Underwriters Laboratories
Scheile Preston
Consultant, Rockwell Automation; Project Fellow, Pierre Gueudet
Shaping the Future of Advanced Manufacturing and Director, Energy and Climate, Eramet
Value Chains, World Economic Forum
Lubomila Jordanova
Stacey Weismiller Chief Executive Officer and Founder, Plan A
Initiatives and Community Lead, Shaping the Future
of Advanced Manufacturing and Value Chains, Jackie Jung
World Economic Forum LLC Vice-President, Global Operations Strategy, Center of
Excellence, Western Digital
Xiaoming Zhong
Initiatives and Community Specialist, Shaping the Liu Zongchang
Future of Advanced Manufacturing and Value Chains, Chief Data Officer, Foxconn Industrial Internet
Ni Jun
Chief Manufacturing Officer, Contemporary Amperex
Technology (CATL)
Tom O’Reilly
Vice-President, Sustainability, Rockwell Automation
Patrizio Ricci
Vice-President, Global Fabric and Home Care, Supply
Chain Innovation and Digital Transformation Leader,
Procter & Gamble
Jean-Pascal Riss
Director, Industrial Automation Strategy, Schneider
Electric
Fahad Al-Sherehy
Vice-President, Energy Efficiency, Carbon
Management, Technology and Innovation, Saudi Basic
Industries (SABIC)
Gabriele Silvestrini
Vice-President, Manufacturing Excellence, Unilever
The authors also thank the following individuals who

contributed to the development of this White Paper:
Florent Andrillon (Capgemini), Arthur Arrighi de

Casanova (Capgemini), Cyril Garcia (Capgemini),
Vikas Kumar (Capgemini), Mark Landry (Capgemini),
Antoine Peyrude (Saint Gobain), Vera Schneemann
(Capgemini), Martine Stillman (Capgemini), Angélique
Terrien (Procter & Gamble), Eduardo Toledo (Flex),
Amanda Zhang (Western Digital)
Derek Baraldi, Maya Ben Dror, Shyam Bishen,

Roberto Bocca, Helen Burdett, Antonia Gawel, Manju
George, Fernando Gomez, Pedro G. Gomez Pensado,
Abhishek Gupta, Kristin Hughes, Christian Kaufholz,
Kelly McCain, Espen Mehlum, Jörgen Sandström,
Nivedita Sen
Endnotes
1. See World Economic Forum, “Alliance of CEO Climate Leaders – Reports”, https://initiatives.weforum.org/alliance-of-ceo-
climate-leaders/reports# (accessed 29 November 2022).
2. Estainium Association [website], https://www.estainium.eco/en (accessed 18 November 2022).
3. United Nations, “For a livable climate: Net-zero commitments must be backed by credible action”, Climate Action,
https://www.un.org/en/climatechange/net-zero-coalition (accessed 15 November 2022).
4. Science Based Targets, Foundations for Science-Based Net-Zero Target Setting in the Corporate Sector, Executive
summary, 2020, https://sciencebasedtargets.org/resources/files/foundations-for-net-zero-executive-summary.pdf
5. World Resources Institute and World Business Council for Sustainable Development, A Corporate Accounting and
Reporting Standard: Revised Edition, 2004, https://ghgprotocol.org/sites/default/files/standards/ghg-protocol-revised.pdf
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III contribution to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change, 2022,
https://report.ipcc.ch/ar6/wg3/IPCC_AR6_WGIII_Full_Report.pdf (accessed 18 November 2022).
7. Ibid.
8. Lloyds Bank, From Now to Net Zero: A Practical Guide for SMEs, 2022, https://www.lloydsbank.com/assets/assets-
business-banking/pdfs/from_now_to_net_zero.pdf (accessed 21 November 2022).
9. United Nations Development Programme, “The Peoples’ Climate Vote”, 26 January 2021, https://www.undp.org/
publications/peoples-climate-vote (accessed 21 November 2022).
10. UK Government, “UK to enshrine mandatory climate disclosures for largest companies in law”, Press release,
29 October 2021, https://www.gov.uk/government/news/uk-to-enshrine-mandatory-climate-disclosures-for-largest-
companies-in-law (accessed 21 November 2022).
11. Make UK, Manufacturing Sector Net Zero Roadmap, 2022, https://www.makeuk.org/insights/reports/manufacturing-
sector-net-zero-roadmap (accessed 21 November 2022).
12. University of Cambridge, Policy Links, Institute for Manufacturing, Education and Consultancy Services, Study on
digitalisation of the manufacturing sector and the policy implications for Ireland, January 2018, https://enterprise.gov.
ie/en/publications/publication-files/study-on-digitalisation-of-manufacturing-sector-and-policy-implications-ireland.pdf
13. Science Based Targets, “How it works”, https://sciencebasedtargets.org/how-it-works (accessed 18 November 2022).
14. Consultation with industry leaders and experts.
16. IPCC, Climate Change 2022: Mitigation of Climate Change, op. cit.
17. “Carbon pricing reveals the hidden cost of greenhouse gas pollution. CDP’s work in this area is key to the private and
public sector incorporating the cost of carbon emissions into business strategy and policy”, Carbon Disclosure Project
(CDP), https://www.cdp.net/en/climate/carbon-pricing (accessed 15 November 2022).
19. Emission factors are defined by the IPCC as coefficients that quantify the emissions or removals of a gas per unit of
activity. Emission factors are often based on a sample of measurement data, averaged to develop a representative rate of
emission for a given activity level under a given set of operating conditions. See Glossary, 2019 Refinement to the 2006
IPCC Guidelines for National Greenhouse Gas Inventories, 2019, https://www.ipcc.ch/site/assets/uploads/2019/06/19R_
V0_02_Glossary_advance.pdf (accessed 22 November 2022).
20. Greenhouse Gas Protocol, “Corporate Standard”, https://ghgprotocol.org/corporate-standard#:~:text=The%20GHG%20
Protocol%20Corporate%20Accounting,corporate%2Dlevel%20GHG%20emissions%20inventory
21. UK Government, Cabinet Office, “Procurement Policy Note – Taking Account of Carbon Reduction Plans in the
procurement of major government contracts”, Action Note PPN 06/21, 2021, https://assets.publishing.service.gov.uk/
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changement-climatique-et-energie/1846-energie-un-poste-cle-dans-l-industrie-l--9791029709159.html
29. Ibid.
30. Thiel, Gregory, and Addison Stark, “To decarbonize industry, we must decarbonize heat”, Joule, vol. 5, no. 3,
17 March 2021, pp. 531-550, https://doi.org/10.1016/j.joule.2020.12.007 (accessed 21 November 2022).
31. Ibid.
32. IEA, “Renewable Electricity”, September 2022, https://www.iea.org/reports/renewable-electricity
33. Ibid.
34. Lawson, Ashley, and Fatima Maria Ahmad, “Decarbonizing U.S. Transportation”, Center for Climate and Energy Solutions,
July 2018, https://www.c2es.org/document/decarbonizing-u-s-transportation (accessed 21 November 2022).
35. The Shift Project, Assurer le fret dans un monde fini, March 2022, https://theshiftproject.org/article/rapport-final-fret-ptef
36. Allwood, Julian, et al., “Material efficiency: providing material services with less material production”, Philosophical
Transactions of the Royal Society A, 371: 20120496, 13 March 2013, https://royalsocietypublishing.org/doi/
epdf/10.1098/rsta.2012.0496 (accessed 21 November 2022).
37. Milford, Rachel, et al., “Assessing the potential of yield improvements, through process scrap reduction, for energy and
CO2 abatement in the steel and aluminium sectors”, Resources, Conservation and Recycling, vol. 55, no. 12, 2011, pp.
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hand-in-hand?”, 2016, https://www.ifm.eng.cam.ac.uk/insights/sustainability/resource-efficiency-can-sustainability-and-
improved-profit-go-hand-in-hand/#_edn1 (accessed 15 November 2022).
39. Allwood, Julian, and Jonathan Cullen, Sustainable Materials: With both eyes open, UIT Cambridge Ltd, 2012,
https://www.refficiency.org/wp-content/uploads/2020/09/111223_SMWBEO_Web_Full.pdf
40. Allwood, et al., “Material efficiency: providing material services with less material production”, op. cit.
41. Allwood and Cullen, Sustainable Materials: With both eyes open, op. cit.
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44. Ibid.
45. European Environment Agency (EEA), “EU ETS emissions continued to decline during the Covid-19 pandemic”,
12 January 2022, https://www.eea.europa.eu/highlights/eu-ets-emissions-continue (accessed 23 November 2022).
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56. Ibid.
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62. Ibid.
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Industry Net Zero Accelerator Initiative

The “No-Excuse” Framework

7 1 Industry net zero in context

7 1.1 What is net zero?

10 1.3 Business drivers and opportunities for achieving net zero

13 2 Net-zero transformation: A guiding framework for collaborative action

14 2.1 Stage I: Build the foundations

16 2.2 Stage II: Change the game internally

29 2.3 Stage III: Drive systemic collaboration

35 2.4 Stage IV: Make it simple, inclusive and exciting

37 3 Industry Net Zero Accelerator initiative: Next steps

© 2023 World Economic Forum. All rights

Francisco Betti Roshan Gya

David Leal-Ayala Cedrik Neike

Stage I Stage II Stage III Stage IV

5 Rethink product design 9 Address net-zero data and

6 Develop carbon capture

1.1 What is net zero?

Planning Materials Inbound Manufacturing, Outbound In-service Product

Scope 3 upstream Scope 3 downstream

Source: Capgemini, based on the concept presented in A

1.2 The current state of net zero in manufacturing

Agriculture, forestry &

Deforestation (2.2) Grassland (0.1)

Unallocated fuel Agricultural Cropland Waste

Non-ferrous Machinery Aviation (1.9) Pipeline (0.3) Commercial (6.6)

Source: World Economic Forum Industry Net Zero Accelerator initiative,

FIGURE 3 CO2-equivalent emissions by scope for selected industries, 2019 (%)

Cement Steel Mining Chemicals Electronics Automotive Food

Scope 1 Scope 2 Scope 3

Source: Extracted from World Economic Forum, Net-Zero Challenge:

Drivers for change Opportunities of net zero

Universal cultural Access to finance through innovation

Regulatory Improved process efficiency and

Internal culture Access to new markets and revenue

Source: Modified from Lloyds Bank, From Now to Net Zero: A

FIGURE 5 Barriers to net zero in manufacturing operations and value chains

Experiences from operations leaders

– Increased operational expenditure Electronics and automation

– Lack of common language, Industrial equipment manufacturer

– Partnerships with external ecosystems Mining, metals and materials

– Organizational and individual Mining, metals and materials

Source: Cambridge Industrial Innovation

FIGURE 6 The “no-excuse” framework for industrial decarbonization

Stage I Stage II Stage III Stage IV

5 Rethink product design 9 Address net-zero data and

6 Develop carbon capture

Source: World Economic Forum Industry

2.1 Stage I: Build the foundations

Examples of tools, methodologies and standards for assessing carbon emissions:

Action pillar 2 Set the capability for carbon footprint monitoring

sales volume, consolidated at country level and then at group

2.2 Stage II: Change the game internally

Accelerate energy efficiency Research conducted among manufacturing

– Energy recovery systems (e.g. waste heat

– Optimize declogging, check

– Install air destratifiers for high heights

Compressed air – Install a variable speed on the

Control and first-level maintenance Source: Capgemini, adapted from