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Factbox: With climate clock ticking, companies scramble to set green targets

Source: Reuters

Nov 5 (Reuters) – Hundreds of companies around the world have promised to cut carbon emissions, but the deadlines they have set are years away and it is hard to tell if it is enough.

According to scientists at the United Nations, the world’s net emissions must drop to zero by 2050 to limit the rise in global temperature to no more than 1.5 degrees Celsius, compared with pre-industrial levels.

Following is a gist of some of the targets set by global companies as world leaders and officials meet at the U.N. climate gathering in Scotland.

Moderna (MRNA.O)** Targets net-zero carbon emissions globally by 2030
BBVA (BBVA.MC)** Pledges to achieve net-zero emissions by 2050 and expects to channel 200 billion euros between 2018 and 2025 in sustainable financing
Salesforce.com (CRM.N)** Pledges $100 million funding in grants over the next 10 years to nonprofits working on ecosystem restoration and climate justice
Jones Lang LaSalle Inc (JLL.N)** JLL commits to reach net-zero greenhouse gas emissions across the value chain by 2040
3M Co (MMM.N)** Says it will invest $1 billion over the next 20 years to accelerate its environmental goals, including new commitments to achieve carbon neutrality by 2050, reduce water use 25% by 2030 [USN:[nPnbSBnsWa]]
Mastercard (MA.N)** Commits to reach net zero by 2040 [USN:FWN2RR07G]
Linde Plc (LIN.N)** Aims for a 35% cut in absolute emissions by 2035 and becoming carbon neutral by 2050 [USN:L1N2RO0TZ]
Standard Chartered (STAN.L)** Targets reducing its funding to carbon intensive sectors by 2030, as part of a broader goal to reach net zero emissions for itself and its clients by 2050 [USN:L1N2RO1J3]
Royal Caribbean Cruises Ltd (RCL.N)** Aims to deliver a net zero cruise ship by 2035
BlackRock Inc (BLK.N)** Raises $673 million for an infrastructure fund to invest in climate-focused projects such as renewable energy in emerging markets [USN:L1N2RT1CQ]
Qantas Airways Ltd (QAN.AX)** Says working to develop a 2030 emissions target [USN:L4N2RG4PH]
TC Energy Corp (TRP.TO)** Targets net-zero emissions from its operations by 2050 [USN:L4N2RM3FU]
Saudi Aramco** Aims to achieve net zero emissions from its operations by 2050, while also expanding its maximum sustained production capacity to 13 million barrels per day [USN:L1N2RJ06S]
Rio Tinto (RIO.AX)** Announces a $7.5 billion plan to reduce carbon emissions by 50% by 2030 [USN:L4N2RG1H7]
Amazon.com Inc (AMZN.O)** Commits to use zero-carbon marine fuels by 2040 in a new initiative aimed at speeding up decarbonisation in the maritime sector [USN:L8N2RE1TK]
Mitsubishi Corp (8058.T)** Aims for net zero greenhouse gas emissions by 2050
Boeing (BA.N)** Targets delivering commercial airplanes capable of flying on 100% biofuel by the end of the decade
Southwest Airlines Co (LUV.N)** Plans to modernize its fleet with more fuel-efficient Boeing 737 MAX 7 and 8 aircraft [USN:[nPn9gBKlca]]
Royal Dutch Shell (RDSa.L)** Reduce Scope 1 and 2 emissions from operated assets by 50% by 2030 vs 2016 in absolute terms
McDonald’s (MCD.N)** Targets cutting global GHG emissions to net zero by 2050 ** Aims to lower absolute emissions by about a third for both its suppliers and its nearly 40,000 restaurants around the world by 2030 [USN:L1N2R1157]
Chevron (CVX.N)** Chevron commits to net zero emissions by 2050, to cut upstream scope 1, 2 emissions
Dow (DOW.N)** Expects to boost its core earnings by $3 billion a year over the next decade, with investments that include building a new net-zero carbon emissions facility [USN:L4N2R21ZH]
AT&T (T.N)** Sets target to help businesses collectively reduce a gigaton of GHG emissions — 1 billion metric tons by 2035
Chubb** Sets new goal to achieve carbon neutrality in its global operations by 2022 end through a combination of renewable energy and carbon offset purchases
United Airlines (UAL.O)** Plans to use about 3.4 mln gallons of low-carbon, sustainable aviation fuel derived from trash in 2021 vs roughly 1 mln gallons used each year since 2016 [nL1N2M61A6]
Clorox (CLX.N)** Targets net-zero carbon emissions by 2050, Scope 1 & 2 by 50% by 2030, Scope 3 by 25% by 2030
Anglo American (AAL.L)** Reduce emissions by 30% by 2030 and achieve net zero by 2040, reduce the abstraction of freshwater in water scarce regions by 50% by 2030 from 2016 levels
Energize Program** Ten pharmaceutical companies are joining forces to cut indirect emissions through green power procurement, which in turn will reduce the participating companies’ Scope 3 emissions
Chipotle Mexican Grill Inc (CMG.N)** To reduce absolute scope 1, 2 and 3 greenhouse gas emissions by 50% by 2030 from a 2019 base year [USN:[nPn9NF5g1a]]
Glencore (GLEN.L)** Reduce GHG emissions by 50% by 2035 compared to 2019 levels and achieve net zero by 2050-end

GHG – Greenhouse gases Scope 1 – Direct emissions Scope 2 – Indirect emissions Scope 3 – Indirect emissions produced by co, products, supply chain

Source:- Company statements, filingsReporting by Sweta Singh, Dania Nadeem, Manojna Maddipatla and Arunima Kumar in Bengaluru; Editing by Arun Koyyur, Aditya Soni and Anil D’Silva

Our Standards: The Thomson Reuters Trust Principles.

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Auto

Could electric vehicles be the answer to energy flexibility?

Rolf Bienert, Managing and Technical Director, OpenADR Alliance

Last year, what was the Department for Business, Energy & Industrial Strategy and Ofgem published its Electric Vehicle Smart Charging Action plans to unlock the power of electric vehicle (EV) charging. Owners would have the opportunity to charge their vehicles while powering their homes with excess electricity stored in their car.

Known as vehicle to grid (V2G) or vehicle to everything (V2X), it is the communication between a vehicle and another entity. This could be the transfer of electricity stored in an EV to the home, the grid, or to other destinations. V2X requires bi-directional energy flow from the charger to the vehicle and bi- or unidirectional flow from the charger to the destination, depending on how it is being used.

While there are V2X pilots already out there, it’s considered an emerging technology. The Government is backing it with its V2X Innovation Programme with the aim of addressing barriers to enabling energy flexibility from EV charging. Phase 1 will support development of V2X bi-directional charging prototype hardware, software or business models, while phase 2 will support small scale V2X demonstrations.

The programme is part of the Flexibility Innovation Programme which looks to enable large-scale widespread electricity system flexibility through smart, flexible, secure, and accessible technologies – and will fund innovation across a range of key smart energy applications.

As part of the initiative, the Government will also fund Demand Side Response (DSR) projects activated through both the Innovation Programme and its Interoperable Demand Side Response Programme (IDSR) designed to support innovation and design of IDSR systems. DSR and energy flexibility is becoming increasingly important as demand for energy grows.

The EV potential

EVs offer a potential energy resource, especially at peak times when the electricity grid is under pressure. Designed to power cars weighing two tonnes or more, EV batteries are large, especially when compared to other potential energy resources.

While a typical solar system for the home is around 10kWh, electric car batteries range from 30kWh or more. A Jaguar i-Pace is 85kWh while the Tesla model S has a 100kWh battery, which offers a much larger resource. This means that a fully powered EV could support an average home for several days.

But to make this a reality the technology needs to be in place first to ensure there is a stable, reliable and secure supply of power. Most EV charging systems are already connected via apps and control platforms with pre-set systems, so easy to access and easy to use. But, owners will need to factor in possible additional hardware costs, including invertors for charging and discharging the power.

The vehicle owner must also have control over what they want to do. For example, how much of the charge from the car battery they want to make available to the grid and how much they want to leave in the vehicle.

The concept of bi-directional charging means that vehicles need to be designed with bi-directional power flow in mind and Electric Vehicle Supply Equipment will have to be upgraded as Electric Vehicle Power Exchange Equipment (EVPE).

Critical success factors

Open standards will be also critical to the success of this opportunity, and to ensure the charging infrastructure for V2X and V2G use cases is fit for purpose.

There are also lifecycle implications for the battery that need to be addressed as bi-directional charging can lead to degradation and shortening of battery life. Typically EVs are sold with an eight-year battery life, but this depends on the model, so drivers might be reluctant to add extra wear and tear, or pay for new batteries before time.

There is also the question of power quality. With more and more high-powered invertors pushing power into the grid, it could lead to questions about power quality that is not up to standard, and that may require periodic grid code adjustments.

But before this becomes reality, it has to be something that EV owners want. The industry is looking to educate users about the benefits and opportunities of V2X, but is it enough? We need a unified message, from automotive companies and OEMs, to government, and a concerted effort to promote new smart energy initiatives.

While plans are not yet agreed with regards to a ban on the sale on new petrol and diesel vehicles, figures from the IEA show that by 2035, one in four vehicles on the road will be electric. So, it’s time to raise awareness the opportunities of these programs.

With trials already happening in the UK, US, and other markets, I’m optimistic that it could become a disruptor market for this technology.

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Navigating the commercial vehicle sustainability conundrum

By David Wilson, Business Development Advisor, NEOL Copper Technologies Ltd.

As road transport companies implement their environmental, social, and governance (ESG) strategies to ensure they are contributing positively to the planet and society while also being run ethically and transparently, they are faced with a conundrum.

With increasing regulatory and social scrutiny on carbon emissions, the transportation industry which is the second largest (20%) contributor to carbon emissions worldwide, faces growing pressure to meet the near-term net-zero targets, requiring an immediate move to being more sustainable.

The industry has recently undergone significant changes that have impacted the cost of running a successful business. Factors such as high fuel costs, increased labour expenses, and maintenance costs, as well as excessive costs to renew the fleet, have all contributed to this. Additionally, businesses now need to consider how to incorporate the future of electric and autonomous vehicles.

The future of electric vehicles

ESG strategies such as investing in fuel-efficient, low-emission technologies and adopting alternative sustainable fuel sources are essential to reduce carbon emissions, air pollution, and preserve natural resources, while protecting the industry’s long-term viability.

In order to make the industry more sustainable electric trucks will need to play a significant role. The migration to electric trucks is also an option for the fleet manager but there is presently a narrow choice of vehicles, an associated high procurement or lease cost, and a lack of public charging infrastructure.

Most commercial vehicle OEMs (original equipment manufacturers) now offer a range of electric trucks that are specifically designed for zero-emission deliveries. However, the use of heavy-duty electric trucks for long-range transport is not feasible yet, mainly because the batteries and charging power are insufficient. The large-scale adoption of electric trucks is going to take time, and it may not be until 2035 – emphasizing that the electrification of the trucking industry is around 10 years behind passenger cars in terms of electrification.

Transitioning away from fossil fuel is a complex challenge for fleet managers. It will take time for a complete shift of the 600,000+ heavy good vehicles currently navigating the UK roads to electric power. To address the issue promptly and enhance the fuel efficiency and sustainability of the current fleet, proactive measures are imperative to optimise their performance and curtail emissions immediately.

Addressing the sustainability conundrum

The vast majority of today’s commercial vehicles on the road today are powered by internal combustion engines (ICE) that run on diesel fuel. Since the first introduction of European exhaust emission standards in 1993, more stringent guidelines have been released every four to five years to reduce and eliminate harmful pollutants such as carbon dioxide, nitrogen oxide, hydrocarbons, and particulate matter from new vehicles sold in the EU.

 To meet the latest Euro VI (2015) emission standard, trucks are now typically equipped with diesel particulate filters (DPF) to capture particulate matter and lubricant ash, and selective catalytic reduction (SCR) technology to convert harmful nitrogen oxides to nitrogen and water, and exhaust gas recirculation (EGR) technology to lower the combustion temperature, reduce nitrogen oxides, and improve engine efficiency.

Euro VI engines are advanced and highly sophisticated systems that offer dependable and efficient performance. Together with the correct low-SAPS (sulphated ash, phosphorous, and sulphur) and low viscosity e.g. SAE 5W-30 engine lubricant, the fleet manager will benefit from reduced fuel consumption and warranted protection of the engine and exhaust aftertreatment devices (ATD).

As engine hardware has advanced, so has the lubricant technology. However, even with the latest low-viscosity oils, levels of fuel saving at 1-1.5% (compared to higher-viscosity oils) have not reached its full potential. Moreover, the continued use of metal-containing detergents and ZDDP (zinc dithiophosphate) antiwear components risk negatively impacting the performance and efficiency of the DPF, as well as the precious metal catalysts & sensors in the SCR units. This can lead to unplanned service and replacement of one or more of the ATDs, causing costly downtime for fleet managers.

 Euro 7 emissions regulations will be implemented in a few years, and it will require ATDs to perform as new for 200,000 km or 10 years. Therefore, the lubricant industry is facing a new challenge of lowering the levels   in engine lubricants even further.

Reducing unexpected downtime with technical lubricants

The fleet manager has access to high-quality diesel engines and lubricant technology, but they are concerned about unplanned mechanical issues due to the wear and tear of components from extended use. Additionally, the blockage of DPFs (which creates backpressure and increases fuel consumption) and the possible failure of sensors may lead to faults being registered on the truck’s OBD (on-board diagnostics) computer systems, still causing great concern for managers as they strive for maximum productivity and profitability.

Whilst the use of fossil fuels will remain crucial to power heavy-duty diesel engines, we must wait for further advancements in electrification. However, we can improve the lubricants currently being used to make commercial vehicles more efficient, with lower emissions and greater fuel economy. By doing this, we can reduce unwanted unplanned downtime for repairs or component replacements.

It is easy to see the clear link between reducing wear to increase the longevity of your machine assets. Additionally, by reducing friction, we can improve fuel savings which helps to increase efficiency, all essential steps towards acting more sustainably and making changes for a better future.

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Business

Streamlining the road to net-zero through carbon reporting

By Paul Rekhi, Head of Carbon Services at Advantage Utilities

Understanding the evolution of our carbon footprint is key to comprehending the urgency and significance of emission reduction today. According to the Global Carbon Project, between 2011 and 2020, carbon dioxide emissions averaged at 38.8 billion tons per year, but our land and ocean sinks which convert this CO2 have only been able to support 21.7 billion tons yearly. This deficit in emissions is what has caused the atmospheric CO2 growth rate which in turn has led to global warming and climate change. These are defining issues for businesses, hence the need to report and then reduce carbon emissions is more important than ever. I recently hosted a webinar where I discussed this very point, advising businesses on how to implement a credible plan to achieve net-zero as well as lower energy costs. 

In this article, I will share those insights, discussing how ESG emerged as a key consideration for businesses today. I will then outline how businesses can go about measuring their carbon by using the carbon-ethics cycle which includes the steps they should take to streamline the road to net-zero via effective carbon reporting.

Paul Rekhi, Head of Carbon Services

The distinction between net-zero and carbon neutral

There is an important distinction to be made about what we mean by ‘net-zero’ and ‘carbon neutral’. Net-zero involves counting emissions, then organically removing these emissions from the business. What carbon neutrality involves is the same accounting principle of greenhouse gas (GHG) accounting but also taking accredited carbon offsets to help counteract GHGs released and reaching a zero-carbon footprint. However, to get to true net-zero you have to account for it – that means having oversight into your scope 1, 2 and 3 emissions. 

Scope 1 emissions are direct emissions such as company facilities and vehicles. Scope 2 emissions primarily involve indirect emissions stemming from purchased electricity, heating and cooling. Finally, Scope 3 emissions involve everything else your business does; this starts with upstream activities, everything that happens before your organisation – ‘from cradle to gate’, including bought goods, employee commuting and leased assets,  through to  downstream activities, everything that happens after – from gate to grave, such as processing of solid products, transportation and investments.

The importance of carbon reporting

As corporate guidance emerged and the damaging effects of excess carbon emissions were accepted, this led to large companies being required to report on their scope 1 and 2 emissions. If an organisation meets two or more of the following criteria; a turnover or gross income of £36 million or more; balance sheet assets of £18 million or more; or 250 employees or more; then they must stay compliant with UK government regulations such as theStreamlined Energy and Carbon Reporting (SECR) and Energy Savings Opportunity Scheme (ESOS). Of the 5.5 million UK businesses, only 7,000 fall into the category of having over 250 employees. 

But this is not just a checkbox exercise, it is a strategic move. Proper carbon reporting not only ensures compliance but also positions your organisation as a responsible and forward-thinking entity, which is why it has become widely accepted for organisations to establish an ESG department.

The carbon-ethics cycle

To enable businesses to track their carbon emissions, we created our carbon-ethics cycle, to enable organisations to measure, manage and reduce their emissions as efficiently as possible. 

Our starting point is to understand businesses – their sites, their objectives and their needs. From here, businesses should measure and certify their scope 1, 2 and 3 emissions which act as an organisation’s benchmark on how much carbon was associated with their business, within a given period – usually by financial year. Without first measuring emissions, you cannot manage emissions, making progress towards net-zero very difficult. 

Once we have that benchmark, consultation with each department of the business is crucial to effectively reducing emissions, looking at how energy is used (when and where) as well as how it is procured. From there, technology such as solar PV, heat pumps and voltage optimisation, can be used to make energy savings and increase sustainability. 

Reducing/offsetting emissions may also be necessary if reducing emissions is not possible. The final step is to report and re-certify their emissions, allowing comparisons to be made to benchmark data. And this is an ongoing process, so the cycle can begin again on the journey to net-zero. But what this cycle achieves is a streamlined process that enables the most progress to take place.

So where are we right now? With large companies required to report on their carbon, other companies are also taking it upon themselves to expand their own reporting. There are several types of clients that get in touch with us to measure their carbon and reduce their emissions. One of them are the large companies, but others include organisations with supply chain partners requesting carbon data, companies with competitors measuring carbon emissions, environmentally conscious companies as well as others.    

A structure to measuring carbon within your organisation

Businesses all start from the same position: having to change their processes and behaviour in order to measure carbon. Progress is only made by building upon this foundation, with Standard Operating Procedures (SOPs) offering the next step in ensuring compliance throughout the business. On top of that, policies are overlaid which runs and controls the business.

But there are also two ‘floors’ that are missing in this structure. The first of these is accounting, reporting and marketing. Without measuring and accounting what it is that you are doing as a business, the effects of your progress will be minimal, which is why marketing is also crucial to enhancing brand image and customer loyalty. The final step is planning and execution, fundamental to realising your organisation’s goals. This cannot be forgotten as this is where businesses must ensure they have all the experience, expertise, knowledge and skills in place to report for what they do.

To conclude, businesses implementing carbon reporting will find that progress towards net-zero is far easier. The need to reduce emissions is clear and the systematic measurement, management, and subsequent reduction of emissions is made a tangible possibility through the streamlined and efficient approach outlined in the carbon-ethics cycle. A collaborative and structured carbon reporting process allows businesses to meet reduction targets successfully, ultimately leading to the attainment of net-zero status.

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