When the Transform to Net Zero (TONZ)
companies came together in
2020
to share their business transformation to inspire other companies, they
recognized the need to support the non-sustainability functions that need to
adapt to achieve net-zero emissions.
Whilst sustainability professionals may take the lead in setting net-zero
targets and driving climate-action plans, it takes collaboration across every
business function to enable the transformation needed to achieve net-zero
emissions.
From the start, TONZ decided to publish guidance specifically for
non-sustainability functions — so that everyone can be a net-zero hero.
Transform to Net Zero is a cross-sector
initiative
aimed at accelerating the transition to an inclusive, net-zero global economy — with a
goal of achieving it no later than 2050. The initiative formed in July 2020 with
Danone, Maersk, Mercedes-Benz, Microsoft, Natura &Co,
Nike, Starbucks, Unilever, Wipro and Environmental Defense
Fund (EDF) as founding members; with BSR serving as Secretariat.
HSBC joined in 2022; and GSK and Ørsted joined in 2023.
Roadmaps for every function
In March 2023, Mercedes-Benz became the
latest TONZ member to publish its Climate-Transition Action
Plan, which
outlines the steps to achieve the set short-term and long-term goals on the road
to net carbon neutrality — the company’s Ambition 2039.
“We have set ambitious goals for Mercedes-Benz’s production sites as we aim to
reduce CO₂ emissions by 80 percent by 2030, compared to 2018,” explains Jana
Krägenbring-Noor, Head of Group Environmental Protection, Energy Management
and Sustainability at Mercedes-Benz. “The share of renewable energies is to be
expanded significantly and cover more than 70 percent of the energy demand in
our own production sites by 2030. However, it’s not just production sites that
are decarbonizing.
“Our other divisions are also continuously working on decarbonizing their own
remits. In the supply chain, the company has integrated target values into the
criteria for award processes in order to reduce CO₂ emissions. The sales
organization also has a roadmap to support sales partners worldwide in the
transformation to net carbon neutrality. In logistics, the aim is to avoid and
reduce CO2 emissions through process optimization. An important factor is the
switch from road to rail, wherever economically possible.”
Supporting procurement functions to reach net-zero goals
Transform to Net Zero’s first Transformation Guide, Buyer-Supplier Engagement
to Reduce Upstream Scope 3
Emissions,
focused on how procurement teams can engage and support suppliers to reduce
upstream Scope 3
emissions.
Unilever shared its supplier-engagement
activities,
including its supplier segmentation and prioritization approach.
“We needed to develop an encompassing approach that covers all of our upstream
value chain, while at the same time identifying where to focus for maximum
impact,” said Thomas Lingard,
Global Head of Sustainability (Environment) at Unilever. “We mapped the
materials with the biggest greenhouse gas emissions impact, where they were in
the value chain, and our primary suppliers of these materials. We were able to
identify the 300 suppliers that contribute a meaningful share of our upstream
scope 3 emissions, and with whom we should work as a priority.”
Following a successful pilot last year, Unilever is now scaling up its work with
these priority suppliers to help them measure, share and ultimately reduce the
greenhouse gas emissions of their products.
Offering more guidance for procurement and supply chain teams, the first of the
Here’s How
NOW
video series details how Danone and EDF are working together on Danone’s global
action plan to reduce absolute methane
emissions
from its fresh milk supply
chain
by 30 percent by 2030 — with guidance for setting methane-reduction targets and
engaging with dairy suppliers.
Later this year, TONZ will publish its Supplier Transformation Framework to
support companies in evaluating the current climate maturity of their suppliers
and the steps they should take to help them advance towards their
net-zero-aligned goals. The first framework of its kind, it follows extensive
research into how the Transform to Net Zero companies engage with their
suppliers to reduce Scope 3 emissions.
A net-zero approach to innovation
In the Innovating Net-Zero Products and Services Transformation
Guide,
Wipro described how it develops new products and services based on less
carbon-intensive business models through circular supply chains, waste recovery
and recycling, and product lifecycle
extension.
Teams across Wipro work towards a shared goal that has been set at the
leadership level: Product innovation should promote progress toward customers’
net-zero emission goals.
“Teams work in collaboration to develop product and service offerings calibrated
to each specific client. For instance, engineering and R&D teams collaborate
with design teams to create a connected value chain in which sustainability
solutions integrate with technology and infrastructure, enabling customers to
use data to measure their carbon footprints more seamlessly,' says Susan
Kenniston, Global Head and VP of
Sustainability at Wipro.
Engaging policymakers on climate policy
In the Climate Policy Engagement Transformation
Guide,
Transform to Net Zero members provided examples and guidance to support
Corporate and Government Affairs functions to engage with policymakers on
climate policy.
Maersk is currently engaging with
policymakers
on clean shipping fuels. Maersk’s first vessel able to run on renewable
methanol — a feeder vessel with 2,100 TEU (20-foot-equivalent unit)
capacity — will be in the water beginning in September. 18 ocean-going vessels
of 16,000-17,000 TEU capacity, able to run on renewable methanol, are scheduled
for delivery in 2024 and 2025. The challenge now is to scale the production of
clean methanol at a competitive price, as in most cases it is several times the
cost of fossil fuel. To boost the growing clean-energy market and close the cost
gap, Maersk needs the right global regulation in place.
The Public Policy and Regulatory Affairs team at Maersk urges member states
at the International Maritime Organisation to agree on a global greenhouse
gas price to make fossil fuels less attractive; to approve a global fuel
standard that secures the production and use of new clean shipping fuels; and
ultimately, to introduce a moratorium on the production of fossil-fueled-only
vessels.
As the transition to a net-zero economy will take commitment and behavioral
change from companies, suppliers and consumers alike, it’s clear that there’s a
role for everyone to be a net-zero hero.
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Sustainable Brands Staff
Published Jun 9, 2023 8am EDT / 5am PDT / 1pm BST / 2pm CEST