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WEF | 3 ways CEOs can take sustainability programmes to the next level
07.12.2022

3 ways CEOs can take sustainability programmes to the next level

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  • The link between digital transformation and sustainability is often overlooked.

  • Digitalization can accelerate the path to a greener economy and society.

  • CEOs can make sustainability programmes even more effective.

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We are entering a post-greenwashing era with the necessary shift from talking and measuring to acting for serious impact. In response, many firms have established sustainability programmes and partnerships to address social and environmental issues.

At the same time, digital technology has matured to the point where it can serve as a force multiplier for social impact. Yet the opportunity to make corporate sustainability initiatives even more effective through the use of technology is too often overlooked.

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Many executives still view sustainability and technology as separate priorities and even opposing goals. The opposite is true, as the interplay between digitalization and sustainability opens up brilliant opportunities to create a greener economy and society.

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In fact, sustainability transformation could even become the biggest use case for digitalization and at the same time, digital transformation will radically alter all dimensions of global societies and economies and will therefore change the interpretation of the sustainability paradigm itself.

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Digital technologies can help deliver the Sustainable Development Goals

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  • Smart data for accurate sustainability progress: By acquiring data from diverse and disparate sources, transforming them towards consistent data taxonomies, and using advanced analytics capabilities, digital helps to set clear standards and measure sustainability progress. Marubeni, a diversified Japanese trading company, established in its IT and logistics division an overarching data acquisition, cleansing, and harmonization process, and gained a single source of truth for its complete environmental footprint in the form of a proof of concept. This included Scope 1 and 2 emissions, energy, water, waste, hazardous materials, etc. across 12 industries with 310 subsidiaries in 66 countries.

  • Blockchain enabled circularity: Turning the circular economy promise into reality requires closing and improving the loop and capturing value from the loop for all stakeholders. On a digital level, this requires sharing and tracking product information across distributed systems and ledgers with dispersed stakeholders. Indian aluminum producer Novelis recycles production scrap and materials returned by consumers, significantly reducing raw material consumption and carbon emissions. Smart contracts enable transactions along the supply chain between all actors,e.g. on CO2/t, without sharing sensitive and proprietary information on material composition. This strengthens customer confidence in the origin and authenticity of products and ensures compliance with regulations.

  • Digital twin for supply chain modelling: To achieve transparency and traceability of resources and products along the supply chain, digital twins – digital equivalents of the physical end-to-end value chain network – play a central role. Technically, this requires a shift toward integrated planning approaches, often supported by artificial intelligence. Such an “inside-out” modelling [modelling with ll] process often begins with Scope 1 and 2 emissions, environmental footprint. In a next step, a digital twin can enable the ability to explore production and transport processes to a high level of detail and allocate emission measurements to specific product carbon footprints. With this goal in mind, Japan’s JFE Steel has established tracking and management of the product carbon footprint using primary data from the steel-making process in form of an R&D initiative. In total, JFE plans to invest $7.2 billion in low-carbon technologies to meet its 2030 target of reducing CO2 emissions by 30%.

  • Green computing: Companies must also be aware of the environmental aspects associated with the increased use of technology, e.g. an increase in energy demand. For example, this needs to be mitigated through green data centres, green cloud technology services, and the reuse of technology components. On the last point, Google recycles and reuses its data centre system components at the end of their lifecycle. A digital twin and decision intelligence allows it to forecast and schedule the reverse flow of materials back into the supply network. Google’s refurbishment rate is about 23%, while the number of resold components has increased significantly.

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Three CEO opportunities for next-level sustainability

Digitalization, used responsibly, can significantly accelerate the path to true sustainability. These three often overlooked levers can help make today’s sustainability programmes even more effective.

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1. Rethink business model logic

There is no doubt that the CEO plays a central role in influencing and steering the integration of sustainability into the corporate strategy and the firm’s value creation system. With this in mind, it’s surprising that only 33% of employees said that their company’s top leadership leads by example. Employees want leaders who don’t just take a stand. Driving sustainability from the boardroom requires moving from commitment to action. If leaders can’t change, the organization cannot either.

The CEO’s natural role is to rethink the company’s business models and find new ways of creating, delivering, and capturing value. However, many incumbents are still relying on yesterday’s business model logic. The first assumption to be challenged is that sustainability comes at a cost. Following the traditional logic “I do my business, I have revenue, I have costs, I make a profit, and then after I make my profit, I decide how much of my profit to give to good causes” is no longer good enough. It means I am charitable if I spend some of my profit on something good. And if I am under pressure with my profits, there is nothing to do good with.

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CEOs can take sustainability programmes to the next level

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Sustainable business models:

1. Definition of sustainability: Sustainability refers to the ability of an organization to operate in a way that minimizes its negative impact on the environment, while also meeting the needs of the present and future generations.

2. Business case for sustainability: There is a growing business case for sustainability, as consumers and investors increasingly demand environmentally and socially responsible products and services.

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Global warming is a serious threat to the planet, and small and medium-sized enterprises (SMEs) can play a vital role in adapting to the ecological transition.

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Here are a few things that SMEs can do to immediately adapt to the ecological transition:

• Reduce their energy consumption. SMEs can save money and reduce their environmental impact by making energy-efficient choices, such as installing LED lights, upgrading to energy-efficient appliances, and weatherizing their buildings.

• Switch to renewable energy. SMEs can offset their energy consumption by investing in renewable energy sources, such as solar panels or wind turbines.

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By taking these steps, SMEs can help to reduce their environmental impact and build a more sustainable future.

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Here are some additional tips for SMEs that are looking to adapt to the ecological transition:

• Get informed. The first step is to get informed about the ecological transition and the specific challenges and opportunities that it presents for your business. There are a number of resources available to help you do this, including government websites, industry associations, and sustainability consultants.

• Set goals. Once you have a good understanding of the ecological transition, you need to set goals for your business. This could involve reducing your energy consumption, switching to renewable energy, or reducing your waste production.

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• Create a plan. Once you have set goals, you need to create a plan for how you are going to achieve them. This plan should include specific actions that you will take, as well as a timeline for implementation.

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By taking steps to adapt to the ecological transition, SMEs can build a more sustainable future for themselves and their communities.

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Download the Tutorial

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1. Definition of sustainability: Sustainability refers to the ability of an organization to operate in a way that minimizes its negative impact on the environment, while also meeting the needs of the present and future generations.

2. Business case for sustainability: There is a growing business case for sustainability, as consumers and investors increasingly demand environmentally and socially responsible products and services.

3. Triple bottom line: The triple bottom line is a framework that considers the social, environmental, and financial impacts of an organization’s activities. A sustainable business model should strive to create value across all three dimensions.

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6. Sustainable supply chains: A sustainable supply chain involves ensuring that all suppliers and partners in the supply chain operate in a socially and environmentally responsible manner. This can involve implementing sustainable sourcing policies, reducing waste and emissions in transportation and logistics, and ensuring fair labor practices.

7. Reporting and transparency: Sustainable businesses should be transparent about their sustainability practices and report on their environmental and social impacts. This can involve publishing sustainability reports, participating in sustainability certifications and standards, and engaging with stakeholders to gather feedback.

8. Sustainable finance: Sustainable finance involves integrating environmental, social, and governance (ESG) factors into investment decisions. Sustainable finance can be used to drive positive environmental and social outcomes, while also generating financial returns.

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Decentralized Web3 technologies could improve coordination around tackling climate change because they use local knowledge and actors to guide policies and put funding where it’s needed.

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Climate change is a global coordination problem.

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You will need to have Metamask to pay with PGF7T token.

.

We have chosen to adopt blockchain technology for the launch of 2 innovative decentralized Dapps.

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We believe in Web3 and in the strength of communities.

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.

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The token is on the Ethereum smart contract 0x9fadea1aff842d407893e21dbd0e2017b4c287b6 ,

and the code is public at https://etherscan.io/address/0x9fadea1aff842d407893e21dbd0e2017b4c287b6#code

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QuickSwap smart contract:

0xdd0fDc648a9dbC9be5A735FE4561893a13399Da2

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🔴 It is possible to buy and sell PGF7T tokens on Uniswap and QuickSwap Exchanges.

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PGF7T token will be listed on other Exchanges soon.

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Price:  PGF7T

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SMEs and Net Zero

Build your green strategy

Calculate your CO2 emissions

Plan an action plan to reach Net Zero

Publish your data on the blockchain

With pgf500 you’ll be able to understand the impact of your business on the environment and take steps to reduce it.

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Net zero refers to the state in which an entity’s greenhouse gas (GHG) emissions are balanced out by the amount of GHG that is removed from the atmosphere. This can be achieved by reducing emissions as much as possible and then offsetting the remaining emissions by removing or sequestering an equivalent amount of GHG from the atmosphere through measures such as reforestation or carbon capture technology.

To become sustainable, companies can take various actions, including:

Adopting renewable energy: By switching to renewable energy sources such as solar, wind, or geothermal, companies can significantly reduce their carbon footprint. Improving energy efficiency: Implementing energy-efficient technologies and practices can reduce energy consumption and associated GHG emissions.

Investing in green infrastructure: Companies can invest in sustainable infrastructure such as green buildings, sustainable transportation, and waste reduction programs.

Reducing waste: By reducing waste and promoting a circular economy, companies can minimize their environmental impact.

Engaging in sustainable sourcing: Companies can source raw materials and products from sustainable sources and promote sustainable practices throughout their supply chain.

Setting emission reduction targets: By setting ambitious emission reduction targets and regularly reporting progress, companies can demonstrate their commitment to sustainability and inspire others to take action.

Engaging stakeholders: Companies can engage with customers, employees, and other stakeholders to raise awareness about sustainability and promote sustainable practices.

Overall, becoming sustainable requires a long-term commitment and a willingness to invest in sustainable practices and technologies. However, the benefits of sustainability, including cost savings, reputation enhancement, and reduced environmental impact, make it a worthwhile pursuit for companies of all sizes and industries.

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