Industry Net Zero Accelerator

Case Studies

A collection of case studies from open sources or consultation calls with our community, aiming at accelerating the transition towards Net Zero in Industry, following the "No Excuse" Framework.

Success in decarbonization requires building solutions that work well for smaller manufacturers and manufacturers in all global contexts. As a public benefit corporation, Guidewheel provides a plug-and-play, affordable energy and factory operations platform, originally built across Stanford University (USA) and Nairobi, Kenya, and now growing globally quickly. The platform is structured to work within the constraints of industrial sites in more challenging global locations and supports small and medium-sized enterprises along with larger manufacturers. By including its entire cost, including hardware, in a subscription that can pay for itself within operating expenditure (OpEx) budgets, the technology has been made accessible to 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 technology (IT) and operational technology. The clip-on sensors measure the electrical draw of the equipment to track and monitor energy use in real time. The platform can also leverage the Long-Term Evolution standard if broader internet connectivity is unavailable. Guidewheel collaborated with the printing plant of Nation Media Group, the biggest independent media house in East and Central Africa, located in Kenya. Alongside other sustainability efforts for solar energy and waste management, the company wanted to gain real-time visibility on energy across the plant, machines and utilities to realize further energy-saving potential. By focusing on reducing both its peak demand and energy waste from idling machines, the Group is achieving more than $30,000 in annual energy savings, equivalent to 42 tonnes of CO2 per year.
Technology
Guidewheel/Nation Media Group - An inclusive approach to energy efficiency
The electronics manufacturer Foxconn realized that Scope 3 represented 86% of its emissions and that 20% of them came from aluminium and stainless-steel alloy consumption. Understanding that significant improvements could be made from better waste management in its supply chain, Foxconn organized a reverse logistics process with suppliers to collect manufacturing aluminium debris from the company’s sites and 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. The collaboration brought the parties multiple benefits. For Foxconn, material costs were reduced, as were the products’ carbon footprint, allowing an increase in its market share in the electric vehicle and the computer/communication/consumer electronics (3C) industries. For its suppliers, the project guaranteed 100% traceable recycling and achieved 70% carbon emission reductions compared with outsourcing manufacturing. Foxconn’s broader supplier engagement model related to digital empowerment improved energy efficiency, and joint-process R&D allowed it to achieve additional efficiency benefits.
Technology
Foxconn - Compact supply chains to reduce Scope 3 emissions
On its pathway to net zero, ArcelorMittal, an international leader in steel manufacturing, wanted to drastically reduce the waste heat across its manufacturing processes. In France, the French Agency for Ecological Transition (ADEME) estimates that 51 terawatt-hours (TWh) of heat (above 100°C) is wasted in industry, equivalent to 10% of France’s consumption of electricity. Implementing waste heat recovery in industrial installations, however, presents real difficulties, which include the complexity, cost and reliability of recovery solutions. ArcelorMittal forged a partnership with Capgemini and the French government to launch a heat recovery analysis project. The project developed a holistic approach (process, simulation models, AI algorithms and digital applications) to analyse a site industrial context, its operational data, and technical and economic data from solutions suppliers to deliver a report on the technical-economic and ROI performance of heat recovery solutions. The solution allows operations leaders to quickly identify the suitable technical solution for each site, evaluate the ROI, assess the reduction in CO2 emissions and evaluate the recoverable energy that can be reclaimed. The energy savings for ArcelorMittal have been estimated to be 10% per plant, corresponding to 0.67 TWh per year across all French plants. The model developed can be scaled to other process industries that are subject to waste heat.
Mining & Metals
ArcelorMittal/Capgemini - Tackling the waste heat recovery challenge
Flex’s plant in Sorocaba, Brazil developed a holistic ecosystem that uses Fourth Industrial Revolution technologies to transform e-waste and reintroduce repurposed materials into the supply chain. Flex implemented solutions to enable circular economy services and eco-efficient operations throughout Brazil. They included: A cloud-based collaborative reverse logistics system, which enabled multiplayer collaboration and reduced service time and costs A circular materials lab, which provided material input identification to ensure the right quality of output materials Automatic separation equipment for minimum contamination of materialIoT-based collection bins to display the correct time to collect containers filled with e-wasteA digital e-commerce platform, which helped to commercialize excess inventory and bring repaired and refurbished products to marketA digital market platform for waste-enabling industrial symbiosis to increase material volumes and reduce material costs The company also implemented operational CO2-emission dashboards to provide visibility of environmental savings for its customers. Flex’s Sorocaba factory was zero waste certified in 2018, with a 100% diversion rate. The process for remanufactured plastic parts enabled savings of up to 82% on energy usage and a 74% reduction in GHG emissions. These technologies also achieved more than 44,000 tonnes of CO2 -equivalent credits. Over 90% of recovered material goes back into the supply chain (1,300 tons of recycled material used in new products, 11,000 tons of recycled industrial waste and 16,000 tons of post-consumer recycled e-waste), with a raw material (plastic) cost reduction of more than $3.2 million. Additionally, more than 180 direct and 300 indirect green jobs were generated.
Technology
Flex - Circular economy services driven by Fourth Industrial Revolution technologies
In the context of profound changes in the automotive industry and an evolution towards the decarbonization of cars and mobility-as-a-service, the French automotive OEM Renault set a strategy to become a “circular mobility” provider and developed new preservation mechanisms to reduce exposure to scarcity for fleet electrification. Renault reimagined an entire plant in Flins, France, and created the Refactory – an 11,000 m2 plant dedicated to its vehicle revalorization business models. The Refactory is Europe’s first circular economy factory dedicated to mobility. The plant has a four-pole structure: – Retrofit: extend vehicle life by repairing, remanufacturing and retrofitting – Re-energy: extend and optimize battery life and develop hydrogen-based mobility solutions – Recycle: valorize spare parts through remanufacturing of vehicle parts, material recycling and battery repairing – Restart: invest in systemic collaboration for innovation by establishing centres for process innovation, 3D printing and retrofitting, and creating an ecosystem with start-ups, academics and industrial partners.By the end of 2021, the plant already had 700 employees, reconditioned over 1,500 vehicles and repaired 2,000 batteries. The plant will dismantle an average of 10,000 vehicles annually, recondition 45,000 vehicles per year by 2023 and repair 20,000 electrical batteries per year by 2030.
Automotive
Renault - A new “plant of the future” for circular economy business models
SABIC, a global leader in diversified chemicals, set targets to reduce its GHG intensity by 25% and material loss intensity by 50% by 2025 from its 2010 baseline. In its industrial plants, CO2 forms as an inevitable by-product of the ethylene glycol process. Rather than viewing carbon emissions as purely a challenge, the company identified an opportunity to create greater value by valorizing emissions into commercial products. The company built a mega carbon capture and utilization plant that opened in 2015 at United, a SABIC affiliate. The plant 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 Arabian manufacturing facilities, the plant purifies the collected CO2 and sends it to other SABIC manufacturing affiliates to convert it into feedstock for valuable industrial applications: urea, a key agrinutrient that enables more plentiful harvests; methanol, a building block use daily for many other materials; and liquefied CO2 , used widely in the food and beverage industry. This project exemplifies the Saudi government’s drive to turn carbon emissions into sources of value by using the nation’s vast hydrocarbon resources wisely and developing a “circular carbon economy”.
Chemicals
SABIC - Turning CO2 emissions into value
As much as 90% of “cradle-to-gate” emissions originate in the supply chain, but upstream transparency is limited. Calculating product carbon footprints (PCF) with existing tools requires great effort, starting with gathering trustworthy and accurate data across supply chain partners. Estainium is an open and non-profit association that precisely aims to resolve that challenge. Its mission is to drive industrial decarbonization holistically in a precompetitive, cross-industrial and cross-functional ecosystem that includes academia, small and medium-sized enterprises and large corporations alike. It builds on the technology of decentralized trust to avoid high cost, maintain data sovereignty and enable quick expansion 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 infrastructure for PCF and broader environmental, social and governance data sharing. It also aims to achieve interoperability between different PCF standards and reporting schemes and to develop a digital approach to connect carbon sink providers with manufacturers. Certifiers are included in the ecosystem as trust anchors to make PCF verifiable. The association’s work is initially performed in three working groups that address the most pressing challenges: 1) Technology and Infrastructure; 2) Standards and Norms Compatibility; and 3) Carbon Capture, Use, Storage and Compensation. That unique constellation enables Estainium to develop practical solutions to overcome current and future challenges, for all stakeholders.
Other
Estainium Association - Tackling the challenge of value chain product carbon footprint
As an international miner and manufacturer of manganese, titanium, ferronickel and lithium, Eramet is at the forefront of industry decarbonization by providing the raw materials necessary for the energy transition. By developing low-carbon activities and implementing measures to decrease its emissions, the group reduced its Scope 1 and 2 carbon intensity by 39% compared to 2018 and has now decided 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 2019 levels) and achieve carbon neutrality by 2050. Beyond energy efficiency and the use of decarbonized energy sources, the company has set a priority to use bioreductants in manganese alloy production to replace fossil carbon – with the challenge to access sustainably managed bioreducers compatible with its process constraints – and the development of CCS where cost remains an obstacle. To overcome the technological and cost barriers of both solutions, the company established a set of intelligent collaborations on disruptive innovation with other industrial sectors that bring mutual benefits: For CCS, a partnership with Air Liquide is under way for a multi-year contract to build a pilot CO2 capture installation from the combusted gas of two manganese alloy-producing furnaces. Air Liquide brings the technology to firstly concentrate the CO2 up to 60% after adaptation to the process in the pilot, and later reach over 99% in the industrial process by adding a cryogenic step. In the industrial installation, the liquefied CO2 will be sent to storage in a profound geological layer. – For bioreductants, the company needed to establish the knowledge to allow production of biocarbons with characteristics suited to production of manganese alloys in its current industrial furnaces. Eramet carried out R&D in cooperation with research institutes and academia in Norway and launched a demonstration project in 2021 to test the substitution of fossil fuels by a significant amount of biocarbon in industrial operations. Cooperation with other industrial partners has led to equipment and process pilots, paving the way for demonstration plants (provided funding will be obtained).
Mining & Metals
Eramet - Systemic collaboration for disruptive innovation
Western Digital’s Shanghai manufacturing site engages in R&D, packaging and testing of advanced flash memory products. In the context of growing demand, the company doubled the site’s petabyte (PB) output between 2017 and 2021 while reducing its environmental footprint per PB to achieve corporate objectives. This result was enabled by multiple Fourth Industrial Revolution use cases, such as machine learning to dynamically optimize the performance of the water recycling plant and consumption prediction to detect abnormal energy consumption based on real-time operating data. These measures reduced water consumption by 62% and energy consumption by 51% per PB.
Technology
Western Digital - AI to enhance energy efficiency
Schneider Electric’s Le Vaudreuil site has implemented industrial internet of things sensors connected to digital platforms, including real-time digital twins of plant installations, such as 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 to be net-zero carbon by 2025, without offset and ahead of Schneider Electric’s global pledge. The smart factory is also equipped with a zero-reject water recycling station connected to cloud analytics and monitored by an AI model to forecast process drifts, leading to 64% water reduction.
Technology
Schneider Electric - Real-time digital twin for sustainability
To address sustainability challenges, Siemens Electronics Works Amberg, which the World Economic Forum recognized as a digital lighthouse, elaborated a specific framework that allows for breaking down corporate sustainability targets. This holistic view, referred to as the 5Ps of sustainability, considers the public ecosystem, plant infrastructure, people and culture, process and the product within the supply chain. This framework supports the commitment to achieve net zero by 2030, and even goes beyond that. Action taken on the five levels are as follows: Public ecosystem: Public transportation is balanced with production shift schedules to support commuting, and public awareness for sustainability is supported by public presentations. Plant infrastructure: Siemens implemented a holistic energy management system via a digital twin of the factory. The factory runs with green electricity, and all new buildings are certified by the Leadership in Energy and Environmental Design rating system. Digital dashboards were set up to monitor energy consumption, GHG emissions, waste and water. 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. Process: At the factory level, digitalization supported greater energy efficiency through AI models to optimize such areas as production, inventory, waste and testing efforts. The energy management software CO2 cockpit helps to monitor energy consumption and matches this data with the production data to calculate the CO2 emissions per product. A digital name plate system helps to connect a product to its online representation, such as technical data, certificates and manuals. This saves tons of paper and plastic that enclose the final packaging, and the system serves to prepare future circularity models. Product: Siemens developed a blockchain-based dynamic PCF management tool for secure and trustworthy end-to-end PCF requesting, aggregating and sharing along the supply chain. This supports Siemens as well as the industry in managing the PCF and in decarbonizing. Thanks to those transformations, direct energy consumption was reduced by 5% (43% per volume produced), GHG emissions were reduced by 58% (77% per volume produced) and total material waste was reduced by 6% (43% per volume produced).
Technology
Siemens - Driving decarbonization through holistic digital transformation
In 2007, Procter & Gamble (P&G) set its first goal to reduce GHG emissions from its manufacturing facilities. The company has expanded and accelerated these efforts to address GHG emissions across the life cycle of its products and operations.In 2021, P&G set a new ambition to achieve net-zero GHG emissions across its supply chain and operations, from raw materials to retailer distribution, by 2040, as well as interim 2030 goals to make meaningful progress in this decade. The company’s conviction was that “the task ahead is urgent, difficult, and much bigger than P&G alone, but we’re ready to take on the challenge”. P&G decided to not only focus on reducing its footprint but also to leverage its scale to foster unprecedented collaboration across its value chain. 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 accelerate the development of supply chain decarbonization solutions that are global, scalable and modular. By leveraging a culture of total employee involvement combined with the P&G Integrated Working System, which focused on eliminating losses and investing in technology to upgrade the company’s processes, P&G has achieved a 56% reduction in Scope 1 and 2 GHG emissions, exceeding its SBTi-validated goal of 50% reduction versus the 2010 baseline. Understanding the power of collective collaboration, the company extended the It’s our Home campaign from consumers to employees and external partners. P&G’s internal It’s our Home Sustainability Awards programme recognizes individuals, businesses and regions who are leading work to deliver the company’s Ambition 2030 sustainability goals and reinforces the integration of sustainability as running through, rather than just attached to, the business. 
Food & Retail
Procter & Gamble - The net-zero journey and the imperative of corporate organizational culture and operational framework
Capgemini, a French multinational information technology services and consulting company, set long-term net zero target is to achieve a 90% reduction in all carbon emissions across scopes 1, 2 and 3 by 2040 compared to 2019.To maximize energy efficiency, the group has recently launched an Energy Command Center (ECC). It uses IoT, digital technologies and applications to manage energy performance across its campuses in India, which account for about a quarter of the Group’s energy footprint. The central Command Centre controls and monitors the Building Management Systems located at various Capgemini campuses all over India. It collects data, performs alarm analysis, schedules equipment operations and provides interface to other services such as ventilation, electrical, fire and other miscellaneous alarm monitoring. A Power Monitoring Expert monitors the building energy consumption, enabling facilities teams in power-critical facilities to monitor, control, and troubleshoot issues in real-time. It also analyses energy performance with the ISO50001 program support. A cloud-based platform was also used to remotely control the 9.5MWh in-house solar plant installation.The overall implementation allowed to reduce energy usage by 20% since its launch in March 2022.
Energy Technologies
Capgemini - A multi-site Energy Command Center to step-up in energy efficiency
IKEA’s overarching 2030 goal is to reduce absolute GHG emissions by at least 15% compared to the baseline of 2016. The climate footprint from IKEA retail and other operations is 2.3% of the total IKEA value chain footprint. The Goal for 2030: To reduce the greenhouse gas emissions from customer travel and home deliveries by 50% in relative terms (per store customer) compared to FY16. The IKEA climate footprint in FY21 is estimated to be 26.2 million tonnes CO2 eq, a decrease of 5.8% in absolute terms compared to the baseline FY16, but an increase of 5.7% compared to FY20. In FY21, IKEA achieved 100% biofuels use for all domestic deliveries and carriage movements in the United Arab Emirates, a transition that began in 2018. The biofuel is produced from used cooking oil collected in the local market. By using 100% biofuel, IKEA reduced its climate footprint for those transports by 84% compared to fossil diesel, or 280 tonnes of CO2 eq. Similarly, in the Netherlands, IKEA service provider switched to 100% biofuel made from waste and residue. This resulted in a 90% reduction in the climate footprint of diesel, reducing it by 2,900 tonnes of CO2 eq. IKEA moved 70% of the transport volumes between Lithuania and Sweden to liquified biogas (LBG). This setup will save about 644 tonnes of CO2 eq. IKEA is committed to becoming a circular business by 2030. Apart from being key milestones, these developments also show how replacing fossil-based fuels are often local solutions based on the availability of biofuels and the infrastructure.Another way IKEA improved the efficiency of the logistics network was by transporting larger volumes with each transport, reducing the number of trucks needed. That’s why IKEA increased the number of bigger trucks they use in Europe and Asia, as well as moving from standard trailers to solutions with higher capacities. By transporting higher volumes with each transport, the GHG emissions are reduced as fewer trucks are needed. IKEA is also continually optimising their network to find the shortest distances and most efficient routes to reduce the climate footprint. In FY21, the climate footprint for product transport decreased in absolute terms by 2.8% compared to the baseline year FY17.
Retail
Ikea - Decarbonise transport through localized biofuels deployment
Bosch, a tier-1 automotive manufacturer wanted to maximize energy efficiency and low-carbon sources in its manufacturing sites through a triple approach: energy efficiency, green electricity, and in-house green power.By 2030, Bosch wants to substantially increase energy efficiency and operationalize measures in sites with savings potential totaling 1.7 terawatthours (TWh). An annual budget of 100 million euros has been set for this purpose until 2030. Since 2019, they have initiated more than 3,000 projects worldwide allowing so far to capture savings potential of 559 GWh through energy efficiency measures. The different measures are evaluated for eligibility and prioritized based on an internal CO2 pricing mechanism to ensure the greatest possible leverage with the resources available.Bosch has also strongly focused on the purchase of green electricity from existing plants and has been expanding its purchase volume from renewable sources since 2019. In total, green electricity already covers 89 percent of the Bosch Group’s global electricity requirements in 2021, with the aim to reach 100 percent by 2030. To prioritise action, efforts initially centered on countries where Bosch consumes a particularly large amount of energy, and gradually expended across other countries.Beyond energy efficiency and green electricity purchase, Bosch aims to drive renewable energy generation – both through inhouse generation at its company locations and through long-term supply contracts. To this end, the company aims to generate 400 GWh of its annual energy requirements in-house at the company locations from renewable sources by 2030 (already reaching 23% of the target in 2021). Bosch relies primarily on photovoltaics, focusing on the regions where local conditions are favorable for their use (India, China, Germany). In parallel, the company entered into long-term supply agreements with energy suppliers in Germany, India, and the Netherlands in 2021, to enable the construction of new renewable energy plants which would provide subsidy-free solar and wind power electricity.
Automotive
Bosch - Reducing scope 2 emissions through a triple approach: energy efficiency, green electricity and in-house green power generation
To meet its Net Zero goals Henkel, a chemicals and consumer goods manufacturer placed a strong emphasis on reducing and eliminating packing material and reducing production waste. The company explored the possibilities to use fewer and more environmentally friendly materials for packaging by employing intelligent design principles. It allowed to virgin material with recycled or renewable alternatives such as bio-based plastics and recycled paper.To help achieve those goals, a software tool that assesses the recyclability of new packaging from the product development phase was created in 2020, resulting in 86% of the packaging being recyclable or reusable at the end of 2021. Henkel also created a tight loop along the value chains, providing the option of reusing or refilling the packaging, which was supported by new product forms. In 2021, Henkel’s products could be refilled across 48 refill stations all over Germany. New adhesive technologies enabled labels to be removed without leaving any residue, which increases the packaging's recycling potential.By the end of 2021, Henkel had reduced its waste by 42% and had eliminated landfill waste from 78% of its sites. “To continue promoting the circular economy in our business operations, we are focusing on reducing production waste and increasing recycling at our sites, as well as on innovative, intelligent and sustainable packaging concepts.”Bruno Piacenza, Executive Vice President Laundry & Home Care, Henkel.
Chemicals
Henkel - Sustainable and circular packaging
Scania is a world-leading provider of heavy transport solutions – including trucks and buses and associated services such as maintenance, data solutions, and rental. Its current science-based target is short term: to achieve a 20 per cent reduction in use-phase emissions by 2025 (from a 2015 baseline). At the same time, the company is also developing a roadmap to Net Zero by 2040.Compared with other barriers, Scania views its technological pathway to decarbonisation as relatively low risk. The company already provides off-the-shelf battery electric trucks capable of carrying 14-15 tonnes over short distances. By next year, its trucks will be able to carry 40 tonnes for 4 hours. By 2024, 60-tonne trucks will be capable of long distances with only 45 minutes of recharging time. In Scania’s words: technologically, “everything is going according to plan”.The installation of infrastructure to support these technologies, however, remains a major challenge.Scania has led the call for increased speed, estimating—for example—that high-capacity charging stations in Europe need to be installed at ten times the current rate. Scania, MAN, Volvo, and Daimler Truck have set up a joint venture to accelerate this process, collectively investing 500 million euros to install 1700 High Performance Charging Points across Europe. Representing just a fraction of what is needed to decarbonise the sector, this joint venture nevertheless showcases what is possible when competitive organisations rise above individual objectives to drive sector-wide transformation. “To find the best solutions for the climate challenge is our most urgent priority as an industry […]. When we talk to customers about electric trucks, they always ask: where can we charge? To support as fast as possible, we are teaming up on kick-starting the European charging network.” Christian Levin, CEO and President for Scania and TRATON GROUP
Automotive
Scania - Transport electrification and collaboration for EV Infrastructure
In 2021, Holcim became the first cement company to sign the business ambition for 1.5°C with its 2030 target validated by SBTi. Recognising the need for action, Holcim collaborated with the SBTi to develop industry guidance for targeting 1.5°C. As co-chair of the Global Cement and Concrete Association 2050 vision work group, Magali Anderson, Chief Sustainability & Innovation Officer facilitated the creation of the first industry-wide, CEO-led roadmap to net zero concrete for the cement sector, representing 80 %of global cement production outside of China. Alongside work to reduce scope 1 and 2 emissions by 25 per cent through traditional levers like replacing fossil fuels that are used to heat up the kiln by wastes – the company focused a large part of its R&D and innovation efforts to solve the technical challenges of cement decarbonisation.It is during the production of clinker – the primary component of cement - when most CO2 emissions associated with cement occur, accounting for 65% of total scope 1 emissions. The first lever is to use of alternative sources of decarbonated materials – waste materials and by-products from other industries- in the reaction to replace some of the limestone and further reduce the chemical reaction’s CO2 emissions. Another lever is to reduce the amount of clincker content in the cement with alternative mineral components. This can be achieved not only from recycling construction and demolition waste or byproducts from other industries but also by investing in calcined clay facilities and developing novel cements with new binders.In addition to activities to reduce carbon intensity of the cement, net-zero carbon cement will globally require effective Carbon Capture and Usage or Storage (CCUS). Holcim is currently piloting over twenty CCUS projects across Europe and North America over the next 10 years to reach the scalable and cost-effective solutions the industry needs to meet the net zero ambition. “We need 10 years to make [Carbon Capture and Storage] work. The problem is, we don’t yet know how will work at scale, so we are trialing many [at once] to learn as fast as we can.” Magali Anderson, Chief Sustainability & Innovation Officer at Holcim
Engineering & Construction
Holcim - Driving new innovations for the cement sector, both internally and externally
Together with Capgemini Invent, the BMW Group drives forward an innovative change, communication, and enablement program that targets more than 1200 purchasers and suppliers to speed up the transformation for sustainable supply chains.By introducing a new BMW Group sustainability strategy and reacting to legal requirements regarding sustainability in supply chains, stakeholders from the purchasing department and suppliers faced new challenges and changes in their daily work.This strategy provides an answer to the radical transformation of the entire automotive industry in terms of sustainability. Three main influences require automotive manufacturers to focus on sustainability:Regulators are imposing measures to reduce the environmentally and socially harmful impact of vehicles and their production, such as the German Supply Chain Act (LkSG).Public interest about sustainability and sustainable consumption is growing. Thus, demands for electric vehicles are rising. By 2030, experts predict that the industry will see 23 million electrical vehicle units (excluding two/three wheelers) sold around the world per year and 130 million such models on the road.Investors are pushing for sustainability and climate change as investment criteria to evaluate target companies.With an agile change approach, tailor-made communication, and interactive enablement program, more than 1,200 stakeholders from the purchasing department and direct suppliers were enabled to improve sustainability in the supply chain. The heart of the enablement concept consisted of target group-specific, modular learning journeys based on innovative, web-based, and interactive trainings that suited purchasers’ and suppliers’ needs and were available on demand. Furthermore, the learning journeys included community, trainer-led, and group coaching sessions.This led to multiple positive impact, including greater acceptance, enthusiasm, and support for sustainability goals, improved understanding and integration of new regulations and widespread integration of sustainable thinking.
Automotive
BMW - Driving Scope 3 decarbonisation through a global Purchasing and Supplier engagement programme
Downstream transportation is one of the main sources of scope 3 emission of Holcim, one of the world’s largest cement manufacturers. On its net zero journey the company aims to reduce its scope 3 emissions related to transportation and fuels by 20% in 2030 compared to the 2020 baseline of 29 million tons/CO2. Holcim developed a Transport Analytics Centre enabling to identify possible improvements in productivity, communication and safety using data transportation.The company focused on optimizing the transport network and reducing the intrinsic emissions of the vehicles. A Network Optimization Modelling Tool has been deployed to identify optimized transport network by using waterways and rails instead of road. In parallel, route optimizer tools have been deployed supporting the operational decisions to reduce the distances travelled as well as the fuel used on road. The center also integrates in-vehicle monitoring systems into trucks and correlates data with other sources, such as ordering and dispatching systems. This enables the company to individually track and monitor truck utilization, routes and driver behavior, leading to improved efficiency, safety and sustainability.To reduce the vehicle emissions based on the data obtained, the company partnered with suppliers that propose electric trucks or trucks using natural gas (LNG/CNG). The company also started to train their own and third parties’ drivers to drive safely and efficiently, hence helping to reduce fuel consumption by 3% to 6%. In addition, the fuel is purchased in local markets and transported using environmentally friendly inbound means. 
Engineering & Construction
Holcim - Transport Analytics Center

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