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Business Council for Sustainable Development Australia
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Stay updated with the latest from the Business Council for Sustainable Development Australia (BCSDA) and our network partners. Today, we explore the transformative potential of Heat-as-a-Service (HaaS) in decarbonising industrial heat, as highlighted by WBCSD. We also delve into Europe's renewable energy surge, with over 50% of electricity generated from renewable sources in the first half of 2024, offering lessons for Australia's sustainability efforts. Additionally, the third session of WBCSD’s #ClimateTransitionRoadmaps Masterclass series with Boston Consulting Group (BCG) provided insights into climate-based strategic planning. Meanwhile, the Two Lakes Dialogue in Wuhan, China, underscored the power of radical collaboration in addressing global challenges across various industries. Stay tuned for more updates on these pivotal topics.
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Decarbonising industrial heat is vital for achieving net-zero targets. In sectors like food and beverage, pulp and paper, and chemicals, heat generation is a major source of emissions.
Our Partner, the WBCSD – World Business Council for Sustainable Development (WBCSD) has highlighted the transformative potential of Heat-as-a-Service (HaaS) in its latest insights.
Why HaaS?
HaaS is a model where industrial companies outsource their heating needs to Energy Service Companies (ESCOs). The ESCOs finance, build, and operate renewable heat generation assets, selling the heat back to the companies.
This arrangement helps companies:
- Reduce Emissions: By switching from fossil fuels to renewable heat, companies can significantly cut their carbon footprint.
- Lower Costs: Access renewable heat without substantial upfront investments, focusing resources on core business operations.
- Benefit from Expertise: Leverage ESCOs' specialised knowledge in renewable heating technologies.
Key Learnings from Early Projects
- Choosing the Right Partner: A successful HaaS project depends on a committed and financially stable ESCO partner. Engaging early and building a strong relationship is crucial.
- Long-Term Energy Strategy: Companies need a mature energy procurement strategy to forecast heat demand and optimize costs. HaaS contracts, like power purchase agreements, offer price stability over long durations.
- Leveraging Subsidies: Securing subsidies can make renewable heating solutions more financially viable. ESCOs often assist in acquiring these subsidies, reducing investment costs.
In a remarkable stride towards a sustainable future, it is being reported by Eurelectric that renewable energy sources have powered over 50% of Europe's electricity generation in the first half of 2024.
Alongside a stable 24% contribution from nuclear energy, this means 74% of the EU's electricity now comes from renewable and low-carbon sources, marking a significant increase from 68% in 2023. Despite these impressive achievements, the EU faces a 4.8% decline in electricity demand, highlighting the need for robust policy support to boost electrification and maintain momentum towards net-zero goals.
Calls are being made by Europe's energy sector, urging the European Commission to adopt an Electrification Action Plan and set a 35% electrification target for 2030. This includes enhancing supply chains for low-carbon technologies, expanding grid infrastructure, and updating power market regulations to align with environmental goals.
Challenges and Recommendations:
- Net-Zero Goals: The EU is off track to achieve a net-zero energy system by 2050.
-Solar Capacity: The aim is to increase solar capacity from 209GW in 2022 to 600GW by 2030.
- Infrastructure and Policy: Recommendations include improving supply chains, expanding grid infrastructure, and updating power market regulations.
🌿 Dive into the world of climate-based strategic planning! From scenarios to sensitivity analysis, discover how to identify risks, seize opportunities, and align portfolios with climate goals.
In the third session of WBCSD – World Business Council for Sustainable Development 's #ClimateTransitionRoadmaps Masterclass series in collaboration with Boston Consulting Group (BCG), they explored climate-based strategic planning, providing insights on integrating climate considerations into business operations, from understanding scenarios to prioritising actions for resilience, innovation, and sustainable growth. Check out the key takeaways here: https://lnkd.in/eVw7tDPH
Here's an insight into what they delved into:
✅ Developing scenario analysis to inform strategic and financial planning processes
✅ Exploring sensitivity analysis to navigate uncertainty and build resilience
✅ Developing a climate-aligned roadmap and strategy
The Two Lakes Dialogue brought together business leaders, innovators, and visionaries committed to advancing business solutions across value chains. Hosted in the vibrant city of Wuhan the WBCSD event underscored the power of radical collaboration and innovation in addressing global challenges.
Remarkable insights were shared around international cooperation in the green transport and new energy vehicle industry, clean energy industry, sustainable agriculture, carbon markets and finance, carbon accounting and carbon footprint, and carbon emission reduction & industrial decarbonisation.
Key highlights include:
In a rapidly evolving health landscape, driven by the long-term impacts of the COVID-19 pandemic and emerging health trends, the latest report from the Australian Institute of Health and Welfare (AIHW) sheds light on critical shifts.
Here are some key takeaways:
- Decline in Life Expectancy: The report indicates a slight decline in life expectancy between 2019-21 and 2020-22 by 0.1 years due to COVID-19. The current life expectancy stands at 85 years for females and 81 years for males. This decline, though minimal, highlights the significant impact of the pandemic on public health.
- Rise in Chronic Conditions: Chronic conditions now account for 90% of all deaths in Australia in 2022. Dementia, in particular, has emerged as a leading cause of death, responsible for 9% of all fatalities. This trend underscores the urgent need for enhanced healthcare strategies and preventive measures.
- Surge in Vaping Among Young Adults: Daily e-cigarette use among Australians aged 18 to 24 has surged by 481% over the past decade. While smoking rates in this demographic have fallen, the substitution effect between vaping and smoking remains unclear. This dramatic increase calls for stricter regulations and more comprehensive public health campaigns to address potential health risks.
- Mental Health Concerns: Mental health issues are on the rise, with more individuals seeking help. Economic disadvantage is strongly correlated with higher rates of mental health conditions, highlighting the need for targeted interventions and support for vulnerable populations.
Relevant SDGs and Policy Implications
- SDG 3: Good Health and Well-Being; Target 3.4: Reduce by one-third premature mortality from non-communicable diseases through prevention and treatment.
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- SDG 10: Reduced Inequalities: Target 10.2: Empower and promote the social, economic, and political inclusion of all.
- SDG 12: Responsible Consumption and Production: Target 12.4: Achieve the environmentally sound management of chemical
The Agri-food sector is crucial to feeding the world’s population and supporting the livelihoods of 2.5 billion people.
Whilst the sector cannot function or survive without biodiversity and healthy ecosystems, the system also poses a significant threat to #Nature. Companies in the agri-food system should direct their efforts towards addressing the most significant impacts on nature in their operations and value chains, namely:
🌎 Freshwater use.
🌎 Land and water use change and degradation.
🌎 Pollution.
🌎 Greenhouse gas emissions.
To support this transition, with the support of WBCSD – World Business Council for Sustainable Development, the World Economic Forum and Accenture, Business for Nature has produced clear sector-specific guidance that businesses should take now to ensure the Agri-food plays its role in halting and reversing nature loss by 2030.
The climate and biodiversity crises are, in practice, two sides of the same coin. However, nature and biological diversity have not been high on the agenda in international climate cooperation.
In a recent article for Energi og Klima, Lars Ursin spoke to Anne Larigauderie, the head of the International Nature Panel, on how we can take into account both the needs of the climate and the needs of our nature, namely through:
🌍 Having processes where we involve all different stakeholders, and listen to what they say about the values they attach to different areas.
🌍 Listening to affected parties, when there are plans to develop an area that really matters to a particular group and there are compelling reasons to preserve it.
🌍 Protecting every day nature, and not only areas that contain vulnerable species.
Whilst financial institutions are stepping up their commitments to reduce carbon emissions and pollution, become #NaturePositive and help achieve Paris Agreement climate target - grappling with emissions remains a global challenge that demands global cooperation.
That’s why China's Institute of Public and Environmental Affairs (IPE) is using Blue Map to track the performances of 16 million companies operating in China.
Using the Dynamic Environmental Performance Assessment (DEPA) tool, millions of corporations are graded using a colour-coded system and visualized on electronic maps, now extended to not only cover the environment and climate change but also:
🌎 Plastic pollution.
🌎 Critical minerals.
🌎 Biodiversity.
Nature underpins every aspect of our society, wellbeing and economy - but nature is in crisis. That’s why 196 countries have committed to halt and reverse nature loss by 2030 by adopting the Global Biodiversity Framework. As part of this, large businesses and financial institutions are required to assess and disclose their impacts and dependencies on nature.
With a credible corporate nature strategy, approved at the most senior level, a business is more likely to:
🌎 Deliver concrete actions to contribute towards halting and reversing biodiversity and nature loss by 2030.
🌎 Meet increasingly stringent regulatory requirements on nature.
‘It’s #NowforNature’ is a joint global campaign to bring together all businesses to act on nature and contribute towards a nature-positive world by 2030.
The Capitals Coalition hosted its annual gathering in Paris, in collaboration with S&P Global Sustainable1. It was a full day dedicated to discussing a new vision of the economy that recognises the interdependencies of nature, people, society, and finance for business performance.
The event also launched their white paper, "Towards A New Economic Paradigm 2.0", where you can dive deep into these concepts.
Semiconductors require huge amounts of water, and extreme weather events are forcing electronics companies to adapt. CDP spoke to United Microelectronics Corporation (UMC) about why investing in a water-secure future is vital to the sustainability of global supply chains.
Through disclosure, companies can access capital, increase efficiency and maintain compliance.
Disclosing actionable data is essential for increasing access to capital, value chain competitiveness, business efficiency, and complying with market and regulatory asks.
With impacts from climate change and nature loss already here, every organisation must be guided by data to understand the risks they face – and act if they are to thrive.
Direct engagement from FIs is a key tool to reinforce the importance of corporate environmental disclosure and what it means to invested stakeholders.
New CDP data studied in partnership with the Accountability Framework initiative (AFi) suggests that a deforestation-free supply chain is possible.
Companies must increase transparency through disclosure so they can manage their impacts and meet incoming regulation.