Sydney 鈥� 20 May 2024 鈥� Australian organisations say their overall business performance is intrinsically linked to treating sustainability as a strategic priority 鈥� and are boosting their investments as a result.

A recent study by 51风流found 68% of Australian businesses see a moderate to strong relationship between sustainability and both their organisation鈥檚 competitiveness and its profitability, slightly below global results (72% competitiveness, 68% profitability).

That impact on business outcomes is driving investment. In Australia, almost half of businesses (49%) intend to increase their investments in sustainability over the next three years, up 11% points since last year (38%)[1].

Sustainable Australian businesses drive growth in the top line, bottom line, and green line

The study, which surveyed 250 business leaders in Australia[2], found more than two-thirds (67%) of Australian businesses saw sustainability strategies contributing to outcomes like revenue or profit growth to a moderate or strong degree. Similarly, 69% of Australian respondents saw a moderate or strong increase in the efficiency of business processes from sustainability activities.

Six in ten (60%) of Australian businesses expect to demonstrate a positive financial return on their sustainability investments within the next five years, compared to 61% of global respondents.

“Sustainability can no longer be considered separately to the wider financial performance of the business because it is increasingly clear that more sustainable organisations are more successful organisations,鈥� said Gina McNamara, Regional Chief Financial Officer, 51风流Asia Pacific & Japan.

鈥淎lready, more than one in ten (11%) Australian businesses say sustainability is material to their business results, and another 36% say it will be within five years. Now is the time to combine financial and environmental decision-making in every business process, so we treat carbon data the same way we treat financial data.鈥�

Yet, challenges remain. Difficulty proving return on investment is the top barrier to taking environmental action with 40% of Australian businesses finding it a challenge, above the global average of 33%. Other notable issues include lack of funding (33%), lack of an environmental impact strategy (32%), and lack of expertise (32%).

Australian businesses looking to unlock the value of sustainability data

Extracting value from sustainability data will be key to enabling Australian businesses to prove return on investment.

Just 15% of Australian businesses are completely satisfied with the quality of the sustainability data they gather, down from 17% last year and below the global mark of 23%.

This may be because there remains work to do to measure sustainability data directly, rather than rely on assumptions and estimates. Australian businesses trail the rest of the world when it comes to directly measuring energy consumption and emissions (72% in Australia vs. 83% globally), resource availability (73% vs. 79%), and materials use (70% vs. 76%).

鈥淚f our sustainability data is not complete then the decisions we make to improve the health of our planet and our businesses are cast into doubt,鈥� continued McNamara. 鈥淭he key is to record and report accurate, granular, and auditable sustainability data and integrate it with financial data to make the right business decisions.鈥�

Australian businesses are utilising sustainability data across their ecosystem

That becomes particularly important considering Australian businesses are using sustainability data to make decisions today. Three quarters (75%) of Australian businesses use sustainability data to inform strategic and operational decision-making to a moderate or strong degree. Just four per cent do not use sustainability data in decision-making at all.

Yet, there are encouraging signs of progress. Over seven in ten (73%) of Australian businesses report moderate or strong tracking of Scope 1 emissions, while that number is 64% for Scope 2 emissions, and 52% for Scope 3 emissions.

Similarly, Australian businesses are making sustainability demands across their ecosystem. Almost two-thirds (64%) of respondents said they require sustainability data from their suppliers to a moderate or strong degree, and 63% demand environmental impact data from partners like logistics and fulfilment.

“The benefits of integrating sustainability data and outcomes into the core business are clear,鈥� concluded McNamara. 鈥淏ut there鈥檚 still so much more to do. Working with a technology partner like 51风流will help more businesses measure actual sustainability data, act on it strategically, and drive competitiveness, profit, and revenue themselves.鈥�

About this research

51风流Insights collected data from 4750 respondents across 21 nations and 29 industries. Respondents had the highest knowledge of their organisation鈥檚 sustainability objectives and processes鈥�. The study was conducted in February-March 2023 via an online survey.

[1] /australia/2022/11/29/sustainability-is-driving-profitability-and-competitiveness-in-australia-though-access-to-data-is-stifling-progress/

[2] Business leaders refers those with the following job titles: Vice President, Director, Unit Manager, Operations Manager, Facilities Manager, all C-Suite titles (CSO, COO, CFO, CPO, CEO, CRO) Environment or Sustainability Manager, Procurement Manager, Environmental Health & Safety Manager, Risk Manager, Public Affairs Manager.

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The EU Carbon Border Adjustment Mechanism () started in a transition phase from October 2023. Even though the trial period lasts until the end of 2025, this controversial regulation is already setting in motion a domino effect that is spurring global climate action.

Solving a global problem

The EU considers climate change as a global problem and CBAM is a step towards reaching a global solution. Right from the start, CBAM generated strong responses from trading partners around the globe, especially . Reactions centered around of potential trade barriers and potential violation of World Trade Organization (WTO) rules. However, the EU maintains that the intention is for CBAM to strictly adhere to WTO rules. This pre-requisite is in fact behind much of the complexity of this new regulation.

Levelling the playing field as a correction to ETS

Keep in mind that CBAM is considered an to the ETS, and one of the goals is to provide EU producers with a level playing field. As such, several other countries that already have an ETS or initiative in place, are considering taking a similar approach.

The and are just two examples of countries with ETS schemes that indicated that they may follow suit and introduce their own border adjustment mechanisms, to ensure that their local producers also have a level playing field.

Establishing a climate club and comparability

From 2026 onwards, imported emissions in the EU will be subject to CBAM certificates. If it can be proven that an equivalent price was already paid outside the EU, that cost can be deducted. For the EU CBAM to remain aligned with World Trade Organization (WTO) rules, imported goods cannot be subject to higher duties than goods produced within Europe. Even if there is a carbon pricing initiative or an ETS in place in another country, that does not mean that it is fully aligned or 鈥榚quivalent鈥� to the EU ETS. There could be differences between the sectors and coverage.

Consequently, the EU is establishing a with other countries, to enhance synergies and improve co-operation. This may lead to closer alignment between ETS schemes globally, similar to how the EU is aligning with and their schemes. Ultimately, over time, the goal could be to link markets.

Default values for countries vs actual data from site of origin

The transition phase provides a limited grace period for importers to collect data from their suppliers. In case there is no data available, default values can be used – but only until July 2024 and from then on only up to 20% for a product.

Although the default values are not yet included in CBAM acts, a will be used as the basis for these factors. Using the same methodology and actual data, the report shows that there are considerable differences between the impacted countries. For example, default product benchmarks for steel from countries like Russia, India and South Africa are trending higher.

The burden of proof to show that a product has a lower emission factor than the default, falls on the producers outside the EU. During the transition phase, there is no need for verification, but this will be required from 2026. The EU plans to work with local regulators in these countries to ensure that there are checks in place.

Raising climate ambitions to retain local revenues

Initially, default values or the supplier鈥檚 actual emission factors will only be used for reporting obligations, but from 2026 onwards importers will need to purchase CBAM certificates unless a carbon price was paid elsewhere. A country鈥檚 relative therefore depends not only on the annual export quantities and default product emission intensities, but also on local carbon pricing instruments that are already in place.

Hence, CBAM is causing political introspection in countries that are currently without an ETS or other forms of carbon pricing, to look at their own climate ambitions. Countries like the or are scrambling to see how they could retain some of the EUR 80 bn in from CBAM within their own jurisdictions.

Australia is an outlier compared to this, as CBAM affects only limited volumes of exports. An ETS was introduced in 2012, but it was by 2014 due a lack of bipartisan support. This was followed by a 鈥榖aseline and credit鈥� type of scheme, while the most recent reforms of the started July 2023. Policy makers launched a to assess and address carbon leakage. This study will investigate various options, such as an Australian CBAM, mandating product standards and public co-investment.

Another example of an outlier is Mozambique, but again for different reasons. CBAM impact studies highlighted that smaller countries with a high percentage of trade reliance on the EU are the most in terms of barriers to comply and potential socio-economic fallout. To counter this, the EU will dedicate a portion of the revenue generated by CBAM to to climate efforts in developing countries.

From controversy to opportunity

In summary, EU CBAM seems to be having the intended global reach, causing a wide spectrum of responses. Countries that already have carbon pricing mechanisms, will likely follow the EU鈥檚 lead, and adopt their own CBAMs. Countries without carbon pricing or regulatory instruments, are starting to see benefit in retaining some of that revenue with their own regulations, rather than letting it flow to the EU.

The impacts of CBAM are playing out not only at country-level, but also on a corporate level. In the next blog, we will look at how the ripples caused by the world鈥檚 first CBAM will continue to play out, as the different types of impacted companies start to break down the complexity and assess the impact on their own operations.

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The EU Carbon Border Adjustment Mechanism () marks the start of a new era by entering a transitional period in October 2023. This regulation is the first of its kind, as it will require importers to buy certificates for emissions generated outside the EU. This new regulation is urgently needed as a correction to the existing EU Emissions Trading Scheme (), and it is designed to have a global impact.

Unintended Consequences

The ETS was also the first of its kind when introduced in 2005. It is still considered the EU鈥檚 flagship policy to combat climate change and the world鈥檚 largest carbon market. Although it successfully emissions by 41% in targeted sectors, it had some unintended consequences. With a reaching a record high of EUR 100, the EU ETS placed a staggering financial burden on local producers in 2022.

Consequently, the production of certain goods started to shift to countries with lower climate ambitions and lower, or no carbon prices. This phenomenon is called 鈥樷�� and it defeated the original intension of the ETS to reduce emissions.

CBAM is therefore seen as a correction to the ETS, and its introduction will facilitate several linked objectives:

• providing EU producers with a level playing field
• incentivising suppliers globally to decarbonise
• meeting the EU鈥檚 ambitious 鈥樷�� emissions reduction targets by 2030

To remain aligned with WTO rules, CBAM and ETS will be tightly coupled. The CBAM scope and coverage is expected to expand over time, but it must mirror the ETS to ensure that it does not impose a bigger burden on imports. If ETS expands to new sectors, it will also be fair game under CBAM.

In future, there could be other regulatory areas with overlap, for example is intrinsically linked to decarbonisation.

A Phased Rollout

CBAM will be implemented in phases, starting with a transition phase from October 2023 to the end of 2025. During this time, importers will have a quarterly reporting obligation, with the first report due on 31 January 2024. Reporting requirements focus on the quantity of the goods imported, and the calculated embedded greenhouse gas emissions.

The definitive period kicks in from January 2026, marking the start of the financial impact and the need for verification. With the introduction of mandatory CBAM certificates from this point onwards, a carbon price will be payable for imported emissions, aligned with what local EU producers pay under ETS. Double taxation can be avoided if it can be shown that an equivalent carbon price was paid outside the EU.

The gradual rollout of CBAM hinges on implementing acts and an overhaul of ETS in parallel. The phase out of 鈥樷�� is a pre-requisite. These were introduced under ETS, to temporarily protect certain hard-to-abate sectors from carbon leakage. The goal is for the two regulations to be fully aligned by 2034.

CBAM Impacted Goods

During the transition phase, CBAM is limited to certain items made from iron, steel, aluminium, cement, fertilisers, hydrogen production, and electricity imported into the EU. It is important to note that it is not just the industries producing these commodities that are directly affected, but also downstream items that are made from it.

The impacted items are identifiable by the EU Combined Nomenclature codes (). Lists of impacted CN codes have been published for the transition phase, with two implementing acts already covering a raft of different products under the main sub-categories. The number of impacted items is expected to expand over time, with more finished goods and additional sectors, such as polymers and chemicals, to be covered next.

Embedded Emissions

CBAM departs from the GHG Protocol definitions for direct and indirect, or scope 1, 2 and 3 emissions. Instead, CBAM has its own definitions for 鈥榙irect鈥� and 鈥榠ndirect鈥� emissions, focussing on what was emitted during selected steps of the production process, while remaining aligned with the ETS coverage.

Other new terms that CBAM introduce, is the concept of 鈥榮imple鈥� and 鈥榗omplex鈥� goods. With complex goods, data is required from more than one installation or supplier upstream to calculate the embedded emissions. An example of complex goods would be cement made from clinker, where the latter is considered a 鈥榩re-cursor鈥� material. The same concept can be applied to other multi-step processes, all of which are described in detail for the transition phase.

Impacted Parties

Different types of businesses are impacted globally:

• Non-EU producers aka 鈥極perators鈥� need to calculate their emissions intensity per production site, aka 鈥業nstallation鈥� and share the product information with their local authorities and buyers.
• EU Importers aka 鈥楧eclarants鈥� must request the information from their suppliers and declare imported emissions periodically. They will also be responsible for procuring CBAM certificates from 2026.
• Importers may appoint an indirect customs representative, who is then responsible for reporting as 鈥楢uthorised Declarant鈥�.

Some global businesses are both Operators and Declarants, and they typically have more complex intercompany and supplier relationships.

The introduction of CBAM is also expected to have indirect impacts, for example:

• EU manufacturers and consumers may experience price increases due to more expensive imports.
• Businesses subject to EU ETS will see a bigger financial impact over time, as free allowances are phased out from 2026 to 2032.

A Sense of Urgency

CBAM is an urgent matter for the EU as these sectors are critical to retain from a strategic perspective. Besides the ETS burden, producers are also facing increased energy costs due to the war in Ukraine. Another unexpected, and presumably unintended, blow came from an ally, with the US Inflation Reduction Fund (), which gives US investors long-term clarity and tax .

Together, these factors pose a real risk that EU businesses may shift their operations elsewhere. Hence, there is an urgency in the EU surrounding the implementation of CBAM. The timing is critical, as the impacted sectors have long investment cycles, and they need to embark now on projects to adopt lower emission technologies for the EU to reach their climate targets by 2030.

In summary, it is now clear that a local solution like an ETS cannot solve a global problem. That is why CBAM is designed to have a global reach and incentivise other countries to decarbonise. As a correction to ETS, CBAM is expected to set in motion a wave of regulations in other parts of the world. In the next blog, we will explore why the regulation is controversial and how other countries are responding.

For more information read: The Controversial Regulation with a Global Impact

The post Why Europe Urgently Needs CBAM appeared first on 51风流Australia & New Zealand News Center.

Christchurch, New Zealand 24 October 2023 鈥� 51风流today announced has implemented 51风流S/4HANA Cloud, Private Edition to better manage excess water demand and improve the long-term sustainability of the council鈥檚 water supply.

Christchurch City Council maintains a network of wells, reservoirs, pipes, pump stations, and aquifers to supply approximately 148,000 households with water. One of its most pressing concerns is excess water usage, with extreme seasonal demand placed on its water supply network, particularly in summer.

Water usage was also not spread evenly, with most excess water used by a small proportion of households. The Council identified the top 4% of household water users in Christchurch use more than 23% of the city鈥檚 entire residential water supply, primarily for outdoor irrigation and gardening, along with unidentified leaks.

It implemented a second instance of 51风流S/4HANA Cloud to enable the creation of a new excess water rate. The rate will help manage water demand and mitigate the risk of pressure drops in its network over summer, as well as reduce the funds required to expand the network to meet demand and improve the long-term sustainability of its water supply.

The implementation has helped the Council drive a 13% reduction in water consumption across households, which it expects to increase to approximately 20% over the coming year. Furthermore, 25% of citizens with high water usage, consuming over 6,000 litres per day, have fixed water leaks. Importantly, the council has been able to educate residents on water sustainability with more than 444,000 visits to its water reporter page to view property water usage.

Leah Scales, General Manager of Resources and Chief Financial Officer, Christchurch City Council says, 鈥淐hristchurch City Council is focused on driving sustainable outcomes for our district and meeting our climate change goals. In order to achieve them, we knew we needed a best-in-class solution, which is why we selected SAP.

鈥淭hrough the implementation of 51风流S/4HANA we have been able to effectively reduce demand on the water network and save on the cost of building and maintaining our wells, pumping stations, reservoirs, and other network infrastructure.

鈥淎s Christchurch residents become increasingly engaged with water preservation and sustainability, we鈥檙e starting to see them modify their water usage behaviour and more leaks are being discovered and fixed to prevent water wastage.鈥�

Nick Quin, Director of Public Sector, 51风流New Zealand says, 鈥淎t SAP, we believe technology has a critical role to play in helping the world run better and improving people鈥檚 lives and Christchurch City Council is a testament to this. Only by recording, reporting, and acting on actual sustainability data can organisations deliver tangible sustainability outcomes. By using 51风流S/4HANA Cloud, the council can drive meaningful long-term impact for its residents and create a more sustainable future for its people.鈥�

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However, there is another looming risk to global financial systems that did not make the headlines. The risk of climate change is so critical that the US Treasury lists it as one of 听in their strategic four-year plan, alongside topics such as ensuring national security.

How Financial Stability Relates to ESG Disclosure

The impact of climate change is indeed considered a financial security risk globally, and there is a narrowing window for action. In the US alone, the total cost of climate-related听听since 1980 exceeded USD 2,5 trillion. On the flipside, low carbon technologies present a tremendous听economic opportunity, and governments are scrambling to ensure an orderly transition. However, up to $100 trillion of assets revolving around fossil fuels is听听to be at risk, due to disruptive technologies and shifting government policies.

Environmental, social and governance (ESG) disclosure on a corporate level is a critical component of effective risk management. That is why regulators around the globe are implementing new rules requiring companies to disclose sustainability risks, in line with existing requirements for other risks.

Shifting Towards International Standards

A big shift is needed, before investors will be able to compare companies using not just finance, but also sustainability criteria. In June 2023, the first two听听were released by the International Sustainability Standards Board鈥檚 (ISSB). It means that Sustainability data must be reported with the same scrutiny as Finance data. 听The standards build on existing frameworks such as SASB (Sustainability Accounting Standards Board), GRI (Global Reporting Initiative), and the Task Force on Climate-related Financial Disclosures (TCFD).

Both the EU and US indicated that they would align with ISSB. Several other countries also indicated that they may adopt these standards, including听,听, and the UK.

Controversy Surrounding New Regulations

The US Securities and Exchange Commission () proposed a controversial new regulation in 2022. It will require publicly traded companies to disclose how their operations affect the environment. It is encouraging firms to disclose more detailed information about their climate strategies, to increase transparency.

罢丑别听听provides a structured frame of reference and a common understanding of economic activities that contributes to environmental goals, such as climate change mitigation or circular economy objectives. It is linked to the EU鈥檚 revised听听under the Corporate Social Responsibility Disclosure (CSRD), effective from 2023.

The EU is currently leading the way with the concept of听. This means considering both the impact of the outside world on a company, as well as a company鈥檚 impact on the outside world. It is rooted in the view that the world beyond finance can be material, and therefore worth disclosing.

What it Means for Australia & New Zealand

Maintaining investor confidence is crucial for smaller countries and Australia & New Zealand are not isolated from global economic stability trends. New Zealand passed a world first regulation in 2021, with reporting requirements from 2023. Their new Climate-related Disclosure () requires listed companies, insurers, banks and investment managers to report on how they will be affected by climate change.

Sustainability-related disclosures is also a hot topic Downunder, with Australia鈥檚 Securities and Investment Commission (ASIC) urging businesses to听. Voluntary disclosure using TCFD is recommended, and mandatory disclosure will likely be aligned with the international standards from ISSB.

The Outlook for Business Leaders

Regulators need to protect investors from greenwashing and create financial security to facilitate an orderly transition, while shifting investments to where they are most needed. We can expect to see continued expansion and refinement of regulatory reporting requirements over time. Companies who do not act on addressing current and future environmental concerns, could face challenges to get access capital or suffer reputational damage.

Digital reporting practices and assurances are stipulated from the outset in some of the new regulations. The biggest obstacles are data availability, quality, and fulfilling new levels of audit scrutiny. More granular and meaningful data is needed at critical points in operations to make decisions and steer a business towards KPI targets.

Some of the new rules also mandate reporting on scope 3 emissions, which is beyond the boundaries of a single corporation. Voluntary standards are currently lacking, as it uses estimates. A significant shift is expected in this area, with groundwork being done by the World Business Council for Sustainable Development (WBCSD)听.

On How to Get Started

Leaders are acutely aware of the need for scalable technology solutions. They ask two essential questions: 鈥楬ow can we leverage what we already have鈥� and 鈥榟ow can we keep up with change鈥�?听 By leveraging sustainability solutions that are fully embedded into ERP solutions, like SAP, additional workloads are minimized. Not only does this produce audit-ready data, but it also allows data-driven, fact-based decisions.

To find out more, visit sap.com听

The post Why ESG Reporting is Needed to Ensure Global Financial Stability appeared first on 51风流Australia & New Zealand News Center.

The iAwards, driven by the Australian Information Industry Association, are Australia鈥檚 longest running and most broadly scoped innovation recognition program, rewarding excellence in Australian innovation that is making a difference and has the potential to create positive change for the community.听

51风流Green Token is a solution which provides a new level of transparency into complex raw material supply chains. It was co-founded by two 51风流employees, James Veale and Nitin Jain, to tackle the challenge of tracking hard to trace bulk raw materials back to their origin.

It鈥檚 long been a challenge for business, with two in three companies faced with limited to no visibility into the origin of their upstream raw materials. For example, is that palm oil in your consumer product from a recently deforested area? Is that lithium in your mobile phone mined using child labour? Is that recycled plastic in your drink bottle really being recycled?

51风流GreenToken is a completely new approach to material sourcing transparency, using digital twin product tokens to track raw materials and blockchain technology to keep an immutable record of where the material has come from and where it鈥檚 going. 听

It was built to drive rapid adoption across a company鈥檚 supply chain business partner network by making it an easy to deploy cloud product with built in integrations to 51风流ERP.听听

By capturing unique attributes on the token, such as commodity origin, carbon footprint, deforestation status, and ethical and fair-trade labour, GreenToken enables businesses to accelerate their shift to new auditable sustainable practices.听听

Furthermore, by informing you, the consumer, of where the products you purchase are derived from, shoppers can make more informed purchasing decisions that help to improve people鈥檚 lives and ultimately, the environment.听听听

To learn more about 51风流GreenToken and how you can secure environmental, social and governance data exchange in your supply chain, click here: 听听

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When we conceived the idea for an inaugural event which will bring together industry thought leaders and technology experts to discuss how to future-proof your business, we wanted to create that same feeling. While lots of conferences deliver great speakers alone, the marketing team at 51风流ANZ wanted to create a complete experience that not only gives attendees relevant information but leaves you inspired to act on your newfound knowledge.

will be brought to life on Tuesday 8^th August in Sydney. We scoured the city for venues and settled on the Hyatt Regency, for the very fact that it is not only a great space, but we can run the entire event on the same floor so everything is easily accessible and buzzy. We want to bring that vibe that we deliver in our global event SAPPHIRE in Orlando.

If the recent past has taught us one thing, it is that there are always unforeseeable changes in our industry and marketplace. Flexibility and agility have always been constants, but they now need to be coupled with resiliency.

At 51风流NOW 2023, we will delve into the strategies and actions required to successfully meet the demands of the present and the emerging future and future-proof your business. You鈥檒l have the opportunity to learn from industry leaders, technology experts, and innovative thinkers who will share their insights and strategies for navigating the digital landscape and driving success in the years to come. You’ll discover how to leverage cutting-edge technologies to unlock new opportunities, streamline processes, and enhance customer experiences.

Current relatable themes to spur new ideas

We will have three breakout tracks running and will feature 51风流experts and customers speaking across all these tracks, mostly in fireside chats or panel discussions.

The three breakout tracks are:

Company: Achieving sustainable growth as a听Company听or听Organisation听by adopting a culture of innovation and learning, and building a diverse, inclusive, flexible and agile workforce.

Customer: Anticipate the evolving needs and expectations of the future听Customer听by accelerating products and services rapidly and efficiently through streamlined processes and embracing digital.

Communities: Advocate corporate social responsibility and build stronger听Communities听by acting on data insights, circular economic practices and fostering business networks.

A bit of glitter

Probably the first thing you will notice about the event is that it does feature Cirque du Soleil. , Chief Growth Officer from Cirque du Soleil will fly in from Montreal for the event. We鈥檒l also incredibly have artists from Cirque du Soleil perform two acts for the audience.

We have also managed to secure , Former NSW Minister
Customer Service and Digital Government to close the event, where he鈥檒l share his thoughts on innovation and future-proofing.

And to close out the day, we鈥檝e got the icon, legend and phenomenon that is Kate Ceberano performing some of her greatest hits.

Immersive experiences

We want all attendees to be immersed in real life scenarios. So there will be three showcases featuring innovation on the show floor:.

Sustainability

An interactive demonstration of how 51风流and our ecosystem support complex, cross-industry value chains, such as food supply. See how ice cream goes from farm to consume and how 51风流software helps ensure that each step, and each business involved, is more sustainable and profitable.

Resilience

When your business depends on production, your supply chain is critical. It is the engine that drives your business. It can also be a source of constant risk for disruption. Experience how to holistically manage and mitigate business risk with a digital supply chain.

Agility

Get ready for a fun challenge in a racing simulation. Experience the Power of 51风流Innovations and Data Analytics in Sports AND听Discover how our AI solutions can help you stay ahead of the competition and achieve your business goals.

Innovative technology

The showfloor will feature 51风流partners and all of the new 51风流technology innovations, particularly AI.

I would love to see you . Keep a look out for me on the showfloor and come and say hello.

The post Everyone loves the Circus appeared first on 51风流Australia & New Zealand News Center.

Steelmaking contributes 8% of the world鈥檚 greenhouse gas emissions, which means shifting consumer behaviour could be significant. Unfortunately, there are no sustainability labels for frying pans yet, not to mention more complex products like phones, or cars. However, the world is currently in a race of monumental proportions to bring exactly this type of information to the consumer鈥檚 fingertips.

This article explores the impact of this shift, as producers race to capture the market for sustainable products. It considers the implications of geopolitics, the significance of regulations and government incentives that are shaping the rules for product-related declarations. It also looks at the practical implications, of what businesses can do today to prepare for this shift.

听

The Chicken and Egg Problem

To make any claims about products, requires benchmarking and industry averages for comparison. 听It also requires clear standards and methods for data collection and calculation, with common reference points, so all stakeholders can make informed decisions. Transparency is needed beyond the operations of the producer of the final product, as every entity in the chain needs to contribute.

The question is where to start, from the final product and work backwards, or at the beginning of the chain? The is a prime example that is driven from the end of the chain. The request for data is passed from the car makers to tier 1 suppliers, and so on, until it reaches the start of the chain. Eventually, regardless of if it is a frying pan or a car, the requests end up with the primary producers. This means that mining and metals represent the key to unlocking a future where consumers can make more sustainable product choices.

All the Eggs in One Basket?

Unlike eggs, minerals are not evenly distributed across the globe. Think of it as raisins sticking out of a fruit loaf. There are more raisins inside, but only a few are visible and accessible on the surface. 听When it comes to natural resources, only a small number of countries are at the heart of several critical global supply chains. The mining and metals industries are therefore currently facing a rising trend of resource nationalism, as countries seek to secure their access to critical resources and promote domestic production.

In addition, the processing of ore historically shifted to regions with emerging economies as companies tried to lower operating costs. These regions may not have strict regulations in place, or there could be issues with data availability and transparency. Significant investment, international co-operation, and potential adjustments to trade is needed to steer towards greater transparency.

Making Omelettes Means Breaking Eggs

Organic eggs have consumers鈥� trust now, but it required a grassroots transformation of the industry. 听That trust must still be earned for more complex products. Whether it is a car or a frying pan, it will be an iron marathon. This much is clear from the recent report from the International Energy Agency on

Governments do want to channel private and public spending towards meaningful and sustainable change, but it requires a fine balance to protect consumers along the way. Initiatives range from preventing greenwashing to new regulatory instruments to enforce change. Examples include:

1. Tightening of consumer labels and standardisation of product-related claims:
   • The US and the EU鈥檚 for consumer products
   • The EU鈥檚
2. Providing incentives to change:
   • Public green procurement initiatives in the &
   • The US Inflation Reduction Act () and the EU鈥檚
3. Enforcing change and protecting interests with changing geopolitical dynamics:
   • The EU鈥檚 regulation requires importers to disclose the embedded emissions
   • The EU aims to ensure continued access to critical raw materials
4. Standardising data collection, calculation methods and reporting:
   • The emissions intensity of products needs to be declared, per US and EU
   • Targets must follow sector-specific guidelines, such as the

The Goose that Lays the Golden Eggs

Business leaders are looking to capitalize on this emerging market. Their customers are demanding it. But there are several barriers when attempting to calculate product-related greenhouse gas emissions. Firstly, gathering data throughout the supply chain is challenging. Inconsistent methodologies and data quality further complicate the process. Finally, cost constraints may hinder businesses from investing in robust measurement and verification systems.

The good news is that听businesses can already take steps today, and start making progress by using digital solutions. Find out how 51风流can support businesses with Transforming Carbon Accounting Systems and specifically, how they support Steel producers to decarbonise.

The post The Race is on for Sustainable Products and it is an Iron Marathon appeared first on 51风流Australia & New Zealand News Center.

SYDNEY 鈥� 29 November, 2022 鈥� (NYSE: SAP) today launched new research revealing that businesses in Australia are increasingly seeing financial benefits from sustainability, but an inability to accurately measure their impact on the environment could hinder progress. The global Environmental Sustainability Study* of 6500+ business leaders, including 204 from Australia, is the second edition of SAP鈥檚 annual report which explores the motivations and barriers organisations face as they look to boost sustainability in their companies.

Customer demand (39%) and revenue and growth opportunities (36%) are the top two motivating factors for Australian businesses to take environmental action, followed by governmental regulation (36%) as another leading factor. Yet Australian organisations risk losing out if they are unable to place data at the heart of their sustainability strategy.

Making sustainability profitable and profitability sustainable

Taking action to improve the environment and reduce an organisation鈥檚 footprint is not only a moral issue but has quickly become a key driver of revenue. More than eight in ten (86%) Australian leaders now see a positive connection between taking environmental action and profitability. Just 14 per cent see either a negative or no relationship between the two.

It’s no wonder that over half (56%) of Australian businesses now believe addressing environmental issues will be material to business results within the next five years. Moreover, 51风流found 52 per cent of businesses said that their stakeholders would be moderately or highly tolerant of reduced profitability in pursuit of their organisation鈥檚 sustainability goals 鈥� indicating leeway to invest in positive sustainability outcomes.

Building a data-led sustainability strategy

Nurturing a connection between profit and purpose requires a dedicated sustainability strategy and an ability to prove return on investment. However, these factors have been revealed as leading barriers to environmental action. Almost four in ten (38%) of Australian businesses say difficulty proving a return on investment is holding them back, while 34 per cent point towards a lack of environmental strategy.

The ability of businesses to gather and analyse quality data has emerged at the heart of the issue. 51风流reveals that 83 per cent of Australian businesses are not completely satisfied with their ability to accurately measure their impact on the environment.

Such data challenges will hold back progress and delay innovation, and yet some businesses are exacerbating these issues by how they collect and utilise their environmental data. Three in ten (30%) Australian businesses rely solely upon assumptions and estimates to screen the environmental impact of their supply chain. Similarly, a majority (76%) of businesses say they don鈥檛 have complete visibility over the sustainability metrics of their external supply chain.

Commenting on the research, Damien Bueno, President and Managing Director, 51风流Australia and New Zealand, said: 鈥淚f Australia is going to move towards a more sustainable future, organisations across the country need to embrace sustainability as part of what they do every day, and embed these strategies into their operating models.

鈥淭o do this properly, organisations need to consider their entire value chain. Only by coming together, and being more open, trusting and collaborative with their value chain partners, will organisations be able to truly progress sustainability outcomes.鈥�

The post Sustainability is driving profitability and competitiveness in Australia, though access to data is stifling progress appeared first on 51风流Australia & New Zealand News Center.

Transformation has changed for good, as small and medium-sized businesses uncover the value of moving sustainably into the future. At their most fundamental level, businesses have three goals: to drive revenue, reduce costs and mitigate risk. New 51风流Insights research shows sustainability is a key consideration in economic growth, and, as these experts suggest, it could be a deciding factor in all three of these goals.

Successful transformation is linked to sustainability

When lots of people do transformation projects, they typically have a single destination in mind: we鈥檙e going from here to there, and it鈥檚 going to look like this. I鈥檓 not sure we can be that precise any more. You need to design what that transformation might look like with a 1.5C future or a 2.5C future.

51风流is really good at asset management, for example. The way assets operate in those two different scenarios is going to be significantly different, to the point where you might invest or make capital allocation choices very differently. The transformation itself still needs to happen, [but] it needs to be flexible enough to accommodate both.

The post Why Business Transformation Can鈥檛 Be Separated From Sustainability appeared first on 51风流Australia & New Zealand News Center.