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Net Zero Guidelines (Based on IWA 42:2022)

Net Zero Guidelines (Based on IWA 42:2022).

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Net Zero Guidelines (Based on IWA 42:2022)

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  1. NET ZERO GUIDELINES Achieving Net Zero for Sustainable Success C:\Users\Allan BigMac\Documents\000 OEC\Logo\The Logo Company\FINAL\OperationalExD24aR02bP01ZL\TRANSPARENT.png © Operational Excellence Consulting. All rights reserved.

  2. NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: https://www.oeconsulting.com.sg NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: https://www.oeconsulting.com.sg CONTENTS 02 03 01 INTRODUCTION TO NET ZERO AND IWA 42:2022 GUIDELINES SETTING TARGETS AND DEVELOPING STRATEGIES MONITORING, REPORTING AND CONTINUOUS IMPROVEMENT 2 © Operational Excellence Consulting

  3. INTRODUCING IWA 42:2022 AND ITS RELATIONSHIP WITH ISO What is IWA 42:2022? Relationship with ISO A Net Zero Guideline developed through ISO’s workshop process. Not an official ISO Standard, but aligned with ISO’s methodologies. ▪ ▪ Aims to help organizations achieve Net Zero emissions by 2050. Provides practical guidance for aligning with global climate goals. ▪ ▪ 3 © Operational Excellence Consulting

  4. ACCELERATING THE TRANSITION TO NET ZERO Context: Climate change demands urgent action. Limiting global warming to 1.5°C requires net zero carbon emissions by 2050, according to IPCC reports. ● Objective of IWA 42:2022: Provide guidance for organizations and governance bodies to align on effective net zero strategies and actions. ● 4 © Operational Excellence Consulting

  5. SCOPE OF IWA 42:2022 –NET ZERO GUIDELINES Global Alignment: Helps organizations achieve net zero by 2050 through harmonizing standards, policies, and voluntary initiatives. ● Who Should Use: Governments, intergovernmental bodies, NGOs, businesses, and policy frameworks aiming to reach net zero. ● 5 © Operational Excellence Consulting

  6. NET ZERO AND SUSTAINABILITY: A UNIFIED VISION FOR THE FUTURE Net Zero Sustainability ▪ Net Zero is about balancing greenhouse gas (GHG) emissions with removals, ensuring no net contribution to global warming. ▪ Sustainability is a broader concept that includes not only environmental responsibility but also social and economic well-being for present and future generations. 6 © Operational Excellence Consulting

  7. THE LINK BETWEEN NET ZERO AND SUSTAINABILITY Environmental Sustainability Economic Sustainability Social Sustainability ▪ Achieving Net Zero is a critical pillar of environmental sustainability, addressing climate change by reducing GHG emissions. ▪ Transitioning to Net Zero promotes innovation in clean energy, drives efficiency, and can lead to long-term financial resilience. ▪ Just Net Zero strategies can reduce inequalities, improve health, and protect vulnerable communities, aligning with broader social goals. 7 © Operational Excellence Consulting

  8. BENEFITS OF NET ZERO FOR STAKEHOLDERS Investors Customers Employees Increased engagement and attraction of top talent. Better access to green finance and ESG- focused investors. Enhanced brand reputation and loyalty from eco-conscious consumers. 8 © Operational Excellence Consulting

  9. ACHIEVING NET ZERO –WHY IT MATTERS Global Goals: Achieving Net Zero is key to meeting Sustainable Development Goals (SDGs), particularly Goal 13 (Climate Action), while also supporting goals related to clean energy, responsible consumption, and inclusive growth. 9 © Operational Excellence Consulting

  10. KEY DEFINITIONS TO KNOW Net Zero: Human-caused GHG emissions balanced by human- led removals (e.g., ecosystem restoration, direct air capture). ● Greenhouse Gas Emissions: ● Scope 1: Direct emissions from owned/controlled sources (e.g., fuel combustion). o Scope 2: Indirect emissions from purchased energy. o Scope 3: Indirect emissions in the value chain (e.g., supplier and customer activities). o Residual Emissions: Emissions remaining after all possible reductions. ● 10 © Operational Excellence Consulting

  11. STRUCTURE OF IWA 42:2022 NET ZERO GUIDELINES Structure Of IWA 42:2022 Net Zero Guidelines 1. Scope 8. Targets 2. Normative References 9. Mitigation 3. Terms & Definitions 10. Counterbalancing Residual Emissions 4. Abbreviated Terms 11. Measurement & Monitoring 5. Net Zero Guiding Principles 12. Wider Impact, Equity & Empowerment 6. Establishing Levels & Boundaries for Net Zero 13. Communication, Reporting & Transparency 7. Leadership & Commitment 14. Improvement 11 © Operational Excellence Consulting

  12. LEADERSHIP AND COMMITMENT (SECTION 7) Top Management Role: Key Actions: Ensure alignment between policy, action, and public commitments. Incorporate net zero into core governance documents (e.g., charters, policies). ● ● Allocate resources, define responsibilities, and oversee net zero strategy. ● Appoint competent leaders and define clear responsibilities for action. ● Align executive compensation with climate targets (e.g., long-term incentives for meeting GHG goals). ● 12 © Operational Excellence Consulting

  13. ESTABLISHING BOUNDARIES FOR NET ZERO (SECTION 6) Scope of Emissions Four Product Categories Consideration for Boundaries ▪ Include Scope 1, Scope 2, and Scope 3 emissions within the organization’s operational boundary. ▪ Territorial level (e.g., country, city) ▪ Sector level (e.g., industry) ▪ Organizational or portfolio level (e.g., investment portfolio, company). ▪ Factor in shared responsibilities for Scope 3 emissions and impacts beyond direct control. 13 © Operational Excellence Consulting

  14. SETTING TARGETS AND INTERIM GOALS (SECTION 8) Long-Term Target (8.2.1) Sector-Specific Targets (8.2.2) Interim Targets (8.2.6) ▪ Set every 2-5 years. Focus on reducing emissions by 50% by 2030 based on the 2018 baseline. ▪ Achieve net zero by 2050 or sooner, aligned with global warming limits of 1.5°C. Follow science-based pathways. Example sectors include: ▪ Power – 100% reduction by 2050. ▪ Cement – 95% reduction by 2050. ▪ Steel – 93% reduction by 2050. 14 © Operational Excellence Consulting

  15. MITIGATION PLANNING (SECTION 9) Planning Approach (9.1) Key Risk Considerations (5.7) ▪ Prioritize GHG Reductions: Address Scope 1 and Scope 2 emissions first, with Scope 3 reductions as a secondary focus. ▪ Mitigation actions must account for unintended consequences like leakage or double-counting of GHG reductions. ▪ Implementation: Apply recognized GHG accounting standards (e.g., ISO 14064), monitor progress, and ensure external verification. ▪ Ensure permanence of carbon storage (e.g., storage lasting more than 100 years). ▪ Action Plan: Include nature-based solutions, renewables, and low- carbon technologies. 15 © Operational Excellence Consulting

  16. MEASUREMENT, MONITORING, AND REPORTING (SECTION 11) Monitoring Approach (11.1) Key Indicators (11.2) Reporting (Section 13) ▪ Implement science- based tools and indicators to track emissions reductions. ▪ Ensure use of accurate, consistent data to assess progress. ▪ Regularly disclose progress, ensuring transparency and accuracy in claims. ▪ Use third-party verification to strengthen credibility. 16 © Operational Excellence Consulting

  17. COMMUNICATION, REPORTING, AND TRANSPARENCY (SECTION 13) Net Zero Claims (13.2.2) Transparency in Limitations (13.2.3) Credibility of Reports (13.2.4) ▪ Acknowledge challenges and gaps in data collection, and explain any reliance on estimates or assumptions. ▪ Verification Required: All net zero claims must be backed by third-party verification to ensure credibility. ▪ Clear Boundaries: Clearly state the organizational or territorial boundaries within which the net zero claims apply. ▪ Third-Party Assurance: Engage competent third- party verifiers to review the accuracy and integrity of reports. ▪ Public Disclosure: Regularly publish verified reports, ensuring data is accessible and understandable to all stakeholders. 17 © Operational Excellence Consulting

  18. CONTINUOUS IMPROVEMENT (SECTION 14) Ongoing Evaluation Adapt and Innovate Stakeholder Engagement Regularly review and update Net Zero strategies as new science, technology, and data emerge. Continuously seek innovative solutions to reduce emissions and improve sustainability efforts. Involve all relevant stakeholders to ensure alignment and drive progress toward long-term goals. 18 © Operational Excellence Consulting

  19. CALL TO ACTION –FROM STRATEGY TO IMPLEMENTATION Key Leadership Actions Engage Stakeholders Next Steps ▪ Assign responsibilities, track progress, and integrate net zero into core governance. ▪ Align corporate strategy, set ambitious targets, and implement accountability mechanisms. ▪ Transparent communication is critical for building trust and driving action across the value chain. 19 © Operational Excellence Consulting

  20. ABOUT OPERATIONAL EXCELLENCE CONSULTING Operational Excellence Consulting is a distinguished management consultancy based in Singapore. Our firm specializes in driving transformative growth and innovation by maximizing customer value and minimizing waste through the strategic adoption of Design Thinking and Lean management practices. For further details, please visit www.oeconsulting.com.sg Logo Fb / Logo Fb Png / How the hyperconnected are X Logo (Twitter | 01) - PNG Logo Women In Wilmington for Networking © Operational Excellence Consulting

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