UN Global Compact Climate Ambition Accelerator
We are happy to announce that GCAS Quality Certifications participated in the 2022 Round of the UN Global Compact Climate Ambition Accelerator. Supported by the UN Global Compact this is a 6-month accelerator program designed to equip companies with the knowledge and skills they need to accelerate progress towards setting science-based emissions reduction targets aligned with the 1.5C pathway, setting them on a path towards net-zero emissions by 2050. Over the past six months, we have worked alongside a diverse group of companies to learn more about climate ambition and the Science Based Targets initiative. We are accelerating towards climate ambition!
Carbon Boarder Adjustment Mechanism
EU CBAM (Carbon Boarder Adjustment Mechanism)
The EU’s controversial extension of its carbon market regime to foreign producers takes shape.
As the climate crisis intensifies and the rigour of measures to reduce emissions in the EU increases, the problem of carbon leakage – where carbon-heavy production moves out of the EU to jurisdictions with laxer regimes – has triggered increasingly urgent calls to level the playing field. In response, the EU is introducing a Carbon Border Adjustment Mechanism (CBAM) that will impose additional duties on certain imported goods to reflect the carbon emissions generated from their production. This is designed not only to prevent carbon leakage and maintain the competitiveness of EU producers, but also encourage other countries to raise their climate ambitions and prevent global increases in emissions. It has also been touted as a means of raising much-needed revenue for climate action.
The main results of the negotiations are:
1.CBAM will apply from October 2023
2.The scope of CBAM that the Commission had proposed to limit to cement, electricity, fertilizers, iron, steel and aluminum is extended to cover many downstream products derived from iron, steel and aluminum as well as indirect emissions from electricity consumption (emissions considered as embedded in products because of electricity consumed in their production)
3.The inclusion of hydrogen as a product within the scheme
4.More centralized management by the Commission, which will have to maintain a centralized registry of CBAM declarants and the third country facilities from which they import as well as exercising reinforced control over the implementation of the scheme by Member States
5.Further powers for the Commission to adopt implementing, amending and supplemental acts not only to fill in the gaps but to act against circumvention, which is broadly defined.
ESG – Environmental Social Governance services
Why is Environmental Social Governance services more important now than Ever for Your Business?
Any business’s environmental, social, and governance concerns are intertwined with one another and with the present business trend. ESG is viewed as a strategy to protect firms from potential hazards, which has given it more relevance among investors, legislators, and other important stakeholders.
The unforeseeable risks of a pandemic and the climate issue, which both have a significant influence on the world economy, are frequently compared. Many investors and governments have now come to understand the need of accelerating investments in and development of enterprises that prioritize ESG. Because of this, our society is no longer solely dependent on the government to supply its demands. These needs range from the development of jobs to the preservation of natural resources to the protection of consumer interests.
Why is it inevitable?
There is an increasing awareness that ESG may become compulsory or mandatory. For companies to stay ahead of regulations, competition and unleash all the benefits of ESG, they must integrate this framework at the core of their DNA. In another perspective, organizations that fail to comply with environmental or social factors may end up struggling to deal with regulatory, legal or reputation issues at a later stage.
How do ESG benefit your business?
More and more companies are realizing about the many facets and all-permeable benefits of ESG, including how to attract talent, target future consumers, enhance brands, and innovate. Overall, ESG gives the company the tools it needs to be resilient in both the present and potential future situations.
Adds to the top-line growth.
It’s easier for businesses to enter new markets and expand their operations in the existing markets if they have a strong ESG approach. Governments facilitate access by giving licenses and issuing permissions to such companies
Leads to reduction in the costs
Companies which switch to more sustainable methods of production tend to be more efficient and reduce their cESG is viewed as a strategy to protect firms from potential hazards, which has given it more relevance among investors, legislators, and other important stakeholders.osts.
Effective management of regulatory compliances and stakeholders
Depending on the markets they serve, all firms are impacted by one or more types of regulations. Businesses that take strong ESG measures, particularly in the area of governance, are subject to less regulatory oversight and have more operational independence. Additionally, they are not as subject to pressure from environmentalists, labor unions, etc. These brands are also preferred by consumers.
Attracting talent and boosting employee’s productivity
Strong organizations with high ESG scores are known to draw stronger personnel and have higher retention rates. Employees feel internally proud when there is a clear environmental strategy. The younger generation favors working for organizations that have larger societal obligations.
Businesses of all sizes must prioritize ESG for both short-term and long-term benefits, they must constantly adapt to changing compliances and demands of different stakeholders.
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GHG Assurance Validation
Why measure GHG emissions?
Increasing awareness of the potential impacts of climate change on their activities is leading companies to assess and address the potential threats and opportunities. A growing number of companies measure the greenhouse gas (GHG) emissions generated by their activity and assess their exposure to physical climate change impacts as well as changing market conditions and consumer preferences as a consequence of climate change. Increasingly, the assessment and management of actual and prospective climate change related impacts has become an important element of corporate strategy and risk management.
At the same time, there is also an increasing demand from governments, investors and other stakeholders for corporate climate change-related information.Demand for climate change information from governments translates into mandatory or voluntary government schemes that, together with emerging non-governmental initiatives, require or encourage enterprises to measure and report their GHG emissions. These requirements may be part of environmental and other non-financial disclosure requirements, or of instruments that put in place a carbon price, such as carbon taxes and emission trading schemes.
Companies that have made the decision to become Sustainable
Many companies have made the decision that adopting sustainability will improve their operations in the long run. It will be necessary to measure the effects on the economy, society, and environment, as well as GHG emissions. Benefits could consist of:
Lower expenses for things like electricity, raw materials, and transportation.
Market differentiation: Customers frequently favor doing business with companies that have a solid environmental reputation.
Pressure from stakeholders – taking action early can lessen the effects of upcoming environmental regulations.
Supply Chain Pressure
Why quantify greenhouse gas emissions? Suppliers of sustainable companies are under pressure to incorporate sustainability into their own business practices. Environmental questionnaires (like the CDP Supplier Information Request) with inquiries like this are becoming more and more necessary.
Which GHG emissions do you and your organization measure and track?
Do you and your company have goals for lowering GHG emissions?
How far along is your organization in achieving these goals?
In the near future, small and medium-sized businesses (SMEs) may need to give their clients emissions data. Rarely do they have the administrative resources to handle these requests. It will be crucial for SMEs to automate the procedure as much as feasible.
Your organization may report this information and inform important stakeholder groups about your environmental condition by understanding your carbon inventory. This gives your company the chance to become transparent. Additionally, transparent carbon reporting presents your business to investors and other important stakeholder groups. This makes it possible for company operations and decision-making to be more effective.
Performance in the areas of environmental, social, and governance (ESG) are becoming crucial indicators for the capital markets. Investors are paying more attention to investments and disclosures related to ESG and the environment. Businesses that perform well in terms of ESG have higher investment returns, lower risks, and improved crisis resilience.
Companies and brands are increasingly looking to their partners, as well as to technology and innovation, to incorporate sustainability and bring about significant change that is beneficial to the economy, society, and the environment. To develop and implement strategies, operating models, processes, and technologies to assist our clients around the world in creating corporate value and sustainable impact, supported by technology and human inventiveness, our committed teams bring significant experience and industry expertise. In order to accomplish the Sustainable Development Goals and combat climate change, we are working with our partners to find solutions to the most pressing issues that affect both our clients and the rest of the world.
GCAS Sustainability practice covers all aspects of Environmental Social Governance (ESG) strategy, implementation, risk analysis, governance, reporting and assurance, supporting our clients at any stage of their sustainability journey.GCAS team can support clients as they seek to integrate ESG and sustainability into business strategy, and improve and communicate their ESG and sustainability performance to stakeholders.
1.Increase the value of sustainability and supply chain strategies
2.Mitigate risk and build a reputation to maintain a social license to operate and grow
4.Improve decision-making and increase operational and performance effectiveness to deliver long-term value
GCAS team brings together professionals with experience in business, engineering, science and operations, and offer services to assist with the following:
A. Sustainability strategy development, design and implementation support
B. Stakeholder engagement, prioritization and analysis
C. Materiality assessments
D. ESG maturity assessments
E. Advice on sustainability risks in the value chain
F. Advice on responsible investment
G. Supply chain sustainability management
H. Circular economy mapping and advisory
I. Code of conduct and ethics effectiveness and implementation assessments
J. Training, development and capacity building
K. Policy development and research
L. Portfolio sustainability risk and opportunity assessment
Building Green Business
Building Green Business : Sustainability has become a necessity for both businesses and the environment. Reduced environmental effect was once considered a “good to have” for businesses. Employees, consumers, and investors are putting increasing pressure on leaders to take action on environmental challenges. It’s now a must as well as a legitimate and lucrative business opportunity.
Sustainability was a niche problem for many firms until just over a decade ago, which is hard to believe now. Concerns about the changing global climate—and the impact of human activity on emissions—had been building for decades, but just 20% of S&P 500 businesses submitted sustainability or corporate social responsibility (CSR) reports in 2011. While these studies spoke about sustainability, concrete action was rare.
Sustainability has emerged as a significant value driver in the last five years. As it became clear that current measures to limit temperature rises might not be enough, corporations began to see the chance to address the problem. Organizations began to adopt and promote environmental, social, and governance (ESG) measures, and the number of corporations subscribing to science-based sustainability targets more than tripled between 2020 and 2021. Finally, corporate entrants began to promote sustainability as a strategic lever for creating value, and “climate unicorns” began to emerge.
Urgent action needed to ensure a resilient energy transition amid severe global challenges
High fuel costs, commodity shortages, insufficient progress toward reaching climate objectives, and slow progress on energy equity and access, according to the study Fostering Effective Energy Transition 2022, exacerbate the urgency for countries to expedite a comprehensive energy transition.
In order to adapt to energy market volatility, it is critical to prioritize a robust energy transition and diversity of the energy mix.
“Countries are at risk of future events compounding the disruption of their energy supply chain at a time when the window to prevent the worst consequences of climate change is closing fast,” said Roberto Bocca, Head of Energy, Materials and Infrastructure, World Economic Forum. “While there are difficult decisions to be taken to align the imperatives of energy security, sustainability and affordability in the short term, now is the time to double down on action.
To negotiate this difficult situation, countries must diversify on two fronts: not just in terms of domestic energy mix in the long run, but also in terms of fuels and energy providers in the near run. Most countries rely on a small number of trading partners to meet their energy needs, and their energy sources are insufficiently diverse, leaving them with little flexibility to deal with interruptions.
“The current energy crisis reveals just how important energy is to people and the economy,” said EspenMehlum, Head of Energy, Materials and Infrastructure Programmer for Benchmarking, World Economic Forum. “It is now critical to tackle the structural risks that have become evident while also increasing momentum on climate action. Success will largely hinge on policy and investments. Prioritizing energy efficiency and ramping up investment in clean energy infrastructure, renewables, clean hydrogen and new nuclear capacity can strengthen energy system resilience and will be a win-win for reducing emissions.”
New IPCC Report Reveals Greenhouse Gas Emissions Continue to Grow, Requiring Immediate and Radical Action
Greenhouse Gas Emissions The Intergovernmental Panel on Climate Change (IPCC) released a new report today that emphasizes the importance of rapid and profound reductions in greenhouse gas (GHG) emissions if the world is to avoid the worst climate impacts. According to the report, worldwide GHG emissions increased over the last decade, rising by nearly 12% from 2010 levels, decreasing our window for keeping global warming to 1.5°C.
To avoid exceeding this target, the world currently has only three years to reach a peak in emissions. However, the research also identifies certain signals of progress that must be accelerated. The annual rate of emissions growth declined from an average of 2.1% between 2000 and 2009 to 1.3% between 2010 and 2019 and GHG emissions have already peaked and started to decline in some countries.
The report also shows that cost-effective solutions are more available than ever and ready to be implemented, including switching to clean energy, halting deforestation and investing in carbon removal.
Environmental Product Declaration
The construction industry is evolving. Carbon efficiency and transparency are becoming increasingly important factors in investment and procurement decisions, with Environmental Product Declarations (EPDs) frequently assisting decision-making. An EPD can help you stand out from the competitors as a construction product producer.
Life-cycle assessment (LCA) is used in EPDs to evaluate and describe a product’s long-term environmental impact. They provide an objective, credible, and neutral review because they are third-party verified and based on international standards. A manufacturer’s commitment to measuring and publicly declaring environmental effect in an accessible format is demonstrated through the creation of an EPD.
Environmental Product Declarations (EPDs) are an important validation tool for both manufacturers and specifiers, as they provide transparent data regarding the environmental sustainability of their goods. Despite this, the industry’s understanding of the nature and purpose of EPDs is still lacking.
An environmental product declaration (EPD) is a document that contains life-cycle inventory data and provides a transparent summary of a product’s environmental impact, often from ‘cradle to grave.’ The extraction of raw materials, the manufacturing process, distribution, the product’s use, and its end-of-life value, such as whether it can be recycled or reused, will all be considered in this Life Cycle Assessment (LCA). Steel is an example of a highly sustainable building material that has properties that are well-suited to circular economic use and can be reused and indefinitely recycled without losing quality.
EPD’s Crucial to Embodied Carbon Reduction – Around 39% of the world’s annual CO2 emissions are attributed to buildings and construction. Embodied carbon emissions from the extraction and manufacture of products – accounts for 11% of this total.
Operational emissions, such as the energy necessary to heat, light, or cool a structure, have long been the focus of green building efforts. However, the World Green Building Council stated in 2019 that embodied carbon must be severely reduced. As a result, the environmental impact of construction products and materials is given more attention.
In their 2019 report, Bringing Embodied Carbon Upfront, the World Green Building Council set two bold targets:
* By 2030, all new buildings, including infrastructure and renovation projects will have at least 40% less embodied carbon.
* By 2050, new buildings, infrastructure and renovations will have net zero embodied carbon.
EPDs are designed to help with the embodied carbon challenge by making the environmental impact of products and materials more obvious so that efforts may be made to mitigate it. Their status as independently certified papers governed by international laws and standards means they are generally acknowledged and viewed with confidence and reliability across the construction industry.
Environmental Product Declaration
An EPD is a document that lays out the environmental performance of a construction product over time. EPDs allow construction professionals to compare the environmental impact of different products and make informed decisions about which to choose for their project.
Having an EPD for the products used in a construction project, earns credits towards sustainability assessments such as BREEAM and LEED.
EPD serves as the foundation for a fair evaluation of products and services based on their environmental performance. EPDs can show how products and services have improved their environmental performance over time, as well as communicate and aggregate relevant environmental data across a product’s supply chain.
EPDs are communication tools that bring complex life cycle assessments (LCAs) into a more user-friendly format by streamlining the information presented and enforcing as much consistency as possible.”
A life cycle assessment (LCA) is a method for determining the environmental impact of the product over its expected service life. Global warming potential (GWP), ozone depletion depletion potential (ODP), acidification potential (AP), eutrophication potential (EP), smog formation potential (SFP), and abiotic depletion potential are some of the most common impacts. The embedded carbon of a product is connected with the GWP, which is the most well-known because of its impact on climate change.
The ideas, methodology, requirements, and procedures for conducting a life cycle assessment (LCA) are provided by ISO 14040 and ISO 14044. The criteria pinpoint possibilities to improve a product’s environmental performance at various stages of its life cycle. ISO 14025 provides the concepts and procedures for creating Type II and Type III environmental declaration plans and declarations.
Getting ready for EN 15804+A2: what’s new and how to get ready?.
EN 15804, the foundational EPD standard, is widely used around the world. EN 15804 +A2, a substantial revision that drastically alters EPDs, was adopted in July 2019 and will become compulsory in July 2022.
EU Climate Action
EU Climate Action : The EU Commission signed funding agreements for €1.1 billion with seven large-scale initiatives on April 1, 2022, through the EU Innovation Fund, which is funded by Emissions Trading System earnings (ETS). During the first ten years of operation, these initiatives are expected to cut CO2 emissions by more than 76 Mt CO2eq. The seven initiatives encompass critical sectors such as hydrogen, steel, chemicals, cement, solar energy, biofuels, and carbon capture and storage, and are deploying breakthrough low-carbon technologies at an industrial scale.
UAE Net Zero 2050 : The UAE’s Net-Zero by 2050 strategic project is a national effort to attain net-zero emissions by 2050, making the UAE the first country in the Middle East and North Africa to accomplish so.
Alignment of strategy : The effort is in line with the UAE’s Principles of the 50, a strategy for increasing national economic development as the country celebrates its golden jubilee year and enters a new 50-year growth cycle. The huge economic potential presented by the path to net-zero underpins a vision of the UAE is the world’s most dynamic economy.
The UAE’s strategic program, Net Zero 2050, is in line with the Paris Agreement, which requires countries to develop long-term plans to reduce greenhouse gas (GHG) emissions and prevent global climate change.