Tom Raftery

Why Microgrids Are the Future of Energy Systems and Driving the Energy Transition
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January 22, 2025

As the global energy landscape shifts in response to the twin challenges of climate change and ageing infrastructure, microgrids are emerging as a critical solution. These self-contained energy systems, often powered by renewable sources like solar and supported by energy storage, are enhancing resi

Balancing the Grid: The Key to Unlocking 100% Renewable Energy
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January 16, 2025

The article discusses the challenges of achieving 100% renewable energy due to grid flexibility issues as solar and wind power become more prevalent. It emphasises the need for advanced technologies, such as flexible engine power plants and battery storage, to maintain grid stability. Policy reforms

Sustainable Supply Chain Trends 2025: Insights from Industry Leaders
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December 23, 2024

As 2024 ends, the urgency for sustainable supply chains grows, highlighting a shift towards data-driven decisions, collaboration, and circularity. Businesses must leverage data for impactful actions, enhance partnerships, and pivot to circular models. 2025 will demand accountability, transparency, a

Why Your Business Can’t Afford to Ignore Trustworthy Carbon Accounting
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December 18, 2024

As sustainability becomes critical for businesses, accurate carbon accounting is essential to meet regulatory demands and customer expectations. Organizations must adopt new technologies, engage supply chains, and integrate carbon data into decision-making to build trust and drive emissions reductio

How do you get paid to charge your EV?
Tom Raftery
November 28, 2024

First of all - a very Happy Turkey Day to all who celebrate! That would be around 35% of this newsletter’s subscribers (or a little over 1,000 subscribers) who probably won’t see this newsletter until next week (if at all!!!). I hope the rest of you are enjoying a quieter than usual week!

How Circularity in Industry Can Slash Waste and Boost Efficiency
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November 25, 2024

Today, the issue of industrial waste is one of the most pressing challenges for manufacturers worldwide. Circularity in supply chains—ensuring products and materials are reused and recycled as much as possible—is an essential strategy for reducing waste, increasing resilience, and boosting econo

Digital Transformation in Mining: Cloud, AI, and the Path to Sustainability
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November 18, 2024

The mining industry faces significant challenges due to energy shifts and sustainability mandates, making digital transformation essential. Key changes include electrification, AI, and real-time data analytics, enhancing productivity and resilience. Cultural shifts and technological integration are

Why Bluesky Is the Future of Social Media in a Post-Twitter World
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November 14, 2024

Bluesky emerges as a user-centered alternative to traditional social media platforms like Twitter, offering transparency and control through its open-source algorithms and federated network. Users appreciate its focus on safety and empowerment, enabling them to curate content and manage interactions

Why ESG Is Crucial for Modern Businesses: Insights from Industry Leaders
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November 04, 2024

The article highlights the increasing importance of Environmental, Social, and Governance (ESG) principles in transforming businesses into forces for sustainable impact. It discusses insights from Joanne Flinn, emphasizing that effective ESG adoption is essential for resilience, long-term viability,

How the Energy Transition Will Reshape Business: Opportunities, Risks, and Regulations
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October 23, 2024

The conversation around energy is at a crucial inflection point, driven by a potent mix of geopolitics, technological innovation, and public awareness of climate issues. As we face challenges ranging from escalating conflict in the Middle East to the pressures of climate change, the energy transitio

Why Sports Stars Are the Perfect Advocates for Climate Change Solutions
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October 23, 2024

Athletes hold significant potential as advocates for climate action, leveraging their influence and public trust. EcoAthletes equips over 170 athletes with tools to engage in advocacy, transforming climate change from an abstract issue into relatable narratives. By inspiring their communities, athle

Cloud and AI: Powering a New Era of Innovation in the Utility Sector
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October 10, 2024

The utility sector is transforming in response to climate change, shifting from centralized to decentralized, renewable energy models. Cloud computing and AI are essential for managing complexities such as real-time data processing, predictive maintenance, and enhancing cybersecurity. Embracing inno

How Climate Week Outcomes Are Shaping Corporate Sustainability Strategies
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October 02, 2024

Climate Week in New York has become a crucial platform for collaboration among business leaders, policymakers, and NGOs to address climate change. As discussed with Jim Sullivan from SAP, the event fosters partnerships, drives commitments to reduce emissions, and emphasizes the need for standardized

Beyond Carbon Capture: The Critical Need to Analyse Decarbonisation Solutions
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September 30, 2024

The urgency to tackle climate change has heightened, positioning decarbonisation as a key global focus. Effective solutions emphasize emission reductions at the source, notably through renewable energy and sustainable practices, rather than reliance on carbon capture technologies. Nature-based metho

EUDR Compliance: How Accurate Data Can Make or Break Your Supply Chain
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September 16, 2024

The European Union Deforestation Regulation (EUDR) poses challenges and opportunities for businesses. Compliance demands detailed knowledge of supply chains, and accurate data is crucial. Satellite imagery and machine learning offer high-precision monitoring to verify compliance and enhance supply c

PFAS in Supply Chains: Health Risks, Regulations, and How to Stay Ahead
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September 11, 2024

PFAS, or per- and polyfluoroalkyl substances, are a group of man-made chemicals that have been around since World War II. They’ve earned the nickname “forever chemicals” because they’re incredibly persistent in the environment and human bodies—meaning they don’t easily break down. While

Why the 2024 US Election Could Decide the Fate of Global Climate Action
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September 05, 2024

The upcoming 2024 US presidential election holds immense significance for global climate action. The elected leader's decisions will impact international agreements, technology development, and environmental regulations. Dr. Hakes emphasized the role of US leadership and the urgency of climate actio

Harnessing AI and Geospatial Data: A Crucial Strategy in the Fight Against Climate Change
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August 28, 2024

As the world faces the escalating challenges of climate change, the need for innovative solutions has never been more urgent. From record-breaking heatwaves to unprecedented flooding, the effects of climate change are becoming increasingly difficult to ignore. Among the arsenal of tools available to

How AI and Real-Time Data are Revolutionising Retail and CPG Supply Chains
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July 29, 2024

Global supply chains are under pressure to reduce waste and improve sustainability. Real-time data sharing is crucial in achieving this goal and is exemplified by Crisp's success in partnership with UNFI. Companies like Tesco and Walmart use real-time data to enhance forecasting, inventory managemen

Cleaner Roads, Cleaner Future: The Path to Sustainable Transport and Ethical Batteries
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July 17, 2024

The transportation sector is pivotal for sustainable development, but its carbon footprint poses a threat. Decarbonizing through EVs, urban mobility innovations, and ethical mineral sourcing is critical. Circular economy principles and global cooperation are key. Strong regulation, infrastructure in

Industrial Decarbonisation: Key Strategies for a Sustainable Future
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June 05, 2024

The global initiative to combat climate change has placed a high priority on industrial decarbonization, aiming to reduce the significant contribution of industrial sectors to greenhouse gas emissions. Strategies such as smart electrification, digitalization, renewable energy integration, and effect

Why Women’s Leadership is Essential for Climate Action
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May 30, 2024

Climate change demands immediate action and women's leadership is crucial. They are disproportionately affected and can drive sustainable outcomes. Examples worldwide highlight their impact, from reforestation in the Congo to legal recognition of a river in New Zealand. Integrating women's expertise

Why Ethical and Sustainable Supply Chains Are Crucial for Today’s Businesses
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May 17, 2024

Ensuring ethical and sustainable supply chains has never been more critical. As global supply chains become increasingly complex, businesses face mounting pressure from consumers, regulators, and stakeholders to demonstrate responsible practices. In a recent episode of the Sustainable Supply Chain P

AI Streamlining Business Processes and Promoting Sustainability
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May 13, 2024

Artificial intelligence (AI) is revolutionizing business operations and sustainability efforts. In a discussion with aiOla's CEO, Amir Haramaty, we explored how AI enhances speech-to-data conversion and optimizes processes in industries like logistics and pharmaceuticals. By reducing waste, optimizi

The Untapped Potential of Tech and Finance in Reducing Food Supply Chain Waste
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April 29, 2024

The global food supply chain faces a critical challenge of inefficiency, leading to massive food waste and environmental impact. Pat McCullough, CEO of ProducePay, discusses on the Sustainable Supply Chain Podcast how integrating capital and technology can reduce waste. Implementing technological in

2 Terawatts of Solar Power, Electric Mining Trucks, and the Future of ESG: Sustainability's Big Moves
Tom Raftery
November 15, 2024

Here in Spain we had devastating climate induced floods which killed an estimated 220 people mostly in the Valencia region of Spain (on the Eastern side of the country). Lots of anger, and lots of finger pointing, but everyone is blaming the wrong folks, cos while blaming the politicians is somewhat accurate, no-one is blaming the fossil fuel companies that caused these floods to be as devastating as they were.

AI Takes Over: Nobel Prizes, Clean Energy, and Supply Chain Wins
Tom Raftery
October 18, 2024

Hi everyone, it’s been a while! Welcome back to FutureProof - Tom's Tech and Sustainability Digest. I know it's been a while, and I apologise for the absence. Life and projects took me off track, but I’m excited to be back and reconnecting with all of you.

The future of Digital - what the next 10 years has in store
SITBCN
November 05, 2018

The Future of Digital
SAP
June 04, 2018

Digital transformation is upon us. It is changing all of our industries. What are its implications.? Where is it headed? How will it affect me? All these questions are addressed in this talk I gace at SAP Now in Lisbon

The Future of Digital - what the next 10 years has in store
Youtube
June 04, 2018

My opening keynote at the recent SAP Now event in Lisbon on where digital is taking us over the next 10 years

The Future of Digital
Arch Summit
May 23, 2018

My keynote at the Arch Summit in Luxembourg on the Future of Digital

The Future of Digital
SAP Hellas & Cyprus
May 22, 2018

My opening keynote at the SAP Now event in Athens on the topic of the Future of Digital

The Future of Digital
SAP
October 24, 2017

My opening keynote on the Future of Digital at SAP Now in Belgrade

10 predictions of what digital will deliver by 2017
AFSUG
June 21, 2017

I delivered the opening keynote at the Saphila event in South Africa in 2017 on the topic

IoT and Energy
Tesla World
October 03, 2015

My keynote presentation on IoT and Energy at TeslaWorld

Electricity 2.0: Applying the Lessons of the Web to Our Energy Networks
O'Reilly
April 20, 2009

My keynote talk at the O'Reilly Etech conference in Palo Alto applying the lessons of the internet to the energy grid

Miguel Castro on the importance of culture and identity for organisations
Tom Raftery
August 08, 2018

I caught up with SAP Global Lead for Culture and Identity Miguel Castro at SapphireNow and we had a great conversation about why Culture and Identity is so important for organisations

Digital Manufacturing discussion with SAP Head of Solution Management for Manufacturing Mike Lackey
Tom Raftery
August 01, 2018

I caught up with SAP Global VP Mike Lackey at our Sapphirenow event in Orlando and we discussed Digital Manufacturing, using cloud to connect data from all plants, and manufacturing networks using Ariba

Anne Mette Hoyer on successful IoT project deployment strategies
Tom Raftery
July 26, 2018

I caught up with SAP Director of Leonardo IoT Solutions Anne Hoyer at our Sapphirenow event in Orlando, and we discussed IoT implementation projects, some gotchas, and best practices.

IOT’S ECOSYSTEM OF TECHNOLOGY WITH TOM RAFTERY OF SAP
Marketscale
June 15, 2018

Podcast on AI and Blockchain's future

What will the world look like 10 years from now?
Sapotek
May 30, 2018

Interview by Sapotek (influential Portuguese IT publication) on the Future of Digital

Interview prior to ASIS 2018 opening keynote
CorporateSecurity.tv
May 23, 2018

I was interviewed by CorporateSecurity.tv prior to my opening keynote in Rotterdam at ASIS 2018 about the future of Digital and security

Tom Raftery: "In ten years technology will have transformed the world"
Liberal.gr
May 07, 2018

Interview with Greek publication Liberal on the near future

The Future of Digital
360 Crossmedia
May 04, 2018

I was interviewed prior to my keynote at the Arch Summit in Luxembourg on the Future of Digital

What will the Internet of Things look like 10 years from now?
SAP
October 23, 2017

I was interviewed prior to my keynote in Belgrade about the future of the Internet of Things

Why IoT is transforming the sum of the parts – not just the whole
IoT News
June 27, 2017

How IoT is transforming industry

How IoT is transforming the sum of the parts – not just the whole
IoT News
June 27, 2017

How IoT is transforming industry

Interview with SABC Digital News
SABC Digital News
June 06, 2017

Interview with SABC Digital News on the topic of Digital Security

Digital disruption driving force behind 4th industrial revolution
CAJ News Africa
June 06, 2017

Interview following my Opening keynote at Saphila 2017 in South Africa

Decoding Carbon Accounting: Making Supply Chains Sustainable with George Wade"
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January 20, 2025

Send me a messageIn this episode of The Sustainable Supply Chain Podcast, I sit down with George Wade, co-founder of Zevero, a global leader in carbon accounting solutions for businesses with complex supply chains. George shares his fascinating journey from waste management to tackling carbon emissi

How Digital Product Management Drives Sustainable Business Growth
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January 13, 2025

Send me a messageIn this episode, I’m joined by Kristin Naragon, Chief Strategy Officer at Akeneo, to explore how businesses can strategically merge digital transformation with sustainability. As regulations tighten and consumer demand for transparency grows, companies are under increasing pressur

Tackling Scope 3 Emissions: AI, Data, and the Future of Sustainable Supply Chains
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January 06, 2025

Send me a messageWelcome to 2025, and to the 49th episode of the Sustainable Supply Chain podcast, my first for the year!In this episode, I had the pleasure of chatting with Jenna Fink, Principal of Research at Zero100, about the evolving intersection of sustainability and supply chains. With her di

How 2024 Redefined Sustainable Supply Chains: Key Insights and Trends
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December 23, 2024

Send me a messageHi, Tom Raftery here! In this special episode of the Sustainable Supply Chain podcast, I look back on 2024's 47 episodes of the podcast. Fittingly given the rise in popularity of AI, I do this through the lens of Google Notebook's AI-generated insights. So in this 2024 rev

Harnessing AI, Data, and Technology for Smarter, Sustainable Supply Chains
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December 16, 2024

Send me a messageIn this episode of the Sustainable Supply Chain podcast, I sit down with Kayla Broussard, CTO for the Consumer and Travel Market at Kyndryl, to explore how data and technology are reshaping supply chains to be more resilient, efficient, and sustainable.Kayla walks us through some of

How AI and Historical Data Are Transforming Sustainable Manufacturing
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December 09, 2024

Send me a messageIn this episode of the Sustainable Supply Chain podcast, I’m joined by Aaron Lober, Vice President of Marketing at CADDi, to explore how data-driven manufacturing is reshaping the industry. Manufacturing, as we know, is the backbone of our global economy, but it’s grappling with

AI-Driven Circularity: Turning Industrial Byproducts into Revenue Streams
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December 02, 2024

Send me a messageIn this episode of the Sustainable Supply Chain Podcast, I sit down with Jon Goriup, Co-Founder and CEO of VCG AI, to explore how artificial intelligence is reshaping the way industries think about waste and sustainability. Jon and his team are pioneering an innovative approach to t

The Circular Economy in Action: Kenny McGee on Redistributing Excess Components
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November 25, 2024

Send me a messageIn this episode, I sit down with Kenny McGee, CEO and founder of Component Sense, to explore how his company is driving sustainability in the electronics industry. Kenny shares the story behind Component Sense’s origins—born out of a pressing need to manage surplus electronic co

How AI and Consolidated Shipping Are Transforming Logistics Sustainability
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November 18, 2024

Send me a messageIn this episode of The Sustainable Supply Chain Podcast, I sit down with Thom Campbell, Co-Founder and Chief Strategy Officer of Capacity LLC, a leading third-party logistics and fulfilment company. Thom shares fascinating insights from his 25 years in the industry, where sustainabi

AI and Data: The New Powerhouses of Sustainable Supply Chains with Ganesh Gandhieswaran
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November 11, 2024

Send me a messageIn this episode of the Sustainable Supply Chain podcast, I sit down with Ganesh Gandhieswaran, Co-Founder and CEO of ConverSight, to dive into how data and AI are transforming sustainable supply chains. Ganesh’s extensive background in data analytics for manufacturing and supply c

ESG Mindset Shifts Every Business Leader Needs to Know
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November 04, 2024

Send me a messageIn this episode, which is generously sponsored by Component Sense, I sit down with Joanne Flinn, Chair of the ESG Institute, to unpack what it really means to push sustainability forward in business, far beyond the usual carbon targets. Joanne shares her personal journey to becoming

Data-Driven Cold Chains: Enhancing Efficiency, Reducing Waste, and Meeting Sustainability Goals
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October 28, 2024

Send me a messageIn this episode of the *Sustainable Supply Chain* podcast, I sit down with Karl McDermott, Chief SaaS Officer at DeltaTrak, to dive deep into the complex world of cold chain logistics and explore how data is transforming this critical industry. With 35 years under their belt, DeltaT

AI, Accountability, and Sustainability: The New Supply Chain Playbook
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October 21, 2024

Send me a messageIn this episode of The Sustainable Supply Chain podcast, I’m joined by Spencer Malcolm, Principal at Forsyth Advisors, to delve into a pragmatic approach to supply chain sustainability. Spencer brings over 20 years of experience in leadership across multiple industries, from manuf

AI-Powered Supply Chain Sustainability: Transforming Procurement with Robobai
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October 14, 2024

Send me a messageIn this episode, I sit down with Julian Harris, the founder and CEO of Robobai, a supply chain analytics platform. Julian’s got extensive experience building tech companies across Europe and now in Asia, and in our chat, he shares how AI-driven data analytics can transform supply

AI, Real-Time Visibility, and Sustainability: The Future of Supply Chains!
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October 07, 2024

Send me a messageIn this episode of the Sustainable Supply Chain podcast, I spoke with Krenar Komoni, the CEO and founder of Tive, about the transformative impact of real-time tracking on supply chain sustainability. We explored how Tive's technology is enabling companies to reduce waste by pro

AI in Action: UPS Digital's Approach to Sustainable Supply Chain Management
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September 30, 2024

Send me a messageIn this episode of the Sustainable Supply Chain podcast, I had a great chat with Dan Spitale, the head of sales for UPS Digital. We delved into how UPS is leveraging technology, particularly AI and predictive analytics, to enhance sustainability in the supply chain. Dan shared insig

How Generative AI is Revolutionising Sustainable Supply Chains
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September 23, 2024

Send me a messageIn today's episode of the Sustainable Supply Chain podcast (generously sponsored by Live EO), I had the pleasure of chatting with Kevin Frechette, the co-founder and CEO of Fairmarkit. We delved into the transformative role of AI and generative AI in the procurement sector, par

EUDR Compliance Simplified: The Role of Accurate Data in Risk Reduction
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September 16, 2024

Send me a messageIn this episode of the Sustainable Supply Chain podcast, I had an insightful conversation with John Atkinson, the Chief Product Officer at LiveEO. We explored how satellite imagery and advanced machine learning are transforming supply chain sustainability, particularly in light of t

PFAS and the Future of Compliance: Essential Insights for Supply Chain
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September 09, 2024

Send me a messageIn this episode of the Sustainable Supply Chain podcast, I’m joined by Cally Edgren, Vice President of Regulatory & Sustainability at Assent, to explore the complex world of PFAS, or "forever chemicals."Cally sheds light on what PFAS are, why they’re so prevalent i

Driving Profit and Sustainability: The Power of Channel Data in Supply Chains
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September 02, 2024

Send me a messageIn this episode of the Sustainable Supply Chain podcast, I’m joined by Chris Shrope from Model N to delve into the complexities of sustainable revenue optimisation and compliance for life sciences and high-tech manufacturers. We explore how data-driven strategies not only enhance

The Future of Supply Chains: AI, Agility, and Reducing Environmental Impact
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August 26, 2024

Send me a messageIn this episode of the Sustainable Supply Chain podcast, I had the pleasure of chatting with John Sicard, CEO of Kinaxis. We delved deep into the shifting landscape of supply chain management, exploring how traditional approaches are giving way to more agile, concurrent techniques.

How AI and Cloud Are Shaping Sustainable Supply Chains: A Conversation with Propel Software
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August 19, 2024

Send me a messageIn this episode of the Sustainable Supply Chain podcast, I had the pleasure of chatting with Dario Ambrosini, CMO of Propel Software. Dario brings a wealth of experience in cloud software and manufacturing, making him the perfect guest to explore the intersection of my favourite top

Summer Hols 2024!
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August 05, 2024

Send me a messageIt is that time of year again - summertime!I'm taking a couple of weeks off to get some much needed R&R. This podcast will be back again on August 19th, and I have some excellent episodes lined up for the 19th, and the subsequent weeks, so don't go away!In the meantime

Inside Lectra: AI, Innovation, and Sustainability in Modern Manufacturing
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July 22, 2024

Send me a messageIn this episode of the Sustainable Supply Chain podcast, I had the pleasure of speaking with Lenny Marano, President of the Americas for Lectra, a leading technology solutions provider for industries working with flexible materials. We delved into Lectra’s journey from its origins

Cutting Costs, Not Corners: Elizabeth Corbett on Sustainable Packaging Solutions
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July 15, 2024

Send me a messageWelcome to another insightful episode of the Sustainable Supply Chain podcast! I’m Tom Raftery, and today, I had the pleasure of speaking with Elizabeth Corbett, President of the Enterprise Team at A.E. Global. Elizabeth brings over 25 years of expertise in packaging, focusing on

IoT, Renewables, And Storage: A Perfect Storm For Utilities [VIDEO]
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March 01, 2017

With energy generation and storage costs dropping quickly, utility companies may need to adopt an "all-you-can-eat" business model.

In 2025, AI will take center stage in enabling supply chains to meet increasingly stringent ESG reporting requirements, providing deeper insights into carbon footprints and compliance tracking. Blockchain, especially when paired with IoT, will enhance supply chain visibility, allowing companies to prove the integrity and sustainability of their products, from raw materials to the consumer's hands.

Supply chain resilience will also be marked by a continued trend towards nearshoring and reshoring, as companies seek to mitigate geopolitical risks—a trend accelerated by the long-term benefits of regional supply hubs. This shift will strategically redefine what "just-in-time" means, balancing efficiency with agility to withstand global disruptions.

The move towards sustainability will accelerate, as companies adopt electric fleets and shift to renewable energy in logistics, significantly reducing emissions. Visibility solutions will continue to evolve, driven by demands from both consumers who want to know the environmental and ethical pedigree of their purchases, and governments tightening the regulatory noose around supply chain transparency.

Workers in 2025 will need to adapt to a landscape of perpetual technological evolution, adopting a lifelong learning mentality to stay relevant in an increasingly automated environment. Interestingly, with increasingly rigorous ESG targets becoming the norm, we'll more and more see Chief Sustainability Officers (CSOs) being brought into the Chief Financial Officer’s (CFO) remit. This change will emphasize the financial significance of sustainability, fundamentally tying corporate strategy to a sustainable bottom line.

In 2024, AI-driven supply chain optimisation will become a cornerstone in climate action. By leveraging IoT, big data and machine learning, companies will significantly reduce waste and emissions, paving the way for a more sustainable and efficient global supply chain. Blockchain technology will see increased adoption in 2024, especially in tracking and verifying carbon emissions in supply chains. This will enhance transparency and accountability in corporate sustainability efforts, aligning with the growing demand for environmental integrity in business operations. Decentralised energy systems, such as microgrids and solar-powered operations, will gain traction in supply chains in 2024. This shift towards localised, renewable energy sources will not only reduce carbon footprints but also increase resilience against climate-induced disruptions. And sustainability will move beyond being a separate initiative and become an integral part of core business strategies in 2024. Companies will embed sustainability principles into every aspect of their operations, from product design to customer engagement, recognizing it as essential for long-term success.

Supply chains will extensively adopt green technologies such as solar and wind energy, electric vehicles, and energy-efficient systems to minimize their carbon footprint.
Artificial Intelligence (AI) and advanced analytics will play a crucial role in optimizing the use of resources, while predictive analytics will help in forecasting demand more accurately to avoid overproduction and waste, and AI will enhance material flow and routing to reduce energy usage.
Advanced sensor technologies and IoT will enable real-time monitoring of environmental impact across the supply chain, enabling companies to monitor emissions, waste generation, and water usage in real-time, allowing for immediate corrective actions and continuous improvement towards sustainability goals.

Why Real-Time Emissions Tracking Is the Missing Link in Product Carbon Footprinting
Thinkers360
April 11, 2025

In the murky depths of sustainability reporting, one data point rules them all: the Product Carbon Footprint (PCF). It’s not new. It’s not flashy. But for manufacturing leaders trying to wrestle emissions down to net zero by mid-century, PCF is about to become the gold standard. The only problem? Most manufacturers are still working with static spreadsheets, outdated databases, and averages that could be off by orders of magnitude.

In episode 62 of the Sustainable Supply Chain podcast, I sat down with Simon Kim, CEO and founder of Glassdome, to dig into what it takes to get PCF right—and why real-time, machine-level data is the linchpin to doing it accurately, affordably, and at scale. You can listen to the full episode here.

The problem with averages

Let’s not sugar-coat it: most emissions data used today is guesswork dressed in compliance clothing. Lifecycle databases and emission factor repositories serve as the default inputs for many corporate footprinting efforts. They're based on industry averages, not actual emissions. That might pass regulatory muster for now, but it’s a poor foundation for serious decarbonisation.

Here’s why that matters: if every supplier reports using the same average data, there’s no differentiation. Supplier A and Supplier B look identical on paper, even if one is running on super clean solar and the other on coal. And for manufacturers trying to decarbonise supply chains—where Scope 3 emissions typically account for 70% or more of total emissions—that’s a big blind spot.

Primary data: the way forward

Simon and his team at Glassdome have built a system that plugs directly into manufacturing machinery—bypassing the black box of assumptions entirely. Their software connects to legacy equipment through custom-built drivers (think USB printer drivers, but for CNC machines and robotic arms), extracts machine-level energy and material usage data, and uses it to compute real-time PCFs.

With this kind of granularity, manufacturers can:

• Pinpoint carbon hotspots on the factory floor
• Compare the emissions of two identical-looking parts from different suppliers
• Adjust operations in real-time to reduce emissions

And perhaps most importantly, they can report to regulators with confidence, rather than caveats.

Regulation is coming—fast

The EU is leading the charge. The 2023 EU Battery Regulation mandates site-specific, primary emissions data for all batteries sold within the bloc. And it’s not just a one-off. The Digital Product Passport and Ecodesign for Sustainable Products Regulation (ESPR) are queuing up next, targeting a wide range of sectors from textiles to consumer electronics.

If your products cross a European border, you’re in scope. And just as USB-C became the global standard after an EU push, PCF compliance will likely follow a similar trajectory. Apple didn’t redesign iPhones for Europe only. Manufacturers won’t either.

The SME dilemma

Big manufacturers have compliance teams, sustainability officers, and budgets to throw at decarbonisation. But small and mid-sized manufacturers? Not so much.

If you want to bring SMEs along, emissions tracking needs to be automated, affordable, and as close to plug-and-play as possible. That starts with scalable data infrastructure. Not million-euro IT overhauls, but low-cost, IoT-driven systems that can be deployed quickly, generate actionable insights, and plug into broader reporting platforms like Siemens' SiGreen.

The goal isn’t just to survive audits. It’s to create competitive advantage. If you’re a supplier who can deliver emissions transparency along with your products, you’re already ahead of 90% of the market.

A future of comparability

Today, PCF disclosures are rare. But five years from now, they could be as common as nutrition labels. Simon recalled his surprise visiting Europe, where food packaging prominently features A-to-E health ratings. He expects the same thing for carbon. Oatly, for instance, already lists the CO2e per litre on its oat milk packaging. Most dairy competitors don’t. So while 0.54kg CO2e/kg may sound good, there’s really no way of telling, because there's no benchmark, or reporting standard - yet.

Once PCF becomes a standardised consumer signal, lagging behind won’t just be a regulatory risk—it’ll be a branding liability.

AI and emissions tracking: Not yet

Everyone wants to sprinkle a bit of AI on their sustainability problems, but you can’t optimise what you don’t measure. AI can help once the data exists, but until then, the first step is infrastructure. Get your data out of the machines. Then let the algorithms go to work.

Eventually, AI could handle system boundaries, allocation rules, and PCF methodology selection. But today, it’s real-world sensors and IoT gateways that need the spotlight.

Supply chain first, always

If you’re a manufacturer reading this and wondering what to do tomorrow, the advice is simple: after data infrastructure, tackle your supply chain. Scope 3 is the big beast, and getting even partial transparency into your tier-1 and tier-2 emissions is better than staying in the dark.

Work with suppliers, share goals, define data exchange frameworks. Don’t wait for regulation to drag you forward. If you’re the one asking the hard questions about emissions now, you’ll be the one winning business tomorrow.

Final thoughts

Product carbon footprinting isn’t some distant goal. It’s happening now. And while there’s still a wild west of frameworks and methodologies out there, the direction of travel is clear.

Primary data is in, industry averages are out. Real-time beats annual. And machine-level granularity is the new currency of credible emissions reduction.

If you're ready to step beyond box-ticking and into actual impact, the tools exist. And so does the imperative.

To learn more, check out the full conversation with Simon on the Sustainable Supply Chain podcast.

This article was first published on TomRaftery.com

Industrial Decarbonisation Could Be the Climate Win of the Decade - If We Get Serious!
Thinkers360
April 04, 2025

Bankability or Bust: Why Industrial Decarbonisation Hangs in the Balance

Industrial decarbonisation isn’t a footnote in climate action, it’s one of the most critical, daunting, and often misunderstood frontlines in our battle to limit global warming. We’re talking about the bedrock sectors of modern civilisation: steel, cement, chemicals, aluminium, shipping, aviation - the heavy hitters responsible for around 30% of global CO₂ emissions, according to the International Energy Agency (IEA). These are not optional extras. These are the building blocks of everything from bridges to broadband towers to the very fertiliser that feeds us.

And they’re hard to decarbonise. Not just because they burn a lot of fossil fuel, but because they’re capital-intensive, margin-sensitive, and until recently stuck in a kind of low-carbon limbo. They know where they need to go. But getting there? That’s the kicker.

In a recent episode of the Climate Confident podcast, I spoke with Faustine Delasalle, CEO of the Mission Possible Partnership (MPP), an organisation spearheading decarbonisation efforts across these sectors. And the conversation drilled into one truth that rarely makes headlines but should be etched on the walls of every climate conference hall:

“If projects aren’t bankable, they aren’t investable. If they’re not investable, they won’t get financed. And if they don’t get financed, they’ll never see the light of day.”

Let’s unpack what that means—and why industrial decarbonisation now hinges on what you might call a “demand-chain reaction”.

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The Tech Exists. The Commitment Exists. The Money? Still Waiting

The technical roadmaps are there. We know how to make green steel using hydrogen instead of coal. We can produce low-carbon cement by reducing clinker content or even using entirely new chemistries. Sustainable aviation fuels (SAF)? Possible. Green ammonia? Feasible. Shipping? Working on it. The innovation isn’t the bottleneck.

What is? The economics. A ton of green steel still costs more than a ton of conventional steel. That differential, known in some circles as the green premium, or conversely, the dirty discount, is killing momentum.

Even when companies want to invest, the business case often falls apart on paper. Lenders hesitate. Insurers waver. Boards drag their feet. Because while we’ve got 700+ commercial-scale decarbonisation projects in the global pipeline (as tracked by MPP), the vast majority haven’t reached final investment decision (FID). And unless they cross that threshold within the next 18–24 months, they won’t be operational by 2030, which is the inflection point for keeping a 1.5°C world within reach.

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Bankability Isn’t About Hype—It’s About Buyers

This is where the conversation gets a little uncomfortable. For all the fanfare about corporate net-zero commitments, the follow-through is spotty. As Faustine put it:

“Project developers don’t just need capital—they need a buyer. Someone willing to purchase green commodities at a premium. And right now, voluntary demand only gets us so far.”

You might have heard of buyers’ clubs like the First Movers Coalition, where companies agree to procure small percentages (1–5%) of green steel or cement. That’s a good start, and yes, it helped get some early-stage projects off the ground. But let’s not kid ourselves - that level of demand won’t carry us to industrial-scale transformation.

Voluntary action hits a wall when the CFO starts asking about cost parity and return on investment. We’re stuck in a weird holding pattern where demand is too soft to de-risk supply, and supply is too scarce to drive down cost.

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The Carrot Is Nice. But the Stick Works Faster.

So how do we flip the economics? In short: policy. And not just subsidies. Faustine made a compelling case for what’s needed now - mandates, procurement standards, and regulatory demand signals that force the market to adapt.

We’ve seen this work before. Think back to Germany’s feed-in tariffs for solar power in the 2000s. By guaranteeing 45 euro cents per kilowatt-hour of solar-generated electricity at a time when market prices were a fraction of that they jumpstarted the global PV industry. Fast forward to today, and solar is the cheapest form of electricity in history.

The same dual-pronged approach powered the rise of electric vehicles: consumer subsidies on the one hand, and EU manufacturer fleet-average CO₂ targets on the other. Europe’s tightening rules, like the 2035 ban on new internal combustion engine sales are driving innovation because they leave no room for complacency.

Now imagine applying that logic to steel, cement, and ammonia. Mandates for green public procurement, building material standards, and clean fuel quotas in aviation and shipping. Couple that with production tax credits or investment guarantees and you’ve got a recipe for scale. Not perfection, scale.

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A $1 Trillion Opportunity Hiding in Plain Sight

Let’s put some numbers on this.

MPP tracks over 560 industrial decarbonisation projects that haven’t yet reached FID. Combined, they represent a $1 trillion investment opportunity - real money, real infrastructure, and real emissions reductions waiting to happen.

This isn’t vaporware. These are legitimate projects announced by companies, with locations, technologies, and timelines. What they lack is a clear signal that the green output will be purchased at a viable price.

If that demand existed say, through clean product mandates in steel for carmakers, or cement standards for construction contracts, then suddenly these projects go from speculative to investable. From vision to bricks-and-mortar.

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Where It’s Working, and Where It Isn’t

No country has it completely figured out, but some regions are experimenting at scale.

• United States: The Inflation Reduction Act (IRA) is throwing hundreds of billions in subsidies at clean tech. But as Faustine noted, it’s not working uniformly (and sadly the new administration is killing it off!). Compare California, which layers on state-level regulations, to Texas, which relies on subsidies alone. Guess which one is seeing more green steel and ammonia activity? (Hint: it’s not the Lone Star State.)

• Europe: A pioneer in clean industry, but increasingly hamstrung by high energy costs and limited renewable capacity (with exceptions like here in Spain, also Portugal, and the Nordics). The EU’s Carbon Border Adjustment Mechanism is a bold step, but questions remain about implementation and competitiveness.

• Emerging economies: Places like Brazil are starting to see the value in producing green fertilisers at home using domestic renewables. Ethiopia and Rwanda are already phasing out combustion engine imports. The global south may end up leapfrogging the old industrial order, if access to finance can match political will.

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Hydrogen’s False Promise? Why Ammonia Might Not Be the Domino We Need

Faustine highlighted ammonia as a potential first domino in industrial decarbonisation largely because it’s already produced using hydrogen, and green ammonia could replace both fertiliser feedstocks and shipping fuels. From her view, ammonia is attractive because it straddles multiple markets and requires fewer process overhauls than, say, green steel.

But here’s where I diverge.

Hydrogen, especially green hydrogen is not a free lunch. It’s wildly inefficient. First, you lose about 30–40% of your energy just producing hydrogen via electrolysis. Then, if you’re converting it to ammonia, that’s more energy lost. And if you’re planning to crack it back into hydrogen downstream, add more losses again. The full cycle from electrons to molecules and back to electrons is like a leaky bucket.

And here’s the kicker: every kilowatt-hour wasted in hydrogen production is a kilowatt-hour not going into electrifying transport, heating homes, or running industrial heat pumps that could decarbonise more effectively, more affordably, and more directly.

In a world where clean electrons are scarce and in high demand, diverting that electricity into hydrogen pathways should be considered a last resort, not a primary solution.

That doesn’t mean green hydrogen has zero role. In sectors where there’s genuinely no viable alternative, such as long-range shipping or fertiliser production in areas with no access to other clean feedstocks it may be unavoidable. But we should be laser-focused on using it where nothing else will do. Not where electrification could do the job faster, cheaper, and far more efficiently.

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Efficiency, Design, and the Hidden Wins

While we obsess over fuel switching and process redesigns, let’s not forget the low-hanging fruit.

• Energy efficiency remains one of the most cost-effective ways to cut emissions. Always has, always will.

• Material efficiency using less cement per building, lighter-weight car designs, recycling aluminium offers gains without breaking ground.

• System efficiency optimising supply chains, reducing overproduction, embracing circularity can reshape entire sectors without a single new technology.

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2030 or Bust? Not Quite, but Close.

MPP’s modelling shows we need 700 green industrial plants up and running by 2030 to align with a 1.5°C pathway. That’s… not happening. Not at the current rate. Projects need to be approved by 2026 at the latest to hit that mark, and we’re nowhere near the FID surge we need.

But Faustine remains cautiously hopeful. Even if we miss the 2030 milestone, the sheer volume of pipeline projects suggests that by 2035, the industrial landscape could look very different. That’s a delay we can’t afford, but also a shift we can’t ignore.

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Listen to the Full Conversation

If this post has piqued your interest, and I hope it has, then I’d encourage you to listen to the full conversation with Faustine Delasalle on the Climate Confident podcast. We cover financing strategies, buyer incentives, regional disparities, and what it’ll take to bring those 700 projects to life.

 Listen to the full episode here

Let’s stop treating industrial decarbonisation as someone else’s problem, or worse, as too hard to tackle. The pathway is difficult, but visible. The tools exist. The money is waiting. What we need now is the will to buy, to build, to believe that this transformation i s not just possible, but mission-critical.

This article was originally published on TomRaftery.com. Photo credit ILO Asia-Pacific on Flickr

Burned for Scrap: The Dark Afterlife of Our Electronics—and How to Fix It
Thinkers360
March 27, 2025

We’ve spent years fine-tuning the rhythms of supply chains, applying digital tools, data, and policy nudges to reduce carbon, optimise inventory, and electrify logistics. Yet one of the most urgent environmental flashpoints remains stubbornly neglected, wrapped in complexity and often exported far from sight: electronic waste.

Every cable, phone, laptop, server, industrial controller, when it reaches the end of its useful life, joins a growing mountain of discarded technology. E-waste is now the fastest-growing solid waste stream in the world. And it's not just about volume. It's about what’s inside: rare earths, heavy metals, flame retardants. Stuff that’s hazardous to extract, toxic to dispose of, and increasingly hard to source.

In episode 60 of the Sustainable Supply Chain podcast, I sat down with Kenny McGee, founder and CEO of Component Sense, to discuss what’s really happening on the ground with global e-waste, and what it means for supply chain professionals and sustainability leaders. Kenny shared insights from a recent trip to Agbogbloshie in Accra, Ghana, formerly the world’s largest e-waste dump site. What he found there was equal parts inspiring and devastating.

But let’s not get ahead of ourselves.

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The Global E-Waste Equation: 62 Million Tonnes and Climbing

Let’s set the context. According to the UN’s Global E-Waste Monitor, the world generated over 62 million tonnes of e-waste in 2022. That’s a 20% increase over five years, with projections putting us on track for 82 million tonnes by 2030. Only 17.4% of that waste is formally documented as collected and recycled.

Why so little?

Because e-waste, more than any other category of waste, is mired in complexity. It straddles legality, informality, and outright criminality. It’s difficult to sort, expensive to recycle properly, and often shipped illegally or semi-legally to countries with weaker environmental regulations under the label of “used goods.”

And here's the kicker: it’s not all waste. Much of it is perfectly usable equipment, or equipment that could be refurbished or repurposed. But in a system designed to prioritise throughput, not longevity, even minor faults often mean the scrap heap.

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What Happens When a TV Leaves Europe

Kenny’s trip to Agbogbloshie was not the typical sustainability mission of metrics and dashboards. It was an attempt to trace the physical reality of the “end of life” phase of electronics.

What he found is a system of extraordinary resourcefulness built on unbearable trade-offs. Second-hand traders in Ghana buy shipping containers full of discarded electronics, ostensibly tested and working. But in reality, Kenny says, only around 20% of the goods function on arrival. The rest? They enter a cascading informal repair and salvage economy.

Technicians, many of them teenagers tear down, scavenge, resell, and in many cases, burn. Circuit boards are stripped of copper and gold. Cables are incinerated to get at the wire inside, using polystyrene from old fridges to boost the flames. The smoke is dense. Toxic. Relentless. Burning plastic infused with brominated flame retardants is a regular part of daily life.

And this isn’t happening on some remote industrial site. It’s happening in people’s front yards. Right next to their bedrooms. Children grow up with this as their air, their soil, their normal.

All of this from equipment that was supposedly “recycled” in Europe.

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Circularity Has a Border Problem

The circular economy sounds great in theory. Keep products and materials in use. Design for disassembly. Refurbish and reuse.

But it breaks down when the loop crosses borders.

By EU law, it’s illegal to export e-waste to developing countries. And yet, as the Basel Action Network and other watchdogs have shown, thousands of tonnes slip through every year disguised as “used goods.” That loophole, deliberate or not, transforms a circular process into a linear one that ends in uncontrolled incineration, contamination, and exploitation.

Kenny traced some of these downstream paths. He saw British and Chinese companies operating in Ghana, buying circuit boards, stripping them of components, and shipping them back to Asia. He found high levels of secrecy, a lack of regulatory oversight, and a clear mismatch between sustainability rhetoric and material practice.

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Waste, Work, and the Fragile Economics of Survival

Here’s the brutal paradox: for many in Ghana, e-waste is not just pollution. It’s livelihood.

An estimated 40,000 to 140,000 people live in and around the Agbogbloshie site. Some work in repairs. Others in salvage. Others in micro-trading - recycling cables, reselling components, or running makeshift TV halls that stream Champions League matches on salvaged screens.

Shut down the supply of e-waste, and you're not just cleaning up a dumpsite. You're cutting off entire communities from their only source of income.

That’s what makes the e-waste challenge so thorny. It’s not simply a case of enforcement or clean-up. It’s a case of creating real alternatives. Replacing unsafe work with safe work. Preserving livelihoods without poisoning the air.

As Kenny put it, “my goal was always to have the adults working in quality jobs and the kids at school.” But achieving that, he quickly realised, isn’t a matter of intention - it’s a matter of system-wide transformation.

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What Can Manufacturers Do?

The design stage of electronics is where the greatest influence lies. And the message is clear: we need devices that are easier to repair, easier to disassemble, and longer lasting by default.

Kenny’s company, Component Sense, already works with manufacturers to repurpose unused or obsolete components. They’re tackling overproduction and inventory waste. But as he noted in our conversation, even industrial equipment could be made modular: upgrade the technology, reuse the housing. Don’t redesign everything from scratch.

The same applies to consumer electronics. We need:

• Batteries that can be replaced without a heat gun.
• Screens that can be swapped without a trip to the Genius Bar.
• Spare parts that are available for years, not months.
• Software updates that don’t brick older models.

Right to repair legislation is gaining traction in the EU, US, and beyond. But legislation alone won’t solve it. We need incentives that make repair the smart economic choice - not just the moral one.

And just as importantly, we need supply chains that support transparency beyond Tier 1. That means tracking not only how products are made, but how they’re unmade. Where they go. Who handles them. And under what conditions.

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What Can We Do as Consumers and Professionals?

If you’re in supply chain, procurement, or sustainability, you’re in a position of leverage.

• Start by asking your suppliers what happens to their obsolete inventory.
• Review your takeback and recycling processes - not just on paper, but in practice.
• Partner with organisations like Basel Action Network, Closing the Loop, or the WEEE Forum to understand what responsible e-waste treatment actually entails.

And personally? Resist the upgrade treadmill. That new phone, laptop, or smart speaker might come with a green sticker - but it comes at a cost, too.

Extending the life of your electronics is one of the simplest and most impactful sustainability decisions you can make.

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The Supply Chain Imperative

What struck me most in speaking to Kenny was just how embedded this issue is in supply chains. E-waste isn’t a downstream problem. It’s an upstream design flaw, a midstream inventory failure, and a downstream regulatory gap.

It’s the shadow side of global logistics - the reverse flow that rarely gets tracked, let alone optimised.

But as supply chain professionals, we can help rewrite that story. We already understand flows, data, optimisation. Now we need to apply that same thinking to obsolescence, repairability, and reuse.

Not to push the problem further afield, but to fix it at the root.

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Listen to the Full Episode

If you want to hear more from Kenny about what he saw in Ghana, how Component Sense is tackling electronic surplus, and what manufacturers can do to be part of the solution, listen to the full episode of the Sustainable Supply Chain podcast:

 Repair or Ruin: E-Waste, Informal Economies, and the Role of Manufacturers

Let’s stop calling e-waste a downstream problem. It’s a systems problem. And that makes it a supply chain problem - one we can absolutely begin to solve.

This article was first published on TomRaftery.com. Photo credit Fairphone on Flickr

The Energy Revolution: How AI, EVs & Batteries Are Changing the Game
Thinkers360
March 19, 2025

The energy revolution is well underway, and it’s no longer just about massive wind farms or sprawling solar fields. The real game-changer? Decentralisation. In this latest episode of the Climate Confident podcast, I had the pleasure of speaking with Chris Doherty, CEO of Joulen, about how smart battery systems, AI, and distributed energy solutions are flipping the traditional power grid on its head. The bottom line? The future of energy isn’t just green; it’s democratic.

From Centralised to Decentralised: The Great Grid Shake-Up

For over a century, electricity has been a one-way street. Large power plants generate it, high-voltage lines distribute it, and we consume it. But with renewables on the rise, a new model is taking hold—one where businesses and households don’t just consume energy but generate, store, and even trade it.

Take the UK’s recent milestone: the last coal power plant was shut down in September 2024, marking a significant leap toward clean power. However, this transition raises questions about energy security and grid reliability. With coal historically serving as a baseload power source, replacing it with renewables requires a robust strategy for storage and demand management. Advances in battery technology, virtual power plants, and smart grid systems will be essential to ensuring a stable energy supply without reverting to fossil fuel backups. But as Chris points out, the challenge now is ensuring grid stability while accommodating increasingly decentralised renewable sources. Grid-scale assets are still crucial, but the real opportunity lies in small-scale solar, home batteries, and Virtual Power Plants (VPPs) that aggregate thousands of these small systems into flexible energy hubs.

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Virtual Power Plants: The Cloud Computing Analogy

Think of a Virtual Power Plant like cloud computing. Instead of a single, ginormous computer, cloud services rely on thousands of smaller, interconnected servers, or CPUs. Similarly, a VPP connects homes, and businesses with solar typically, as well as other small forms of electricity, forming a virtual energy plant that can supply power when needed. This is the key to unlocking a resilient, distributed energy system where everyday people play an active role.

Germany is leading the charge in this area. In 2023 alone, over 555,000 battery storage units were installed in homes across the country. This rapid adoption has been driven by a combination of strong policy incentives, including subsidies for battery storage, low-interest green loans, and a favourable feed-in tariff system that rewards homeowners for selling excess energy back to the grid. These financial mechanisms have played a crucial role in making energy storage more accessible and financially viable for everyday consumers. These homeowners are now energy traders, selling excess power back to the grid when prices spike. Meanwhile, in the UK, Chris argues that similar financial structures should be extended to everyday people—not just large-scale investors—so they can benefit from energy markets too.

The Brooklyn Microgrid project in New York has proven that blockchain can facilitate peer-to-peer solar energy trading, reducing reliance on traditional utilities. But can this model scale to national energy trading networks? Countries like Australia and Germany are exploring blockchain-powered marketplaces, yet challenges remain—transaction speed, regulatory roadblocks, and integration with legacy grid systems all pose hurdles to widespread adoption. While blockchain offers a promising path to decentralised, transparent energy trading, its true scalability is still being tested. As I discussed in a previous blog post on decentralised energy and peer-to-peer trading (read it here), blockchain’s ability to automate and secure transactions has the potential to reshape how we buy and sell power—but only if it can overcome these systemic barriers.

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Why Government Incentives Matter

Let’s talk money, because that’s often the biggest barrier to entry. While the UK government has ambitious goals—like a fully clean electricity system by 2030—those targets will only be met if everyday consumers and businesses can afford to participate.

Chris makes a compelling case for government-backed green loans or tax incentives to drive uptake. Historical data supports this approach—studies have shown that well-designed incentives significantly boost adoption rates. For example, Germany’s solar feed-in tariffs led to a boom in residential solar installations, while the UK’s previous Green Homes Grant provided funding that helped thousands of households adopt energy-efficient upgrades. Case studies like these demonstrate that financial support can play a crucial role in accelerating the energy transition. The success of electric vehicles (EVs) (particularly the Norwegian example) also offers a clear precedent. Thanks to tax incentives and corporate schemes, EV adoption has surged. So why not apply the same logic to home battery storage and solar?

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EVs as Batteries on Wheels

Speaking of EVs, they’re no longer just about transport—they’re power stations on wheels. My new Kia EV3 is a prime example, equipped with vehicle-to-home (V2H) and vehicle-to-grid (V2G) capabilities. This means in theory I can charge my car with solar power during the day and then use that stored energy to power my house at night. In the future, entire neighbourhoods could form microgrids, sharing power between homes and vehicles.

This isn’t some distant sci-fi vision; it’s already happening. Nissan, for example, has been running V2G trials in the UK, showing that EVs could provide valuable grid balancing services. Imagine a world where instead of being charged for power, your car actually pays you for plugging it in.

In fact, this is already happening for some EV owners in the UK who are on Octopus Energy's Intelligent Octopus Gotariff. When excess energy floods the grid, these customers get paid to charge their vehicles, helping to balance supply and demand while making EV ownership even more financially attractive. Similar programs are emerging in other countries too, demonstrating how smart energy tariffs can turn everyday consumers into active participants in energy markets.

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Final Thought: Energy Freedom is the Future

The energy landscape is shifting from a handful of large players controlling everything to a system where everyone can generate, store, and trade power. And just like cloud computing changed the IT industry forever, decentralised renewables and AI-driven energy markets are set to revolutionise how we power our lives.

The best part? This isn’t some elite club—it’s open to anyone with a roof, a battery, and/or an EV.

Curious to learn more? Chris and I explored how energy decentralisation is reshaping markets, the role of smart batteries and AI-driven optimisation, and how government policies can accelerate adoption. Listen to the full Climate Confident episode now and get inspired to take control of your energy future.

First published on TomRaftery.com

The Supply Chain Blind Spot: Why IT Asset Management & Reverse Logistics Matter More Than Ever
Thinkers360
March 03, 2025

Procurement? Meticulously structured. Spreadsheets, approvals, supplier negotiations—the works. Getting shiny new servers into a data centre is a well-rehearsed symphony. Forward logistics? Seamless. Orders placed, assets tracked, everything arriving at its designated rack on time.

But what happens after?

Where do the old machines go—the ones still operational, but replaced by newer, faster, shinier iterations? Stacked in storage rooms? Scrapped too early? Left collecting dust?

Here’s the reality: Reverse logistics is an afterthought in most enterprises. IT asset management? Disjointed, reactive, and alarmingly inefficient. Millions of euros in valuable technology—discarded, misplaced, forgotten.

And it’s not just about sunk costs. The problem scales. The numbers boggle the mind: 62 million metric tonnes of electronic waste in 2022 alone, set to increase to 82 million tonnes by 2030 (according to the 2024 Global E-Waste Monitor). Meanwhile, IT infrastructure is on track to consume 20% of global electricity by the end of the decade.

So, why aren’t more companies taking IT asset reuse, refurbishment, and resale seriously?

IT's Energy Appetite: A Growing Liability

Servers, routers, data centres—they don’t sip power, they guzzle it. The cloud isn’t floating on air; it’s sitting on concrete, steel, and silicon, pulling electricity at an unprecedented rate. AI, edge computing, hyperscale growth—it all piles onto an already bloated energy footprint.

And yet, much of this demand is driven by outdated, inefficient hardware. Legacy equipment hums away, burning unnecessary kilowatts, long past the point where an upgrade would make more financial and environmental sense.

The solution isn't just upgrading—it’s what happens next. Reverse logistics, done right, ensures that:

 Existing assets are repurposed, resold, or reconditioned instead of scrapped.
 Energy-efficient hardware replaces outdated systems sooner, lowering operational emissions.
 Decommissioned equipment is recycled properly, reclaiming valuable materials instead of contributing to landfill.

The alternative? Short-term thinking that leads to long-term waste.

Reverse Logistics: The Missed Business Opportunity

Beyond sustainability, reverse logistics is a financial play that too many companies are ignoring. The numbers don’t lie:

 20–30% savings on IT procurement for organisations that integrate refurbished assets into their infrastructure.
 Faster tech refresh cycles without the long lead times and supply chain bottlenecks seen in new hardware procurement.
 Avoidance of regulatory penalties, with stricter e-waste laws pushing companies to prove responsible disposal.

Still, many businesses default to disposal over reuse. Why? Lack of visibility. Poor asset tracking. No incentive structures rewarding lifecycle management.

Regulatory bodies are catching on, though. The EU’s WEEE Directive and Right to Repair laws are shifting the burden, ensuring that manufacturers—and, increasingly, enterprises—take accountability for asset reuse and disposal.

AI, Automation & Reverse Logistics: A New Era of Asset Management

Reverse logistics is messy. Unpredictable. A logistical Rubik’s cube. Unlike forward logistics—where assets move along a clear, linear path—reverse logistics forks in multiple directions.

Where does a decommissioned server go?

• Resale? If it’s in good condition, it holds value.
• Internal redeployment? If another department can use it, no need to buy new.
• Recycling? If all else fails, materials can be reclaimed.

This complexity is why AI and predictive analytics are changing the game.

 AI-driven asset tracking ensures that every piece of IT hardware is accounted for—where it is, how much life it has left, and whether it should be resold, refurbished, or scrapped.
 Machine learning-powered triage evaluates condition, streamlining decision-making on redeployment vs. disposal.
 Blockchain-backed chain of custody tracking ensures compliance with evolving regulations, minimising risk and maximising value.

And the result? Companies regain control of their IT inventory, ensuring nothing is wasted, forgotten, or disposed of prematurely.

The Circular Economy: Big Tech is Already Moving

Some of the biggest names in the industry are leaning into reverse logistics hard:

 Cisco: Their Takeback Programme ensures that 99.9% of returned hardware is reused or recycled.
 HP: A Certified Pre-Owned IT Programme keeps assets in circulation, reducing demand for new production.
 Dell: Their Asset Recovery Services allow companies to return old hardware for resale, reuse, or responsible recycling.
 Apple: Their Certified Refurbished program ensured 12.8M devices and accessories were sent to new owners in 2023

The shift toward circularity isn’t just a sustainability play—it’s a strategic advantage.

Building a Smarter Reverse Logistics Strategy

If reverse logistics isn't on your company’s radar, it needs to be. Here’s how businesses can start making the shift:

 Audit Your Existing IT Assets. Know what you have, where it is, and what condition it's in. IT Asset Management (ITAM) tools are critical here.
 Establish a Formal Reverse Logistics Process. No more ad-hoc decommissioning. Set up structured workflows for redeployment, resale, and recycling.
 Leverage AI & Automation. Asset tracking, condition analysis, and lifecycle optimisation must be data-driven to be scalable.
 Work with Certified ITAD Partners. IT Asset Disposition (ITAD) vendors ensure compliance, proper recycling, and maximum value recovery.

Final Thoughts: Reverse Logistics Isn’t Optional Anymore

For too long, reverse logistics has been ignored—seen as a back-office problem rather than a strategic opportunity. But with IT infrastructure’s energy consumption spiralling, sustainability mandates tightening, and AI reshaping supply chain efficiencies, companies that fail to optimise reverse logistics risk falling behind—both financially and environmentally.

The path forward? Structured, data-driven asset management that prioritises reuse over disposal. Companies that embrace circular IT strategies will cut costs, improve sustainability, and gain resilience in an increasingly volatile supply chain landscape.

 Want to go deeper? I spoke with Shannon Payne, SVP of Supply Chain Solutions at MDSi, about how businesses can rethink reverse logistics, harness AI for smarter asset management, and reduce IT’s ballooning energy footprint. Listen to the full episode here.

Article first published on TomRaftery.com. Photo Credit Rwanda Green Fund on Flickr

The Energy Transition Is Unstoppable—But Are We Moving Fast Enough?
Thinkers360
February 19, 2025

Energy. The lifeblood of civilisation. The force that propels economies, lights up megacities, keeps your phone buzzing at 2 AM. And yet, the entire system—the backbone of modern life—is cracking, shifting, warping into something entirely new. Fossil fuels, the undisputed rulers of the past century, are on their way out. But are they leaving fast enough? That’s the billion, no, trillion-dollar question.

I just sat down with Jarand Rystad, Founder and CEO of Rystad Energy, a guy who doesn’t just observe the global energy chessboard—he helps define the moves. We ripped into the hard questions: Is the energy transition accelerating at a breakneck pace, or are we still stuck in second gear? Are policy missteps slowing progress? And crucially, do we have a chance in hell of outrunning climate catastrophe?

Spoiler alert: The energy revolution is in full swing. But momentum alone won’t save us. The stakes? Higher than ever. Wildfires torching landscapes. Supercharged storms rewriting coastlines. Energy markets seesawing in chaos. The transition isn’t some academic exercise—it’s the fulcrum upon which our collective future teeters.

Why This Shift Is Unstoppable

Conventional wisdom says the energy transition is a political affair—governments pushing green policies, activists waving placards. Nice story, but wrong. Economics is the real kingmaker. And the numbers? Staggering.

️ Solar & Wind: The Price Tag Tells the Story – Forget subsidies. Forget government mandates. In 2024, renewables are just…cheaper. Solar costs have imploded, free-falling by 81% between 2009-2019 and it has continued to fall precipitously year on year since (thanks, BloombergNEF). Wind isn’t far behind. This isn’t a “green” decision anymore. It’s a financial one.

️ Batteries: The Gamechanger That’s Already Here – Ten years ago, the idea of storing renewable power for later use felt like sci-fi. Now? Lithium-ion battery costs have nosedived by over 90% between 2010-2023 (IRENA says hello). Grid-scale storage is no longer theoretical—it’s happening.

️ Fossil Fuel Investing? A Sinking Ship – Once a safe bet, now a financial minefield. Oil and gas markets swing wildly, spooking investors—some of whom are doubling down on renewables, while others hesitate amid shifting political tides. BlackRock, Vanguard, and Wall Street’s biggest players had been making decisive moves into clean energy, but with the new U.S. administration recalibrating policies, some are slowing their green pivot, waiting to see how regulations shake out.

Jarand Rystad put it plainly: If climate change weren’t even a thing, the energy transition would still be happening. It’s simple—clean tech is cheaper, faster, smarter. But don’t pop the champagne yet. The road ahead? Riddled with potholes.

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Three Colossal Roadblocks (And Why They Matter)

 China: Renewable Powerhouse or Coal Addict?

China is a paradox wrapped in a contradiction. In 2024 alone, they threw 357 GW of renewables onto the grid—more than the entire historical solar & wind capacity of the U.S. (around 310 GW, for context). But—and here’s the kicker—they’re still greenlighting new coal plants.

Why? Two words: Energy security. No country wants rolling blackouts. The problem isn’t building renewables; it’s making them reliable. Storage, grid flexibility, and high-voltage transmission lines are the missing pieces. And until those systems scale up, coal remains the crutch.

 Hydrogen & Carbon Capture: Savior or Overhyped Distraction?

Hydrogen sounds sexy, but let’s be real—it’s not powering your house or your EV. It’s expensive, inefficient, and, outside of industries like steel or aviation, it’s a square peg in a round hole. Electrification beats hydrogen in most scenarios. Every. Single. Time.

Carbon capture? More theory than practice. Sure, we can trap CO₂ from cement plants, but direct air capture is still a financial nightmare. Betting on carbon capture to save fossil fuels? Like trying to bail out a sinking ship with a leaky, cracked, coffee cup.

 AI & Data Centres: The Hidden Energy Guzzler

AI is rewriting industries, sure. But it’s also rewriting the global energy demand curve. By 2030, data centres could devour 8% of global electricity. That’s terrifying.

The solution? Smart AI (hello DeepSeek, or similar) that uses very little electricity itself, and optimises power use, grids running on renewables, and better hardware efficiency. Otherwise, AI’s rapid rise could backfire, slamming the brakes on emissions reductions elsewhere.

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So What Needs to Happen—Yesterday?

️ Fossil Fuel Subsidies Need to Die – Governments are still dumping $7 trillion (yes, with a ‘T’) into fossil fuel subsidies (IMF stats). Imagine if even half of that went to renewables, storage, and transmission? Game over for coal and oil.

️ Investment Needs to Go Supersonic – We hit $1.8 trillion in clean energy investment in 2023. Sounds great? Not even close. The IEA says we need $4 trillion per year by 2030. That means doubling down—fast.

️ Grid Infrastructure Needs a Revolution – Renewables don’t work like fossil fuels. They’re intermittent, decentralised, and demand a smarter grid. We need better transmission lines (and optimized use of those lines), AI-driven power distribution, and massive battery deployments. This isn’t an option—it’s a requirement.

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The Verdict? We’re Winning, But Not Fast Enough

Solar and wind are smashing fossil fuels on cost. China’s renewable buildout is staggering. Investors are funneling capital into clean energy like never before. But time is the one thing we don’t have. The 1.5°C climate goal? Almost out of reach. Global emissions? Still stubbornly high. And policy chaos? Threatens to slow everything down.

The next 10 years are make-or-break. The choices made right now will determine whether we head towards a livable future—or lock in climate chaos for generations.

Want the full deep dive? Listen to my full conversation with Jarand Rystad.

What’s your take? Are we sprinting fast enough—or still crawling towards the finish line? Drop your thoughts in the comments.

Article first published on TomRaftery.com. Photo credit Wayne S. Grazio on Flickr

Solving Renewable Energy’s Biggest Problem: Grid Flexibility and System Resilience
Thinkers360
January 16, 2025

The global energy transition is accelerating at a remarkable pace. Solar and wind power have become some of the most cost-effective energy sources in history, and countries worldwide are ramping up deployment to decarbonise their energy systems. Yet, despite this progress, a critical challenge threatens to undermine these efforts: grid flexibility.

As more variable renewable energy sources (VREs) like solar and wind are integrated into the power grid, maintaining stability and reliability becomes increasingly complex. Traditional grids, originally designed for consistent, dispatchable power from fossil fuels and nuclear plants, are struggling to adapt to the intermittent nature of renewables. Without strategic investments in grid-balancing technologies and flexible infrastructure, the risk of energy curtailment, price volatility, and even blackouts grows.

In a recent episode of the Climate Confident podcast, I had the opportunity to speak with Anders Lindberg, President of Wärtsilä Energy, about this very issue. Wärtsilä has conducted system modelling in over 200 markets globally, revealing that without addressing grid flexibility, the cost of transitioning to renewables can skyrocket. For example, in Chile, the difference between a system relying solely on renewables and batteries versus one that incorporates flexible engine power plants is a staggering $17 billion. This insight is not just about economics; it’s about designing energy systems that are secure, sustainable, and resilient.

But why exactly is grid flexibility so critical, and what can be done to solve this growing challenge?

The Inflexibility Problem

Power grids have historically relied on large, centralised fossil fuel plants—coal, gas, and nuclear—that can produce steady, controllable amounts of electricity. In contrast, renewables like wind and solar are variable by nature. As is often said, "the sun doesn’t always shine, and the wind doesn’t always blow" (actually, the sun does always shine, and the wind does always blow, maybe just not where you need them!). This variability leads to periods where renewable generation outpaces demand, resulting in curtailment—turning off renewable capacity to avoid overloading the grid. And it is the renewables that are curtailed, because they are easier to turn off than large thermal power plants.

Curtailment is not only wasteful but also economically damaging. Developers and investors hesitate to fund new wind or solar projects if there’s a high risk their output (and therefore the developer's return on investment) will be curtailed. It also slows down decarbonisation efforts, as inflexible coal and gas plants are often kept running to maintain grid stability. Worse still, keeping these plants online means continued emissions and fossil fuel consumption.

A case in point is California, where up until very recently solar curtailment had been rising due to inflexible grid infrastructure. According to the California Independent System Operator (CAISO), solar curtailment reached record highs in recent years, particularly during the spring when solar output peaks and demand is low. Without adequate storage or flexible backup, this surplus energy goes unused, delaying the state’s renewable energy goals.

Why Batteries Alone Aren’t Enough

Battery storage is often touted as the solution to renewable variability, and it certainly plays a vital role. Technologies like lithium-ion batteries can respond in milliseconds to grid imbalances, stabilising short-term fluctuations. However, batteries typically excel at managing seconds to hours of supply-demand mismatches—not days, weeks, or seasonal shifts.

Take Texas, for example. The state has made significant investments in wind and solar, but during Winter Storm Uri in February 2021, the grid faced catastrophic failures. Energy demand spiked due to record-low temperatures, while natural gas infrastructure and wind turbines that hadn't been properly weatherised, froze. Texas' grid, largely isolated from neighbouring states, lacked the resilience and flexibility to manage the crisis, leading to widespread outages and tragic consequences.

This event highlights that for now battery storage alone can’t safeguard against prolonged or large-scale disruptions. With current battery technology what’s also needed is a combination of flexible, dispatchable generation sources that can scale up or down based on demand.

The Role of Flexible Engine Power Plants

Anders emphasised in our discussion that Wärtsilä’s flexible engine power plants offer an effective solution to this challenge. These engines can ramp up and down in minutes—far faster than traditional coal or nuclear plants—and can run for hours, days, or even weeks when needed. Currently, many of these engines run on natural gas (methane), but they are designed to transition to sustainable fuels like green hydrogen and sustainable synthetic fuels as they become commercially viable.

Flexible engines serve as the “yeast in the bread,” as Anders aptly put it—a small but essential ingredient that enables the entire system to function smoothly. By complementing battery storage and renewables, they provide the medium- and long-term flexibility grids need to stay balanced and resilient.

Markets like South Australia and Texas are already recognising the importance of flexibility. South Australia, for instance, has integrated large-scale batteries and flexible gas generation to balance its high penetration of wind and solar. Similarly, Texas has started investing in flexible capacity, aided by regulatory frameworks like nodal pricing and the Texas Energy Fund, which incentivise providers to supply energy during peak demand.

Green Hydrogen: The Long-Term Solution?

Much has been said about green hydrogen as the future of clean, dispatchable power. Hydrogen produced through electrolysis using renewable energy could, in theory, power grid-balancing engines with zero emissions. However, Anders Lindberg cautions that green hydrogen is unlikely to scale significantly until 2035–2040. And, generating green hydrogen is an inefficient process that should only be used when there is an excess of renewable energy (instead of curtailment, for example).

Currently, over 95% of hydrogen production is “grey hydrogen,” created from fossil fuels with substantial carbon emissions. The infrastructure for producing, storing, and distributing green hydrogen is still in its infancy. In the meantime, relying on flexible natural gas engines—with the ability to convert to green fuels later—may be the most pragmatic approach.

Policy and Market Incentives Are Essential

Addressing grid flexibility isn’t just about technology—it’s also about creating the right market conditions. Traditional energy markets reward generators for producing as many megawatt-hours as possible. However, flexible assets like balancing engines may only operate for a few hundred hours a year, making them economically unviable without proper incentives.

Texas offers a blueprint for how markets can evolve. By allowing energy prices to reflect real-time supply and demand (nodal pricing), the state incentivises flexible generation to step in when needed. Additionally, capacity markets in regions like the UK ensure that operators are compensated for maintaining reserve capacity, not just energy produced.

Globally, policymakers need to rethink market design to reward flexibility, resilience, and emissions reductions—not just raw output.

Building a Future-Proof Energy System

Balancing grids in a renewable-heavy world is one of the most complex engineering and policy challenges we face. It requires a careful blend of technologies—short-term solutions like batteries, medium-term solutions like flexible engine power plants, and long-term solutions like green hydrogen. It also demands regulatory innovation to ensure that these technologies are financially viable.

Ignoring grid flexibility could slow or even derail the energy transition. But by investing in the right infrastructure today, we can create power systems that are not only cleaner but also more reliable and cost-effective.

If you're interested in learning more about how grid flexibility can accelerate decarbonisation while maintaining energy security, I highly encourage you to listen to my full conversation with Anders Lindberg on the Climate Confidentpodcast.

Let’s continue this vital conversation—because a sustainable energy future depends on more than just renewables; it depends on building systems that can support them.

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This post was originally posted on TomRaftery.com
Photo credit sea turtle on Flickr.

Why Your Business Can’t Afford to Ignore Trustworthy Carbon Accounting
Thinkers360
December 19, 2024

As sustainability moves from a side conversation to a central business imperative, the demand for accurate and trustworthy carbon accounting has never been more urgent. Whether driven by regulatory requirements, customer expectations, or competitive advantages, businesses are facing increased pressure to measure, report, and reduce their carbon footprints. Yet, the challenges remain substantial: fragmented data, inconsistent methodologies, and the ever-present question: Are you building trust or risking accusations of greenwashing?

In this post, we explore why rigorous carbon accounting matters, the strategies organisations can adopt, and how new tools and approaches are helping companies build trust in their sustainability data. This discussion stems from insights shared on my latest Climate Confident podcast episode, where I spoke with Stephan Müller from SAP about innovations in sustainability reporting. But here, we zoom out and take a closer look at the broader implications for businesses striving to navigate this complex, evolving landscape.

Setting the Stage: Why Carbon Accounting Matters

At its core, carbon accounting is about measuring, tracking, and reporting greenhouse gas (GHG) emissions. The stakes are high: organisations that fail to accurately report emissions risk reputational damage, regulatory penalties, and financial inefficiencies. More fundamentally, robust carbon accounting enables companies to identify areas for emissions reductions, align with net-zero targets, and maintain trust with customers, investors, and other stakeholders.

External Pressures Are Driving Change

Regulatory initiatives are a major catalyst. In the European Union, for example, the Corporate Sustainability Reporting Directive (CSRD) is reshaping how businesses approach sustainability disclosure. By mandating companies to report on environmental impacts with increasing rigor, frameworks like the CSRD are turning sustainability reporting into a non-negotiable component of corporate governance.

Globally, we see similar shifts. From the ISSB's (International Sustainability Standards Board) efforts to standardise sustainability disclosures to carbon taxes in countries like Canada and Germany, the financial implications of emissions reporting are significant. Carbon pricing alone has soared: in Germany, the cost of CO2 emissions rose from €10 per tonne in 2014 to more than €65 in 2024.

Some projections indicate carbon prices may exceed the price of oil in the next decade, further emphasising the importance of addressing carbon emissions now before costs spiral.

Internal Transformation Is Equally Important

Beyond external pressures, carbon accounting is a tool for internal change. By aligning emissions data with financial systems, companies can identify carbon-intensive operations and prioritise decarbonisation efforts where they matter most. This level of insight moves sustainability from a vague aspiration to an actionable strategy.

As Stephan Müller highlighted on the podcast, CFOs are increasingly becoming Chief Value Officers, responsible not just for financial health but for managing sustainability metrics as well. This evolution reflects a broader realisation: sustainability is a competitive advantage.

For instance, sectors such as manufacturing, agriculture, and heavy industry are recognising that transparent, auditable carbon data not only reduces regulatory risk but also builds trust with customers. Companies that provide reliable carbon footprints for their products can gain market preference as customers increasingly prioritise low-carbon options.

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Strategies for Accurate and Trustworthy Carbon Accounting

1. Move Beyond Spreadsheets

The era of manually tracking emissions in Excel is coming to an end. While spreadsheets have served as a stopgap, they are fraught with errors, lack traceability, and fall short of auditability standards. Transitioning to integrated, enterprise-level carbon accounting solutions aligns emissions reporting with the rigor of financial accounting.

For example, SAP's new Green Ledger applies financial accounting principles to carbon emissions. By embedding carbon data into ERP systems, companies can trace emissions from source documents—such as purchase orders or goods receipts—all the way to sustainability reports. This level of transparency and control reduces errors and ensures that emissions data can withstand external audits.

2. Engage Your Supply Chain

Scope 3 emissions—those arising from suppliers and downstream activities—often account for the largest share of a company's carbon footprint. Yet, they are notoriously difficult to measure and verify.

To address this, businesses must collaborate with suppliers to standardise data collection and improve data quality. Platforms like SAP's Sustainability Footprint Management and Sustainability Data Exchange allow organisations to collect supplier emissions data efficiently and ensure traceability. A network-based approach simplifies communication, reducing the need for manual data requests.

3. Leverage Technology and AI

Artificial intelligence (AI) and automation are transforming carbon accounting. AI can assign carbon values to invoices, streamline emissions calculations, and identify optimisation opportunities within production processes. Additionally, predictive analytics enable companies to forecast their future carbon emissions based on business plans and resource projections—providing foresight that is essential for hitting net-zero targets.

4. Make Data Accessible and Actionable

To drive meaningful change, sustainability data must be democratised across the organisation. Rather than being siloed in specialist systems, emissions data should be embedded into decision-making processes. For example, procurement teams should have visibility into the carbon impact of goods before making purchasing decisions. Aligning carbon budgets with financial budgets also ensures accountability and progress toward emissions targets.

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The Business Case for Trustworthy Carbon Data

Trust is emerging as one of the most valuable currencies in business today. Companies that can demonstrate accurate, auditable carbon data stand to gain in multiple ways:

1. Investor Confidence: Investors are increasingly using ESG (Environmental, Social, and Governance) metrics to assess risk. Reliable carbon reporting enhances investor trust and can lower the cost of capital.
2. Customer Loyalty: Transparent carbon footprints allow businesses to market their products as sustainable with confidence—building trust and strengthening customer relationships.
3. Regulatory Compliance: Accurate reporting ensures organisations remain ahead of evolving regulations, avoiding penalties and reputational damage.
4. Operational Efficiency: By identifying carbon hotspots, companies can optimise resource use, reduce energy costs, and improve margins.
5. Employee Recruitment and Retention: Companies with trustworthy carbon data often attract top talent more easily and improve retention rates. Employees increasingly prefer working for organisations that are genuinely committed to sustainability and transparency, reducing recruitment costs and increasing workforce stability.

A 2023 McKinsey report found that companies with clear sustainability data were 40% more likely to outperform competitors on cost efficiency and profitability metrics—a tangible incentive for embracing robust carbon accounting.

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Conclusion: Trust, Transparency, and Transformation

The road to net-zero is paved with data—but not just any data. Accurate and trustworthy carbon accounting provides the foundation for businesses to meet regulatory demands, build stakeholder trust, and identify opportunities for meaningful emissions reductions.

As CFOs take on broader sustainability responsibilities, tools like SAP’s Green Ledger demonstrate how aligning carbon reporting with financial accounting can deliver both clarity and competitive advantage.

The question for companies is no longer whether to prioritise carbon accounting, but how quickly they can move from aspiration to action. Businesses that invest in accurate reporting today will be better positioned to thrive in a carbon-constrained future.

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If you’re interested in diving deeper into this conversation, check out my full Climate Confident podcast episode with Stephan Müller from SAP, where we discuss the Green Ledger, the evolving role of CFOs, and strategies for building trust in carbon data.

For more insights, subscribe to the podcast and stay tuned for weekly discussions on the strategies shaping a sustainable future.

Photo credit Ken Teegardin on Flickr. This blog post was originally posted on TomRaftery.com

How Circularity in Industry Can Slash Waste and Boost Efficiency
Thinkers360
December 11, 2024

Today, the issue of industrial waste is one of the most pressing challenges for manufacturers worldwide. Circularity in supply chains—ensuring products and materials are reused and recycled as much as possible—is an essential strategy for reducing waste, increasing resilience, and boosting economic value. This topic was front and center in a recent episode of the Sustainable Supply Chain podcast, where I had the privilege to interview Kenny McGee, CEO of Component Sense, a company that tackles the thorny issue of excess inventory in the electronics industry.

Kenny’s journey began back in 2001 when he observed firsthand the immense waste generated by overproduction and stock mismanagement in the electronics sector. Following a boom in demand, there was a bust, and so many clients were left holding millions of dollars’ worth of unused components. This situation was not just financially burdensome; it was also a potential environmental catastrophe. Valuable resources were left languishing or being scrapped due to poor redistribution systems. In the interview, Kenny shared how witnessing this firsthand led him to set up his company, Component Sense, a company which aims to find new uses for these components, helping reduce waste, increase efficiency, and ultimately contribute to a more sustainable world.

The Problem of Waste in Manufacturing: It’s Bigger Than You Think

Manufacturing, especially in sectors like electronics, is resource-intensive. Kenny highlighted how an average mobile phone contains two-thirds of the elements in the periodic table—copper, cobalt, rare earths—all mined and processed with significant energy use and environmental impact. Yet, despite the value and effort embedded in these materials, they are often discarded, unused, or destroyed when they become surplus. During our conversation, Kenny shared an eye-opening example: a client in South Korea was scrapping $2.5 million worth of new components each month, simply to prevent competitors from gaining access to these parts. This illustrates a key problem—a narrow competitive mindset, rather than a focus on resource stewardship.

Globally, this wasteful mindset needs to change. In 2019, the United Nations reported that 53.6 million metric tonnes of e-waste were generated, with only 17.4% documented as being collected and recycled. The waste isn’t just about lost materials; it also means lost opportunities to build a more sustainable economy.

Circularity in Practice: How Can It Be Done?

One of the standout moments of the podcast was when Kenny spoke about the "InPlant" system—an innovative solution designed to help companies manage excess inventory within their own facilities. By taking feeds directly from their clients’ ERP systems, Component Sense is able to identify excess stock, categorise it, and help redistribute it before it becomes obsolete. This prevents valuable resources from ending up in landfills and helps create a steady supply of parts that are needed by other manufacturers.

This kind of circular thinking isn’t limited to electronics. The automotive industry, for instance, has been making strides in creating more circular production processes. Companies like Renault have implemented closed-loop recycling systems for aluminum and plastic, using waste materials from old vehicles to manufacture new ones. Similarly, the construction sector has begun to see the value in circularity by using reclaimed building materials and modular construction techniques that allow for easier disassembly and reuse.

Challenges to Circularity: Regulatory Hurdles and Reluctance

However, as Kenny explained, the path to circularity is fraught with challenges. Many of these challenges are logistical. Regulatory hurdles—like those introduced by Brexit—can make the movement of materials between regions cumbersome and costly, with shipping companies now reluctant to carry partial loads. Additionally, there is often an internal reluctance within companies to embrace change. As Kenny noted, some companies continue to crush and dispose of brand-new parts instead of redistributing them simply because their systems and incentives are not set up to consider anything beyond immediate bottom-line impacts.

Interestingly, Kenny also talked about the surprising disconnect between company messaging and internal capabilities when it comes to sustainability. He shared an anecdote from an industry trade show where many companies displayed sustainability slogans prominently, but when asked about specific sustainability initiatives, their representatives struggled to give coherent answers. This highlights a gap between ambition and action that many industries must bridge if circularity is to be taken seriously.

The Importance of Collaboration: Industry, Governments, and Individuals

True circularity requires collaboration. Governments have a role in this—by encouraging the adoption of more circular processes through regulation and incentives. But, as Kenny pointed out, regulations alone are often insufficient and can be slow-moving. Businesses must lead the charge, embracing circularity not just as a compliance issue, but as a competitive advantage and a core aspect of their operational ethos.

For instance, we’re seeing promising examples of cross-industry collaboration. The European Union’s new Circular Economy Action Plan is pushing for tighter requirements on manufacturers to design products that are easier to reuse, repair, and recycle. Companies like IKEA have started offering take-back services, refurbishing old furniture to be resold or reused, rather than ending up as waste.

How Circularity Can Make a Difference

The benefits of circularity go beyond reducing waste. It can enhance supply chain resilience by reducing dependency on virgin materials and mitigating the risks associated with resource scarcity. Circular practices can also improve companies' financials by creating secondary revenue streams—such as selling excess stock rather than paying to dispose of it—and by enhancing their brand's reputation among increasingly environmentally conscious consumers.

Component Sense’s work is a great example of circularity in action. By helping companies redistribute excess components, they’re not only preventing waste but also helping smaller companies access parts at a lower cost, thus democratising access to materials that might otherwise be financially out of reach. This "one company's waste is another company's gold" mentality is foundational to circularity.

A Path Forward: Make Sustainability the Default

Kenny also touched on the idea of making sustainable choices the default in procurement systems—whether it’s by tweaking ERP settings to prefer sustainable suppliers or by embedding sustainability metrics directly into decision-making processes. Imagine if an MRP (Material Requirements Planning) system automatically prioritised components that were already in circulation over new ones, leading to immediate reductions in resource use. Such systems aren't yet widespread, but they represent the kind of forward-thinking approach that will help us achieve greater circularity.

In our conversation, Kenny was adamant that the circularity journey doesn’t have to be complex: “Let’s just do the easy stuff first. It’s common sense.” We can start with simple actions, like ensuring companies’ excess stock doesn’t end up in landfills. From there, we can move toward more comprehensive solutions that involve the entire supply chain, making sustainability and circularity the baseline, not the exception.

Conclusion: Common Sense Solutions for a Sustainable Future

Circularity in industry is not a pipe dream; it’s achievable with common sense and collaborative effort. By focusing on reducing waste, redistributing resources, and embedding sustainability into everyday decision-making, we can collectively make a significant impact. As manufacturers, governments, and consumers, we all have roles to play in making this vision a reality.

To hear more insights from Kenny McGee on how circularity is transforming the electronics supply chain and learn about his journey building Component Sense, check out the full episode of the Sustainable Supply Chain podcast. Listen and subscribe to stay updated on the latest sustainability strategies reshaping industries around the world.

Photo credit Robert Scoble on Flickr 
Blog post first posted on TomRaftery.com

Digital Transformation in Mining: Cloud, AI, and the Path to Sustainability
Thinkers360
November 29, 2024

The Mining Industry's Next Frontier: Digital Transformation

The mining industry sits at a complex juncture, squeezed between the urgency of global energy shifts, an evolving set of regulations, and the growing mandate for sustainability. With all this mounting pressure, digital transformation doesn’t just seem relevant—it’s indispensable. Mining—an industry that has literally built the foundations of our world—must innovate, evolve, and adapt to not only support our collective march away from fossil fuels, but also to help usher in a sustainable energy landscape.

Recently, I had an illuminating discussion with Joe Starwood, Microsoft's Worldwide Mining Industry Leader. Joe—a seasoned geologist with more than a decade at Microsoft—outlined some of the seismic shifts currently reshaping the mining industry. From the steady march away from diesel to electric trucks, to the adoption of AI, real-time data analytics, and cloud technologies, it’s evident that digital initiatives are pushing the sector towards new heights of productivity, safety, and resilience.

But let’s not mistake digital transformation for a trending buzzword. This isn’t some superficial makeover; it’s a foundational re-engineering of mining as we know it. We’ll break down why this transformation is mission-critical, pull in real-life examples, and unpack what resilience really looks like in an era defined by energy transformation.

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Moving Away from Diesel: A Case for Electrification

Diesel-powered machinery, the long-time backbone of mining operations, is facing a formidable adversary: electrification. Take Fortescue Metals Group, one of the globe's major iron ore players. They guzzle roughly a billion liters of diesel every year, and now they’re committed to eliminating it, swapping over to electric mining trucks. This isn’t just about optics—this is about fundamentally shifting towards sustainability, embracing environmental progress, while battling the complexities and cost of change.

Mining outfits are increasingly supplementing their power sources with renewables like wind and solar. Fortescue's bid to electrify its machinery, including its trials and tribulations with hydrogen, showcases the gritty determination in the industry to adapt and evolve. The impact here isn't just confined to boardrooms and office floors; it stretches out into the mine itself, shaking up the basics of day-to-day fieldwork and remolding the traditional mining ecosystem.

What’s even more intriguing? The technologies developed in this electrification quest may have far-reaching effects beyond mining. Imagine electric cement mixers, or perhaps even battery-powered logging trucks. Heavy industries everywhere could soon be riding the wave of tech advances first proven in remote mining operations—mining fields acting as industrial tech incubators.

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Digital Transformation Beyond Green Energy

Electrification might be the most visible change, but what’s happening behind the scenes—in IT and OT (Operational Technology)—is arguably more transformational. Joe underscored how integrating OT (the tech that drives physical operations) with IT is unlocking vast amounts of previously untapped value. The blending of these systems enables mining companies to not just react but to get ahead of issues, moving into predictive and even prescriptive territory.

Consider predictive maintenance. Through sensors and AI, potential mechanical failures are flagged before they happen, slashing unplanned downtime and extending machinery life. Rio Tinto and BHP, two titans in the field, have seen tremendous savings through these AI-driven approaches—millions of dollars preserved by making operations smarter and more resilient.

And then there’s the cloud. Though initially a laggard compared to other sectors, mining has made huge leaps in adopting cloud tech. The benefits are massive: mining companies now have real-time dashboards of multiple geographically dispersed sites, enabling management to make unified, data-backed decisions with unprecedented speed.

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A Cultural Shift: The People Factor

Digital transformation isn’t just a technology game; it's a culture shift—and that is no small feat. Joe emphasized how mining, in its essence, is about people. Adopting tools like AI and cloud computing is not just about systems and infrastructure—it’s about embedding a culture of constant innovation, across every level of the workforce.

This cultural transformation also has its challenges. Finding and keeping talent with digital skills has always been tough in mining, but those companies that rise to meet this challenge are reaping immense rewards. By forging partnerships with tech giants like Microsoft, mining companies are tapping into cutting-edge tools and ongoing training, effectively bridging the skills gap.

Remarkably, these digital transitions have also led to unexpected social outcomes. MinSUR, a Peruvian mining firm, and the fourth largest tin producer in the world, used video analytics for water treatment—ensuring environmental safety while maintaining community trust. Such practices prove that responsible innovation goes beyond compliance; it enhances a company’s license to operate and fosters genuine community relationships.

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Real-Time Data Analytics: Staying Agile in an Uncertain World

Commodity prices fluctuate. Supply chains disrupt. Everything’s in flux. The ability to access and interpret real-time data can mark the line between triumph and disaster. Companies investing in digital tech are better poised to adjust on the fly—to optimize resource allocation, adapt processes, and make forecasts that stick closer to reality.

Joe spoke of Ketametal, a mining equipment manufacturer, as a shining example. They envisioned an Industry 4.0 factory, leaning heavily into cloud solutions and real-time OT data. The resulting efficiency gains not only propelled their internal goals but also enhanced their ability to meet customer demands with agility.

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The Way Forward: Metrics, KPIs, and Continuous Improvement

As mining companies keep advancing along the digital trajectory, focusing on metrics that showcase business value becomes vital. This isn’t about implementing new tech for novelty's sake. It’s about real, tangible problems—solving them, capturing emerging opportunities, and delivering genuine value.

Increasingly, mining companies face pressure to provide "climate-smart" minerals, driven by government policies linked to energy transitions. Meeting these demands requires advanced digital tools for transparency and traceability—ensuring that production is both maximized and compliant.

The future belongs to those who can leverage digital maturity to meet unforeseen challenges—turning raw data into actionable insights, minimizing risks, and nurturing relationships with partners, customers, and regulatory bodies alike.

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Conclusion: The Importance of Leading with Value

Digital transformation in mining isn’t a superficial endeavor. It’s about strategically aligning technology with a company’s core drivers of value. Whether reducing emissions, boosting safety, or pushing for greater efficiency—every step along this digital journey brings forth tangible outcomes for mining companies and for the communities that live and work around them.

If you’re intrigued by these ideas and want a closer look, I encourage you to check out the full interview with Joe Starwood. Additionally, take a moment to explore this insightful infographic on modernizing SAP: 'Power Greater Productivity with SAP on the Microsoft Cloud'. It’s a fantastic resource that highlights how integrating SAP with Microsoft Cloud can enhance productivity in mining and beyond. 

The path to digital maturity in mining isn’t without its hurdles, but the rewards—ranging from operational excellence to a more sustainable planet—make every effort worth it.

First published on TomRaftery.com. Photo credit Beyond Coal and Gas on Flickr

Why Bluesky Is the Future of Social Media in a Post-Twitter World
Thinkers360
November 20, 2024

With Donald Trump’s recent election as U.S. president, social media is at a pivotal juncture. Users are fleeing platforms like Twitter—driven by algorithmic control, centralised ownership, and politically charged atmospheres. Enter Bluesky: a platform offering transparency, control, and user empowerment.

Bluesky aims to put power back into users' hands. As more people escape traditional social media monopolies, Bluesky is gaining momentum as a fairer alternative. Recent studies highlight the need for safer social media environments, noting that toxic interactions on platforms like Twitter deepen polarisation. Consequently, journalists and serious news organisations like The Guardian are abandoning Twitter for platforms that align with their values.

Key Features of Bluesky

Bluesky's open-source algorithm gives users control over their experience. Feeds are curated content streams based on user interests, which users can create themselves, making it easier to discover and connect with topics that matter to them. For instance, I created a Feed to highlight supply chain-related posts on Bluesky—check it out here. And renowned climate scientist and communicator Katherine Hayhoe's Climate Science, Impacts, and Solutions Feed is another great example of user-curated content.

Bluesky also runs on a federated network, avoiding centralised control. Users can set up their own servers, ensuring freedom and resilience against manipulation. This model makes Bluesky un-buyable—no single entity can change its trajectory. Unlike ad-driven platforms, Bluesky operates as a Public Benefit LLC (PBLLC), focusing on public good over profit. There are no advertisements or targeted tracking—user experience is the priority.

Bluesky vs. Twitter

I joined Twitter in 2007. I loved the platform and used it extensively, making friends and contacts while discovering and sharing content. Watching what has happened to Twitter over the last two years since Elon Musk took over has been horrifying.

I've tried Threads, Mastodon, and Bluesky, but Bluesky stands out with the greatest potential to replace—and even surpass—Twitter. Bluesky’s careful design, emphasis on user empowerment, and resilience against centralised control set it apart.

When I recently returned to Bluesky, I discovered Starter Packs. These are curated lists of recommended accounts around specific topics, making it easy for new users to get started and for communities to grow. Anyone can create Starter Packs (here is one I created of Climate Podcasters on Bluesky), which means there are endless possibilities for connecting with others who share your interests. They were a revelation for me. I quickly found and followed people with shared interests, and my feed suddenly came alive with engaging conversations. People started following me back, and that’s when Bluesky really clicked for me.

Since Musk’s takeover of Twitter, the platform has seen a severe decline in trust and usability. Users are disillusioned by the rise in hate speech, political weaponisation, and the suppression of critical topics such as climate change. Content moderation has become inconsistent, while erratic leadership decisions have resulted in abrupt verification changes and the introduction of paywalls for previously free features. Twitter’s opaque algorithm amplifies sensationalism and divisive content, turning the platform into a toxic environment that many now describe as a 'hellscape.'

In contrast, Bluesky offers a decentralised model that prevents any one person from controlling the platform. Users enjoy external media freedom, with the ability to link longer video clips via external players, and no link suppression, meaning crucial information can be shared without restrictions. Community input drives Bluesky’s user-centric development, focusing on transparency, user control, and safety.

This all goes a long way to explaining the chart below from the Financial Times showing the recent rise in the use of Bluesky, while people are abandoning Twitter.

Bluesky vs. Threads and Mastodon

Bluesky offers distinct advantages over Meta’s Threads and Mastodon:

Compared to Threads, Bluesky stands out with its open algorithms. The transparency allows users to understand and control how content is prioritised, unlike Threads' opaque system. Users also benefit from user-controlled feeds, allowing for more autonomy in content curation.

Bluesky’s decentralised network provides more user ownership compared to Meta's centralised ecosystem. As a PBLLC, Bluesky prioritises user privacy, whereas Threads is part of Meta, a company often criticised for its data privacy practices.

When it comes to Mastodon, Bluesky has been more successful in driving adoption due to its user-friendly interface and higher engagement rates. Mastodon's complexity and fragmented nature have been barriers to entry for many users, while Bluesky offers a more streamlined experience. Features like Starter Packs and user-curated Feeds make it easy for users to dive into relevant content and quickly build community engagement. These aspects make Bluesky accessible for new users while still providing depth for those seeking richer engagement.

Bluesky's Safety and User Empowerment Features

Bluesky goes beyond traditional platforms with its comprehensive safety and empowerment features. Users have multiple tools at their disposal to create a respectful and user-controlled environment. For instance, Bluesky offers user-driven reporting, where content violations are reviewed by both human moderators and automated systems, ensuring a fair evaluation process. Users can also create moderation lists to block or mute accounts, collaboratively shaping a cleaner feed.

The platform encourages self-labeling of posts, particularly those containing sensitive content, promoting responsible sharing. Reply controls further enhance user empowerment by allowing authors to decide who can respond to their posts.

Another important feature is the Nuclear Block, which completely severs connections between users, ensuring that blocked individuals cannot view posts even if they are quoted elsewhere. This, combined with the ability to mute specific words or phrases, allows users to curate a comfortable digital experience.

Automated moderation tools also play a role, flagging potentially harmful content for review, while preferences can be synced across devices to ensure a consistent experience. Bluesky’s focus on decentralisation, safety, and user empowerment truly allows people to shape their digital experience—a stark contrast to platforms like Twitter and Threads, where control is often limited or obscured.

Join the Movement

Bluesky is growing fast. Explore Starter Packs, find your community, and watch real-time growth here: Live User Count.

If you want an experience where you control the narrative rather than being shaped by algorithms, join Bluesky. Together, we can create a better way to engage.

Check it out, bring your curiosity, and join the change.

And don't forget to follow me on Bluesky here.

This article was first published on TomRaftery.com

Why ESG Is Crucial for Modern Businesses: Insights from Industry Leaders
Thinkers360
November 05, 2024

The world of business is shifting under our feet, not only because of economic trends or new technologies. Increasingly, the focus is on Environmental, Social, and Governance (ESG) principles and how they can transform an organization from being just a business to a force for sustainable, positive impact. ESG isn’t just a buzzword or a box-ticking exercise; it’s the key to ensuring long-term viability and prosperity in a world facing pressing challenges—from climate change to social inequalities.

In this week's episode of the Sustainable Supply Chain podcast, I had the pleasure of speaking with Joanne Flinn, Chair of The ESG Institute, about what effective ESG adoption really means for companies today. Joanne’s insights were fascinating, especially for those of us committed to sustainable practices. This blog post explores some of those lessons and looks beyond them to make the case for why ESG is so vital, both for organizations and for society as a whole.

Why ESG Now? Setting the Context

ESG practices aren't optional add-ons for companies anymore—they are a necessity. In an era where customers, investors, and governments are all demanding more transparency and accountability, businesses need to recognize that sustainability and social responsibility are integral parts of their operations, not side projects. For instance, studies have found that companies that prioritize ESG are seeing tangible benefits. McKinsey reported that strong ESG performance can correlate with a reduction of up to 10% in operating costs, and Harvard Business Review has highlighted that companies with more robust ESG strategies enjoy a lower cost of capital. These are metrics that directly impact the bottom line.

However, ESG isn't only about cost reduction or avoiding regulatory pitfalls. It's about building resilience. Think about how we’ve collectively experienced global shocks in the past few years—from pandemics to extreme weather events, not to mention shifts in consumer behavior driven by the climate crisis. Businesses that had ESG principles embedded into their operations often weathered these storms better. By addressing environmental risks, understanding their societal impact, and fostering good governance, they built a more robust capacity to adapt and thrive.

Learning from Leaders: Joanne Flinn’s Journey

Joanne Flinn's journey to becoming the Chair of the ESG Institute is itself an embodiment of what ESG can mean at both personal and corporate levels. As we discussed on the podcast, Joanne began her career in sectors that were far from green—big IT consulting, financial services, and business transformation. But the pivot she made, from business optimization to sustainability, reveals the emerging consensus: you can't talk about a profitable future if it ignores environmental or social factors.

Joanne’s personal insight was this: ESG is not about greenwashing or doing good for PR purposes. It’s about integrating new values into the DNA of a business. During our conversation, she emphasized how ESG leadership requires moving from optimizing for singular outcomes like profit to taking into account a broader array of stakeholders, including communities and ecosystems. Her experience working with major organizations to help them accelerate their sustainable transitions highlighted how forward-thinking leaders today are transforming entire sectors—not with grand gestures, but with consistent, impactful changes over time.

Breaking Down ESG: Practical Applications

A significant point that Joanne made was the idea of ESG Readiness Profiles. Companies often get stuck because ESG seems overwhelming—where do you even start when the subject feels as wide as the planet and as complex as human society? The answer is to start somewhere. ESG Readiness Profiles allow companies to evaluate themselves and create roadmaps for action. Businesses need to identify whether they are observers, pledgers, compliers, or transformers when it comes to ESG. It’s this kind of clarity that allows companies to develop manageable, actionable plans that evolve over time rather than overwhelming themselves with unattainable goals.

To illustrate: consider IKEA, one of the major companies with an advanced ESG strategy. IKEA has moved from pledging to sustainable sourcing to a transformative approach that embraces circularity. By designing for reuse, reducing waste, and setting ambitious renewable energy goals, they’re showing what it means to not just comply with ESG goals but to leverage them to innovate, enter new markets, and enhance their value chain. This isn’t a fringe trend—firms that engage deeply with ESG principles often uncover opportunities to create entirely new revenue streams.

ESG Goes Beyond Carbon

One of the areas that is frequently misunderstood is the idea that ESG is just about reducing carbon footprints. Certainly, carbon reduction is crucial, but Joanne pointed out that ESG is about much more. It’s about rethinking entire ecosystems. Methane reduction, water conservation, ecosystem protection—these are parts of a more holistic approach that understands our shared dependency on natural resources. For example, consider the concept of biodiversity. Often viewed as an abstract environmental term, biodiversity is increasingly recognized as foundational to business resilience: a World Economic Forum report recently noted that over half of the world’s GDP—an estimated $44 trillion—is moderately or highly dependent on nature and the services it provides.

Companies also need to pay attention to the social dimension of ESG. In Singapore, Joanne saw firsthand the implications of extreme heat and its effect on productivity and health. Social and governance issues, from worker well-being to regulatory compliance, are just as crucial as environmental considerations. The fact is that sustainability can only succeed when it’s inclusive—meaning that the human element, employee welfare, community support, and governance, are front and center.

Lifting the Standards of Business

A particularly resonant metaphor that Joanne shared was how the game of rugby transformed for the better by lifting its standards—banning dangerous neck tackles to protect players. Businesses today need to take similar steps. ESG principles are essentially a lifting of the standards for how we conduct business. It’s a way to minimize harm and build a healthier, more equitable future. Far from being a burden, these standards are enabling companies to attract top talent, appeal to increasingly conscious consumers, and build more resilient supply chains.

At the end of the day, adopting ESG principles is not a one-time transformation—it’s an ongoing journey of improving, adapting, and rethinking how businesses operate. And that’s not just good for shareholders; it’s good for everyone.

Where to Go From Here

The full conversation with Joanne Flinn is filled with actionable insights and in-depth analysis about how companies can approach ESG today, and how these practices can ultimately lead to a thriving, sustainable future. If you're interested in exploring how ESG can be embedded into the very DNA of your business, and how doing so can be a meaningful differentiator for you in this changing world, I highly recommend you give the podcast episode a listen.

Let’s commit to creating a cooler, greener, and fairer future—together.

How the Energy Transition Will Reshape Business: Opportunities, Risks, and Regulations
Thinkers360
October 25, 2024

The conversation around energy is at a crucial inflection point, driven by a potent mix of geopolitics, technological innovation, and public awareness of climate issues. As we face challenges ranging from escalating conflict in the Middle East to the pressures of climate change, the energy transition—our collective move from fossil fuel reliance to clean, sustainable power—has become more urgent than ever. The International Energy Agency's (IEA) World Energy Outlook 2024 offers a comprehensive view of where we stand today, and where we might go tomorrow. It is a timely reminder that the choices we make now will shape the future of energy security, climate stability, and economic resilience for decades.

A Transition Under Pressure

The energy transition is accelerating, but it is also happening against the backdrop of an incredibly complex world. Over the last two years, energy markets have been rocked by Russia's invasion of Ukraine, prompting Europe to rapidly shift away from natural gas dependence on Russia. Just as that crisis began to stabilise, new tensions have arisen in the Middle East, affecting key oil-producing regions. These geopolitical events have put energy security under a microscope and highlighted the fragility of the existing system. Yet they also underline the urgency of transitioning to a more resilient, cleaner energy framework.

For businesses, these disruptions are not just geopolitical curiosities—they are reshaping supply chains, cost structures, and investment priorities. Companies that rely heavily on fossil fuels are facing increasing risk from price volatility and supply insecurity. On the other hand, those that are investing in renewable energy, energy efficiency, and electrification are positioning themselves for resilience and long-term growth.

Despite these challenges, significant progress has been made. According to the IEA, clean energy deployment is now at an unprecedented rate. Over 560 gigawatts (GW) of new renewable capacity was added globally in 2023, and clean energy investment is nearing $2 trillion annually—almost double the amount spent on new oil, gas, and coal supply. This surge reflects the cost-competitiveness of renewable technologies, with the costs for wind and solar continuing their downward trend after the temporary supply-chain disruptions experienced post-Covid.

Countries like China are leading this change, accounting for over 60% of the new renewable capacity added worldwide in 2023. Notably, China's solar photovoltaic (PV) output alone is expected to soon exceed the current electricity demand of the United States, illustrating the scale of ambition and achievement already underway. For other major economies, this transformation comes with both opportunities and challenges. Europe has been forced to reinvent its energy mix quickly, turning towards renewables at a faster pace than anticipated due to the geopolitical upheavals of 2022. Meanwhile, the United States, buoyed by incentives in the Inflation Reduction Act, is seeing significant investments in clean technology manufacturing, aiming for energy independence that also aligns with climate goals.

Trends and Dynamics Shaping the Transition

The energy transition is not just about adding more renewables; it is about reshaping the entire energy system to be more efficient, resilient, and adaptable. For example, the IEA report highlights the rapid acceleration of electrification across sectors like transportation, buildings, and industry. Electrification, when paired with renewable generation, inherently makes energy systems more efficient, because electricity produced by renewables incurs far fewer conversion losses compared to fossil fuel-based generation.

Electric vehicles (EVs) are at the forefront of this shift. They currently represent around 20% of new car sales globally, and this number is expected to rise to nearly 50% by 2030. For organisations, this trend represents both a challenge and an opportunity. The shift towards EVs is expected to significantly reduce oil demand, but it will also require companies to adapt their supply chains, retool manufacturing processes, and develop new partnerships. Fleet operators, in particular, will need to make strategic decisions about vehicle procurement, charging infrastructure, and integration with renewable energy sources.

In parallel, energy efficiency remains an essential element in curbing demand and achieving climate goals. While efficiency might not capture the imagination like solar panels or electric vehicles, its impact is no less profound. Doubling the global rate of energy efficiency improvements could provide more emissions reductions by 2030 than any other single action. The IEA's report suggests that this particular COP28 goal remains largely unmet under current policy settings. This represents a significant missed opportunity. For businesses, efficiency improvements translate directly into cost savings and competitive advantage. Companies should expect tighter regulations around building codes, more stringent efficiency standards for appliances, and increased incentives for retrofitting existing infrastructure.

Increasing Regulations and Their Impact on Organisations

As we look towards the coming years, increasing regulation is almost inevitable, particularly as regions like the European Union strive to meet their ambitious 2030 climate goals. The EU, for instance, has set targets to reduce greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels. This will require a substantial uptick in regulatory measures, including stricter emissions standards, accelerated timelines for phasing out internal combustion engine vehicles, and tighter energy efficiency mandates for buildings and industries.

These regulations will not just affect energy producers but will ripple through all sectors. Organisations will need to prepare for increased costs related to compliance, such as upgrading facilities to meet new energy performance standards or paying higher carbon taxes. However, proactive companies can turn these regulations into opportunities. By investing early in energy efficiency, electrification, and renewable integration, businesses can not only mitigate regulatory risks but also gain a competitive advantage. In particular, companies that can demonstrate compliance with or exceed regulatory expectations will be well-positioned to benefit from green incentives and favourable financing conditions.

The EU’s Green Deal Industrial Plan also aims to make Europe a global hub for clean technologies, which could mean both carrots and sticks for organisations. On the one hand, there will be increased funding and incentives for clean technology projects. On the other hand, companies will be held to higher standards of sustainability, with closer scrutiny of supply chains, carbon footprints, and even end-of-life processes for products. Those in manufacturing, automotive, and heavy industry should expect imminent regulatory frameworks that will require rapid adaptation.

Globally, we are also likely to see increased adoption of carbon border adjustment mechanisms (CBAMs), which will impose tariffs on imports based on their carbon intensity. This is particularly relevant for sectors like steel, cement, and chemicals, and businesses operating internationally should start factoring in these costs now. For companies that export goods to regions with stringent climate regulations, the financial impact could be significant if they are not already moving towards cleaner production processes.

Investment Needs and the Global Divide

The path to a cleaner, safer energy future is not yet assured. The IEA report underscores the vast imbalance in clean energy investments across different regions. China alone accounts for more than 40% of global investments in clean energy technologies, while other emerging markets—especially those outside of China—remain heavily reliant on fossil fuels due to higher financing costs and policy barriers. Investment in developing economies is crucial, not only for their sustainable growth but also to ensure that the transition does not exacerbate global inequality.

For businesses operating globally, this imbalance presents both risks and opportunities. Companies investing in clean energy in emerging markets may face higher upfront costs but could benefit from long-term gains, especially if they are able to establish themselves early in nascent clean energy markets. To navigate these challenges, blended finance models, partnerships with development banks, and active engagement in policy advocacy can play crucial roles.

Encouragingly, technological progress means that the solutions are often cost-effective even in developing markets. The challenge is access to capital and managing risk. If we can find ways to make financing easier and cheaper for clean energy projects in emerging markets, we could truly supercharge the energy transition. The recent push by global institutions to support green investments through mechanisms like blended finance is an important step in the right direction, but more is needed to address the scale of the challenge.

Perhaps one of the most striking insights from the World Energy Outlook 2024 is that energy security and climate action are not competing priorities—they go hand-in-hand. The growing impacts of climate change, from wildfires to unprecedented heatwaves, are already threatening existing energy infrastructure. A more electrified, renewables-based system, being inherently decentralised, promises not just lower emissions, but greater stability in the face of climate extremes and less exposure to the vagaries of fossil fuel markets. The decentralised nature of renewables makes the system more resilient, as power generation is spread across multiple locations, reducing the risk of widespread outages and increasing adaptability to local disruptions.

For organisations, this dual focus on security and sustainability is a strategic imperative. Businesses that embrace clean energy and energy efficiency are not only reducing their carbon footprint but are also building resilience against future energy shocks. Clean technology—from solar PV to battery storage—is proving increasingly adaptable and scalable. Advances in grid infrastructure, energy storage, and hydrogen production will all play their part in ensuring that the transition benefits everyone, everywhere. The choices made today, by governments, businesses, and individuals, will determine how swiftly and successfully this new energy era unfolds.

If you’re interested in diving deeper into these themes, including the policy frameworks and technologies driving the energy transition, the full IEA World Energy Outlook 2024 report is well worth your time.

The energy transition is not just a response to climate change or geopolitical upheaval—it’s an opportunity to create a better, more resilient future for us all. Organisations that recognise and act on this opportunity today will be the ones best positioned for success in the years to come.

Photo credit Bureau of Land Management on Flickr - this post was posted originally on TomRaftery.com

 

Cloud and AI: Powering a New Era of Innovation in the Utility Sector
Thinkers360
October 15, 2024

Innovation in the Utility Sector: Harnessing Cloud and AI for a Sustainable Future

The global energy landscape is undergoing a significant transformation. As the urgency to address climate change intensifies, the utility sector stands at the forefront of this evolution. The traditional, centralised models of energy generation and distribution are being challenged by the rise of renewable energy sources, decentralisation, and the increasing importance of sustainability. To navigate this complex terrain, innovation within the utility space has become not just beneficial but essential.

The Changing Energy Paradigm

Historically, utilities operated on a model characterised by large, centralised power plants supplying energy in a one-way flow to consumers. This system emphasised stability and predictability, with demand patterns that were relatively easy to forecast. However, the past couple of decades have seen a shift towards decentralisation and renewable energy integration. According to the International Energy Agency (IEA), renewable energy is expected to account for nearly 95% of the increase in global power capacity through 2026.

This shift brings about challenges in managing supply and demand, as renewable sources like solar and wind are intermittent by nature. Moreover, consumers are increasingly becoming "prosumers," generating their own electricity through rooftop solar panels and contributing excess energy back to the grid. This bidirectional flow of electricity necessitates a more dynamic and responsive energy infrastructure.

The Role of Cloud Computing and AI

To address these complexities, utilities are turning to cloud computing and artificial intelligence (AI) as critical tools for modernisation and efficiency.

• Real-Time Data Management: The modern grid generates vast amounts of data from smart meters, sensors, and IoT devices. Cloud platforms offer the scalability to process and analyse this data in real time. For instance, managing data from millions of smart meters requires computational power that on-premises systems often can't provide.
• Predictive Maintenance: AI algorithms can predict equipment failures before they occur by analysing patterns and anomalies in operational data. A study by McKinsey & Company indicates that predictive maintenance can reduce maintenance costs by up to 30% and decrease unplanned outages by up to 70%.
• Optimising Renewable Integration: AI helps in forecasting energy production from renewable sources by analysing weather patterns and historical data. This improves grid stability by balancing supply and demand more effectively. Google, for example, has used AI to enhance the efficiency of its wind farms, increasing the value of their energy output by 20%.
• Enhanced Cybersecurity: As utilities become more digitised, they also become more vulnerable to cyber threats. AI-driven security measures can detect and respond to threats more swiftly than traditional methods. According to a report by Accenture, utilities faced an average of 137 targeted breach attempts per year, highlighting the need for advanced cybersecurity solutions.

Overcoming Regulatory and Cultural Barriers

Despite the clear benefits, the adoption of cloud and AI technologies in the utility sector faces hurdles.

• Regulatory Challenges: Traditional regulatory frameworks often classify cloud investments as operational expenditures (OpEx) rather than capital expenditures (CapEx), which can disincentivise utilities from adopting cloud solutions due to accounting practices. Engaging with regulators to update these frameworks is crucial.
• Cultural Resistance: Utilities have a legacy of risk aversion, prioritising reliability over innovation. Shifting this mindset requires leadership committed to fostering a culture that embraces change and encourages experimentation.
• Skills Gap: Implementing advanced technologies demands a workforce skilled in data analytics, cloud computing, and AI. Investing in employee training and development is essential to bridge this gap.

The Strategic Importance of Innovation

Innovation in the utility sector is not merely about technology adoption; it's about transforming operational models to enhance efficiency, reliability, and customer engagement.

• Demand Response Programs: AI enables more effective demand response initiatives, where consumers are incentivised to reduce or shift their energy usage during peak periods. This not only stabilises the grid but also leads to cost savings for both utilities and consumers.
• Virtual Power Plants (VPPs): By aggregating distributed energy resources like solar panels and battery storage, VPPs can function as a single power plant (in the same way aggregating servers in a data centre can function as a giant server in the cloud!). This concept relies heavily on cloud computing for coordination and control, contributing to grid flexibility and resilience.
• Customer-Centric Services: Data analytics allow utilities to offer personalised services, improving customer satisfaction. For example, providing consumers with insights into their energy usage patterns can encourage energy-saving behaviours.

Conclusion

The imperative for innovation in the utility sector has never been greater. Cloud computing and AI offer the tools necessary to transform the energy landscape, making it more sustainable, resilient, and responsive to the evolving needs of society. By embracing these technologies, utilities can not only overcome current challenges but also position themselves as leaders in the global transition towards a low-carbon future.

In my recent conversation with Bilal Khursheed, Microsoft's Worldwide Leader for Power & Utilities, we explored these themes in depth. Bilal shared valuable insights on how cloud and AI technologies are being leveraged to modernise the grid, enhance cybersecurity, and foster a culture of innovation within utilities.

If you're interested in learning more about how these strategies are shaping the future of the energy sector, I encourage you to check out the full interview. It's a compelling discussion that delves into the practical steps utilities can take to embrace innovation and drive meaningful change.

Call to Action

As we stand at the crossroads of technological advancement and environmental necessity, the utility sector's embrace of innovation is crucial. I invite you to join the conversation, share your thoughts, and consider how these developments might impact your organisation or community.

First published on TomRaftery.com. Photo credit Nick Blackmer on Flickr 

How Climate Week Outcomes Are Shaping Corporate Sustainability Strategies
Thinkers360
October 03, 2024

In the ever-evolving landscape of climate change, the significance of collaborative events like Climate Week cannot be overstated. Having recently discussed this with Jim Sullivan, Global Head of Product Management for Sustainability at SAP, I'm reminded of how these gatherings serve as pivotal platforms for driving meaningful action.

Why Climate Week Matters

Climate Week in New York has grown exponentially over the years, becoming more than just a series of meetings—it's a convergence of minds from various sectors. Business leaders, policymakers, NGOs, and innovators come together to share insights, strategies, and forge partnerships. This collective approach is vital because climate change is a multifaceted issue that no single entity can tackle alone.

For instance, during this year's Climate Week NYC, over 600 events and activities were held across the City of New York – in person, hybrid and online, involving participants from more than 150 countries. These events spurred commitments from corporations to reduce emissions and invest in renewable energy. Such widespread engagement underscores the event's role in accelerating global climate initiatives.

Key Insights from My Conversation with Jim Sullivan

In my recent podcast episode, Jim highlighted several critical areas where collaboration is making a difference:

1. The Intersection of Data and Sustainability: Companies often struggle with harnessing existing data for sustainability reporting. Jim pointed out that much of this data already exists within organizational systems. By leveraging technology and data analytics, businesses can more effectively track their environmental impact and make informed decisions.
2. The Role of AI in Accelerating Progress: Artificial Intelligence isn't just a buzzword; it's a tool with immense potential in sustainability efforts. AI can handle complex tasks like emissions factor mapping, allowing human resources to focus on strategic initiatives rather than data crunching.
3. Standardisation Is Key: One of the hurdles in sustainability reporting is the lack of standardised data exchange. Without common frameworks, it's challenging to compare progress or collaborate effectively. Jim emphasized the importance of developing and adopting universal standards to ensure everyone is on the same page.

 

The Power of Collective Action

Events like Climate Week provide the necessary platform for these discussions. They facilitate the sharing of best practices and the development of unified strategies. For example, the Paris Agreement in 2015 was a landmark achievement resulting from international collaboration, setting legally binding targets for countries to reduce greenhouse gas emissions.

Moreover, the Science Based Targets initiative (SBTi) is another product of collaborative efforts, enabling companies to set emissions reduction targets in line with climate science. As of 2023, over 2,000 companies have committed to SBTi, demonstrating how collective action can lead to significant commitments (check out also my podcast with the SBTi CEO Luiz Amaral).

Bridging the Gap Between Sectors

One of the strengths of Climate Week is its ability to bring together diverse stakeholders. Businesses can align their strategies with governmental policies, NGOs can highlight pressing issues that require attention, and tech companies can showcase innovations that aid sustainability.

For example, the collaboration between the automotive industry and tech firms has accelerated given birth to Catena-X, as well as propelled the development of electric vehicles. Government incentives and regulations have further propelled this shift, illustrating how cross-sector collaboration can drive substantial change.

Looking Ahead

The challenges posed by climate change are complex and interconnected. It's clear that we need a unified approach to address them effectively. By participating in events like Climate Week, stakeholders can pool resources, share knowledge, and coordinate actions on a global scale.

As Jim and I discussed, the integration of material and energy transitions is essential. We can't view these elements in isolation if we hope to make a real impact. By focusing on standardisation, leveraging technology, and fostering collaboration, we can make significant strides toward a sustainable future.

Call to Action

If you're interested in a deeper dive into these topics, I encourage you to listen to my full conversation with Jim Sullivan. We explore these insights and more, offering a comprehensive look at how collaborative efforts are shaping the future of sustainability.

Conclusion

In sum, events like Climate Week serve as catalysts for change. They remind us that while the challenge of climate change is immense, our collective effort can lead to impactful solutions. By continuing to engage, collaborate, and innovate, we can drive the strategies that will make a meaningful difference in the world.

Photo credit The Climate Group on Flickr

This post was originally posted on TomRaftery.com

EUDR Compliance: How Accurate Data Can Make or Break Your Supply Chain
Thinkers360
September 17, 2024

In today's interconnected world, the sustainability of our supply chains has never been more critical. With the European Union Deforestation Regulation (EUDR) coming into effect, businesses are facing new challenges and opportunities in ensuring their operations are both environmentally responsible and legally compliant.

The EUDR aims to combat global deforestation by prohibiting the import of certain commodities into the EU if they are linked to deforestation occurring after 31 December 2020. This legislation affects a range of goods, including palm oil, soy, beef, wood, coffee, cocoa, and rubber. According to the European Commission, the EU is responsible for about 10% of global forest destruction through its consumption of these commodities. The EUDR represents a significant step towards reducing this impact.

However, compliance with the EUDR is no small feat. It demands that companies have detailed knowledge of their supply chains, right down to the specific plots of land where raw materials are produced. This level of traceability is unprecedented and poses substantial challenges, particularly for large companies with complex, global supply networks.

One of the key insights from my recent conversation with John Atkinson, Chief Product Officer at LiveEO, is the indispensable role of accurate data in meeting these challenges. LiveEO leverages satellite imagery and advanced machine learning to monitor deforestation with high precision. This technology enables companies to verify the compliance of their supply chains by providing up-to-date, accurate information about land use changes.

Inaccurate data can lead to false positives, wrongly identifying compliant suppliers as non-compliant. This not only disrupts supply chains but also unfairly penalises suppliers who are adhering to sustainable practices. For example, a study by Global Canopy found that over 40% of companies assessed were at risk of inadvertently violating deforestation regulations due to insufficient supply chain visibility.

Accurate data helps companies avoid these pitfalls by ensuring they have reliable information about their suppliers. By utilising high-resolution satellite imagery, businesses can monitor deforestation in near real-time, allowing them to address issues proactively. This capability is crucial, given that the World Wildlife Fund estimates that we lose 18.7 million acres of forests annually—equivalent to 27 football fields every minute.

Moreover, accurate data enhances supply chain resilience. In an era where consumers and regulators alike demand transparency and sustainability, companies that invest in precise monitoring are better positioned to maintain market access and consumer trust. They can also respond more effectively to disruptions, whether regulatory, environmental, or geopolitical.

Our discussion also highlighted the broader significance of integrating sustainability into core business operations. It's not merely about compliance; it's about strategic positioning in a world that increasingly values environmental stewardship. Companies that lead in this area can gain a competitive advantage, access new markets, and build stronger relationships with stakeholders.

The EUDR serves as a catalyst for this shift, compelling businesses to adopt more sustainable practices. While the initial adjustments may be challenging, the long-term benefits include not only environmental preservation but also improved operational efficiency and risk management.

The importance of accurate data in EUDR compliance and supply chain resilience cannot be overstated. It's the foundation upon which companies can build sustainable, transparent, and robust supply chains that meet regulatory requirements and societal expectations.

If you'd like to delve deeper into this topic, I encourage you to listen to the full episode of the Sustainable Supply Chain podcast featuring John Atkinson. We explore these issues in greater detail and discuss practical strategies for businesses navigating this new landscape.

Photo credit The Center for International Forestry Research and World Agroforestry (CIFOR-ICRAF) on Flickr

This article was originally published on TomRaftery.com

Harnessing AI and Geospatial Data: A Crucial Strategy in the Fight Against Climate Change
Thinkers360
September 03, 2024

As the world faces the escalating challenges of climate change, the need for innovative solutions has never been more urgent. From record-breaking heatwaves to unprecedented flooding, the effects of climate change are becoming increasingly difficult to ignore. Among the arsenal of tools available to combat these challenges, artificial intelligence (AI) and geospatial data stand out as particularly powerful. These technologies offer the potential not just to understand the changing climate but to actively shape the way we respond to it.

In a recent episode of the Climate Confident podcast, I had the pleasure of speaking with Shravan Kumar, Director of Client Success at Gramener. Shravan shared valuable insights into how AI and geospatial data are being used to tackle climate change, with a particular focus on urban heat island mitigation. This conversation highlighted not only the potential of these technologies but also the necessity of their broader adoption.

The Power of AI and Geospatial Data

AI and geospatial data are transforming our ability to predict, analyze, and respond to climate-related events. By leveraging vast amounts of data—from satellite imagery to real-time weather data—these tools allow us to pinpoint areas of concern and develop targeted interventions.

One key area where this is making a difference is in the management of urban heat islands. Urban heat islands are localized areas within cities that experience significantly higher temperatures than their rural surroundings, primarily due to human activities and infrastructure such as concrete buildings and asphalt roads. These heat islands can exacerbate the effects of heatwaves, leading to increased energy consumption, higher greenhouse gas emissions, and adverse health impacts, particularly for vulnerable populations.

During our podcast, Shravan shared examples of how AI is being used to identify and mitigate these heat islands. In one city, for instance, an AI-driven initiative led to the planting of 80,000 trees along a commercial high street, significantly reducing the area’s temperature and making it more livable. Another example from the UAE showcased the use of palm tree-based shades to create cooler pockets in urban areas, providing much-needed relief in one of the hottest regions on the planet.

Beyond Urban Heat Islands: The Broader Impact of AI and Geospatial Data

While urban heat islands are a critical focus, the application of AI and geospatial data in climate resilience extends far beyond. For example, AI models are increasingly being used to predict and manage flood risks. In places like Venice, Italy, and Jakarta, Indonesia, predictive AI models are helping city planners anticipate and mitigate the impacts of flooding by analyzing historical data and current weather patterns.

In wildfire-prone areas such as California and Australia, AI-powered systems analyze data from various sources, including satellite images, to predict the spread of wildfires and inform evacuation plans. These systems not only save lives but also help allocate resources more effectively during emergencies.

Similarly, coastal cities around the world are using geospatial data to monitor and manage the risks of coastal erosion. By analysing changes in coastline patterns over time, AI systems can predict which areas are most at risk and suggest preventive measures, such as building sea walls or restoring natural barriers like mangroves.

These examples underscore the versatility of AI and geospatial data in addressing a wide range of climate challenges. What makes these technologies particularly valuable is their ability to operate at both macro and micro levels—whether predicting large-scale climate patterns or identifying vulnerable neighborhoods within a city.

The Significance of Collaboration

As Shravan pointed out in our conversation, the successful implementation of AI and geospatial tools depends on collaboration between governments, private sectors, and local communities. Governments can provide the regulatory framework and funding needed to scale these solutions, while private companies bring innovation and technical expertise to the table. Meanwhile, local communities offer critical on-the-ground insights that ensure these technologies are applied where they are needed most.

For instance, the AI for Resilient Cities program mentioned by Shravan has already been implemented in several cities across North America, helping municipal governments plan more effectively for climate-related risks. However, the potential of these tools extends globally. By fostering partnerships with non-profits and international organizations, AI-driven climate solutions can be scaled to address the needs of vulnerable communities worldwide.

The Road Ahead

Looking ahead, the key to maximizing the impact of AI and geospatial data lies in their continued refinement and wider adoption. While current systems offer accuracy rates of around 70-75%, there is ongoing work to push this into the high nineties. Achieving this level of precision will not only improve the reliability of climate predictions but also enhance our ability to take proactive measures.

Moreover, as these technologies become more integrated into urban planning and disaster management strategies, their role in mitigating climate change will only grow. By using AI to make data-driven decisions, we can ensure that our efforts to combat climate change are both effective and sustainable.

Conclusion and Call to Action

AI and geospatial data represent some of the most promising tools available in the fight against climate change. Their ability to provide precise, actionable insights makes them invaluable for addressing a wide range of climate challenges, from urban heat islands to natural disasters. However, the success of these tools hinges on collaboration, innovation, and a commitment to scalability.

If you’re interested in learning more about how AI and geospatial data are being used to create a more climate-resilient future, I encourage you to listen to the full episode of the Climate Confident podcast featuring Shravan Kumar. Together, we can explore the strategies that will help us build a better, more sustainable world.

Photo credit Chris JL on Flickr

How AI and Real-Time Data are Revolutionising Retail and CPG Supply Chains
Thinkers360
July 30, 2024

As global supply chains face increasing pressure from rising consumer demands and environmental concerns, the concept of zero-waste supply chains has emerged as a critical goal for businesses worldwide. Reducing waste is not just an environmental imperative; it’s also a key factor in driving economic efficiency and ensuring social responsibility. One of the most effective strategies to achieve this is through enhanced data sharing and real-time data analytics.

In a recent episode of the Sustainable Supply Chain Podcast, I had the pleasure of discussing this very topic with Barry Bradley, Global Supply Chain Leader at Crisp. Crisp is a data collaboration platform primarily focused on the retail and consumer packaged goods (CPG) sectors, aiming to optimise supply chain decisions through improved data flow. Barry’s insights underscore the critical role that data sharing plays in reducing waste and enhancing supply chain efficiency.

The Scale of the Waste Problem

According to the UN's Food and Agriculture Organization (FAO), approximately one-third of all food produced globally—about 1.3 billion tonnes per year—is lost or wasted. This staggering amount of waste has severe economic, environmental, and social repercussions. Economically, food waste represents a loss of $940 billion annually. Environmentally, it contributes to unnecessary greenhouse gas emissions, as food waste decomposing in landfills produces methane, a potent greenhouse gas, and growing and transporting food that ultimately goes to landfill is incredibly wasteful as well.

The root causes of this waste are manifold, but inefficiencies in the supply chain play a significant role. Poor forecasting, overproduction, inadequate storage facilities, and lack of coordination between supply chain partners are common culprits. Addressing these issues requires a concerted effort to improve data sharing across the supply chain.

One of the standout examples Barry mentioned is Crisp's partnership with UNFI, a major natural and conventional food distributor. By implementing Crisp’s platform, UNFI has significantly improved its inventory management and reduced spoilage risk. This success story highlights the tangible benefits of real-time data sharing and its impact on reducing waste.

Moreover, as Barry pointed out, the benefits of data sharing extend to other areas of the supply chain. By understanding the entire supply chain network, companies can optimise their logistics, reduce transportation emissions, and improve overall resource efficiency. This holistic approach is essential for creating a sustainable and resilient supply chain.

The Role of Real-Time Data in Reducing Waste

Real-time data sharing is pivotal in creating more efficient and sustainable supply chains. By providing up-to-the-minute visibility into every aspect of the supply chain, companies can make more informed decisions, reduce inefficiencies, and ultimately minimise waste.

1. Improved Forecasting and Demand Planning: One of the primary benefits of real-time data is its ability to enhance forecasting accuracy. For instance, Tesco, one of the world’s largest retailers, uses real-time data analytics to track sales patterns and customer behaviour. This allows them to adjust their inventory levels dynamically, reducing overstock and understock situations. As a result, Tesco has significantly reduced food waste and improved overall supply chain efficiency.
2. Enhanced Inventory Management: Real-time data allows companies to monitor inventory levels continuously. This is crucial for perishable goods, where shelf life is limited. By tracking inventory in real-time, businesses can identify products that are nearing their expiration dates and take proactive measures, such as running promotions or reallocating stock to different locations. For example, Walmart uses AI and real-time data to optimise its inventory management, which has led to a substantial reduction in perishable goods waste.
3. Optimised Logistics and Transportation: Data sharing also plays a critical role in logistics and transportation. Real-time data on traffic conditions, weather forecasts, and vehicle locations can help optimise delivery routes and schedules. This not only reduces fuel consumption and emissions but also ensures that products reach their destinations faster and in better condition. DHL, a global logistics leader, utilises real-time data to optimise its delivery network [PDF], resulting in lower emissions and reduced transportation costs.
4. Collaboration Across the Supply Chain: Effective data sharing fosters collaboration between different supply chain partners, including suppliers, manufacturers, and retailers. When all stakeholders have access to the same real-time data, they can work together to streamline operations and address potential issues before they escalate. A study by McKinsey found that companies that use real-time data to collaborate with their supply chain partners can reduce supply chain costs by up to 15% and improve service levels by 10%.

Strategies for Effective Data Sharing

1. Implementing Real-Time Data Systems: Companies need to invest in technologies that provide real-time visibility into their supply chain operations. This includes IoT devices, advanced analytics, and cloud-based platforms that facilitate seamless data exchange.
2. Collaborative Planning: Retailers and suppliers must work together to create collaborative forecasting and replenishment plans. Sharing data on sales trends, inventory levels, and production schedules can help align efforts and reduce mismatches between supply and demand.
3. Transparency and Trust: Building a culture of transparency and trust is crucial for effective data sharing. Companies must be willing to share sensitive information and collaborate openly with their partners to achieve common goals.
4. Leveraging AI and Advanced Analytics: AI can play a pivotal role in analysing large datasets and identifying patterns that humans might miss. By leveraging AI-driven insights, companies can make more informed decisions and proactively address potential issues.

The Urgent Need for Zero-Waste Supply Chains

The urgency for zero-waste supply chains is underscored by the pressing need to address climate change, resource scarcity, and economic inefficiencies. As the world grapples with these challenges, businesses must adopt innovative strategies to reduce waste and improve sustainability.

Real-time data sharing stands out as a powerful tool in this endeavour. By leveraging real-time data, companies can enhance their operational efficiency, reduce waste, and create more resilient supply chains. This not only benefits the environment but also drives economic growth and improves customer satisfaction.

Call to Action

The path to zero-waste supply chains is clear: embrace real-time data sharing and collaboration. By doing so, businesses can significantly reduce waste, improve efficiency, and contribute to a more sustainable future. For a deeper dive into how Crisp is making this a reality for organisations, and to hear more of Barry Bradley’s insights, I encourage you to listen to the full episode of the Sustainable Supply Chain Podcast.

By embracing data sharing and collaboration, we can create supply chains that are not only efficient and profitable but also environmentally and socially responsible. Let’s work together to make zero-waste supply chains a reality.

This post was first published on TomRaftery.com

Cleaner Roads, Cleaner Future: The Path to Sustainable Transport and Ethical Batteries
Thinkers360
July 19, 2024

In the quest for a sustainable future, the transportation sector stands out as one of the most critical areas requiring transformation. As urbanisation continues to surge and the impacts of climate change become more pronounced, the need for decarbonising transportation and ensuring the sustainability of battery supply chains has never been more pressing.

The Urgent Need for Decarbonisation

Transportation is a significant contributor to global greenhouse gas emissions, accounting for nearly a quarter of energy-related CO2 emissions. With millions of vehicles on the road and the majority still powered by fossil fuels, the emissions from this sector are a major driver of climate change. Transitioning to electric vehicles (EVs) and enhancing public transportation systems are pivotal steps in reducing this carbon footprint.

However, the journey towards decarbonisation isn't just about swapping petrol engines for electric motors. It involves rethinking urban mobility, investing in sustainable infrastructure, and implementing policies that support this transition. As discussed in the latest episode of the Climate Confident Podcast, my guest Lina Fedirk, Associate Director on the Road Transportation team at the ClimateWorks Foundation emphasised the importance of systemic change coupled with individual action.

Innovations in Urban Mobility

Cities worldwide are grappling with traffic congestion and pollution. Innovative solutions such as congestion pricing and low emission zones have shown promise. For instance, as a result of London's Ultra Low Emission Zone (ULEZ) the number of Londoners living in areas with illegally high levels of nitrogen dioxide fell by 94 percent, and alongside this there were other reductions in London's air pollution by reducing the number of high-emission vehicles in the city centre. Similarly, Stockholm's congestion pricing has effectively cut traffic volumes and emissions 25%, proving that well-designed policies can drive meaningful change.

Another critical aspect is the promotion of non-motorised transport options like cycling and walking. Seville, a city known for its exemplary bike lane network, provides a model for other urban centres. By ensuring all bike lanes are protected and interconnected, Seville has made cycling a safe and attractive mode of transport, leading to increased ridership and reduced emissions (Source: I have lived in Seville since June 2008, so I have seen, and used the bike lanes here extensively!).

The Complexities of Battery Supply Chains

While EVs are a cornerstone of decarbonising transportation, the sustainability of their battery supply chains poses significant challenges. As Lina Fedirko highlighted, the demand for minerals like lithium, cobalt, and nickel is skyrocketing, driven by the surge in EV production. However, the extraction and processing of these minerals often come with environmental and social costs.

Responsible sourcing of minerals is crucial. The current mining practices can lead to habitat destruction, water pollution, and human rights violations, particularly in developing countries. To mitigate these impacts, it is imperative to develop and enforce regulations that ensure ethical and sustainable mining practices. For example, the European Union's new battery regulation mandates the recovery of valuable materials and human rights due diligence, setting a precedent for other regions to follow.

Towards a Circular Economy

A key strategy in cleaning up battery supply chains is the shift towards a circular economy. This involves designing batteries for easy recycling and ensuring that the materials can be recovered and reused. By closing the loop, we can reduce the reliance on new mineral extraction and minimise environmental harm. Companies like Redwood Materials are pioneering efforts in battery recycling, aiming to create a closed-loop supply chain for battery materials.

Moreover, advancements in battery technology, such as solid-state batteries, promise to reduce the dependence on scarce minerals and improve overall sustainability. These innovations, coupled with strong regulatory frameworks, can drive the transition towards a cleaner and more resilient transportation system.

The Global Perspective

Decarbonising transportation and cleaning up battery supply chains is a global endeavour. Countries like Norway are leading the charge with aggressive EV adoption rates and comprehensive policies supporting sustainable transport. In contrast, emerging economies are focusing on developing public transport infrastructure and exploring innovative financing mechanisms to support the transition.

The International Energy Agency (IEA) projects that by 2030, there will be over 240 million electric cars on the road, up from around 40 million today. This exponential growth underscores the need for a sustainable approach to sourcing and recycling the materials essential for this transition.

Conclusion and Call-to-Action

The decarbonisation of transportation and the cleaning up of battery supply chains are crucial steps in our fight against climate change. It requires a concerted effort from policymakers, industry leaders, and individuals alike. By implementing robust regulations, investing in sustainable infrastructure, and promoting responsible consumption, we can pave the way for a cleaner, greener future.

If you’re keen to dive deeper into this topic, I highly recommend listening to my discussion with Lina Fedirko on the latest episode of the Climate Confident Podcast. Lina provides invaluable insights into the complexities and opportunities in this space.

Let’s work together to drive this transition forward.

Originally published on TomRaftery.com

Industrial Decarbonisation: Key Strategies for a Sustainable Future
Thinkers360
June 07, 2024

Decarbonisation has become a critical objective in our collective effort to combat climate change. Industrial sectors, being significant contributors to global greenhouse gas emissions, are at the forefront of this mission. Industrial decarbonisation involves reducing carbon footprints across manufacturing, energy consumption, and supply chains, thereby mitigating the environmental impact while fostering sustainable economic growth. In the latest episode of the Climate Confident Podcast, I had an enlightening conversation with Constantin Ginet, Global Head of Energy Performance Services at Siemens, about the importance and strategies of industrial decarbonisation. This blog post aims to expand on those insights and highlight the broader significance of decarbonisation in industry.

Context

Industries worldwide account for a substantial portion of carbon emissions. According to the International Energy Agency (IEA), industrial processes were responsible for approximately 24% of global CO2 emissions in 2021. As we face escalating climate challenges, the urgency to decarbonise industrial activities has never been greater. Reducing industrial emissions is not just an environmental imperative but also an economic opportunity. According to a report by McKinsey, the transition to a low-carbon economy could create over 200 million new jobs globally by 2050.

Key Strategies for Industrial Decarbonisation

1. Smart Electrification: Smart electrification involves replacing fossil fuel-based processes with electric alternatives, allowing industries to leverage renewable energy sources. For instance, replacing gas boilers with electric heat pumps can significantly reduce on-site emissions. Electrification is most effective when integrated with system-wide optimisation, ensuring that energy use is both efficient and sustainable. When combined with sourcing electricity from renewable sources (point 3 below) this is a potent low-hanging fruit option.

2. Digitalisation and Digital Twins: Digitalisation plays a pivotal role in decarbonising industries. Using digital twins—virtual replicas of physical assets—industries can model and predict energy consumption and emissions with high precision. This approach allows for the simulation of different scenarios, helping to identify and implement the most efficient energy-saving measures. For example, digital twins can be used to optimise factory operations, uncovering potential improvements that can lead to significant reductions in carbon emissions.

3. Integration of Renewable Energy: Incorporating renewable energy sources, such as solar or wind power, into industrial operations is another crucial strategy. This integration needs to be managed effectively to ensure a stable and cost-effective energy supply. By installing solar panels on factory roofs or utilising wind turbines, industries can reduce their reliance on fossil fuels and lower their overall carbon footprint.

4. Data Transparency and Management: Effective decarbonisation requires accurate data on energy usage and emissions. Transparent and comprehensive data collection allows industries to make informed decisions and track their progress towards sustainability goals. Advanced data analytics and management tools are essential for identifying inefficiencies and opportunities for improvement. And working closely with suppliers is vital for accurate Scope 3 emissions measuring and reporting.

Significance of Industrial Decarbonisation

The significance of industrial decarbonisation cannot be overstated. As global climate goals become more stringent, industries must adapt to meet regulatory requirements and consumer expectations. Decarbonising industrial activities can enhance competitiveness, reduce operational costs, and foster innovation. Additionally, industries that lead in sustainability are better positioned to attract investment and talent, driving long-term growth.

Challenges and Solutions

Despite the clear benefits, industrial decarbonisation poses several challenges. One major challenge is the need for substantial capital investment. Many small and medium-sized enterprises (SMEs) may lack the financial resources to invest in new technologies. Innovative financing models, such as performance-based contracts, can help overcome this barrier by allowing companies to pay for energy improvements through the savings they generate.

Another challenge is the integration of new technologies into existing operations. This requires a careful balance between maintaining current productivity and implementing new systems. Cross-functional collaboration and strategic planning are key to ensuring a smooth transition.

Conclusion

Industrial decarbonisation is a vital step towards a sustainable future. By adopting strategies such as smart electrification, digitalisation, and renewable energy integration, industries can significantly reduce their carbon footprints and contribute to global climate goals. The urgency to decarbonise industrial activities is clear, and the potential benefits—environmental, economic, and social—are substantial.

For a deeper dive into the strategies and insights discussed, I encourage you to listen to the full episode of the Climate Confident Podcast with Constantin Ginet. Together, we can pave the way for a cleaner, greener future.

Call to Action:

Interested in learning more about how industrial decarbonisation can transform our world? Constantin and the Siemens team will be attending the Smarter E event in Munich on June 19-21. You'll find them at the Siemens stand in Hall B3, booth 110.

Let’s continue the conversation and explore how we can drive meaningful change in our industries.

This post was originally posted on TomRaftery.com

Why Women's Leadership is Essential for Climate Action
Thinkers360
May 31, 2024

Climate change is an urgent crisis demanding immediate and effective action from all sectors of society. While there are many strategies to combat climate change, one of the most overlooked yet critical elements is women's leadership. In my recent conversation with Osprey Orielle Lake, founder and executive director of the Women's Earth and Climate Action Network (WECAN), we delved into this subject, highlighting the significant impact women can have in driving climate solutions.

The Importance of Women’s Leadership

Women are disproportionately affected by climate change. Statistics reveal that women are 14 times more likely to die in a climate disaster than men and represent 80% of those displaced by extreme weather. These stark figures underscore the urgent need for women's voices and leadership in climate action.

Research consistently shows that women's leadership can lead to more sustainable and effective outcomes. A study cited by Osprey during our discussion found that with just a one-unit increase in the Women's Political Empowerment Index, there is an associated 11.51% decrease in carbon emissions. This data illustrates the tangible benefits of involving women in decision-making processes at all levels of governance.

Examples of Women Leading the Way

Globally, there are numerous examples of women making a significant impact on climate action. For instance, in the Democratic Republic of Congo, WECAN's reforestation projects have not only restored vast areas of degraded land but also provided sustainable resources for local communities. These projects are led by women who understand the intricate relationship between their environment and their livelihoods.

In New Zealand, the recognition of the Whanganui River as a legal entity with personhood rights was achieved through the persistent efforts of the Māori women. This landmark decision underscores the importance of integrating indigenous knowledge and leadership in environmental conservation efforts.

Another notable initiative is the Fossil Fuel Non-Proliferation Treaty, which Osprey highlighted. This treaty aims to phase out fossil fuel production, a necessary step for meeting global climate targets. The involvement of women in promoting and supporting such initiatives is crucial for their success.

Why Women’s Leadership Matters

Women's leadership in climate action is not just about equality; it is about efficacy. Women often bring different perspectives and solutions to the table, informed by their unique experiences and challenges. For example, women in the Global South are responsible for 40-80% of all household food production. Their firsthand knowledge of sustainable agricultural practices is invaluable for developing climate-resilient food systems.

Furthermore, studies have shown that countries with higher female political representation tend to adopt more stringent climate policies. Women's leadership styles, which often emphasize collaboration, long-term thinking, and community-focused approaches, are particularly suited to addressing the complex and interconnected issues of climate change.

The Path Forward

To harness the full potential of women's leadership in climate action, we must address the systemic barriers that prevent women from participating fully in political, economic, and social spheres. This includes ensuring access to education, healthcare, and economic opportunities for women and girls worldwide.

We must also actively support and amplify the work of women-led organisations and movements that are already making a difference. Initiatives like WECAN are proof that when women lead, transformative change follows.

Conclusion

Women's leadership is not a peripheral issue; it is central to achieving a sustainable and equitable future. By integrating women's perspectives and expertise into climate action, we can develop more holistic and effective solutions to the climate crisis.

I encourage you to listen to my full conversation with Osprey Orielle Lake on the Climate Confident Podcast to gain deeper insights into this critical issue. For more information on WECAN and their impactful projects, visit the WECAN International website.

Let's continue to champion women's leadership in climate action, recognising it as a crucial strategy for global improvement.

This article was first published on TomRaftery.com

Why Ethical and Sustainable Supply Chains Are Crucial for Today's Businesses
Thinkers360
May 17, 2024

Ensuring ethical and sustainable supply chains has never been more critical. As global supply chains become increasingly complex, businesses face mounting pressure from consumers, regulators, and stakeholders to demonstrate responsible practices. In a recent episode of the Sustainable Supply Chain Podcast, I had the pleasure of discussing these challenges with JP Stevenson, Director of ESG Analytics at LRQA. Our conversation shed light on the importance of continuous engagement, digitalization, and the evolving regulatory landscape, emphasizing the need for a proactive and holistic approach to supply chain management.

Continuous Engagement Over One-Time Certification

One of the key takeaways from my conversation with JP was the emphasis on continuous engagement with suppliers. Traditional approaches to supply chain due diligence often rely on periodic audits and certifications, which can provide a false sense of security. JP pointed out that supply chains are dynamic, with operations and risks evolving over time. He argued that a one-and-done approach is insufficient for ensuring ethical and sustainable practices. Instead, businesses must adopt ongoing engagement strategies to monitor and support their suppliers effectively.

For instance, continuous engagement allows companies to identify and address issues such as forced labor, child labor, and unsafe working conditions in real-time. This proactive approach not only mitigates risks but also fosters stronger, more transparent relationships between businesses and their suppliers. Moreover, it enables companies to build resilience and adaptability into their supply chains, essential qualities in today's volatile global market.

The Power of Digitalization

Digitalization is another critical element in modern supply chain management. As JP highlighted, leveraging technology can significantly enhance the accuracy and efficiency of due diligence processes. Digital tools, such as adverse media scanning and real-time data analytics, provide businesses with deeper insights into their supply chains, allowing them to detect potential risks and compliance issues more effectively.

For example, LRQA's Sentinel tool scans thousands of factories monthly for local disclosures of risk, such as worker grievances or environmental violations. By integrating such digital solutions, companies can move beyond traditional audit models and implement more comprehensive and scalable risk management frameworks. This shift not only improves transparency but also democratizes access to due diligence capabilities, enabling smaller enterprises to benefit from advanced supply chain monitoring tools.

Navigating the Regulatory Landscape

The regulatory environment for supply chains is becoming increasingly stringent, particularly in regions like the EU and the US. Regulations such as the EU's Corporate Sustainability Reporting Directive (CSRD) and the US's Uyghur Forced Labor Prevention Act (UFLPA) are pushing businesses to enhance their supply chain transparency and accountability. These regulations often impose significant documentation and compliance requirements, challenging companies to develop robust management systems.

JP noted that while larger companies often have the resources to adapt to these regulations, smaller suppliers can struggle with the financial and operational burden. This disparity highlights the importance of collaboration and support within the supply chain ecosystem. Brands must work closely with their suppliers to ensure they have the necessary tools and resources to comply with evolving standards. This collaborative approach not only ensures compliance but also drives improvements in supply chain practices, ultimately benefiting all stakeholders.

The Broader Impact of Ethical and Sustainable Supply Chains

Beyond regulatory compliance, ethical and sustainable supply chains are crucial for building consumer trust and brand reputation. Today’s consumers are more informed and conscious of the ethical implications of their purchases. A 2022 study by IBM found that 77% of consumers consider sustainability important when making purchasing decisions. Companies that prioritize ethical and sustainable practices can differentiate themselves in the market, attract loyal customers, and enhance their competitive advantage.

Furthermore, sustainable supply chains contribute to broader societal goals, such as reducing environmental impact and promoting fair labor practices. By ensuring that their supply chains are free from exploitative practices and environmentally harmful activities, businesses can play a pivotal role in advancing global sustainability efforts.

Conclusion

Ensuring ethical and sustainable supply chains is not just a regulatory requirement but a strategic imperative for businesses today. Continuous engagement, digitalization, and a proactive approach to regulatory compliance are essential strategies for achieving this goal. By adopting these practices, companies can build resilient, transparent, and responsible supply chains that benefit not only their bottom line but also the broader society.

If you'd like to delve deeper into this topic and hear more from JP Stevenson on the importance of sustainable supply chains, I encourage you to listen to the full episode of the Sustainable Supply Chain Podcast.

Call to Action: To learn more about strategies for ensuring ethical and sustainable supply chains follow the Sustainable Supply Chain podcast in your podcast app of choice to be sure you don't miss any episodes.

Originally published on TomRaftery.com

The Untapped Potential of Tech and Finance in Reducing Food Supply Chain Waste
Thinkers360
May 03, 2024

In the realm of global sustainability, one of the most critical challenges we face today is the efficient management of our food supply chains. Not only does this affect the availability and quality of food, but it also has significant environmental impacts. As we discussed in a recent episode of the Sustainable Supply Chain Podcast with Pat McCullough, CEO of ProducePay, the integration of capital and technology can play a pivotal role in reducing waste in the global produce supply chain.

The Scale of the Problem

Globally, approximately one-third of all food produced is lost or wasted, which amounts to about 1.3 billion tonnes per year. This isn't just a humanitarian concern; it's a substantial economic loss and a needless contributor to greenhouse gas emissions. In the realm of fruits and vegetables, the waste percentage can be even higher due to perishability and handling issues during transport and storage.

Insights from the Podcast

During the podcast, McCullough shared how ProducePay is addressing these challenges by providing capital to farms and leveraging technology to improve the efficiency and reliability of produce supply chains. ProducePay's model helps reduce the time produce spends in transit and storage, which is crucial for perishable items. By financing growers and investing in technology that optimises the harvesting, packaging, and transportation processes, they help ensure that produce reaches markets in optimal condition, thus reducing waste.

 

Revolutionising Manufacturing: AI + IoT = The Sustainable Factory of Tomorrow
Thinkers360
April 17, 2024

In the rapidly evolving landscape of modern manufacturing, the convergence of artificial intelligence (AI) and the Internet of Things (IoT) is not just a trend—it's a transformative movement. As host of the Sustainable Supply Chain Podcast, I've had the privilege of engaging with leading voices in this revolution. A recent discussion with Bryan Merckling, CEO of Thinaer, offered profound insights into how AIOT (the amalgamation of AI and IoT) is redefining efficiency, reducing waste, and paving the way for a more sustainable manufacturing industry.

The AIOT Advantage

The power of AIOT lies in its ability to make manufacturing processes smarter and more connected. By integrating AI's predictive analytics with IoT's network of sensors and devices, manufacturers can achieve unprecedented levels of operational efficiency. For instance, predictive maintenance, powered by AIOT, can forecast equipment failures before they occur, significantly reducing downtime and maintenance costs. According to a study by Deloitte, predictive maintenance can decrease maintenance costs by up to 10% and increase equipment uptime by up to 20%.

Moreover, AIOT enables real-time tracking and monitoring of assets, from raw materials to finished products. This visibility not only enhances supply chain efficiency but also contributes to a substantial reduction in waste. By precisely tracking inventory and production processes, companies can minimize overproduction and surplus inventory, two major sources of waste in manufacturing.

A Leap Towards Sustainability

Perhaps the most compelling aspect of AIOT is its potential to drive sustainability in manufacturing. The industry, historically known for its significant environmental footprint, is under increasing pressure to adopt greener practices. Here, AIOT emerges as a potentially powerful solution. By optimizing energy use and reducing waste, AIOT technologies can significantly lower the environmental impact of manufacturing operations.

One striking example shared by Merckling involves the use of energy-efficient sensors that monitor and optimize energy consumption across manufacturing facilities. These sensors can lead to a considerable reduction in energy waste, aligning manufacturing practices with sustainability goals. Additionally, the advent of battery-less sensors, powered by ambient energy, marks a significant step towards reducing the environmental burden of sensor technology itself.

The Road Ahead

The journey towards a sustainable manufacturing sector powered by AIOT is both exciting and challenging. Implementing these technologies requires not just significant investment but also a cultural shift within organizations. Manufacturers must embrace innovation and be willing to experiment with new approaches to production and operations management.

The potential rewards, however, justify the effort. Beyond operational efficiency and sustainability, AIOT can enhance product quality, improve worker safety, and open new avenues for innovation. As the technology matures, we can expect to see even more creative uses of AIOT, further cementing its role in the future of manufacturing.

A Call to Action

For industry professionals, the message is clear: the time to act is now. The convergence of AI and IoT offers a unique opportunity to reshape manufacturing for the better. It's an opportunity to drive efficiency, foster sustainability, and create a more resilient and flexible supply chain.

If you're intrigued by the possibilities of AIOT in manufacturing and keen to delve deeper into this topic, I encourage you to listen to the full episode of the Sustainable Supply Chain Podcast with Bryan Merckling. Gain insights from a leader working in this space, and discover how your organization can work towards a smarter, greener future.

In embracing AIOT, we're not just transforming manufacturing; we're taking a significant step towards a more sustainable world. Let's lead the charge together.

FinTech's Role in the Climate Crisis: Introducing a Currency Backed by Carbon Reduction
Thinkers360
April 10, 2024

In an era where the impacts of climate change are increasingly impossible to ignore, innovative solutions that bridge the gap between technology and sustainability are more crucial than ever. A recent episode of the Climate Confident podcast, which I had the pleasure of hosting, shed light on an intriguing approach that uses finance to combat climate change. My guests, Joe Pretorius and Paul Rowett, discussed their pioneering project, Toco, a currency backed by carbon mitigation outcomes, supported by the independent, non-profit Carbon Reserve and advocated for by the Carbon is Moneymovement. This conversation not only highlighted the potential of financial technology (FinTech) in the fight against global warming but also underscored the vital role of sustainability in reshaping our financial systems.

The intersection of finance and technology has birthed FinTech, a sector that's revolutionising banking, investment, and now, sustainability. Toco represents an innovative model where digital currency is directly tied to actions that reduce carbon emissions. This model is groundbreaking: it transforms every transaction into a step towards combating climate change, making the act of spending an act of saving the planet.

The concept is straightforward yet profound. By backing currency with verified carbon reduction efforts, such as reforestation projects, mangrove regeneration, or advancements in carbon capture technology, Toco aims to provide a tangible way for individuals and businesses to contribute to environmental sustainability. This initiative is a testament to the potential of leveraging financial markets to support ecological restoration and conservation efforts on a global scale.

The success of Toco's pilot in Stellenbosch, and its current expansion into Europe, signifies a growing recognition of the importance of sustainable finance. As Joe and Paul shared, the initiative has already mobilised communities and businesses, proving that a currency can do more than facilitate transactions—it can also foster a culture of sustainability and act as a catalyst for widespread environmental action.

This approach is not isolated. Around the globe, there's a surge in green bonds, sustainable investments, and eco-friendly startups. For instance, the rise in impact investing, which focuses on generating positive environmental and social impacts alongside financial returns, is evidence of a broader shift towards sustainability in the financial sector. These trends reflect a growing awareness among investors and consumers alike that financial decisions have far-reaching implications for the planet.

However, Toco's model goes a step further by integrating carbon mitigation directly into the fabric of daily financial transactions. This innovative approach not only amplifies the impact of individual actions but also challenges traditional financial and economic models to evolve towards sustainability.

The significance of this cannot be overstated. Climate change poses an existential threat, and the window for action is narrowing. Solutions like Toco offer a glimpse into a future where finance and technology unite to address this crisis head-on. They demonstrate that with creativity and innovation, the tools for making a significant impact are already at our fingertips.

The integration of FinTech and sustainability exemplifies how reimagining the purpose and potential of finance can lead to meaningful environmental progress. But this is just the beginning. The journey towards a sustainable financial system is ongoing, and it requires the participation and support of individuals, businesses, and governments worldwide.

If you're intrigued by the potential of using finance to fight climate change and want to delve deeper into the strategies discussed in this episode, I encourage you to listen to the full conversation with Joe and Paul on the Climate Confidentpodcast. Their insights offer valuable perspectives on how we can leverage financial innovations to make a real difference for our planet.

let us remain committed to the vision of a world where economic activity supports, rather than undermines, our planet's health and well-being

The fight against climate change is a collective endeavour, and it's clear that financial technology will play a pivotal role in shaping our shared future. As we continue to explore and implement sustainable financial solutions, let us remain committed to the vision of a world where economic activity supports, rather than undermines, our planet's health and well-being. Together, through innovation and action, we can pave the way towards a more sustainable, resilient, and prosperous world for all.

Originally published on TomRaftery.com

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