Tag: UNFCCC COP28

Building a Sustainable Future: Reflections on COP28 and Insights for 2024 | LinkedIn Live

LINKEDIN LIVE

Building a Sustainable Future: Reflections on COP28 and Insights for 2024

View the event on LinkedIn, which was delivered live on Thursday, December 14, 2023.

Watch this LinkedIn Live event to hear from Everest Group analysts Rita N. Soni and Nitish Mittal, and Sustainability and Climate Change Expert Babiche Veenendaal-Westerbrink. 🎙️

The speakers reflected on the progress made in 2023 to build a more sustainable future, the key takeaways from the COP28 conference – the 28th annual meeting of the international community to discuss and implement ways to combat climate change – and the outlook for 2024.

During the event, we explored:

✅ Key takeaways from COP28
✅ The 2024 sustainability outlook with a focus on technology, data, and operations implications
✅ How Everest Group is helping businesses plan and adopt strategies for a more viable future 🌱

Watch this session to gain profound insights into the challenges and opportunities ahead! 🔍

Meet the Presenters

Mittal Nitish
Partner
Everest Group
Soni Rita B
Principal Analyst
Everest Group
Babiche Veenendaal Westerbrink 003
Sustainability and Climate Change Expert

A Bright Start at COP28: Progress and Pledges for a Sustainable Future with Technology as a Key Enabler | Blog

Our Everest Group team is pleased to share their analysis of positive developments from the first two days of COP28, with a specific focus on the global technology and tech services industries, in this blog. With positive momentum building, the outlook in the collective journey toward a more sustainable future is looking brighter.

Day 1: A historic leap forward

Creation of the loss and damage fund for the global south

The first day of COP28 was nothing short of historic. The formal creation of the Loss and Damage Fund for the Global South was a key highlight. This initiative marks a crucial step in addressing the disproportionate impact of climate change on vulnerable nations. The commitment of US$400 million in pledges is a testament to the global community’s dedication to creating a more equitable and resilient world.

Contributions from multiple nations to support climate adaptation in vulnerable regions

Notable contributors to the fund include the COP28 hosts, the UAE, with a generous pledge of US$100 million. Germany and the US also stepped up, pledging US$100 million and US$17 million, respectively. The UK, demonstrating its commitment to climate action, pledged £60 million. These pledges will undoubtedly play a pivotal role in supporting climate adaptation and mitigation efforts in the most vulnerable regions.

What does this mean for the sustainability enablement services market?

The funding can act as a political push for these nations to adopt technology to enable sustainable businesses and mitigate climate risks. Currently, Everest Group has observed a surge in sustainability technology adoption in developing countries. Environmental, Social, and Governance (ESG) data reporting, Artificial Intelligence (AI)-driven crop management, and Internet of Things (IoT)-led water management solutions are gaining traction. Evolving reporting standards and the imperative for climate-resilient business practices will drive the scalability of sustainability-enabling technologies in these regions.

Day 2: The United States takes center stage by addressing methane management as a crucial step for reaching net zero emissions

Environmental Protection Agency (EPA) announces regulations on methane leaks

The second day of COP28 brought a wave of positive news, particularly from the United States. Michael S. Regan, Administrator of the EPA, announced groundbreaking regulations aimed at addressing leaks of greenhouse gases (GHGs) like methane. Methane, the second most abundant greenhouse gas, contributes significantly to global warming.

Methane management requires predictive technologies and strict reporting frameworks

Efficient methane management requires precise methane measurement and prioritizing reporting. While the EPA has taken an important step towards regulating methane leaks, methane-emitting industries (like oil and gas) need to move towards a ‘predict and prevent’ model of methane management. These industries should leverage AI and IoT-based methane management platforms that track and measure methane emissions and prevent methane leaks using predictive analytics.

Duke Energy, for example, has collaborated with Accenture and Microsoft to build a first-of-its-kind, end-to-end Azure-based cloud platform that monitors baseline methane emissions from natural gas distribution assets (e.g., pipelines, gas meters), using satellite monitoring, analytics, and AI.

Industry coalitions underpin methane management, as players recognize the value of collaboration in reaching net zero emissions

The Global Decarbonization Accelerator, a coalition of 50 oil and gas companies representing over 40% of global production, made a resounding commitment to reduce methane emissions by 80-90% by 2030. This ambitious pledge demonstrates a growing industry recognition of the urgent need to transition towards cleaner and more sustainable practices.

In addition to industry commitments and public sector regulation, philanthropic efforts also took the spotlight. Bloomberg Philanthropies unveiled a $40 million program focused on transparency and accountability in methane reduction initiatives. This program is a crucial step towards ensuring that efforts to curb methane emissions are not only ambitious but also measurable and accountable. We see the potential for scaled partnerships with the private sector. A model of shared responsibility and accountability, with collaboration as a central vision, is necessary for methane mitigation.

What does this mean for the sustainability enablement services market?

The players in the sustainability enablement services landscape can expect higher demand for net zero services, along with solutions like emission management platforms and tools. Technology players and service providers should focus on forming collaborations with their client groups to advance research and pilot more solutions in this space.

Moving forward with optimism

As we reflect on the first two days of COP28, it is clear that we are witnessing a historic turning point in the global fight against climate change. The establishment of the Loss and Damage Fund, coupled with significant pledges, coalitions, and regulatory advancements, sends a powerful message that the world is ready to take bold action.

Everest Group constituents in the global technology and technology services industries have an important role to play in these efforts. We remain committed to helping providers navigate the sustainability enablement opportunity to help guide their clients toward a more resilient and environmentally conscious future.

As we continue our journey through COP28, let’s remain optimistic and committed to the shared goal of a sustainable and resilient future. Together, we can turn these pledges into impactful actions that will benefit not only our current generation but also those to come. Reach out to Rita Soni, [email protected], Arpita Dwivedi, [email protected], Meenakshi Narayanan, [email protected], or Ambika Kini, [email protected] for further discussion.

To learn more about key takeaways from the COP28 conference, watch our LinkedIn Live session, Building a Sustainable Future: Reflections on COP28 and Insights for 2024.

Promoting Advanced Technologies at COP28 Can Propel Immediate Energy Optimization Action | Blog

As nations gather at COP28, prioritizing technology-driven optimization can pave the way for sustainable energy progression. Explore how advanced energy monitoring and optimization technologies can help enterprises transition from fossil fuels to renewables.

Note, this blog is part of Everest Group’s continued coverage of COP28. For our analysis of the first two days of the United Nations Climate Change conference, see our prior posting.

COP28 marks a crucial moment for discussions on moving from fossil fuels to renewables. This year’s meeting is especially important as nations reveal their plans for tackling climate change. The urgency is clear, highlighted by the Global Stocktake revealing the world is falling short of the Paris Agreement goals. COP28 is a key moment for the energy sector, offering an opportunity for governments to make bold commitments and speed up the transition.

In this context, enterprises worldwide are increasingly recognizing the imperative to transition towards renewable energy sources, driven by both environmental concerns and a growing commitment to sustainable practices. The appeal of renewables, such as solar and wind power, lies in their potential to mitigate climate change and reduce dependence on finite fossil fuels. However, despite this burgeoning enthusiasm, enterprises encounter a myriad of constraints in their quest for increased renewable energy adoption. Let’s explore this further.

Enterprises face these major obstacles in realizing their ambitious energy transition agenda:

  • High initial investment costs: The transition to renewable energy often involves significant upfront capital expenditures for the installation of solar panels, wind turbines, or other clean energy infrastructure. Many enterprises, particularly smaller businesses, find it challenging to justify these initial costs despite the long-term benefits
  • Intermittency and reliability concerns: Some renewable energy sources, such as solar and wind, are intermittent and dependent on weather conditions. This unpredictability can lead to concerns about the reliability of energy supply, especially for businesses that require a continuous and stable power source
  • Regulatory hurdles and policy uncertainty: Enterprises operating in different regions face varying regulatory frameworks and policies related to renewable energy. Inconsistent or unclear regulations can create uncertainty and hinder long-term planning for energy transition strategies
  • Limited availability of suitable infrastructure: The implementation of renewable energy projects often requires ample space and specific geographical conditions. Finding suitable land or locations for solar farms, wind turbines, or other renewable facilities can be a logistical challenge, particularly in densely populated areas where land is scarce or expensive

Amidst these challenges, the shift from fossil fuels to renewables finds a bridge in the optimization and monitoring of existing energy usage through advanced technologies. Leading enterprises have started joining forces with tech players and service providers to track and enhance energy efficiency in operations, paving the way for a sustainable energy transition.

Despite a booming market in sustainability enablement services offering advanced energy-efficient solutions, enterprises hesitate due to cost concerns. Yet, key players are actively investing in cutting-edge technologies to drive energy efficiency for their clients.

Three standout solutions have emerged at the forefront of major players’ sustainability services portfolios:

  • Artificial Intelligence (AI) and Internet of Things (IoT)-based energy monitoring: Revolutionizing energy optimization, IoT and AI-based systems offer real-time insights into consumption patterns. Smart sensors and meters seamlessly integrate into a connected network, continuously collecting detailed data. AI algorithms analyze this information, unveiling inefficiencies, anomalies, and optimization opportunities. The power of predictive analytics forecasts future energy demands, enabling proactive measures to mitigate inefficiencies and cut overall consumption. Infosys Energy Management Solution and TCS Clever Energy are examples of energy monitoring and tracking systems
  • AI-driven predictive maintenance: With artificial intelligence, predictive maintenance transforms energy optimization by foreseeing and addressing equipment issues before performance impact. Historical and real-time data analysis allows AI algorithms to predict faults, facilitating timely interventions that prevent unexpected downtime and associated energy inefficiencies. This data-driven, proactive approach reshapes traditional maintenance paradigms, significantly contributing to enhanced energy efficiency and operational excellence. Capgemini’s predictive asset maintenance services and Accenture’s intelligent asset management services are examples of AI-driven predictive maintenance solutions for enterprises
  • Occupancy and building management with AI: AI-driven systems for occupancy and building management contribute to energy efficiency by intelligently regulating lighting, heating, and cooling based on real-time occupancy data. Smart sensors and AI algorithms learn patterns of occupancy, preferences, and environmental conditions to optimize energy usage in commercial buildings. Infosys’ Smart Spaces offering focuses on energy efficiency for commercial buildings, data centers, and workspaces. Hitachi’s Intelligent Building Management System also focuses on making buildings more energy efficient

Service providers have started crafting umbrella brands for sustainability services, with energy monitoring taking center stage in their portfolios. While energy monitoring and reporting systems are branded as niche sustainability solutions, the environmental impact of solutions like predictive maintenance and smart building management systems are significant. As enterprises intensify net-zero commitments, we foresee a surge in demand for these solutions, with a special focus on sustainability. We are optimistic about the market, with a tinge of prudence.

While sophisticated energy monitoring and optimization solutions are plentiful, enterprises hesitate to invest in sustainability technologies due to perceived high costs and short-term return concerns. However, service providers are strategically bundling sustainability benefits with operational optimization engagements, along with providing niche energy-related solutions to enterprises.

Everest Group anticipates a surge in the energy-efficiency solutions market within the next two to three years. The forthcoming focus on energy efficiency at COP28 could serve as the catalyst needed to propel this market into flourishing growth.

To discuss further, reach out to Rita Soni, [email protected], Arpita Dwivedi, [email protected], Meenakshi Narayanan, [email protected], or Ambika Kini, [email protected].

To learn more about the progress made in 2023 to build a more sustainable future and key takeaways from the COP28 conference, watch our LinkedIn Live session, Building a Sustainable Future: Reflections on COP28 and Insights for 2024.

Navigating COP28: Insights on the Evolving Landscape of Sustainability | Blog

As we stand on the brink of COP28 (November 30 to December 12, 2023), Everest Group’s technology service provider clients and industry leaders are poised to play a pivotal role in advancing the goals set forth by the Paris Agreement. In this blog, we bring you insights from Everest Group’s sustainability analysts on their hopes and expectations for this crucial global event.

As the world anticipates COP28, Everest Group’s insights shed light on the evolving sustainability landscape. Nothing could underpin the importance more than the fact that the first Global Stocktake (GST) of the implementation of the Paris Agreement will conclude at COP28, the mid-point in the implementation of the 2030 Agenda for Sustainable Development and its SDGs, including Goal 13 (climate action). We will explore key expectations that underscore the crucial role of technology service providers in meeting the objectives of the Paris Agreement, which we hope will be central in the COP28 deliberations.

As a reminder, there was a broad global consensus that COP28 will focus on four significant paradigm shifts:

  • Fast-tracking the energy transition and slashing emissions before 2030
  • Transforming climate finance, by delivering on old promises and setting the framework for a new deal on finance
  • Putting nature, people, lives, and livelihoods at the heart of climate action
  • Mobilizing for the most inclusive COP ever

With this context, we look forward to progress on five key topics:

  1. Digital transformation for sustainability:

The role of digital transformation in achieving sustainability goals is critical. Our research highlights the transformative power of technology in reducing carbon footprints, enhancing energy efficiency, and driving sustainable practices across sectors as diverse as oil & gas, banking & finance, and manufacturing.

This US$50 billion+ market also has a profound impact on sustainability beyond operational efficiency. In the realm of supply chain management, advanced technologies such as blockchain enable transparent and traceable sourcing, ensuring ethical practices and minimizing environmental impact. The integration of smart grids and renewable energy solutions empowers organizations to embrace cleaner, more sustainable energy sources. Additionally, data-driven insights derived from advanced analytics not only optimize resource allocation but also inform strategic decision-making for long-term sustainability. As businesses navigate a rapidly changing landscape, the fusion of digital innovation and sustainability becomes an integral strategy for fostering resilience and creating a paradigm where economic growth and environmental stewardship coalesce for a more sustainable future.

While optimization-driven engagements have continued to be the major theme, with almost one-third of the deals signed in 2023 (YTD), decarbonization and ESG data monitoring and reporting have also gained a lot of traction for the buyer side.

  1. Emerging technologies and climate action:

The intersection of emerging technologies and climate action is paramount. Insights emphasize the potential of artificial intelligence (AI), blockchain, and other cutting-edge technologies in creating innovative solutions for climate change mitigation. These technologies facilitate real-time monitoring, enabling swift responses to environmental shifts. AI-driven predictive models enhance climate resilience, while blockchain ensures transparent carbon trading.

Generative AI has been the talk of the town lately, and providers have not shied away from experimenting with gen AI use cases in sustainability either. The most common use cases are around rapid design, prototyping, and automation and streamlining of manual processes. There is immense potential in these emerging use cases to transform the way we look at sustainability engagements.

  1. Resilient and sustainable business models:

Integrating sustainability into business models must be the way of the future. Our research emphasizes the need for resilient and sustainable business models that align with environmental objectives, paving the way for discussions on these models at COP28.

Sustainability-driven innovation in product development helps enterprises increase market responsiveness and differentiated brand value. Products marketed as sustainable now hold a 17.0% market share, with significant growth during the pandemic, as per the NYU Stern Sustainable Market Index.

  1. Collaboration and ecosystem partnerships:

Collaboration is fundamental in scaling up sustainable initiatives. We have seen the importance of ecosystem partnerships, bringing together governments, businesses, and technology service providers to drive collective action.

This is a theme prominent not just at an enterprise level, but also at an international level. For example, the EU pledged €12 million in grants to support Kenya’s green hydrogen industry.

  1. Regulatory framework convergence:

We anticipate significant implications for the evolving regulatory frameworks surrounding sustainability.

Standardizing environmental guidelines aids businesses in navigating complex landscapes and investors in making decisions based on transparent and comparable disclosures. Industry associations like the International Council on Mining and Metals, the World Gold Council, the Copper Mark, and the Mining Association of Canada are moving to develop a responsible mining code to define one minimum global standard for the industry’s environmental impact, human rights, and due diligence.

The discussions at COP28 are expected to influence how governments, industry consortia, and businesses approach environmental goals, potentially shaping more streamlined regulations and standards.

Everest Group is cautiously optimistic

The negotiations will likely provide a platform for technology service providers to contribute their expertise in navigating the complex interplay between sustainability and technology. As Everest Group’s areas of research align with the ongoing discussions, we anticipate a nuanced understanding of how regulatory changes may impact the adoption of digital solutions, emerging technologies, and sustainable business practices.

COP28 represents a crucial juncture in the global pursuit for sustainability, and Everest Group’s research positions technology service providers at the forefront of this transformative journey. As the negotiations unfold, the impact on regulatory frameworks and the collaborative efforts of governments, businesses, and technology providers will shape the trajectory towards achieving the goals set by the Paris Agreement. Everest Group remains committed to providing insights that navigate the evolving landscape of sustainability, guiding organizations toward a more resilient and environmentally conscious future. To discuss further reach out to Rita Soni, Principal Analyst, Sustainability Research and Impact Sourcing, [email protected], Arpita Dwivedi, Practice Director, Sustainability and Talent, [email protected], Ambika Kini, Senior Analyst, Sustainability Technology and Services, [email protected], or Meenakshi Narayanan, Senior Analyst, Sustainability Technology and Services, [email protected].

Don’t miss our LinkedIn Live session, Building a Sustainable Future: Reflections on COP28 and Insights for 2024.

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