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Business carbon management and the implications for SDGs
Strategic and Quantitative Analysis CentreSunhee Suk and Xin
Zhou
TT7 Thematic Track 7Practical Guidance for SDG Integration
through Interlinkages Analysis and Visualisation:16:05 - 17:35,
Room No.301+302
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Business role and SDGs
Pivotal role of businessIn making a transformational change
towards achieving sustainable production, they provide jobs and
decent work, and run sound business through green investment to
low-carbon technologies and resource efficiency, and green global
value-chains.
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Interest and opportunities for SDGs• Buzzword of "SDG" The
increasingly frequent occurrence of the "SDGs" among business
circles is testament to the growing interest in taking action and
forming strategic responses to the SDGs as part of business
operations.• Business opportunitiesAchieving the Global Goals could
generate an estimated 12 trillion USD in market opportunities in
four economic systems: food and agriculture, cities, energy and
materials, and health and well-being (BSDC, 2017)..
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Companies’ performance of non-financial aspects related to SDGs
is getting important and emphasized to be incorporated throughout
entire business operations and management.
Business process and relevant SDGs
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Climate change under the SDGs and carbon pricing
The 2030 Agenda identifies, in its paragraph 14, climate change
as
“one of the greatest challenges of our time”
As a key measure, attached a price to greenhouse gas
emissions, Carbon pricing, has been
introduced.
- China: Announced a National ETS (2017)- Japan: Implementing
city
level cap and trading schemes (2010~), Imposed tax for Climate
Change Mitigation (JPY 289/t-CO2)
SDG 13 aims to “take urgent action to combat climate change and
its
impact”
Private sector better understands the risks of climate impact as
well as
pressures of related government policies such as carbon pricing
on their
business
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(1) Corporate carbon managementItem Management Activities
CMA01 Collecting information on policy related to energy savings
and GHG emission reduction CMA02 Regular in-house training program
for energy saving and GHG emission reduction CMA03 Encouraging
daily energy saving activities in office (ex. turning off
lights)
CMA04 Participating in training programs for energy saving and
GHG emission reduction held by the government/local government
CMA05 Short & long-term targets for energy savings and GHG
emission reduction in place
CMA06 Conducting analysis on energy use and GHG emissions to
identify potential areas for energy savings and emission reduction
CMA07 Installing monitoring equipment on energy consuming
facilities CMA08 Enhancing daily facility maintenance for energy
saving and GHG emission reduction
CMA09 Setting up an internal standard for energy savings and GHG
emission reduction management CMA10 Establishing a unit or
department for emission tradingCMA11 Purchase new production
facilities to save energy and reduce GHG emissions
CMA12 Investing in R&D to improve production processes for
energy savings and emission reduction CMA13 Enhancing optimization
in transporting materials and goodsCMA14 Making adjustments in
energy mix to use more clean energy sources
CMA15 Releasing sustainability reports regularly that contain
data for energy consumption and GHG emissions CMA16 Set up a
strategic carbon management (plan-do-check-act)CMA17 Setting up a
plan and allocating budget for purchasing permits and trading
CMA18 Establishing decision making process in relation to carbon
trading (e.g., purchase, sell, price projection, etc.)CMA19
Establishing carbon management strategy based on regular analysis
of carbon maCMA20 Adopting a green or carbon management accounting
system
Reactive strategy
Passive strategy
Carbon manage
mentDefensive strategy
Accommodativ
e strategy
Proactive strategy
daily energy saving activities
Short & long-term targets
Installing monitoring
internal standard
a unit or department new production facilities
Investing in R&D to improve production processes
more clean energy sourcessustainability reports
strategic carbon management
regular analysis of carbon market carbon management accounting
system
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(2) Relevant SDGs to corporate carbon management7.2 Increase
renewable energy7.3 Double energy efficiency7.b Expand energy
infrastructure
8.4 Improve resource efficiency
9.4 Resource-efficient and clean technology-based industrial
retrofit9.5 Enhance R&D for industrial sectors
11.6 Reduce urban environmental impacts
12.6 Promote social and environmental reporting by companies12.a
Support R&D capacity of developing countries for SCP
13.2 Integrate climate change measures into national
policies13.3 Raise awareness on mitigation and adaptation
17.7 Promote environmental technology transfer to developing
countries
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4. SDGs interlinkage analysis: analytical framework
13.2 13.3
How companies respond to stringent climate policy such as carbon
pricing policy and the implications for overall SDGs?
Examine the causal relation between the identified SDGs and
targets and their interlinkages with other targets.
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5. SDGs interlinkage analysis results: (1) Japan
Source: Snapshot from IGES SDGs Interlinkages Web Tool
7.3
8.1 Improve resource efficiency8.4 Decent work for all8.5
Improve youth employment8.6 Implement the ILO Global Jobs Pact
10.1 Income growth of bottom 40% population10.4 Policy for
greater equality
Policy for greater equality
12.4 Sound management of chemicals and wastes12.5 Reduce waste
generation
Synegistic with Target 7.3
6.4 6.6 8.1 8.4 8.5
8.6 8.b 9.1 9.c 10.1
10.4 12.4 12.5
Conflicting with Target 7.3
2.3 2.4 8.2 9.2 12.3
LegendStrong
+veStrong
-ve
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Interlinkage between relevant Targets and other SDGs in JapanSDG
1:Eradicatepoverty
SDG 2: EndHunger
SDG 3: Goodhealth & well-being
Goal 4:Qualityeducation
Goal 5:Genderequality
Goal 6: Cleanwater &sanitation
Goal 7:Affordable &clean energy
Goal 10:Reducedinequalities
Goal 11:Sustainablecities &communities
Goal 13:Climate action
Goal 14: Lifebelow water
Goal 15: Lifeon land
Goal 16:Peace, Justice& stronginstitutions
Goal 17:Partnershipsfor the goals
7.3 2.3, 2.4 6.4, 6.6
8.1,8.4,8.5,
8.6, 8.b
8.2 9.1, 9.c 9.2 10.1, 10.4 12.4,12.5 12.3
7.b 4.a 5.4 6.4, 6.5 7.1 11.1
8.4 2.3, 2.4 6.4, 6.5, 6.6 12.4,12.5 12.3 14.1 15.1
9.4 3.9 11.6 13.2
9.5 14.a 17.6
11.6 3.9 6.1, 6.6 9.2, 9.4 9.1 12.3 12.5
12.a 14.a 17.6
13.2 13.3, 13.a,
13.b 14.3 16.7
13.3 4.1, 4.4, 4.7 13.2, 13.a,13.b 14.3
Goal 9:Industry,
innovation &infrastructure
9.1
9.5
9.4
12.a
Goal 8: Decentwork &economicgrowth
Goal 12:Responsibleconsumption &production
8.2
8.1
Sheet1
7.37.b8.49.49.511.612.a13.213.3SDG 1: Eradicate povertySDG 2:
End HungerSDG 3: Good health & well-beingGoal 4: Quality
educationGoal 5: Gender equalityGoal 6: Clean water &
sanitationGoal 7: Affordable & clean energyGoal 8: Decent work
& economic growthGoal 9: Industry, innovation &
infrastructureGoal 10: Reduced inequalitiesGoal 11: Sustainable
cities & communitiesGoal 12: Responsible consumption &
productionGoal 13: Climate actionGoal 14: Life below waterGoal 15:
Life on landGoal 16: Peace, Justice & strong institutionsGoal
17: Partnerships for the goals
(double energy efficiency)(expand energy infrastructure)(improve
resource efficiency in consumption and
production)(resource-efficient and clean technology-based
industrial retrofit)(enhance R&D for industrial sectors)(reduce
urban environmental impacts)(support R&D capacity of developing
countries for SCP)(Integrate climate change measures into national
policies)(raise awareness on mitigation and adaptation)7.32.3,
2.46.4, 6.68.1, 8.4, 8.5, 8.6, 8.b8.29.1, 9.c9.210.1, 10.412.4,
12.512.3
SDG 1: Eradicate poverty7.b4.a5.46.4, 6.57.18.29.111.1
SDG 2: End Hunger2.3, 2.42.3, 2.48.42.3, 2.46.4, 6.5,
6.68.112.4, 12.512.314.115.1
SDG 3: Good health & well-being3.93.99.43.911.613.2
Goal 4: Quality education4.a4.1, 4.4, 4.79.512.a14.a17.6
Goal 5: Gender equality5.411.63.96.1, 6.69.2, 9.49.112.312.5
Goal 6: Clean water & sanitation6.4, 6.66.4, 6.56.4, 6.5,
6.66.1, 6.612.a9.514.a17.6
Goal 7: Affordable & clean energy7.113.29.413.3, 13.a,
13.b14.316.7
Goal 8: Decent work & economic growth8.1, 8.4, 8.5, 8.6,
8.b8.28.113.34.1, 4.4, 4.713.2, 13.a, 13.b14.3
8.2
Goal 9: Industry, innovation & infrastructure9.1, 9.c9.19.2,
9.49.59.4
9.2
9.1
Goal 10: Reduced inequalities10.1, 10.4
Goal 11: Sustainable cities & communities11.111.6
Goal 12: Responsible consumption & production12.4, 12.512.4,
12.512.a12.3
12.312.312.5
Goal 13: Climate action13.213.3, 13.a, 13.b13.2, 13.a, 13.b
Goal 14: Life below water14.114.a14.a14.314.3
Goal 15: Life on land15.1
Goal 16: Peace, Justice & strong institutions16.7
Goal 17: Partnerships for the goals17.617.6
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5. SDGs interlinkage analysis results: (2) China
Source: Snapshot from IGES SDGs Interlinkages Web Tool
7.3
8.1 Improve resource efficiency8.4 Decent work for all
10.1 Income growth of bottom 40% population10.4 Policy for
greater equality
2.3 Double agriculture productivity2.4 Build sustainable food
production systems
7.1 Universal access to energy
Synegistic with Target 7.32.3 2.4 6.6 7.1 8.1
8.4 9.1 9.5 9.c 10.2
10.3 10.4 10.7 12.4 12.5
12.a
Conflicting with Target 7.36.4 7.a 8.2 8.5 8.6
8.b 9.2 9.4 9.a 10.b
12.3
LegendStrong
+veStrong
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SDG 1:Eradicatepoverty
SDG 2: EndHunger
SDG 3: Goodhealth & well-being
Goal 4:Qualityeducation
Goal 5:Genderequality
Goal 13:Climate action
Goal 14: Lifebelow water
Goal 15: Lifeon land
Goal 16:Peace, Justice& stronginstitutions
Goal 17:Partnershipsfor the goals
7.3 2.3, 2.4 6.6 6.4 7.1 7.a 8.1, 8.4
8.2,8.5,
8.6, 8.b
9.1,9.5, 9.c
9.2,9.4, 9.a
10.2,10.3,10.4,10.7
10.b12.4,12.5,12.a
12.3
7.b 4.a 5.4 6.6 6.4, 6.5 8.4 8.2 9.1 9.4 17.6
8.4 2.3, 2.4 6.1, 6.6 6.4, 6.5
12.412.5,12.a
12.3 14.1 15.1
9.4 3.9 4.a 5.4 6.4, 6.5,6.a
6.1, 6.2,6.6 7.a
7.1,7.3, 7.b
8.2,8.5,
8.6, 8.b8.1, 8.4 12.3
12.4,12.5,12.a
17.6
9.5 14.a 17.6
11.6 3.9 9.4 9.1 12.3
12.4,12.5,12.a
12.a 9.5 9.4, 9.a 11.2 11.6 14.1, 14.7,14.a 17.6
13.2 13.3, 13.a,
13.b 14.3
13.3 4.1, 4,2, 4.3,4.4, 4.5, 4.7,
4.a
13.2, 13.a,13.b 14.36.5
6.4 7.1 8.4
6.4, 6.5 9.1
12.a
6.1, 6.6
6.4 9.a
7.1, 7.b 8.1 9.4
9.1, 9.c 11.6
Goal 11:Sustainablecities &communities
Goal 12:Responsibleconsumption &production
7.1, 7.3 11.1
Goal 6: Cleanwater &sanitation
Goal 7:Affordable &clean energy
Goal 8: Decentwork &economicgrowth
Goal 9:Industry,innovation &infrastructure
Goal 10:Reducedinequalities
Interlinkage between relevant Targets and other SDGs in
China
9.4 Resource-efficient and clean technology-based industrial
retrofit
6.4 Increase water-use efficiency
7.1 Universal access to energy
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6. Policy recommendations(1) This study employed SDG
interlinkage tool for sectoral specific analysis and the results
shows that SDGs associated
with company carbon management interplay strongly and
beneficially with others SDGs, which provides policy implications
for government and business potential for corporate.
(2) In Japan, beside Goal 13 (climate action), strengthened
policy of carbon pricing and corresponding corporate carbon
strategies are strongly positively related the Goal 8 (decent work
and economic growth) as well as Goal 9 (industry innovation and
infrastructure).
(3) Corporate carbon engagement in China exhibits some
characteristics that differ from those of Japan, specifically in
improvements in agricultural productivity and food production
systems (Target 2.3 and 2.4), enhancement of universal access to
safe drinking water (Target 6.1) and international cooperation on
water-and sanitation (Target 6.a), upgraded social, economic and
political inclusion of all (Target 10.2) through education and job
opportunities (Target 4.3 and 4.4) and equality (Target 10.3) were
remarkable, meaning the SDGs associated with the activities of
corporate carbon strategies are intermixed with social development.
Energy service expansion comes together energy efficiency
improvement that may generate potential of business and
employment.
(4) How policy on climate change is implemented greatly affects
institutional awareness, capacity and technology adoption in
industrial processes. Encouraging the private sector to take part
in carbon management strategies that go beyond conventional
standards and norms will require the government to provide ongoing
policy support to improve market functionality of carbon pricing
and effectiveness.
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Thank you very much.
Business carbon management and the implications for SDGsBusiness
role and SDGsInterest and opportunities for SDGsBusiness process
and relevant SDGsClimate change under the SDGs and carbon
pricing(1) Corporate carbon management(2) Relevant SDGs to
corporate carbon management4. SDGs interlinkage analysis:
analytical framework�5. SDGs interlinkage analysis results: (1)
JapanInterlinkage between relevant Targets and other SDGs in
Japan5. SDGs interlinkage analysis results: (2) ChinaInterlinkage
between relevant Targets and other SDGs in China6. Policy
recommendationsThank you very much.