Pathway to Developing Your Decarbonization Strategy video (1 hr)

Hello, and welcome today to today's session on pathway to developing your decarbonization strategy. I'm pleased to introduce Karin at the leadership and sustainability, who will be walking us through the majority of this session today. There'll be plenty of time for questions at the end, though. So if you have questions, feel free to submit them as we go along. And with that, I'll hand it off to Karen. Thank you so much, Leah. Hello, everyone, and welcome to our webinar about decarbonization. My name is Karin Ekberg, and I'm the founder and CEO of Leadership and Sustainability. We are around eighty people working on both strategic projects and supply chain projects as well as environmental and social audits like FEM and SLCP. And let us now review the agenda for our webinar today. We will kick off with giving an overview of the current status and drivers, for decarbonization. We will then lead, to the key steps to developing a decarbonization strategy and followed by some tips for implementing and monitoring your decarbonization strategy. And we will close our session with some type of questions, from you, the audience. Yes. It is obvious that climate action is a crucial step for your business resilience, and this is also why we are here today to discuss key steps to developing your decarbonization strategy. For a robust decarbonization strategy, you must, first of all, measure your impacts. And measured impacts need to be interpreted. They need to be put into a perspective. Once you really understand your impact, you can then set your targets. Because the goal with your decarbonization strategy is to reduce your impact, of course. But it does not stop with setting targets and reducing your impact. You need to monitor your whole process continuously, not only year by year, but actually at least month by month. And in the next minutes, we will fill those five steps with more some more details and insights. Let us start with a quick input about measuring your impacts. So the carbon footprint, it's a measure of the exclusive total amount of CO2 greenhouse gas emissions that is directly and indirectly caused by an activity or is accumulated over all life stages of a product. So this is a definition from beet, moon, and mix. A widely known and accepted standard for your carbon footprint, calculations is the greenhouse gas protocol. This is why we recommend to calculate your emissions based on the protocol and to follow its five accounting principles, relevance, completeness, consistency, transparency, and accuracy. So these five principles, they emphasize the importance of a robust calculation method and the need for transparency around challenges and data gaps. Relevance ensures the carbon footprint calculation suitably reflects the greenhouse gas emissions of the company and serves the decision making needs. Completeness secures the reporting on all greenhouse gas emissions and and their sources and activities within the chosen inventory boundaries. So that is also something that is really important that you know exactly the boundary of your, calculations. Consistency assures the consistent use of methodologies to allow for valuable comparisons of emissions over time. So you need to use the same calculation month by month, and year by year. And any assumptions that you are doing, you should also make sure that they are consistent, year by year. Transparency means addressing all relevant issues and data gaps, and accuracy ensures that uncertainties are reduced as far as practical. And normally, you should measure your scope one, two, and three emissions. So let's have a look at what what type of emissions we have here with the scope one, two, and three. So scope one, direct emissions, they are emissions that come directly from sources that are owned or controlled by the company, such as fuel burned on-site, company vehicles, or industrial processes taking place on-site. They are the emissions the company can directly influence and manage. Then scope two, indirect energy emissions. They are generated from the production of electricity, heat, or steam purchased and consumed by the company. While the emissions occur at the energy provider, so to say, outside your own facility, they are still considered indirect emissions because you you are indirectly causing those emissions. You are actually using the electricity on-site even if it hasn't been generated on-site with you. And then we have the scope three, and this includes all other indirect emissions in the company's value chain, both upstream and downstream. This covers emissions from suppliers, business travel, employee commuting, product use, product disposal, and any other activities, not directly controlled by the company, but, of course, relate to your operations. And in the end, collecting your data and measuring your impacts help identify which of your activities lead to the biggest emissions. And, of course, these emissions are the ones that you need to take care of. So these are the main key to action. And you cannot decarbonize your business without measuring and therefore knowing how your business impacts, our climate. In the end, calculating your data and, so the data, as you saw here, the last one here, data is really key to action. I would like to also click quickly repeat the general calculation method to calculate your climate impacts. You need to collect data on your activity data, which could be energy you use, fuel you consume, or products and raw materials that you purchase. And often companies start with spend based data, but for you to really measure and reduce your impact, you should try to collect as much real data as possible. And this is now mainly related to scope three because for scope one and two, you usually have more, more exact data via invoices or your own measurements that you do. And this data then needs to be multiplied with an emission factor, which you should retrieve from official emission factors sources. And with that, you can then calculate CO two equivalents of emissions. And you can either work with Excel or with a software, and you need also to allocate resources, of course, for this. You can either work with external support or in house. And we are, of course, more than happy to support you with your decarbonization project. So feel free to reach out to us if you need any external support. And with that, I would like to hand over to Leah to introduce the FEM and FDM. Awesome. So thanks so much. So a couple of things just on the greenhouse gas protocol. I just shared a resource just to the greenhouse gas protocol website directly. It should pop up at the bottom of your screen. But when we're talking about data and gathering data, you're probably familiar with the Higg FEM. So the Higg FEM collects and scores facility environmental data across energy, water, waste, and emissions. It's a performance record, a benchmarking tool, and the source of primary emissions data. So after you post your Higg FEM, the results tab displays calculated scope one and scope two greenhouse gas emissions. So this is a facility's emissions baseline. So if you're an individual facility, that single FEM will have your emissions baseline there. And then brands can also apply production volume in the module section for their gathered Higg FEMs to see a proportional view for each of those assessments. And I think you can get click one more time. It will go through. There we go. Awesome. And then next tab. So facility data manager, is very similar and supports the Higg FEM, but this is on a monthly basis. So depending on where you are in your, you know, experience with using these tools, facility data manager might be an easier place to start. It's monthly data submission, so you can start at any time between the annual FEM cycles. And then facilities also allocate production volume to each of their brand partners as a part of each monthly submission. So that's how brands can also receive a proportional emissions data on an ongoing basis. Facility data manager also has a feature to track scope one and two emissions reduction targets and energy targets directly in FDM. So throughout the year, you can collect that data and see how you're performing real time against your targets. And then at the end of the year, you can also import that FDM data into your yearly Higg FEM. So either way, whichever tool you start with, as long as you have a year's worth of data, generally, that's a good baseline to start from. And I think the next slide yep. So next slide is insights hub is where it kind of brings it all together. So this gives you it's organized around the different impact areas. So decarbonization, energy, greenhouse gas, waste, water, etcetera. You'll see KPI cards, so your key performance indicator cards showing overall emissions for whichever dataset you're looking at. So if that's an individual facility or a group of facilities, you can see either of those. And it also shows carbon intensity with year over year comparisons and benchmarking. Hot spots help you identify which facilities or which regions are driving the most emissions. So as part of your decarbonization effort, this can help you to identify which groups or individual facilities that you might want to start with. And then initiatives are actionable next steps that are tied to the FEM data, and it helps ranks facilities by performance on specific actions. So you can see, oh, this group of facilities doesn't have a coal phase out plan. Maybe I can start with them and then go from there. So a few different places where you can see baseline data so that you can start that process, that measurement process. And I think the last one, facilities can also see their own data, and then brands or other aggregate users see that aggregated data across all the facilities that they're currently tracking. So, hopefully, that gives you a sense of how Worldly Tools kind of blends with this topic and helps you in your strategy. And with that, I'll hand it back to Karin. Thank you so much, Leah. So as mentioned earlier, measuring your impact is closely connected to interpret it in your data. So in the best case, you review your greenhouse gas inventory and identify reduction opportunities. It helps to identify large the largest emission sources and also those emissions that are easy to control and manage from your end. After that, you should then determine costs and impacts. And and then in the best case, you can always identify the business cases for reducing your impacts and thereby, combining decarbonization also with cost benefits. So prioritization will also be key element of a decarbonization strategy as it cannot change everything in one day. And another key element is to develop an implementation plan with a with a clear timeline, which mirrors your also your prioritization. And based on that, you can then go ahead and set your targets. So quite a lot of detailed information here, but basically this is about the interpretation. And now we will move forward and talk a bit about setting the targets, and I have some, some slides about that here. So setting clear climate targets encourages ongoing monitoring, learning, and action. The process often reveals opportunities to save energy, materials, and costs across operations. And, by the way, in order to get there, you might need to conduct an energy audit in your in your facility, or in your facilities. And an energy audit will help you to really understand all your, consumption driving machines and installations. And then many, business partners, they expect also brands and suppliers to align with their own sustainability ambitions and science based targets. So building, robust data and target setting practices helps companies stay ahead of tightening regulations and reporting needs. And then demonstrating climate leadership can enhance reputation and open new business opportunities. So it's in essential really to achieve industry wide and international decarbonization goals. And this slide, introduce introduces the science based targets initiatives, often referred also to, as SBTI. It is a globally recognized framework that helps companies set credible and effective climate targets. One of its key principles is alignment with the one point five degree pathway, meaning targets are designed to limit global warming in line with the Paris Agreement. The initiative also provides sector specific guidance and methodologies, ensuring that targets are relevant and realistic for different industries. A strong focus is placed on measurable science based emission reductions rather than vague or unverified, commitments. And today, the SBTI is used by thousands of companies and suppliers worldwide, making it a widely adopted standard. Overall, it promotes transparency, accountability, and comparability across organizations. And this is, of course, essential for tracking global climate, progress. And let us review now the steps in detail how to set a science based target. So we define a base year and a target year. And the base year is a representative of typical greenhouse gas profile. So you need to select a base year that is a good representation of your, of your emissions. So if you have had fluctuating much lower emissions or much higher emissions, those may not be the best, base years. And then for scope one and two, you need to have the same baseline year, and, you need to have a near term, target year as well. So this should be five to ten years after the baseline year, and it must cover at least ninety five percent of scope one and two emissions. And then you have the next, step, defining the target type, and you can select from an absolute target or reduction of absolute, which means a reduction of absolute emissions over time, or an intensity target, which means the, reduction in the ratio of emissions relative to a business metric over time. But just to be clear, if you select an intensity target, it still needs to be aligned with the absolute target that you would have. So you cannot make sure that you can increase, let's say, your emission because your sales are increasing significantly or your operations are increasing significantly, and then use that for an intensity target and basically then allow for much higher emissions. You still need to make sure that your absolute target trajectory is complied to. Then to set interim targets to simplify the action step of planning. So what we often see is that there is a target set, let's say, five years into the future, but then the annual targets are not clearly defined. And this is really important because perhaps you have a big chunk of projects going on in years one and two, which should lead to a significant reduction. But then in the next three years, you don't have that many bigger projects to reduce your, emissions. And then, obviously, you need to make sure that your annual targets are also defined and aligned with the programs that you are that you are setting for yourself. So please, make sure that you always do that. And, obviously, also, as I said, it's a continuously monitoring is really important. So, even with the annual targets, you need to compare to try to compare month by month if possible. If you are in a facility, that's probably, more easy than if you are a brand or a retailer, but still to have an an a monitoring that is as continuous as possible. And so the inter interim targets, they should be aligned with the science based, targets initiative, of course. And a common ambition level for scope one and two are the forty two percent absolute reduction. That is actually a requirement also from the SBTI. And then you can develop an action plan and report on your targets. And on this slide here, I have an example of a visualization, and this is a very simplified decarbonization plan. So the orange line, it shows the trajectory you would need to reach if you would have a linear, reduction. This is, of course, not very realistic, but as, as a help, you can, draw this, line, a linear reduction. And in this case, we are talking about twenty twenty six to twenty twenty fourteen. And the yellow line, it shows the actual results dependent on the different measures you implement. For example, renewable energy and energy efficiency, using low carbon materials, supplier engagements, and also circular, economy initiatives. And as you can see in this case, the actual results do not match the needed result. So these are, of course, projected actual results based on the measures that you are implementing, but you can see, yeah, that you will not reach your target with these activities and these measures. So you need to identify additional measures in order to reach your target. But this is really good help to visualize, your plan and, also to make sure that you can really reach your target, bottom line. For factories and brands that are engaged with Cascale, there is also an option to join the MCAP, the manufacturer climate action program. And it's actually open for all manufacturers in the consumer goods industry. What it is? It's an eighteen month decarbonization support program for manufacturers in the consumer goods industry. It helps companies set science alliance targets to reduce scope one and two greenhouse gas emissions. The purpose and goals are that it accelerates climate action at the manufacturing level and close critical emission gaps in supply chains. So it supports broader industry ambition also to reduce greenhouse gas emissions by forty five percent by twenty thirty. It also contributes to long term net zero pathways by enabling structured emissions reduction planning. And, the core program elements, they are setting science aligned targets, climate risk evaluation to identify and evaluate physical climate risks at key facilities, decarbonization plan development to create actionable road maps for emissions reduction, and annual disclosure and transparency, and that's the MCAP disclosure dashboard. And finally, the support provided are third party target validation by accredited firms, and leadership and sustainability is one of them. And then also expert guidance on greenhouse gas and inventories, climate risk, financing strategies, and reporting best practices. And also peer to peer learning, training sessions, and disclosure guidelines are included in the package, developed by Cascale's MCAP program. And now we have come to the next phases, namely reduce and monitor. So we encourage you to avoid CO2 intensive activities, of course, wherever possible, reducing greenhouse gas emissions by optimizing operations and implementing low or zero emission alternatives, to neutralize, to remove the remaining emissions that cannot be eliminated through high quality permanent carbon removal. But what I think is really, really important, you should first begin by implementing consumption reducing measures before you move to renewable energy. There is a lot of talk about electrification and renewable energy, but you still have the same energy consumption if you haven't reduced your energy consumption footprint before you move over to renewable energy. And in most cases, there are measures you can take to reduce your actual energy consumption before you move on to the new new renewable energy or other carbon offsetting, etcetera. So please have that in mind. And that is also, for example, where an energy audit, you can do it corporate wide for for a brand, or you can also do it in a facility. And this is where it helps to really do do that first step that I consider really important. And then when it come to the implementation, for those phases, the entire decarbonization phases that you have, the standard PDCA cycle is a good framework to use, and I know that many of you will be already familiar with that. It is the plan, the do, the check, and the act. And so most management systems, ISO nine thousand and one, ISO fourteen thousand and one, ISO forty five thousand and one, fifty thousand and one, are all aligned, with this structure. The plan, do, check, act. Yes. And here, I have some specific measures that you can, use. Let me just, check the the time here. Okay. We are good in time. And so here's some specific measures that you can take. Of course, energy efficiency in your own operations, as I just mentioned. Then some low hanging fruits, LED lighting, smart HVAC controls, and building upgrades, reduced electricity consumption and operational emissions. Renewable energy for own operations, switching to certified renewable energy also for your offices or owned production sites or warehouses, also lower scope two emissions immediately. Fleet optimization and electrification, optimizing delivery routes and electric electrifying company vehicles, low carbon materials shift, using recycled polyester, organic cotton, or other low impact fibers also reduce the carbon footprint of products. Material efficiency and waste reduction, digital sampling, smaller preproduction runs and fabric reduce minimize also material waste. We have circular business models, product take back, repair and rental programs extend product life and reduce demand for new materials. And there is quite a hype, right now around circularity in general. Many brands, but also facilities are adopting circularity principles and are doing certifications for circularity as well. Then we have the carbon awareness for designers, buyers, and supply chain partners. So, obviously, if you can start already with a design phase, you are starting at the very beginning of a product life cycle. And, the designers we know usually have quite a significant impact, on the carbon efficiency of programs of, the products. And then we also have low carbon logistic transformation, shifting freight from air to rail, or sea, and optimizing delivery routes, lowers transport emissions. The supplier energy transition program, which means supporting supplies to install renewable energy systems and improve energy efficiency, reduces emissions also across the supply chain, of course. And, I will now talk briefly about some case study examples. So this case study is about a factory in Indonesia, and it entails some ideas how this factory increased its energy efficiency. First of all, an effective choice of sewing machine technology is highly important, so they could actually reduce fifty percent of the kilowatt usage. It can help to switch from induction to servomotors without needing to change production components. And the factory even fitted the servomotors as retrofit packages bit by bit. And then the factory also installed LED lighting and added a needlepoint lamps to the sewing machines to be able to reduce overall light needed at the production facility. And I will say that these measures that this factory had implemented, they are really low hanging fruits. Perhaps some of you have already implemented those measures. And the factory in Vietnam made use of alternative energy sources. So the factory installed a three point seven, MWp, rooftop solar, and it purchased, IRECs, so recyclable, renewable energy certificates for residual energy, which could not be produced by the rooftop solar and with a really outstanding result, they had ninety nine percent renewable energy share in twenty twenty four. Another factory in Taiwan, they introduced an employee awareness campaign. This campaign aimed to highlight own benefits of energy saving, also at home and in communities. To, they had promotional material and poster campaigns showing easy energy saving measures that, and these were installed as well. They had stickers on electric electrical equipment, for example, pull plug, if not in usage, were added to the site. And the staff got trained with hands on and pragmatic ideas. And then, we have some brand examples here as well. So let us start with Eileen Fisher, a brand who introduced the circularity strategy. Eileen Fisher has a target to establish a circular product life cycle and tracks relevant, KPIs. The brand introduced a customer repair program as a measure to increase lifespan of a product as well as a take back program, which is used to resell, donate, repurpose, or recycle via fiber to fiber and down cycling. And, therefore, a circularity strategy in the end also reduces the need for primary materials, which then directly can reduce impact on climate as well. So, perhaps not the first, project you would think about, but actually a project that significantly can reduce your carbon footprint. And the brand bestseller, for instance, is they focus focuses on collaboration with stakeholders across the value chain. They have the target to prioritize scope three emissions in the supply chain but this has major impact when it comes to climate. For the brands, usually, the scope three emissions are the the the biggest emissions they have compared to their own scope one and two. And for that, they aim to source preferred materials. And furthermore, there is exist the base requirements for tier one and tier two suppliers, for example, to phase out coal by twenty twenty eight. But they do not only introduce those targets, but have a dedicated capacity building program with suppliers where they review emission data and deliver training and tailored guidance based on these reviews as well. And another brand Adidas they have set ESG related performance targets for executive board compensation, which can, of course, also empower and emphasize a decarbonization decarbonization strategy for a business. So Adidas links part of its compensation to long term strategy performance. For instance, compensation is linked to reduction of CO2 intensity per product with regards to their SBT commitment. And another, a completely different brand, Nudie Jeans to decrease emissions linked to transportation. This is a final example and its strategy to decrease emissions, linked to transportation. New to genes, they have a target to minimize transport emissions. They began by mapping and understanding all the transportation ways and logistic routes, which we all know, are quite complex. They actively work with carriers that have active environmental initiatives and also try to collaborate and form close, relationships with some carriers. And one major improvement transportation emissions was possible due to local distribution hubs and reduction of emissions from last from the last mile with an open communication in the online shop, how transport impacts climate. So these examples, they illustrate the variety of possible actions one can take from easy low hanging fruits to more complex and long term strategies. And the most important thing is to start. We are convinced all businesses can make a difference, and we are here also to support you with this. I also have one slide about our services in this area. So we can support with strategy services, also with materiality assessments and CSRD work, but, of course, with corporate corporate carbon footprinting for facilities as well, SBTI support. We also conduct, for example, greenhouse gas verifications, and we have training programs in place that we can roll out to to you, but also to your suppliers. And on the other hand, we also have, auditors and verifiers within Higg FEM, SLCP, and many other programs as well. But now I would like to move over to the question, session. So let's see if we have any questions. Leah, have you already got an overview here? We, had one question for the slides. So I just wanted to clarify, the slides will be sent to all registrants after the session along with the recording. So be on the lookout for that. And then there was also a thank you for introducing the MCAP program. So those are the questions we received so far, but sometimes folks just need a second to submit a new one, and we just got one. Oh, we got it. Thanks for a great presentation. So that is also very much appreciated. Awesome. But let's see if some folks are typing or asking questions. Unfortunately, we can't see if they're typing, so I just like to give it a little bit of time and see if we get anything else. Yes. And just while people are thinking, just want to share I'm sharing this in the chat. There's our upcoming training schedule, just the general Worldly schedule. So there is an upcoming FEM Q and A next week if folks need that before the end of the month. So check that out in the chat. The first question that I see is what is the total cost for MCAP? I actually do not know. But we saw that Joyce is on the call. Yeah. I wonder if I could get Perhaps. Find her and see if I can Let her speak. Yes. Oh, she might have hopped off. See. I don't see her anymore. Well, we can find out and get back to you and include that in the follow-up email. Let me see if I can also find the link by chance. While I'm looking for that, if I don't find that by the end of the presentation, I'll send that in the follow-up. We got another thank you. So thank you so much for that feedback. Super helpful. There's a question. Do you have sources or contacts where to buy IRECs in China? That might be a bit open ended. Let me see if I can get just a general link to that. And I don't know, Karin, if you have No. I don't I don't have that. Yeah. But we might we can follow-up on that question after the after the webinar. Okay. Awesome. And let's see. The next question is thanks for this overview. Can you share if Worldly team has had an opportunity to analyze the approximate eight thousand vFEM to look for patterns about improvement plans that have worked for energy or greenhouse gas by geography or profile. That is actually not something that I have at this moment. However, I do know that analysis is being done on the vFEMs, I believe, from last year. So more to come on that. I think that's a really great suggestion, and I'll pass that on to the sustainability team as well as Cascale because I think they're partnering on some of that analysis. So I'll share that with them because I think that would be really timely and helpful for this conversation to see, like, what else are people in the space doing? So I'll find out that. But I don't know, Karin, if you have some common different plans that have worked well in your experience other than the, use cases that we kind of talked through. Yes. I mean, it really depends a lot on on the type of manufacturing that you have. So as I mentioned, there are some low hanging fruits with LED lighting, etcetera. But then, of course, what it what is also very common, for example, if you have, dry processes, you have spinning, weaving, or you have dyeing, is really to analyze the the machines that you have and try to upgrade them step by step. That's usually also connected with sometimes a significant investment, but, very often the more modern machines can help you also to reduce, reduce energy. Then, of course, the training programs that we mentioned where employers are asked, for example, to to, turn off the lights when they when they leave, etcetera. But I I would like to come back to what I mentioned about the energy audit. I think it is if you if we talk about factories now, it is it is a really important step to conduct an energy audit. You can find online, if you Google, you can find energy audit checklists that your sustainability department, perhaps together with someone from the production, you can walk through the factory and seek to analyze step by step. That is already a really good first step. And then, of course, if you want to move further, you would need an energy auditor, an expert, who come in, and can conduct a proper detailed energy audit analyzing basically installation by installation and machine by machine. Yeah. So much. That's great clarification. And I'll I'll get back to you on the specific vFEM analysis as well. But thank you. The next question is my question is, suppose I have adopted all the actions, but my emissions are only reduced ten percent at that stage. What should I do? Yes. That's a challenge. I guess you are speaking from a factory perspective. So, my question then to you is, and cannot give you specific advice here, but the general advice would really be to analyze what you have already done and then try to conduct this, energy audit in order to understand if there are other options that you can do. And put it may also be that you cannot reduce your energy consumption further. And in that case, the renewable energy path would be one path that would probably work for you as well in order to reduce your carbon emissions at least. Yeah. But this is we would need to to basically look into your factory in order to give a more specific answer here. Excellent. Thank you. And the next question is and I I might be able to answer this. So what about wastewater greenhouse gas emissions? Does the FEM account for this in the portal? So in short, yes. Based on how you answer the FEM in the wastewater section and your site info section, it will configure the rest of the assessment for you. And the wastewater section has some specific questions about how is it treated, how much is recycled, all of these different questions. And so it does also use that data as part of the greenhouse gas emissions calculation. So when you look at your results section, it should break down each different source for that. And then I believe I want to say in facility data manager, if you go to the water section and there's a waste withdrawal section that will also show you the actual water, and then the greenhouse gas chart shows you all of the greenhouse gas, including air emissions and all of that. So, yes, that is accounted, and I can get you the emission factors as well in the follow-up email that are used in the FEM. Yeah. For wastewater, I think that contribution is is extremely small. Yeah. But refrigerants, they are also, accounted for in the greenhouse gas emissions. Yeah. But let's come back to that then, after this webinar. Then we have a question about, I want to understand how to calculate greenhouse gas emissions, how to reduce them, etcetera. Yes. And here I really recommend, to check the greenhouse gas protocol and to join, some more, trainings, on how to do the this calculation. So I guess you are also talking from a factory perspective, then probably if you haven't done this before, you would start with your scope one and your scope two emissions. So scope one are the for example, the oil you are using on-site or gas you are using on-site, Scope two would be, like, for example, the electricity or district heat or steam that you are buying from outside, but where you also need to calculate your emissions. But I really suggest that you and by the way, there is also, a program, a training program available via GIZ, via via their training, platform. Perhaps we can give some information about that, afterwards. Yeah. Yes. The cost for the for the MCAP programs, we will come back to that, later. Yeah. And the next one I see is, can you share if or how Carbon Benchmarks will be integrated within Worldly Data? So companies can see where they are and, hence, how much they'll need to do based on their profile. So that's an excellent question. Where you're going to want to look is in Insights Hub and and or Axion. So Insights Hub is available to anybody that's collecting Higg FEM or FSLM data. So if you go into Insights Hub, that will show you different carbon. There's a drop down in the upper right. I can visually see it in my brain. Or you can select decarbonization, and that'll give you a bunch of your carbon KPIs. Some of those are going to be carbon intensity values. Thermal carbon intensity breaks it down into a a few different metrics. And so what you can do there is on the KPI card, if you click on that, that will show you your own performance over time and then also how you're performing against benchmark. And then if you want to filter that dataset so for example, if you are located in China and you don't necessarily want to compare your facility's performance to a facility in Egypt because you have very different needs and very different climates and things like that, you can use the filter in Insights Hub to filter it by region. So I'm happy to send more information about that. I believe we have a short video about how to check that, so I'll send that along as well. The insights hub is going to be a good place for that type of comparison. And let's see. So the next question, and maybe, Karin, you can help a little bit with this, is kind of a statement. So it's it's difficult to calculate scope three. Do you have any solutions? On the Worldly side, we have a tool that helps for scope through calculations for products, but it's a little bit different than an overall scope three audit. It's a very kind of specific type of scope three data. So we don't have, like, a full on scope three calculator right now as a to represent the full accounting. But I think Karin probably has some good feedback, and I can get there. I can say something about that. So you say it's difficult to calculate the scope three, and you are correct. It is difficult to calculate scope three. There is no simple solution, to get there. Because as you saw from the illustration, with all the upstream and downstream emissions that you might have, there are so many different categories. And especially the the category, products and services, the ones that you purchase, they are very, complex to calculate. So as I said, there is no simple solution. One needs to follow a very, very detailed methodology, understand all those different drivers, of your carbon emissions, for scope three, analyze all the different categories that are included in scope three, and and do the proper calculation. So, yeah, that's the simple answer. And I still do have the greenhouse gas protocol website linked in the resources, and I'll I'll share that off after as well. And just for your knowledge, if if you haven't seen it yet, we have e-learning for each of the scopes available to all Worldly users. So if you just want to do a deep dive and do understanding scope three, what does that all entail, that might also be a good place to go. And I can share that in the follow-up as well. Alright. And the next person is asking about some good initiative that can make our factory a green factory. Yes. I mean, if you are not yet working with the Higg FEM, why don't you start there? The Higg FEM is an excellent tool to find a path on how to improve your performance because, it's not a pass fail, exercise. It's really you start with your self assessment. You can then verify your results, and you have three different levels, level one, two, and three, where you can then move upwards. And you can see what the ladder looks like of moving, upwards. And then, of course, as I mentioned, the MCAP program focusing on on climate action, is a really great program as well. And I'm just sharing the HowtoHigg website in the chat as well. That has more information on all Higg index tools, but including the Higg FEM, and I believe also on the MCAP. I want to say it might not actually be there, but at least FDM is there. Alright. The next question, will there be a follow-up session or some resources available focused on decarbonization strategies? Specifically for practical examples of how facilities can reduce their carbon footprint when transitioning away from or optimizing fossil fuel sources like coal and natural gas. So from the Worldly side, there's not a specific session on that particular example at this moment, but that sounds like a great topic for a follow-up. So we can definitely explore, you know, additional sessions along those lines. We will be sending the slide deck as a PDF as well as those helpful links, and different resources that were shared along the way as well. So definitely check that out in the follow-up, email. And then, Karin, if you have any specific, recommendations for maybe, like, trainings that you've done in the past that might help as well or other resources. I think that if you want to, reduce your use or move away from, fossil fuels like coal and natural gas, usually you use coal or natural gas in your boilers. And so you have to look at, the type of boiler you have. In some cases, you can change the fuel from between different fuels. In some cases, it's not possible. And in that case, you would need to install a new new boiler. So that is really a very technical and machine related question where you probably would need to speak to them, to the providers of boilers in order to understand how to move there. Yeah. Great. Thank you. And then the next question I see is how do we measure carbon and set targets according to the SBTI? So I'll speak a little bit to the Worldly tools piece, but then hand it over to Karin. So if you do currently use the Higg FEM or facility data manager, you can use those tools to calculate and get KPIs around carbon and carbon intensity. So I'll be sending in the follow-up kind of screenshots of where some of that information lives, where you can find it in both the FEM and Insights Hub. And then as far as setting targets according to the SBTI, today's session was a really great overview. So definitely review the slides that are shared. And then also I'll also share the SBTI website because I think that's a good resource as well. But, Karin, if you have other suggestions as well. No. I don't think I have anything else there to to say. I mean, it's it's really quite a complex topic. And, you know, offline, we would be happy to discuss that further with you, of course. Awesome. Yeah. I just shared the link to the science based targets website, and there are a few different standards and guidance depending on the size of your business. So that may be also a place to check out for the standards and guidance. Then we have someone else who mentioned that they just got new dyeing machines. So, okay, congratulations. And it would be interesting to hear how much energy you can save with that. Especially in wastewater savings would probably be great. Any offline training sessions? For Worldly, not at this time. But, Karin, I think your organization offers some in person. So let me actually share your website so folks can We would be would be pleased to and there are, my contact details are also included in this deck on on the next slide. So, we would, of course, be pleased to support you. We can also support you with energy audit trainings or energy audits, or also specific trainings about exactly how to calculate scope one, two, and and also scope three, emissions. These would be a bit longer trainings, especially the scope three ones. Yeah. A lot more detailed than this one. Yeah. Let's see. The next question is I IRECs and carbon offsets, are these acceptable at forum? I'm assuming, like, to submit under the SBTI. I mean, those are two different concepts. The IRECs, they are about the renewable energy certificates. So they are showing that you have renewable energy. They are accepted, for the SBTI, and carbon offsetting is, is usually not accepted, as a means to reduce your carbon emissions. Right. And I think we answered that one about wastewater. So the next question and depending on how long the answer is, it might be our last question, but just some heads. So kind of a continuation on the scope three question. Capturing scope three audits both upstream and downstream needs a lot of resources. How would small factories afford to set up targets including scope three? Can we just focus on scope one and two and fix targets for SBTI? Yes. In my view, if you haven't set targets previously, I would really start with scope one and two. And there you can define your, SBTI targets then for for scope one and two as well. So start there, yes, because that is where you also have the biggest influence in immediate, in in short term short term and midterm. So, yes, please start there. Yeah. And I'll I'll also add, even large companies struggle with scope three, so you're not alone as a small company and being confused in how to calculate that. Yes. Right. The next question, does Worldly plan to combine decarbonization strategy pathways ideas from Cascale, a Aii, and others, and then there's a link, and regional insights to share and persuade policy maker makers with targeted requests. That's a really interesting question. I don't believe we currently have a lobbying arm, like, with Worldly at the moment, so that might be a better question for Cascale. But I do think that our goal is really to combine all of these datasets to give the ecosystem the best way to move forward with some of these different projects and to reduce emissions overall. So I can definitely pass that on to my team internally as a kind of request slash idea, and maybe we can get something going with Cascale. Alright. And I think our final question will be how to set a normalized target based on production volume or turnover? Yes. Are we talking about then also from the factory perspective? I usually would say that it is better to set it based on production volume because because the production is more directly linked to, to the emissions than what turnover is. But you can use both. You just need to be consistent over time. And but, of course, if you have very different products, that you are producing, then you also need to consider that. Because, obviously, if you have, produced T shirts or if if you produce jackets, it's a very different emission footprint per product. So you need to take that into account. But usually, I think production volume is the best normalization factor. Excellent. Alright. So, unfortunately, there's still some more questions, but we are out of time, and I want to respect everybody's time. So thank you so much to Karen today for your time and your expertise. It was really, really helpful. I learned a lot. I hope folks on the call learned a lot. And for everyone on the call, I'll be following up with the reporting and some follow-up resources as well as the PDF version of the presentation. And with that, any closing thoughts, that you'd like to share, Karin? No. Thank you so much. We have one final slide here with some resources. There are lots of Worldly resources here and also my, my contact details. So thanks so much for joining, and thanks also for these great questions. What a pleasure. And I'll get the Q and A report and try to answer some of those, as well so that I can include it in the follow-up email. So if we missed you, hopefully, you'll be able to get your question answered there. So with that, thank you all so much, and I hope you have a wonderful rest of your day. And thank you so much, Karin. Thank you. Bye bye. Bye.