世界經(jīng)濟(jì)論壇-實(shí)現(xiàn)歐洲綠色協(xié)議：私營(yíng)部門(mén)視角（英）-2024.1

IncollaborationwithAccentureDelivering

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4Coverimage:cturtletrax,@GettyImagesContentsForeword34ExecutivesummaryIntroduction5Theroleoftheprivatesector5TheCEOActionGroupfortheEuropeanGreenDeal1.Fromobjectivestomeasurabletargets1.1Climateandenergy5781.2Scope3emissions111314151616172021232425272828292929293030313338392.Emergingareasforadditionalefforts2.1Collaboratingtowardsacirculareconomy2.2Biodiversitytargets2.3Sustainablewater-resourcemanagement2.4Transport

decarbonization3.Spurringinnovationforthegreentransition4.Enablingfactorsforacceleratedaction4.1Affordableenergy4.2Theregulatoryandreportingenvironment4.3Financing4.4Skills5.Recommendations5.1Improveforwardguidanceonregulationsandstandards5.2Secureeasieraccesstopublic?nancing5.3Streamlinepermittingforrenewableenergyprojects5.4Re?netheEUTaxonomy5.5Promoteeducationfocusedonmarket-readyskills5.6Optimizeenergytaxation5.7Rampupthedevelopmentofgridinfrastructure5.8Createareliablevoluntarycarbon-tradingmechanism6.ThefutureroleoftheCEOActionGroupAppendicesContributorsEndnotesDisclaimerThisdocumentispublishedbytheWorldEconomicForumasacontributiontoaproject,insightareaorinteraction.The?ndings,interpretationsandconclusionsexpressedhereinarearesultofacollaborativeprocessfacilitatedandendorsedbytheWorldEconomicForumbutwhoseresultsdonotnecessarilyrepresenttheviewsoftheWorldEconomicForum,northeentiretyofitsMembers,Partnersorotherstakeholders.?

2024WorldEconomicForum.Allrightsreserved.Nopartofthispublicationmaybereproducedortransmittedinanyformorbyanymeans,includingphotocopyingandrecording,orbyanyinformationstorageandretrievalsystem.DeliveringontheEuropeanGreenDeal:APrivate-SectorPerspective2January2024DeliveringontheEuropeanGreenDeal:APrivate-SectorPerspectiveForewordEsterBaigetPresidentandChiefExecutiveOf?cerNovozymesMirekDu?ekManagingDirectorWorldEconomicForumFeikeSijbesmaChairmanoftheSupervisoryBoardRoyalPhilipsJean-MarcOllagnierChiefExecutiveOf?cerEuropeAccentureIn2019,theEuropeanCommissionlaunchedthemostambitiouspackageofclimatelegislationeverseen.TheEuropeanGreenDeal–orEGD–straddlesavastrangeofbusinesssectorsandindustriesandissettohaveawide-rangingimpactonthestructureofoureconomiesandsocieties,withtheaimofmakingtheEuropeanUnionclimateneutralby2050.SincetheEGD’s

inception,theEUhasmadegreatstridesonitsclimatepledges,allwhilenavigatingcomplexchallengesrangingfromaglobalpandemictoafull-scalewarofaggressionagainstaneighbouringcountry.leadershiproleinpropellingthegreenagendaforward.TheCEOActionGroupfortheEuropeanGreenDeal,establishedin2020,isaclearexampleofhowprivate-sectorambitioniscontinuingtopushtowardstheEUbecomingclimateneutralby2050.Thisreport,producedbytheWorldEconomicForumincollaborationwithAccentureaheadofthenewEuropeanCommission’sterm,takesstockofprivate-sectoreffortstoalignwith,orevengobeyond,theEGDobjectivesoverthepastfouryears,andconsiderswherefurtheractionisneeded.The?ndingsinthereportareusedtoformulaterecommendationsforEUandnationalgovernmentsbutalsotoindicatewheretheprivatesectorcansupportpolicy-makerstohelpmaintainmomentumforthegreentransitioninEurope.With

policy-makers,householdsandbusinessesgrapplingwithelevatedinterestratesandpricelevels,

the

political

foundation

upon

which

the

privatesector’s

climateactiondependsisweakening.Asthecontinentcontinuestostruggletocontaintherisingsocietalandpoliticalbacklashtoclimatelegislation,andwithEuropeanelectionssetforJune2024,theEUfacestheriskoflosingmomentumontheclimatetransition,fallingbehindotherleadingregionsandslippingonitsclimateambitions.ClimateneutralityinEuropecannotbeachievedwithoutsustainedpublic-privatecollaborationandjointaction.TheCEOActionGroupiscommittedtocontinuingtodrivepositivechangeinEuropeandacrossitssupplychainsinthecomingyears.Asitdoesso,italsostrivestoactasaninspirationforothercompaniesatthebeginningoftheirjourneytowardsclimateneutrality.Underthesecircumstances,westronglybelievethattheprivatesectorshouldtakeaclearanddecisiveDeliveringontheEuropeanGreenDeal:APrivate-SectorPerspective3ExecutivesummaryCloserpublic-privatecooperationisneededtodeliverontheEuropeanclimatetransition.TheEU’s

boldambitions,asoutlinedintheEuropean

Green

Deal(EGD),require

broadstakeholderparticipation.Inparticular,

todriveeffective

jointaction,itisnecessarytoactivelyincludetheprivatesectorindialogueandstrategyformulationtoensure

thesegoalsare

met.alsore?ected

bybroader

marketdataontheEUprivatesector.To

overcome

thesechallenges,a

collaborativeeffort

from

policy-makers,theprivatesectorand,sometimes,third-party

stakeholdersisessential.Forpolicy-makers,thepriorityshouldbecreatinga

clearandconsistentregulatory

landscape,providing

forward

guidanceontargetsandanticipatedchanges,andoffering

claritywhenitcomestofundingandpermittingprocedures.Theprivatesector,

ontheotherhand,shouldbeallowedtoinnovateanddirect

investmentstosustainabletechnologiesandpractices.Usingexamplesandexperiencesfrom

membersoftheWorld

EconomicForum’s

CEOActionGroupfortheEuropean

Green

Deal,thisreport

examinestheactionsundertakenbymembercompaniesinvariousareas

oftheEGD,anchoringGroup-speci?cinsightsina

broader

marketcontext.Theanalysisforthisreport

isbasedona

setofmorethan50publiclydisclosedmetrics,a

surveyofcompanies’alignmentwiththeEGD,in-depthinterviewsconductedwithmembersoftheCEOActionGroup

andmultipleonlineandof?inefeedbackloopswiththecommunity.Thisreport

looksattheenablingfactorsthatunderpincontinuedprogress

towards

climateneutrality.The?ndingshavebeenusedtoformulaterecommendations

aimedatbothnationalandEuropean

policy-makers,aswellastheprivatesector.

Theserecommendationscover:improving

thepredictability

ofsustainabilityreporting;

improving

accessto?nancing(includingoptimizationoftheEUtaxonomy);streamliningpermittingprocesses

forrenewable

energyprojects;

cross-functional

sustainabilityskillsdevelopment;optimizationofenergytaxation;gridinfrastructure

development;andsettingupareliable

voluntarycarbon-tradingmechanism.Theanalysisreveals

thatmembersoftheCEOActionGroup

activelytakeactionwhenitcomestomeetingthegoalsoftheEGD.Inthe?eldsofclimateandenergy,97%and82%ofthecompanieshaveset,respectively,

measurabletargetsinthesetwocategories,

andtheGroup1outperformstheEuropean

privatesectorinthe?eldofR&Dexpenditure.

Onotherareas

oftheEGD,includingprotecting

biodiversityandincreasing

sustainable?nancing,companiesare

keentodomore

butfacechallengeswhentakingmeasurableaction.Theoverarchingissuesidenti?edbybusinessesare

rooted

inthecomplexnature

oftheEU’s

governingstructure,includingthedynamicbetweenEU-setgoalsandnational-levelimplementation,andinparticulartheregulatory

environment.

Theproposed

areas

forinterventionspeci?ctotheCEOActionGroup

areTheCEOActionGroup

isa

cross-sectoralcommunity,spanning?nancialservices?rms,institutionalinvestorsandinfrastructure,

chemicalandfoodandagriculturalcompanies.Therecommendations

inthisreport

are

thereforeaimedatsupportingthebroader

private-sectorenvironment

initsefforts

tomakeprogress

onclimateneutrality.DeliveringontheEuropeanGreenDeal:APrivate-SectorPerspective4IntroductionAsigni?canteconomictransformationisneededtoachieveclimateneutralityby2050.Therole

oftheprivatesectorTheEuropeanGreenDeal(EGD),whileoftenprimarilyperceivedthroughasustainabilitylens,isfundamentallyaneconomicstrategy,designedtorevitalizeandtransformtheEuropeaneconomybydecouplingeconomicgrowthfromresourcedepletion.However,

theEuropeanCommissionknowsthatitisnotjustaboutreducingEurope’scarbonfootprintorconservingresources;itisaboutfundamentallyreshapingtheeconomytoensurelong-termsustainabilitybyharnessinglow-emissiontechnologiesandbringingsustainableproductsandservicestocustomers.uponasigni?canteconomictransformation,onethatisexpectedtocreatenewindustriesandjobopportunitiesandpromoteresilienceagainstresourcescarcity.Companiesthatleadthewaycandriveinnovation,attractinvestmentsandcreatehigh-qualityjobs,settingamodelforotherstofollow.WithintheEGD,varioussectorsandaspectsoftheeconomy–forexample,agriculture,energy,?nance,innovation,researchandtransport–areintertwined.Thiscomprehensiveapproachrequiresthatcompaniesinallindustriesadapttonewbusinessmodels,adoptaforward-thinkingandagileapproachandaligntheiroperationswiththegoalsoftheEGD.Thelevelofprivate-sectorambitionishigh,asdemonstratedbyinitiativessuchastheCEOActionGroupfortheEuropeanGreenDeal.Theimportanceoftheprivatesector’s

role

inthistransitioncannotbeoverstated.Itiscurrentlyresponsibleformore

than80%ofgreenhousegas(GHG)emissionsintheEuropeanUnion(EU)anditstransformationtonetzero

isthereforeessentialtoreachingtheCommission’s

climateambitions.2Companiesplayavitalrole

inachievingHowever,

theprivatesectorfacesmultiplechallengesinadaptingtothisnewvisionoftheEuropeaneconomy.Thesechallengesincluderegulatoryhurdles,marketandeconomicuncertainties,amismatchbetweendemandandsupply,legalcomplexitiesandincreasedasustainablefuture,notonlythroughbusinessdecisionsthataffecttheirownoperationsbutalsobyin?uencingstakeholdersalongthewholevaluechain–suppliers,customersandemployees–and,“bydevelopingenvironmentallysoundsolutionsandofferingmore

dataaboutconsumers’dailychoices,[…]promotingsustainablepracticeswithinadministrativeandcompliancecosts.

Such4obstaclescanhinderthefullrealizationoftheprivatesector’s

potentialindeliveringthegoalsoftheEGD.thecommunitiesinwhichtheyoperate”.toagreen,digitalandcirculareconomydepends3TheshiftTheCEOActionGroup

fortheEuropean

Green

DealInresponsetotheneedforenhancedpublic–privatecooperationtoensureaclimate-neutralandcompetitivefuturefortheEuropeaneconomy,theWorldEconomicForumatitsAnnualMeetinginDavosin2020broughttogetherleadersfromindustryandbusinesswiththenExecutiveVice-PresidentoftheEuropeanCommissionFransTimmermanstoexplorehowtheprivatesectorcouldsupporttheEGD.Asaresult,theForumcreatedacommunityintheformoftheCEOActionGroupfortheEuropeanGreenDeal,whichservesasahigh-levelplatformforbusinessestostepuptheirworkonclimate-positiveactionanddemonstratetheircommitmenttotheEGDagenda.AsofDecember2023theGroupcomprises46membersfromvariousindustries,including?nance,energy,retail,agricultureandinvestmentmanagement.ThesecompanieshaveanestimatedcombinedcontributiontotheEU’s

GDPofapproximately0.8%andemployanestimated1.2millionpeopleacrossthecontinent,whichcorrespondsto0.6%oftheEuropeanjobmarket.Theyareresponsiblefor3.1%oftotalGHG5emissionsintheEU.

Thedataavailablefor216membersoftheCEOActionGroupshowsthatin2022thesecompaniesspentmorethan$8billiononresearchanddevelopment(R&D),equivalentto2.5%oftotalEUexpenditureinthisarea.7DeliveringontheEuropeanGreenDeal:APrivate-SectorPerspective5ThesenumbersdemonstratethattheCEOActionGroupfortheEuropeanGreenDealmakesanimportantcontributioninhelpingtoachievetheobjectivesoftheEGD,settinganexampleforothercompaniestofollow.Byworkingtogether,

thesecompaniescanhelptocreateaclimate-neutralandcompetitivefutureforEurope.FIGURE1

EssentialdataabouttheCEOActionGroupmembersinthecontextoftheEUeconomy€125billionannualEBITDAin202211.2millionemployeesin202220.8%EUGDPContributionin20220.6%shareofjobmarketin202290milliontonsCO

eqannual

scope1

&

2emissions

in

20223€8billionannualR&Dspendin2022423.1%shareofemissionsin20222.5%contributiontoR&Dspendin2021/20225Notes:1

Europeanearningsbeforeinterest,taxes,depreciationandamortization(EBITDA)estimateavailableforasubsetof27companies;2

Europeanemploymentestimateavailableforasubsetof35companies;3

Europeanemissionsestimateavailableforasubsetof27companies;4

EuropeanR&Destimateavailableforasubsetof21companies;5

ShareofCEOActionGroupR&Dcomparedto2021aggregatedEurostat;dataforEUas2022dataisnotavailable.Source:CalculationsbasedonCapitalIQdataandannualreportsofselectedCEOActionGroupmembercompaniesDeliveringontheEuropeanGreenDeal:APrivate-SectorPerspective6From

objectivestomeasurabletargets1TheintroductionoftheEGDhasrequiredbusinessestoreassesstheirbusinessstrategiestoalignwithitsobjectives.Amongthesurveyedcompanies,eithersigni?cantormoderateadjustmentstotheircommercial

strategies

and,asa

result,

these8mostrequiredwherecommonde?nitionsarelacking,thisisre?ectedinlowerlevelsoftarget-settinginprivate-sectorstrategies.9businessesnowhavestrategicobjectivesthatare

inlinewiththeEGD.Inaddition,themajorityhaveaccompaniedtheirstrategicobjectiveswithmeasurabletargetsforreducing

GHGemissionsandincreasing

theuseofrenewable

energyintheiroperations.Oftheanalysedcompanies,97%and82%haveset,respectively,

climateandenergytargets.10AstheEGDpropels

thecontinenttowards

agreener

future,

theprivatesector’s

understandingofsustainabilitymustevolveinlinewiththatofthepublicsector,

andviceversa.Ascompaniescontinuetoreduce

theEU’s

carbonfootprintandtotransitiontorenewable-energy

sources,more

guidanceisrequired

inotheraspectsoftheEGDbeyondclimateandenergy.Forexample,theintroduction

ofthenature

restoration

law11isa

clearstepintherightdirection

andwillhelpsupportmore

companiesinaligningwithallaspectsoftheEGD.TheclearandmeasurabletargetsthatwereputinplacefollowingtheParisAgreementhaveallowedcompaniestofocustheireffortsontheseareas.Wheresuchquanti?cationismorecomplex,orImagecredit:fokkebok,@GettyImagesDeliveringontheEuropeanGreenDeal:APrivate-SectorPerspective71.1

ClimateandenergyThelatestinsightsshowthatalthoughglobalprogressinreducingGHGemissionsisinsuf?cient,neverthelessitremainsakeypriorityforbothEUpolicy-makersandtheprivatesector.

Globally,GHGemissionshavebeenrisingby1.5%everyyearsince2011,12

andtheheavyindustrialandtransportsectorsthataccountformorethan40%ofglobalGHGemissionsarenotalignedwiththetrajectoryofreachingnetzeroby2050.13

Incomparison,theEUhasdecreaseditsemissionsby1.4%peryearsince2011,14

andthehighpriorityassignedtoreducingGHGemissionsisre?ectedintheclimateandenergyareasoftheEuropeanGreenDealwheretheobjectives,strategiesandtargetsoftheCEOActionGrouparealreadyaligned.beensettingGHGemissions-reductiontargetsthatareapprovedbySBTi(theScienceBasedTargetsinitiative;Figure2).Thosecommitmentsaregrowingandhavesigni?cantlypickedupsincetheEGDwasannouncedin2019.TheEU(442companies)andtheUK(340companies)areleadingtheway,collectivelycovering54%ofcompanieswithapprovedtargets.15OftheCEOActionGroup’s

33publiclylistedcompanies,97%haveset2030interimtargetsand79%havecommittedtoreachingnetzeronolaterthan2050.16

ThenumbersarelowerforSBTi-approvedtargets,with74%ofthe33companieseithersettingorcommittingtosetsuchtargets.Smallandmediumenterprises(SMEs),whilecurrentlynotrepresentedintheCEOActionGroup,alsoplayanimportantroleinthegreentransitionandhavestartedsettingtargets;however,

moreneedstohappen.17EuropeancompaniesareleadingthewayinsettingScope1and2GHGemissions-reductiontargets.FollowingtheParisAgreement,adoptedbygovernmentsin2015,theprivatesectorhasFIGURE2

AnnualcumulativenumberofcompanieswithSBTi-approvedtargetsandcommitments,2015–20224,5004,0003,5003,0002,5002,0001,5001,0005004,2302,2531,106750515332216116020152016201720182019202020212022CompaniescommitingCompaniessettargetsSource:ScienceBasedTargets,

SBTiMonitoringReport2022:LookingBackat2022andMovingForwardto2023andBeyond,August2023:/resources/?les/SBTiMonitoringReport2022.pdfDeliveringontheEuropeanGreenDeal:APrivate-SectorPerspective8FIGURE3

CEOActionGroupassessmentframework–strategicobjectivesandtargetsforselectedEGDactionareasActionareaNumberofcompaniesStrategyTargetswith

data

available

for

at

leastone

assessmnet

criterion%ofcompaniesthatintegratedatleastoneobjectiveintheirstrategies%ofcompaniesthatsettargetsforatleastoneobjectiveClimateEnergy33333333333333100%100%97%97%82%Environmentandoceans70%TransportIndustry64%39%94%30%Researchandinnovation81%82%N/A48%FinanceandregionaldevelopmentAgriculture181100%88%Note:1

SubsetofcompaniesanalysedintheAgricultureareaislimitedtoAgriculture,Food&Beveragesindustryand,therefore,istoosmalltobeconsideredstatisticallysigni?cant.Source:WorldEconomicForumincollaborationwithAccenture,analysisofasetofmorethan50publiclydisclosedmetricsformingan“AssessmentFrameworkofCompanies’AlignmentwiththeEuropeanGreenDeal”Inrecentyears,theGroup’s

effortstoincreaseenergyef?ciencyandtheuseofrenewablesectorispairedwithsigni?cantaccelerationinthepaceofrenewableinstallationsthroughoutEurope,whichissupportedbytheRePowerEUplan.Atotalof16gigawatts(GW)ofwindpowerand41GWofsolarpowerwereinstalledin2022,representinganincreaseof46%and47%respectivelycomparedto2021.18

ExecutivesfromtheGrouphighlightedtheimportanceofincreasinglow-carbonenergycapacityfurtherandpointtoalackofinfrastructureasoneoftheessentialchallengesinreachingtheobjectiveslinkedtoenergyintheEGD.19energyhavebeenpayingoff,asevidencedbytheGroup’s

reductioninScope1and2emissions,whichhavedecreasedby26%since2019.Thisislargelydrivenbylowerenergyconsumption,whichdecreasedby15%(Figure4)combinedwithahigheruptakeofrenewableenergy,whichonaverageincreasedby14percentagepointsinshareoftotalenergyconsumption(Figure5).ThehigheruptakeofrenewableenergybytheprivateFIGURE4

CEOActionGroupaggregatedenergyconsumption(TWh),2019–20227%6%5%4%3%2%1%01,2001,00080060040020005.9%5.2%5.0%4.0%928833807771394246482019202020212022RenewableenergyconsumptionNon-renewableenergyconsumptionShareofrenewableenergy(%)Note:TWh=terawatthour.Source:WorldEconomicForumincollaborationwithAccenture,analysisofasetofmorethan50publiclydisclosedmetricsformingan“AssessmentFrameworkofCompanies’AlignmentwiththeEuropeanGreenDeal”DeliveringontheEuropeanGreenDeal:APrivate-SectorPerspective9FIGURE5

CEOActionGroupaverageshareofrenewableenergyintotalenergyconsumption(TWh),2019–202240%35%30%25%20%15%10%5%35%31%27%21%0%201920202021Shareofrenewableenergy(%)2022Note:TWh=terawatthour.Source:WorldEconomicForumincollaborationwithAccenture,analysisofasetofmorethan50publiclydisclosedmetricsformingan“AssessmentFrameworkofCompanies’AlignmentwiththeEuropeanGreenDeal”Intheir2022manifesto,membersoftheCEOActionGrouphighlightedtheimportanceofacceleratingEurope’s

energytransition,includingbyspeedinguphydrogenuptakeacrossindustries.20

Astheenergysectormakesup77%oftheEU’s

GHGemissions,21thiswillbecriticalinfurtherreducingtheEU’s

carbonfootprint.Inthisvein,energycompaniesthataremembersoftheCEOActionGroupareactivelyinvestingincleanhydrogenandoffshorewindenergytohelpthecontinentreachitsrenewable-energytargetaswellasenergystoragecapacity,whichiscrucialtoavoidfossilfueldependency.22

Inaddition,aselectricitydemandisincreasing,tomeetthisdemand,networksmustgrowaccordingly.23Imagecredit:fotokostic,@GettyImagesDeliveringontheEuropeanGreenDeal:APrivate-SectorPerspective

101.2

Scope3

emissionsWhiletheCEOActionGroup’s

Scope1and2GHGemissionsandenergyconsumptionaregraduallydecreasing,reducingScope3emissionsremainsanessentialchallenge.Since2019theGroup’s

Scope3GHGemissionshaveremainedstable(Figures6and7).Scope3emissionsarefarmorecomplextoreducethanScope1and2andposearisktothefeasibilityofreachingtheEGD’s

net-zerotarget.24DespitesomecompaniesmakinggoodprogressinreducingScope3,bothSMEsandlargecompaniesarefacingobstaclesindecarbonizingtheirvaluechains.Ofthe33analysedcompanies,sevenhavemadesubstantialprogresssince2019inreducingtheirScope3emissions(between15%and40%reductioninabsoluteGHGemissions)despitetheaggregatedemissionsfortheGroupbeingstable.FIGURE6

CEOActionGroupaggregatedglobalGHGemissions(millionMtCO

eq),2019–202222,5002,0001,5001,0005002,0411,9071,9041,8481,6451,6111,5841,51033839632329302019202020212022GHGemissionsScope1&2GHGemissionsScope3Note:MtCO

eq=metrictonCO

equivalent.22Source:WorldEconomicForumincollaborationwithAccenture,analysisofasetofmorethan50publiclydisclosedmetricsformingan“AssessmentFrameworkofCompanies’AlignmentwiththeEuropeanGreenDeal”Whilemostofthesurveyedcompanieshaveimplementedmeasures–includingcomplianceaudits,trainingandcodesofconduct,aswellascollectingandsharingdatawithdigitalsolutionstoprogresstheharmonizationofsustainabilitystandardsamongsuppliers25

–theycouldtakeamoreactiveroleindrivingthenet-zerotransitionandbuildinginitiativesthatsupportsuppliersandconsumersinmakingthenecessarychanges.Thisisparticularlytrueintheagricultureindustry,asthesectorisoneofthelargestcontributorstotheEU’s

GHGemissions.26

Farmershavebeenslowtoadoptregenerativeagricultureduetothecostsofchangingexistingpractices,lackofknowledgeonregenerativepracticesandthemisalignmentofvalue-chaindrivers(Box1).27AlthoughthissectionhighlightshowtheambitionsoftheprivatesectorarealigningwiththeParisAgreementtargetsandhowEuropeancompaniesarepavingtheway,corporateclimateactionremainstooslow,

withmajorchallengespersistinginscalinggreentechnologiesandinfrastructureandmeasurabletarget-setting.DeliveringontheEuropeanGreenDeal:APrivate-SectorPerspective

11FIGURE7

CEOActionGroupaverageGHGemissionsandenergyconsumptionintensitybyrevenue,2019–202214012010080115112100100100100102939180676060402002019202020212022GHGemissionsScope1and2intensityperrevenueGHGemissionsScope3intensityperrevenueEnergyconsumptionintensityperrevenueNote:TheGHGemissionsandenergyconsumptionintensitybyrevenueover2019–2022ispresentedasvaluesindexedto2019,where2019=100.Source:AccentureandWorldEconomicForumanalysisbasedonpubliclyavailablecompanyreportsBOX1

AcceleratingprogresstowardsEGDinagricultureTheagricultureindustryisoneofthelargestcontributorstotheEU’s

GHGemissions.FarmingpracticescontributetotheScope3emissionsofcompaniesinthefoodsystemvaluechain.Yara,

afertilizercompany,identi?edimprovingef?ciencyintheuseofnitrogenasanessentialdecarbonizationlever,

assuchusageaccountsfor30–60%ofthetotalemissions-reductionpotentialofitsmineralnitrogenfertilizers.28

Achievingthiswouldrequirechangesinfarmingpractices,soYara

focusesonoptimizingfarmers’fertilizerusewithdigitalsolutions.However,

thisisnotcurrentlycountedasaclimatesolution,eventhoughtheEGDaimstoimprovesoilhealthandsetstargetsfortheEUtolimitnutrientlossesbyatleast50%.farmersapplyregenerativefarmingpractices.A?agshipinitiativeoftheCEOActionGroup,theEuropeanCarbon+FarmingCoalition,isafarmer-centricinitiativethataimstoaccelerateprogresstowardsEGDcarbon-neutralitygoals.Inparallel,individualcompaniesinitiateactiontoincreasetheadoptionofregenerativepracticesamongfarmers.29

Nestlé,whichhasatargettosource50%ofitskeyingredientsthroughregenerativemethodsby2030,launchedtheNestléAgricultureFrameworkin2022.30

Oneoftheguidingprinciplesofthenewframeworkisthatitmustbebene?cialtofarmersandtailoredtosmallholders’needs.Whereintroducingregenerativeagriculturepracticesgeneratesinitialrisksorcostsforsmallholderfarmers,Nestléstatedthatitmayprovidetechnical(trainingandinnovativetechnicalsolutions),collaborativeor?nancialassistancetosupportajusttransition.To

overcomethesechallenges,severalcompaniesintheagriculture,foodandbeveragesindustriesareinvolvedininitiativesthatfocusonhelpingDeliveringontheEuropeanGreen