Rebellius emphasized that the industry comprehends energy decarbonization well, as revealed by Siemens’ Infrastructure and Transmission Monitor survey. “We surveyed customers and stakeholders regarding our progress toward our net-zero targets, and the majority expressed concern, indicating we are not on track.”
Van Der Merwe reiterated that decarbonization is a complex subject but emphasized that establishing realistic targets is a valuable initial step.
“For an organization like ours, comprehending our demand profiles and identifying the sources of challenges are crucial,” he remarked. “Prioritizing the establishment of clear targets is essential, and this needs to be reinforced throughout the entire organization.”
Meanwhile, Shütze asserted that the industry’s efforts towards decarbonization were gaining momentum but emphasized that there was still significant progress to be made.
“When we examine the global economy and the major industry players, only about a third of them have science-based targets,” he stated. “However, we still lack two-thirds of those who have a clear plan for decarbonizing their operations and supply chains to drive the industry towards the tipping point for achieving net zero emissions.”
Decarbonization complexity necessitates digitalization
Shütze further elaborated that digitalization was an essential component in operations due to the complex nature of decarbonization. He mentioned that the Schwartz Group encompasses a complex ecosystem of businesses, including Calphalon Lidl – the group’s retail arm, Shwartz Digital, and Shwartz Production – one of the largest food producers in Germany.
He highlighted on how collaboration among these companies offers unique opportunities for the group to close loops, exchange data, and share best practices in decarbonizing operations. This collaborative effort also aids thousands of our suppliers in approaching their net-zero targets and reducing our footprint.
Shütze added that : “the circular economy is vital for reducing our footprint and moving away from linear economics. However, he emphasized that digitalization is essential for facilitating exchange and driving action.”
Rebellius echoed Shütze’s sentiments, stating that recycling and reproducing plastic bottles on a large scale, expanding these operations to millions, and replicating this process across different cities and countries would generate the necessary impact to achieve net zero by 2050.
“It’s a process that requires extensive internal collaboration, data security, and will take many years for the cycle to complete,” stated Shütze.
Van der Merwe further stated that complexities escalated further along the supply chain, emphasizing that each supplier must share the same ambition for the entire network to achieve the target.
Challenges in decarbonization
Rebellius outlined a key challenge in decarbonization: managing suppliers, noting that the largest emissions stem from the upstream supply chain, known as Scope 3 emissions. He emphasized that decarbonizing solely on-site operations was insufficient. Convincing suppliers to align with the same vision was crucial for achieving the necessary scale of emissions reduction to reach net zero.
“Decarbonization involves investment and cost, which many corporations view as obstacles. However, I see it as an opportunity to integrate decarbonization into organizational strategy, unlocking numerous technological possibilities,” stressed Van der Merwe. He suggested incorporating diverse power sources like photovoltaics and geothermal plants, as Mercedes-Benz currently does. The company is exploring energy storage solutions and scaling them for various usage profiles, leveraging technology to integrate complex systems.
Rebellius expresses Siemens’ optimism regarding emerging technologies and their deployment. He emphasizes Siemens’ pioneering role in obtaining comprehensive lifecycle data, including circularity.
“Digitalization necessitates standardization – with a standardized model and consistent data, collaboration becomes more seamless,” he adds.
“I believe we are on the verge of significant progress and savings. For instance, in energy-intensive processes, we effectively utilize artificial intelligence to predict and decide machine parameters, achieving up to 20% energy reduction in traditional paint oven processes,” states Van der Merwe.
Decarbonization offers significant economic opportunities.
Concluding his remarks, Van der Merwe highlighted that decarbonization presents business and economic opportunities, leading to a future less reliant on traditional energy sources.
Shütze emphasized the need to translate the clear pathway to decarbonization into a viable business case. This involves developing a clear strategy, minimizing fossil fuel use, maximizing energy efficiency, and promoting recycling and reuse practices.
Reducing energy consumption, ensuring resource sufficiency, and enhancing energy efficiency in industries would significantly accelerate industrial decarbonization. Rebellius pointed out that companies’ hesitance to invest in decarbonization stems not from fear, but rather from the need to ensure that investments align with the company’s ecological and economic goals.