 Moving on to our next presenter and presentation, Luca Ventorini will be covering the developments in the market of greenhouse gas and related activities. Luca's background is he is a senior manager in Accenture and responsible for its energy transition, decarbonization offer for ICEG market, which includes Italy, Central Europe, Greece, and he has more than 15 years of experience in strategic consulting, research, think tanks, innovative startups, and understanding of value chain challenges in several markets across Europe and Middle East. So Luca, I will turn it over to you. Many thanks, ID. Can you hear me well? Yes, we can hear you. Good morning, good afternoon, and good evening to everyone, depending on your time zone. Just a couple of words about myself. The professional part has been already introduced and clearly described by ID. I'm married, I'm 41 years old, we have two cats and we are waiting our first son. So this is an additional responsibility and stimulus to work on sustainability and in general on decarbonization and energy transition matters. Taking the words from Rebecca Anderson in a word on fire. So when I have a speech, I love to start with the current situation. So this is part of a campaign, the majority of you probably have already seen or show my stripes, which clearly describe using colors. So blue means cold, red means hot, the evolution of temperature during the last 120 years. In this case, the image describes the evolution for Italy, but it is possible from the website to have a clear representation of evolution of practically countries and locations all around the world. And it's impressive as you can see the acceleration of red becoming dominant in the last 50 years and in the last 15, 20 years, the really red, dark red, which became a constant. So it's normal to be worried, but at the same time, someone may ask, is a novelty for the world this increase of temperature? So we in order to respond, I'll use our research, an analysis performed by Burk and other of 2018 in absolute is not a novelty, but the high temperature, we are experiencing where common millions of years ago. So we are talking about Eocene and the evolution we are seeing in just decades or in the last 100 years is something, and if we look to the future, especially scaring, is something which happened in the range of millions of years. So it's clearly difficult or impossible for an ecosystem to adjust at a speed which is not the usual speed of climate evolution across our world. So I'm definitely scared of the situation and this opportunity coming from open footprint to work together with first year corporation and competitor as well is a key opportunity because we have to work together in order to find a solution, a common response. I'll focus the discussion of the speech of today on three key topics and then I'll leave a little bit of time for Q&A or in general for interaction on this matter in order to collect your feedback, your ideas and have a little bit of interaction. So the three topics will be the coverage of greenhouse gas under an emission trading system or a carbon tax at global level. The record price for European carbon allowance we saw in last May and the discreet court ruling of the last 26 of May. But let's start. This graph shows the evolution of the share of global greenhouse emission covered by regional or national or sub-national initiatives which may be an emission trading system or a specific carbon tax on a sector or on part of overall emission. It's clearly described by the data that for a long period, practically 15 years, the level of emission so after the 90 and until 2004 was really low and just this year we achieved, we will achieve the record share of 21.5 but it's interesting to deep dive a little bit on this data. For the first period, only Nordic countries and Poland had an emission trading system or a carbon tax. I love to think that this environment created the condition of the success of several energy companies which were able to rotate the business as Orsted or in any case created the condition of a deep understanding from an executive across energy or energy intensive industry or also in general manufacturing company and created the condition of the significant, I would say, activism of this company at global level. In 2005 finally started the European emission trading system which until today has been the largest and more relevant emission trading system at global level. I'll focus the attention on a specific trading system or carbon taxes schemes. I know I'll not quote all the emission scheme in place. Their share of emission are included in the number but I'll focus the attention only on the most relevant one. So in 2011 Ukraine joined the club the following year Japan and California. Then in 2013 was the time of the first pilot regional schemes across China. So Beijing, Guangdong, Shanghai, Tianjin which were at the time quite polluted area and with a really significant and strong manufacturing base. It's impressive the change this scheme and strong regional or city regulation were able to achieve in just six years. In 2013 was really rare to have to add Blue Sky in Shanghai. In 2019 I spent 10 days and I was lucky to find Blue Sky every day in Kazakhstan as well. The following year Mexico, then Korea and getting speed year after year to South American countries as Colombia and Chile and two Canadian regions as the states Ontario and Alberta. South Africa in 2019 and this year China introduced an overall national emission trading system which covers up to 30 percent 40 percent of the overall Chinese emission taking the level of overall global greenhouse emissions covered by an scheme above the psychological threshold of 20 percent. So good progress, good acceleration, significant acceleration through time but still a long road ahead. We are far away by 100 percent we are far away and at the same time still really large emitters have not introduced or adopted a carbon tax or an emission trading system. At the same time there are significant signs of hope. So discussion are undergoing in several countries so from Southeast Asian ones as Thailand or Malaysia are quite at once in their discussion to Turkey and considering the political changes. I hope to see also United States taking a certain position which are needed for sure in order to have a common approach and this data refers to the compulsory so the regulated markets or in any case to the carbon tax one. So I've not described the voluntary markets it's a choice at the same time these markets are really active and more and more corporations so first tier corporation are taking significant commitment to zeroing their emissions. My company is one of these so essential committed to net zero emission scope one and scope two from 2025 and for sure regarding power it means a usage of renewable in general green power but at the same time for the emission which we cannot I would say zeroing directly usage of setting so it's definitely interesting the level of change the level of evolution we are seeing and more will come at speed but coming back to emission trading system and carbon tax I'd like to spend a minute looking at the variance of price at the range of price registered in 2020 so the minimum level was below one dollar per tonne of carbon emission equivalent which was clearly really low not sufficient to drive change but on the opposite side the maximum level 147 US dollar per tonne Sweden is well above the corridor identified by war bank which issued a recommendation of 40 or between 40 and 80 dollars per tonne of carbon equivalent. This level of this recommendation is sort of I say anticipation of the record of European allowance recorded on the fourth of May 2021 for sure there are a lot of bullish factors which have been I would say a prime driver of this price but also which push for significant increase and really high forecast up to 2030 so Bloomberg, BNP Paris-Bas are highlighting are expecting prices between 90 and 100 euro per allowance which is definitely a significant level which is a shock and which is unsustainable for energy intensive companies without a sort of fair competition level with competitors not subject to same or at least a similar emission trading system so probably we will face one of these two options I hope obviously in the adoption of global or at least bilateral agreement which means the most advanced nation in terms of economic terms are competing fighting at the same time climate change otherwise probably we will see carbon duties at the border which clearly is not efficient and so a potential arm for overall global economic law but what is energy transition in terms of bullish driver because European Union has clearly adopted really significant goals for 2030 so we are talking about a reduction of emission above 55 percent we are talking about a share of energy coming from renewable sources above the 40 percent in 2030 we are talking about an investment related to green deal larger than one trillion looking at a smaller economy or a single nation as Italy we are talking about more than 70 billion of allocated by recovery fund which is in general above 200 for green economy and energy transition why is challenging because it's totally different from the previous one so historically we saw the discovery or the creation of a better energy source so coal oil gas in general have represented an opportunity to increase productivity and reduce cost in a certain time span so clearly we can identify 50 years of innovation and then 50 years of diffusion to today we need to decarbonize consumption which is by far more challenging than working on the supply of energy we need to have a coordinated approach across the globe which is as we know challenging because it means taking in consideration the different needs of country at the different development level and different investment capability to take in consideration the need of a whole set of stakeholders which means complexity and they need to discuss to take in consideration obviously energy poverty and in general equity consideration because other ways will be much easier but it's not accessible by a societal point of view just to forbid the certain use of old cars without providing incentive and support or for example not taking in consideration what does it mean the change for who works in an energy intensive company so so in our understanding it means the need of significant changes both on supply and demand and across the whole sectors and all these sectors have to adapt to a more costly energy environment because in then if we increase carbon prices if we need to finance a significant the transition in then in certain way it will be more costly or will require a significant level of capex to support the transition and this contest is under an additional pressure on 26 of May I was personally quite shocked just to to recap for who that doesn't work in the energy sector so maybe as me said or not spent too time on on venues this strict court order the shell to cut emission by 45 percent by 2030 for sure I am I have the maximum respect for any car ruling but at the same time as a professional who work in the area and who loves to deep dive to understand the consequence of any decision of any relevant change I tried to understand what does it mean in any case it will the decision will accelerate shell transition so in case of appeal or in case of non-repeal no doubt it will accelerate a path already ongoing so already defined already communicated by the company but as we can see which was considered not sufficient by the court at the same time it means an increased climate and legal risk for international company but also in general for energy intensive sectors and this is really tricky I love to quote in this situation discussing this topic the world of Sheikh Ahmed Zaki Amani who was energy ministry energy minister of Saudi Arabia and one of the key negotiator of of OPEC so he said 20 years ago a phrase which is used quite often so stonage didn't tend for lack of stone and the only age will end longer before the world runs out of oil at the same time oil or gas demand or coal demand doesn't stop for a court ruling so for a court decision so what does it mean this decision an accelerator disinvestment an accelerated fire sale from international company and so not changing the fundamentals of supply and demand does it mean a more prominent role for national company or for a second or third tier or private company but are this company able to operate with the same operational excellence standard of international company or indirectly we are saying we are forcing corporation to sell these assets to company which will operate in I would say in a not in a not perfect or I would say in a not excellent way these assets so meaning more flaring so meaning less attention to environment a more risk for environmental disaster in my mind we need to to leverage on the capability of international company and of energy intensive firm we just cannot close our eyes and imagine that the demand for fossil fuel will disappear by one day to another one so I asked myself how this corporation should react to this ruling and in my mind the response may vary by specific context for sure but it has to include at least this free element so real time bottom up greenhouse gas data no measurement no capability to reduce emission they use the adoption of a pervasive climate and bio for executive so they pay the variable part of the pay of executive need to be linked to climate performance and this we saw in the past with the different challenges but they need to reduce acid and they need to increase performance and so on it usually works and then for sure they need to increase transparency and adoption of internal carbon pricing what does it mean in my mind it means including in all capital allocation decision a certain level of carbon pricing and this level has to be disclosed has to be disclosed to clearly communicate which are the drivers of any strategy decision but so what's the complexity at play during this day other speakers have already touched the point but I'd like to show just the complexity of putting together information and data real time bottom up from different systems with which already is complex with the data the information the flows of of commodities or in any case of products between one corporation and another one so if we look at scope one and scope two the complexity level is in certain way lower or restricted to the border of the company but when we move to scope three so looking at indirect upstream and upstream and downstream it means considering and working on data shared and aggregated and in my mind open footprint is a key enabler is a key actor of this vision step step in back to a potential receipt for the carbonization of energy and energy intensive company which operate in already existing greenhouse gas emission trading system they have to focus and to work on three different initiatives level I would say so clean the core so minimize the mission and maximize the efficiency from current infrastructure and value chain it means creating guaranteeing the true time the cash flow which are needed to accelerate the transition so to replace today's sources of energy with cleaner and serial mission alternative option and then to move to expand the frontier so to scale the solution and commercialize the technologies that today are not commercially viable so when we talk about the green hydrogen at today price needs support public support when we talk about carbon capture and storage it's the same situation but the investment needed which are huge which are impressive and the delivery capability which are required need the cooperation and the direct involvement of all the actors so first of all in my mind the energy corporation and the energy intensive company which created at the same time the prosperity of our age but also the climate challenge we have to face in in my mind in our mind we are sure that industry can be net positive for the people and for the planet in in general probably I moved a little bit fast across the slide so I left a little bit longer time for 20 or I have saved five minutes for who started the early bidet at the end so many thanks for your time and looking for more obviously your your question Luca very much thank you there's one question we have over here can you hear me okay Luca yes yes yeah one question are there any active discussions regarding individuals less personal carbon tax based on consumer purchases like important goods and habits driving question mark yeah well this is a really an interesting point because for sure the consumer and the consumer choices are the one who will drive the the decision and I will say the overall path so I'm delighted when I see a company which offers the possibility to offset the mission related to a specific product I'm delighted when I see companies which offer at a premium price the possibility to acquire green for example green electricity which is quite common across the globe today and I'm delighted as well when I see totally different company for for example paper ones which develop new technology new IP for recycling in a better way a product which currently are just by product for landfill and are able to create a new product for 100% recycled one so this is my my response thank you very very clear response are there any more questions for Luca in the audience any questions I find it's very interesting presentation it's I guess a little bit the end of a long day event Luca yes Luca excellent job excellent job because you had quite a bit of content to go through and very complex at times so we really appreciate all the efforts and everything that you poured into this so really really well done thank you thank you very much ID thank you very much to everyone what are your recommendations so we do have another question that came in and it says what are your recommendations for OFP what do you mean what what do you mean by that Eve can you elaborate on your question I don't see that question by the way what are some of the actions we should well actually I don't know you know Luca if you would like to contribute Johan and I know Sammy is also going to come up and have some closing remarks and yeah these are very general we can also talk about it more tomorrow in our access maybe an end to the day we have more time about it because these are very general statements at the moment but Sammy maybe you can put over your closing comments for the day I think so I mean I think if I can because I appreciate it's late and Eve maybe to use your question as sort of that driver towards the closure I mean I think if we if we if we spend just a couple of minutes today thinking through what all we've covered right we've talked about the that that that call to action that urgency that we that we are probably hearing and seeing and sensing from the market and from governments and regulators and our customers and public and everybody else investors and that and that urgency is around being able to share and report carbon I think we've heard earlier from today around you know from from Gomar around this establishment of a data model or data platform in order for us to be able to share and communicate this this emissions related data Serab brilliantly went through you know the the aspects of the architecture that we're building to support the collection and reporting and sharing of that so we're thinking about it from a technology perspective if you flip over to the business side between what Shimuli and Luca and Anna provided you know there's a lot of organizations there's a lot of people that are working on on on this at the moment and they're coming at it from different angles but I think we're all converging to to a likely convergence which is greater transparency greater accuracy being able to share across the board and recognizing that that this isn't an individual problem it's a shared and collaborative problem so so so I think that's you know maybe just a quick overview and I think you know between what Anna shared you know from the WBCST perspective in terms of the the actions that they're taking in the pathfinder and that the carbon transparency and so on so forth with what Luca shared with the evolution of of the importance of carbon both from a you know from from a from a price perspective in terms of credits and as well as from a regulatory perspective we're starting to see that action. Eve coming back to your particular question I think there's some there's some very specific action so I think number first of all if I look at a global event like this the best thing we can do is use this as an opportunity to collaborate and engage. I'll share more of this in my feedbacks in the in the the recap session today or sorry tomorrow but as I look through the questions and the comments and feedback I mean there was a lot of great engagement here today in terms of carbon offsets you know specific needs for the maritime industry you know even the question around the the carbon impacts of of the reference architecture and the impact on technology I mean these are all things that we need to and we should be considering but we can only really do that effectively through this joint collaboration so first recommendation I would say and first action I would say is continue to engage continue to to you know participate in dialogue that's part of what this is I will emphasize that it is the open group and at the end of the day we we we succeed by the joint collaboration of this entire team and all the companies and all the organizations that have been with us you know from the start of the journey that have joined us midway through the journey and and the ones that will join us you know going forward so to speak so I think that's that um Eve I think and I apologize if I'm speaking specifically to you but also to the wider audience I would say I encourage everybody to continue to flag up questions we'll we'll only get better if we continue to raise questions you know add challenges and so on and so forth as y'all mentioned earlier I'm sure there's at least a few things that we probably you know you've either gotten wrong or could have done better or there's probably some things in there that we've done really well in to think about the positives but once again we're not going to know that until we get that that that input and that feedback so I'm going to say continue to to engage in input um and and challenge I think is probably the second action um I think for tomorrow's session because I appreciate we're almost at the end of the day and you're probably tired of me talking especially those folks in Europe that are going this is dinner time uh and if there's anybody still in Australia more power to you because at this point that'd be sound asleep um but I think tomorrow what you're going to see is you're going to start to hear other organizations start to describe what do they plan on doing with it and probably the the action or the take home assignment for you guys tonight that are and for those of you who are coming back tomorrow is what am I going to do with this information we have lots of companies lots of people I think at the the the high point I think I saw about 140 people it's 140 people around the world that are interested in understanding reporting and sharing carbon data how can I now take that and do something with that in my own organization whether that's contributing effort resources thought leadership into the open footprint whether that's taking some of the deliverables and sending that back out to to um you know give you know sending that back out to to to the organization uh or you know into your into your organization so to speak um and then finally I think it's um you know what else can I be doing to contribute to this discussion and dialogue I think going forward okay so hopefully Heidi I think uh a decent summary Eve I may not have answered everything in your question I think uh but hopefully maybe a good starting point and maybe we can pick up on that on on part two I think uh in tomorrow as well thank you Sammy thank you for wrapping that up and providing that overview and summary that was that was wonderfully done and Johan uh terrific uh if you have any last minute uh uh insights or any comments that you would like no it's uh I I enjoy the day and we let's let's wrap it up because it's seven o'clock almost in Europe and that day I get tomorrow at the at seven o'clock sharp use in time two o'clock because we have a very interesting problem again tomorrow yes the demos with companies to present what you're doing as I'm so be there tomorrow guys mm-hmm mm-hmm yes thank you and thank you everyone for attending and we will see you again tomorrow John if you'd like to add anything else otherwise I will sign off