 So, without further ado, we're going to move to our next presentation, which will be covering the greenhouse gas and reporting. We are going to touch on the topics of what are the expectations in this space? What is the direction? What can we do in the open footprint to assist and what links do we have? Sumuli Bhutachari is going to be presenting and a little bit about Sumuli. He is a partner in digital services at ERM. He has more than 17 years of experience working on business and digital transformations, supply chain transformation and sustainability. So Sumuli, I'm going to turn it over to you. Thank you, Heidi. Thanks for that. Good morning, good afternoon, and good evening to all of you. I hope that covers everyone's future side of the international deadline you are. So this is actually quite sunny and bright in London, surprise or surprises. So and it has been a wonderful few sessions. I think you probably at this point in time are looking at some of the content that we are trying to, well, some of the challenges we are trying to address and some of the contents we are putting together. So I think what I will do is I'll try to, so let me just add to what Heidi just said. Of course, reporting, and as Anna mentioned and Gommar also touched upon earlier, I mean reporting is a challenge, right? So reporting is a challenge and I'll go through some of those challenges in my presentation. So let's again take a step back and I know we have touched upon this subject earlier. So why an organization, and I'm talking about primarily commercial organisers here, why they would be interested in reporting. Of course, there is a doing good part of this, which is what we did contribute to the emission reduction, right? Everybody has to do that. And of course, the commercial organisations have to do their part to achieve 1.5 degree target, etc. But I think there are more fundamental business reasons to do that. For example, the pressure is already building in the system and building for some time. But if you look at last 1.5 years, probably it reached a point that it is almost becoming the central agenda, the main stay. And all you need to do is if you switch on your TV or wherever you consume your news, if you look at that, although we are made of the pandemic, I think the second most important topic that everybody is talking about is the sustainability and particularly the COP21 coming up. I think this whole pressure from the civil society is not actually percolating through governments. Governments are owning and different regulators are also getting, I would say, much more bolder with the sustainability targets, right? So that pressure is building. What does it mean for an organisation, a commercial organisation? So that actually means that ultimately they need to go back to their investors and show them that they have a part which is essentially going to lead to a sustainable business model. So that's an important one, right? Of course, I already mentioned the regulators and the governments, they are definitely looking at that with an increased figure, increased sense of purpose. And of course, why does stakeholders within that ecosystem, if you like? Now, but I think that what is the game changer primarily is also the pressure from the customers. So I think customers are much more aware. They want to make a sustainable and ethical choice in the products or services they buy. So definitely that's probably one of the biggest driver, biggest pressure, if you like, on the organisations, but equally for suppliers as well, right? So for example, if any organisation is actually thought to be relatively blind in sustainability, I think a lot of big suppliers don't want to associate them with an organisation like that. So the next one is an interesting one. I was actually in another session a couple of days back and the conversation was around a sustainable workplace and also how to retain talent, right? Given the almost the life defining even that we are all going through. And one of the things that came up, that attractability of an employer or organisation probably in some ways is quite reliant on the image of the employer. Previously it used to be the diversity, inclusiveness and all of that. But now increasingly sustainability is becoming another item. So how green my company is or my prospective employees is becoming a mainstay of that conversation. And of course, if you aggregate all of that, I think that culminates into what is essentially the social purpose, right? And the social purpose is to be well communicated to the civil society. One of the best way of communicating is putting some hard facts, i.e. you can report on how you are doing rather than making overall statements. You can actually substantiate that with some data, some evidence. So I think that is what is driving reporting in this space. And of course, on the right hand side, I've just used the same infographics that we use very often, I think, on Scope 1, Scope 2, Scope 3 reporting. So but when I'm talking about sustainability and we are talking about just greenhouse gas here, of course it is part of the overall sustainability reporting. I think the completeness of reporting is what is probably the biggest challenge and also the ambition that in general the organisers are grappling with. Okay, if you can move to the next slide please. So what I tried to do with a very simple infographic of what is the reporting ecosystem looks like, right? So what are the actors, what are the players here? So on the left hand side, so this is actually what I call the blue arrows, I call the consumption flow. So of course there is, in the middle you have a company or organisation. For the context of this, we are saying the reporting company who is actually producing the disclosure. But then of course you have within that supply chain, the suppliers, and they have, of course, they have some GHG footprint because of their operations as the reporting company did. But equally, of course, and the other side of it is their customers, right? And there is a GHG footprint there as well. And I think this came up earlier in the conversation and that includes use of the product, right? So for example, I think car is always a good example. So if you are having a car, of course, every time, and particularly if it's a fossil-fuel driven car, you're using, you're having a footprint. But equally, so if I'm a consumer, but I'm actually trying this to produce something else. So there is a footprint of that as well. And most importantly, things like packaging and end of life. And end of life is actually one of the more challenging things because unless you have, wherever this is consumed, I would say a very well-defined way method of disposal. I think that is quite difficult to accurately estimate and report on, or measure and report on, I would rather use. And I also think there are other concepts that are involved in here, which is essentially, what is the circular economy element of it? What is there an upcycling element of it? So all of those ultimately need to be reported on. So if you look at all these elements, essentially, we are talking about the scope one, scope two, and scope three. And as we know, the scope three is probably the biggest challenge because they are, A, more diverse, where the footprint is generated is much more wider. And also the control of information and data is much more difficult. Hence, I mean, that is the challenge. So in some ways, even though scope one, scope two, it is thought to be easier to dealt with, but ultimately the total footprint is not that accurate. So the uncertainty, as it is called, is actually quite significant, depending on the industry set and the operations that you have. So on the right side, so of course, this is the, as I mentioned, this is the operating company that is generating the disclosure. On the right side, who are the other players in the ecosystem? So the green arrows actually defines where the information of the disclosure is produced and who consumes it. And the one that with the gray arrows actually shows who are in the ecosystem contributing to that. Of course, we have the standards and frameworks and there are many. So SASB, GRISO, to see of, et cetera. And by the way, there are many standards. There's a reason for that, right? I'm sure some of you know that SASB, it was primarily the disclosure was targeted at the financial community, if you like. On the contrary, GRI is more focused on the operational aspects of an organization. And we have ISO and to CFD, so on and so forth. But we also have likes of WBCSD, WRI, et cetera, who are, they're involved in producing standard. For example, in the 1990s, WRI and WBCSD came together to champion and lead what is GHG protocol, will be by far the most, certainly one of the most comprehensive method of calculating your GHG footprint. But there are also CDP who are actually based on the actual disclosure, collecting the data, et cetera. So they together make the standards and frameworks ecosystem. And I'll come to this point later in this session, that actually there is a concerted effort of these organizations coming together, right? And that's probably one of the challenges that we have today, they're trying to address. You also have what I call enablers. And these enablers are, for example, such solution providers and think about the commercial software companies who actually enable the organizations to calculate and producing some sort of disclosure, right? And there are many. There are also the data service providers. And why do you need them? Because as I mentioned, that if you look at the entire supply chain, what the carbon footprint data is produced, that's not uniform, right? And particularly in any modern diverse supply chain, if you look at that, and that means a lot of data which needs to be brought in into one place in order to, A, report on, calculate on, et cetera. And now, I think this is where, and I will talk about it in a moment, what is moving to previously, what used to be more of an estimated data is becoming more of a measured data because now it has the availability and the connectivity of a lot of what we call edge devices, they're increasing, right? So that's an important aspect. You, of course, have the auditors who are going to verify that what is being reported are accurate, but also you have data aggregators, right? And the data aggregators would play an important role because even with the best of intentions, not everything would essentially be measured. So you need the data aggregators to play that role as well. And the last part of the ecosystem, but probably the most important ones are what I call the consumers of the disorders or the information, right? I already mentioned about the regulators who are looking at it with an increased figure, governments, most importantly, customers. And this is where some of the conversations we had earlier about the product emission reporting or the product footprint is quite important. And last but not the least is the civil society and the media, right? In many ways, I think the conversations have become much more fact-based and you could probably see that in many ways every now and then you get these stories in the media which I'm talking about, okay, this was the stated objective of the organization which is the actuals. So I think they are some of the primary consumers of this disorder information. There are many more, but those are the main ones that I've identified, okay? Can you move on to the next slide please? Okay, so what are the expectations, right? So what are the principles? So the standard for the JG accounting reporting. Now, the ones that we are looking at, actually these are some of the, these are actually the parameters that identified as part of the JG protocol. And if you look at that, you probably see that many of them are what you, you probably assume to find in a financial disclosure. And the reason for that is originally, a lot of the purpose of disclosure of sustainability was led by some of the key principles of the financial reporting as well, okay? And some of them are also quite similar to what you call a good data standard, right? I would not go to them individually yet. Rather than that, I think what would be useful is just to test, to do a polling and get an idea of your view of this. Can I move to the next slide please? So let's run a very quick poll. So out of this, which of the following JG accounting and reporting principles is underpinned by auditability? So I think you could just quickly make a choice and we would just show the results of that. So interestingly, okay, I'm just looking at the answers. So, well, again, as I said, probably there is a different ways of interpreting the question, but according to the JG protocol, it is actually the transparency. And I do think out of, and I think we have got a good representation of those answers here. Thank you for that. So actually we have, but I think probably, John, we might need to keep it open for a bit longer because I could see that a lot of, the participants could not actually respond. So if you can just keep it a bit longer, please, okay? I can't actually, I can't reopen that poll now it's closed similarly, but I think probably the people didn't answer because they didn't want to answer, maybe it's based upon not having enough information or not determining what to answer. So I suggest we just move on to the next poll and I give them the poll. Absolutely. Absolutely. So that's what I suggest is, let's move on to the poll too. So the question is, which of the following JG accounting and reporting principle has impacted most by uncertainty? And by uncertainty, we mean uncertainty in the context of JG emission measurement and reporting. Actually, this one, almost the majority of the respondents got to try it. So yes, it is actually accuracy, which probably, well, having said that, this has probably impacts others as well, but accuracy is the criteria that is impacted most. So if you move on to the next one, please. So we're looking at some of the challenges, right? And some of these challenges have actually have already been discussed earlier. So first is lack of complete and high quality direct across supply chain. And usually, I mean, the example that is always given is typically think of a car, right? It probably have thousand plus parts and out of which probably more than 50% is coming from different suppliers. So in order to have an accurate carbon footprint you need to have data from all of the suppliers, right? So that's of course, one of the biggest challenge as we already discussed earlier. But also even the, you might actually have the information. The other challenge is, if you do not have a common way of exchanging the data, you don't have a common data standard across industry and supply chain. So that will also impact, right? So and what I did is I just looked at all these challenges and of course, they impact all the five parameters we discussed earlier. But the one that are impacted most are these. We also have, and this is probably a challenge relatively, relatively easily solvable and we can see a lot of movement happening there, which is there are multiple reporting standards and regulations which require variable information. There is of course an overlap, but there are also quite a bit of difference between them as well. So and that of course impacts the consistency, the relevance and accuracy of reporting. And finally, I think the elephant in the room, we discussed this already, which is the accounting of emissions for products. And to the earlier point, it not just to get, but also to get to grave as well, right? So those are the impacts of the challenges on the measurement and the reporting of GAG footprint. So if we just get to the next slide please. So this is the last poll, I promise you that. This is a multiple choice. So which of the following challenges manifest in the scope three puzzle? We are discussing about scope three earlier. And I think we can probably give just 30 seconds on this possible. Yeah, I think the response is exactly what was expected. So I think that the spread is pretty even, but definitely the lack of complete and high quality data across supply chain is coming out as a biggest challenge. And that's perfectly in line of the expectation in the wider conversation we're having. Okay, can we move on to the next slide please? Really quickly. So what is the direction? What are the mega trends? I mentioned some of them earlier. So there's a higher emphasis on measured data. So move away from assumed or calculated data. There'd be of course some calculation and a lot of what happens in the OFP is that that when we say calculated data, we actually mean whatever can be measured should be measured, okay? And you have the sense of technologies and connectivity meters are improving all the time. So that's definitely a direction of travel that we see. The next is emphasis on the accuracy of across supply chain. So IE that means neither under or over reporting. So IE reduced uncertainty. Reporting standards and frameworks are coming together. So IRC and SASB only, they've just completed their merger, but also SASB, IRC, ISO, GRI, et cetera, they're trying to come together. They actually already put a statement of intent last year to saying that they want to come together and have more overlap between the standard. Eventually, I think the way I see is the way accounting standard can together to essentially have two big standards like GAP and IFRS that is going to happen in this space as well. Extended deployment and use of digital solutions to capture data and generate insight to my earlier point. And we are seeing this trend is actually happening. People actually investing in technologies to make a difference. And finally, the reliable source of past and current data because ultimately, if you think of this as a continuum of essentially you measure, you calculate, you set target, measure again and report on that. So essentially the consistency between the past and current data is actually becoming much more important and driven primarily by the societal regulatory and legal pressure. Can you move to the next one, please? So what is OFP? Can you assist? I would not actually spend much time on that because we have covered some of this already. But important bit is that we have engaged some of the biggest industrial organizations, technology organizations and the sustainability organization. It's almost like the best mix of things that you can get. By no way, I would say it's complete, we need more. And that's probably one call to action. Please get engaged, get you engaged and bring the organization to the table. So we can have a much more robust information framework and templates to deploy to. We are also focusing on the standardization, but accessibility is an important one. I think Umar mentioned in his presentation about API, et cetera, i.e. we want to make it an open standard that people can easily, easily deploy or access to. And finally, of course, we are collaborating with the standards and frameworks like WBCSD that you have seen earlier. So of course, there are more to do. So the last question is what you think we can do more? What you can do more as OFP? So we would like to have your response on that. And moving on, the final slide, I will not again spend anything on that. I probably, if there is any question, I will take it at that point. But these are some of the relationship collaborations that we are having. As you can see, these are only the few that we are actually engaged or having conversation with, but they're much more who we are also engaging with. So that's where we are. Any question, then I would like to quickly answer that. Sorry, I just unmuting myself there. I don't see any questions on the chat window. Shimoli, just maybe a question for myself. If you look at those five topics that you had, the accuracy, the uncertainty, the transparency, I mean, where do companies prioritize, right? I mean, do you try to tackle all five at once? Where do you best focus your time? Thanks, Sami. So at this point in time, of course transparency has been a focus for some time, right? And then consistency as well, because in many ways, from year to year, how you report and what you report has been a focus for some time. But I think accuracy is probably where we see much more emphasis nowadays, right? So, and whether that's accurately measuring scope three, but also across the supply chain, for example, G8G gives you the option of either having supplier-specific data in your supply chain or you can also go to average best method, meaning where it's not available, you can go and get some research data in industry average. So I think that's where it is moving to. So I think their focus is more, get close to the data where it is produced, for example, in this case, supply-specific data. And yes, I think that's where the focus is going to be, I think, more and more. Getting to the granularity of data, getting close to the data where it's produced, and more importantly, getting an accurate footprint as opposed to a measure estimated footprint. Cool, thanks. Okay, there's still no, there's one question coming in now, I believe. A little more, no more. Yeah, I think there is a question coming in. Yeah, I think we cannot see it actually, I think. Yeah, I can read it out. There are actually a couple of questions I see now. So what additional organizations reporting agencies, companies and with big audacious sustainability goals, would you like to recruit into the OFP conversation? So absolutely, I think probably, this is something almost, I mean, to my call to action. So A is we need much wider industry presentation. So please, please get involved, we can never have much of this. Because the reason I say this is in the accuracy, the more input we have from a broad industry sectors, and that also means that many of your suppliers, if you can also encourage them to participate, then we would get to the point of, as I mentioned, measuring the data where it is produced in a better way. So definitely that's one, but also what do you say is, by adopting the standard that OFP is trying to put together, the framework template, or if we call it, but because we are working with all of the main, I would say almost all of the main reporting or disclosure standards organization. So by the adoption, we can also drive standardization which improves accuracy. Is there any other questions, Sami? Yes, no one. Yeah, there's one more. As accuracy is the main issue, and this is from Bupinder, as accuracy is the main issue, how can we improve it? So I think it's, I would say, it's a step-by-step approach, it's a call to work around. So if we think that we are going to get 100% accuracy over a year, I don't think that's going to happen. So in some ways, it is the way you dissect the problem. Problem is, where is your biggest bottleneck is? Do I believe that there would be no uncertainty ever? No, I don't, because I think there would always be. And but I think one of the ways, and this is just one, there are many ways to do that, but one of the ways of looking at improving accuracy is looking at the materiality of data. So IE, if you have uncertainty or inaccuracy in your footprint, you just almost break them down and look at which of that is actually materially impacting your accuracy. So address that first, as opposed to spending a lot of time in trying to address an accuracy which is probably giving you added, or reducing inaccuracy by 2% or 20%. So look at the materiality and try to address those. That would probably be one of the bottleneck principle of improving accuracy. I hope that answers the question. Yeah, I think so. And just to chime in, and maybe Heidi will wrap this up because I'm conscious we're eating into Thoreb's time here. So, but just to maybe chime one additional thought, Shimoli to it is also, I think there's a level of pace and ambition that organizations need to have. I mean, as much as we'd like to get into real time reporting and satellite imagery and all that cool fancy digital stuff. I mean, there's still many organizations in the world that are happy just to go from annual reporting to monthly reporting or quarterly reporting. So, I think it's a journey that every organization is on. And I think that's part of the accuracy question is just being able to get more granular with your data whether it is moving to real time or just even more frequent just by having that level of granularity and moving into measurement, I think will also then help as well in terms of improving the accuracy. So, good. Yeah, I completely agree. And accuracy, I wouldn't say a marathon that probably would be slightly losing the purpose but it is probably a middle distance running. It's not a sprint. So, yes, it can improve overlaps. Thank you. Excellent. Thanks, Shimoli. Heidi, I think we're out of questions. So back over to you, I think. All right, thank you, Sammy. Thank you, Shimoli. That was extremely informative and well thought out and well done. Thank you.