WEBVTT

1
00:00:00.000 --> 00:00:03.480
Next, we have the great privilege

2
00:00:03.560 --> 00:00:07.560
of welcoming
Tim Figures, Associate Director

3
00:00:07.560 --> 00:00:11.360
of Global Trade and Investment of Boston
Consulting Group.

4
00:00:11.440 --> 00:00:12.360
Tim is right up there.

5
00:00:12.360 --> 00:00:15.360
Hello, Tim.

6
00:00:15.520 --> 00:00:19.200
Well, good morning, everybody.

7
00:00:19.280 --> 00:00:21.200
So Tim is based in London,

8
00:00:21.200 --> 00:00:25.360
so this is getting into the evening
time for him.

9
00:00:25.440 --> 00:00:27.640
And he's he's joining us virtually today.

10
00:00:27.640 --> 00:00:31.960
Of course, as a senior expert
on geopolitics,

11
00:00:32.000 --> 00:00:36.680
geopolitics and trade impact
within BCGs global Advantage practice.

12
00:00:36.760 --> 00:00:39.680
He's also a founding member of BCG, Center

13
00:00:39.680 --> 00:00:43.520
for Climate and Sustainability
Policy and Regulation.

14
00:00:43.600 --> 00:00:48.840
Tim brings 25 years of experience
at the intersection of public policy,

15
00:00:48.920 --> 00:00:52.760
international geopolitics, business
regulation and strategy,

16
00:00:52.960 --> 00:00:56.480
and has sectoral experience
in international aviation,

17
00:00:56.560 --> 00:01:01.120
manufacturing, energy, transport
and the digital economy.

18
00:01:01.200 --> 00:01:04.879
Tim has been a lead author
for several publications in the field

19
00:01:04.879 --> 00:01:09.440
of sustainable trade, most recently,
and this is newly minted.

20
00:01:09.520 --> 00:01:12.800
Tim, I think you shared this with me
last week.

21
00:01:12.880 --> 00:01:15.400
It is a publication entitled

22
00:01:15.400 --> 00:01:18.400
What Future for Climate and Trade

23
00:01:18.440 --> 00:01:22.200
Scenarios and Strategies
for Carbon Competitiveness.

24
00:01:22.280 --> 00:01:26.160
It's published in collaboration
with the World Economic Forum.

25
00:01:26.240 --> 00:01:27.640
Importantly for

26
00:01:27.640 --> 00:01:32.280
all of us here to know, Tim also served
for more than a decade in the UK

27
00:01:32.280 --> 00:01:37.120
government, including a stint
as the ministerial advisor on EU affairs

28
00:01:37.280 --> 00:01:41.040
and trade to the UK Secretary of State
for Business, Energy

29
00:01:41.040 --> 00:01:46.400
and Industrial Strategy
following the 2016 Brexit referendum.

30
00:01:46.480 --> 00:01:48.240
Let's give Tim a warm welcome.

31
00:01:52.040 --> 00:01:53.560
Thank you very much, Liane.

32
00:01:53.560 --> 00:01:57.800
And I hope everyone can hear me okay
and also see my slides.

33
00:01:58.360 --> 00:02:03.440
So a conscious
that I am speaking to an audience.

34
00:02:03.800 --> 00:02:08.360
People involved
with customs, trade and logistics.

35
00:02:08.360 --> 00:02:12.400
I'd really like to focus my remarks
on supply

36
00:02:12.400 --> 00:02:15.800
chains, something that I'm sure all of us
are very familiar with

37
00:02:15.800 --> 00:02:19.080
and how they can be a game changer

38
00:02:19.320 --> 00:02:22.320
on the road to net zero.

39
00:02:22.720 --> 00:02:24.920
But just before I get into the details,

40
00:02:24.920 --> 00:02:30.360
let's just take a couple of steps back
and remind ourselves

41
00:02:30.440 --> 00:02:36.760
why we are seeing a globally significant
and a significant increase

42
00:02:37.080 --> 00:02:41.320
in the focus on regulation by governments,

43
00:02:42.160 --> 00:02:46.360
whether it is in the UK
or the European Union or in North America.

44
00:02:46.360 --> 00:02:50.960
We're seeing increasing efforts,
whether it's through regulation

45
00:02:50.960 --> 00:02:56.520
or incentives,
to try to drive businesses to decarbonize.

46
00:02:56.800 --> 00:02:59.520
And that's essentially because

47
00:02:59.520 --> 00:03:05.520
two years ago at the COP26 conference
in Glasgow, in Scotland,

48
00:03:05.520 --> 00:03:08.880
and then again last year at Sharm
el-Sheikh in Egypt,

49
00:03:09.720 --> 00:03:14.320
the world's leading economies
committed to net zero target.

50
00:03:14.320 --> 00:03:18.160
So that's dates
by which that economies will be net zero.

51
00:03:18.160 --> 00:03:21.800
And for most developed economies,
that date is 2050.

52
00:03:22.680 --> 00:03:27.040
And having committed to do that
in an international context,

53
00:03:27.400 --> 00:03:30.880
governments went back
and started thinking about, well,

54
00:03:30.880 --> 00:03:35.400
what do I actually need to do in order
to shift my economy

55
00:03:35.600 --> 00:03:40.120
from where it is today to one that
fulfills this international commitments

56
00:03:40.120 --> 00:03:43.960
I've made to be net zero by 2050.

57
00:03:44.680 --> 00:03:48.840
And there are really only six
things governments

58
00:03:48.840 --> 00:03:54.400
can do to get from where we are now,
see where we need to be to align

59
00:03:54.400 --> 00:03:58.000
with those UN FCCC commitments.

60
00:03:58.320 --> 00:04:02.880
You could and this is the most
this is the focus in Europe in particular.

61
00:04:03.160 --> 00:04:05.920
You could focus on carbon pricing, say,

62
00:04:05.920 --> 00:04:09.560
charging people to emit CMT.

63
00:04:09.760 --> 00:04:14.920
And in Europe there is a long established
carbon price which does that.

64
00:04:15.360 --> 00:04:19.680
You could start to think about extending
that carbon price to imports

65
00:04:19.680 --> 00:04:23.560
as the European Union is going to be doing
from October this year.

66
00:04:23.560 --> 00:04:27.440
And I'll come back to talk a little bit
more about that in due course.

67
00:04:27.840 --> 00:04:30.880
But there are also a range of other things
towards the right hand

68
00:04:30.880 --> 00:04:31.880
side of this slide.

69
00:04:31.880 --> 00:04:35.640
You could give out subsidies
or grants of various sorts,

70
00:04:35.920 --> 00:04:38.960
such as the very significant tax breaks

71
00:04:38.960 --> 00:04:42.760
now being offered under the US Inflation

72
00:04:42.760 --> 00:04:46.600
Reduction Act,
an Investment Infrastructure and Jobs Act.

73
00:04:47.040 --> 00:04:52.480
You could have standards and mandates
such as the Clean Fuel

74
00:04:52.480 --> 00:04:57.360
Standard, that that exists
in certain parts of the United States.

75
00:04:57.360 --> 00:04:59.080
Or you could have in the US.

76
00:04:59.080 --> 00:05:01.840
Federal government is a big user,

77
00:05:01.840 --> 00:05:05.320
obviously that you could have government
procurement requirements

78
00:05:05.800 --> 00:05:10.120
that mean that you can only buy
green goods and services

79
00:05:10.120 --> 00:05:14.120
however you define those with government
money or government funded programs.

80
00:05:14.120 --> 00:05:18.920
So all of these things are going on now
to a greater degree or a lesser degree,

81
00:05:18.920 --> 00:05:22.520
depending on which country in the world
you're looking at in order to drive

82
00:05:22.840 --> 00:05:24.160
regulation.

83
00:05:24.160 --> 00:05:27.160
But those things are mostly

84
00:05:27.160 --> 00:05:30.160
focused on what goes on in our country.

85
00:05:30.200 --> 00:05:36.480
But the reality is
that we are seeing different degrees

86
00:05:36.480 --> 00:05:40.480
of commitment to achieving net zero
depending on where you are in the world.

87
00:05:40.480 --> 00:05:45.040
So developed economies
going for net zero by 2050

88
00:05:45.600 --> 00:05:50.720
with clear plans in place,
but other parts of the world less so.

89
00:05:51.000 --> 00:05:56.320
And when you have this differential
between by and large developed

90
00:05:56.320 --> 00:06:01.200
or emerging markets in terms
of how quickly or how effectively

91
00:06:01.480 --> 00:06:05.640
they'll get to net zero,
that creates a bit of a problem because

92
00:06:07.120 --> 00:06:08.440
it's not just

93
00:06:08.440 --> 00:06:12.280
emissions domestically
that we need to worry about,

94
00:06:12.640 --> 00:06:17.160
it's also emissions
that come through supply chains.

95
00:06:17.600 --> 00:06:22.080
And what we tried to do a few years ago
with BCG building on some data

96
00:06:22.080 --> 00:06:26.280
that the Organization for Economic
Co-operation and Development produce.

97
00:06:26.280 --> 00:06:33.560
And let's just get an idea about how money
or how much embodied emissions

98
00:06:33.800 --> 00:06:37.320
you find embedded in global supply chains.

99
00:06:37.320 --> 00:06:43.240
And not really surprisingly,
you can see that the US and Europe import

100
00:06:43.240 --> 00:06:48.480
significant amounts of CO2 in products
that are made in places like China

101
00:06:48.480 --> 00:06:54.360
and India, where the current
climate arrangements and carbon prices

102
00:06:54.640 --> 00:06:58.680
are lower or different
compared to Western economies.

103
00:06:59.520 --> 00:07:04.160
So that means that we shouldn't just
concentrate on what we do domestically.

104
00:07:04.160 --> 00:07:09.160
We have also got to look at
how we can decarbonize our supply chains

105
00:07:09.520 --> 00:07:14.240
if we're able to genuinely decarbonize
global trade.

106
00:07:15.160 --> 00:07:18.480
And of course, just a quick reminder

107
00:07:18.480 --> 00:07:22.720
about some of the terminology
that we tend to use here when we do this.

108
00:07:23.640 --> 00:07:26.640
I'm sure you'll be be familiar with this

109
00:07:26.800 --> 00:07:29.720
if you're looking at how emissions
are categorized

110
00:07:29.720 --> 00:07:32.720
as scope one,
which is your direct emissions

111
00:07:32.800 --> 00:07:37.240
from your industrial process, Scope two,
which is electricity mainly.

112
00:07:37.680 --> 00:07:41.800
But those red arrows I showed you
on the previous slide, all what we showed

113
00:07:41.800 --> 00:07:47.680
here on the left in the yellow arrows,
the scope, three upstream emissions

114
00:07:47.920 --> 00:07:52.240
which are related to things like travel
and transport emissions,

115
00:07:52.600 --> 00:07:55.400
but also the emissions
that went into products

116
00:07:55.400 --> 00:08:00.680
that you bought upstream
and then fed into your supply chain.

117
00:08:02.120 --> 00:08:03.920
When you try to

118
00:08:03.920 --> 00:08:07.600
drill down into those supply chain
emissions,

119
00:08:07.960 --> 00:08:11.920
actually you find that
there are eight supply chains

120
00:08:11.920 --> 00:08:17.880
that are responsible for slightly over
half of all global emissions.

121
00:08:18.320 --> 00:08:21.720
And you can see them here
food, construction, fashion, fast moving

122
00:08:21.720 --> 00:08:27.400
consumer goods, electronics, automotive,
professional services and other freight.

123
00:08:27.400 --> 00:08:30.520
And you see on the right hand
side of this slide,

124
00:08:31.760 --> 00:08:36.640
freight and manufacture
sharing are key elements within that,

125
00:08:36.840 --> 00:08:40.880
but also for some of the more energy
intensive products.

126
00:08:40.880 --> 00:08:43.520
So for example, construction uses
a lot of steel,

127
00:08:43.520 --> 00:08:46.360
which is an energy intensive
good in itself.

128
00:08:46.360 --> 00:08:49.480
So if you focus on these

129
00:08:49.840 --> 00:08:52.640
eight supply chains and working out

130
00:08:52.640 --> 00:08:57.200
how we can decarbonize those,
then that actually

131
00:08:57.480 --> 00:09:01.400
can make a significant impact
on reducing global emissions.

132
00:09:01.400 --> 00:09:05.400
So if you in the room involves
without looking at any of these

133
00:09:05.400 --> 00:09:08.720
eight sectors,
then I'd suggest this is a priority

134
00:09:08.720 --> 00:09:14.040
that you might want to focus
on looking at these various elements.

135
00:09:14.040 --> 00:09:17.480
And I would just say in order
to focus on where to take action.

136
00:09:19.280 --> 00:09:22.800
Now, it's not just

137
00:09:24.320 --> 00:09:26.560
voluntary measures that are happening.

138
00:09:26.560 --> 00:09:31.520
There are quite a lot of shifting
regulations taking place globally,

139
00:09:31.720 --> 00:09:36.840
which will require companies, logistics
providers and others

140
00:09:36.840 --> 00:09:42.400
with long supply chains
to focus on decarbonization and emissions.

141
00:09:42.720 --> 00:09:46.200
One such measure, which
I spend a lot of my time thinking about,

142
00:09:46.480 --> 00:09:50.560
is the EU carbon border tax
or carbon border adjustment mechanism

143
00:09:50.560 --> 00:09:56.040
to give it its proper title,
which is starting in October this year.

144
00:09:56.440 --> 00:09:59.840
A number of other jurisdictions around
the world are looking at doing

145
00:09:59.840 --> 00:10:00.560
similar things.

146
00:10:00.560 --> 00:10:04.240
By 2030 we might have five or six similar

147
00:10:04.640 --> 00:10:09.680
measures in place worldwide about the EU
carbon border adjustment mechanism.

148
00:10:09.760 --> 00:10:13.320
Mechanism does is apply for the first time

149
00:10:14.160 --> 00:10:16.480
effectively an import tariff

150
00:10:16.480 --> 00:10:19.960
based on embedded carbon emissions

151
00:10:20.320 --> 00:10:25.160
contained within certain energy intensive
goods, including things like steel,

152
00:10:25.320 --> 00:10:30.840
aluminum, cement,
fertilizers, electricity and hydrogen.

153
00:10:31.320 --> 00:10:36.040
And that tax or tariff is calculated
not as a percentage

154
00:10:36.040 --> 00:10:40.600
of the value of the product,
but by multiplying the carbon

155
00:10:40.600 --> 00:10:45.760
content of that product,
the embedded emissions contained within it

156
00:10:46.360 --> 00:10:49.000
by the EU carbon price,

157
00:10:49.000 --> 00:10:54.600
which is a euro amount per
tonne of carbon, which fluctuates,

158
00:10:54.880 --> 00:10:57.800
it's currently around €90,

159
00:10:57.800 --> 00:11:01.320
so 95 USD per tonne of carbon.

160
00:11:01.440 --> 00:11:05.360
So from October this year, progressively
this will be introduced

161
00:11:05.360 --> 00:11:08.360
and that really requires

162
00:11:08.400 --> 00:11:10.960
producers and importers,

163
00:11:10.960 --> 00:11:13.960
including customs representatives

164
00:11:13.960 --> 00:11:17.320
involved in those supply chains,
to calculate

165
00:11:17.560 --> 00:11:22.080
and declare embodied emissions
and in due course, pay a tax on them.

166
00:11:22.080 --> 00:11:24.840
And if other countries around the world
do something similar,

167
00:11:24.840 --> 00:11:28.480
then that really I think will start
focusing the minds of everyone

168
00:11:28.480 --> 00:11:31.880
involved in supply chains on
exactly how much carbon

169
00:11:31.880 --> 00:11:34.880
is being transported around
and what it's going to cost

170
00:11:35.080 --> 00:11:38.200
in terms of these compliance taxes.

171
00:11:38.960 --> 00:11:42.320
But there are also
a range of other drivers

172
00:11:42.960 --> 00:11:45.960
such as investor pressure.

173
00:11:45.960 --> 00:11:48.960
So in particularly in Europe,

174
00:11:49.200 --> 00:11:52.200
a focus on ESG advancements

175
00:11:52.280 --> 00:11:55.240
and investors making clear

176
00:11:55.240 --> 00:11:59.880
they would prioritize investments
in companies with good ESG scores.

177
00:11:59.880 --> 00:12:05.160
I appreciate the debate is a little bit
a little bit different

178
00:12:05.680 --> 00:12:08.800
in North America in that companies

179
00:12:09.000 --> 00:12:12.000
receiving a discount on their financing

180
00:12:12.080 --> 00:12:15.880
if they are deemed to be great,
alternatively a financing penalty.

181
00:12:16.160 --> 00:12:20.920
If they are not,
we are seeing new carbon and climate

182
00:12:20.920 --> 00:12:24.720
disclosure
rules, particularly for listed companies

183
00:12:25.120 --> 00:12:28.120
by regulators such as the SEC

184
00:12:28.120 --> 00:12:31.200
and ESMA and in Europe

185
00:12:31.200 --> 00:12:35.440
we see new rules coming into force
in a couple of years time,

186
00:12:35.680 --> 00:12:38.640
which will require larger companies
to undertake

187
00:12:38.640 --> 00:12:42.480
ESG due diligence
through their supply chain.

188
00:12:43.240 --> 00:12:45.880
So also tightening product

189
00:12:45.880 --> 00:12:48.880
and carbon footprint standards

190
00:12:49.160 --> 00:12:52.720
and also the increase subsidy
conditionality,

191
00:12:52.960 --> 00:12:58.120
meaning that only products
that meet certain environmental standards

192
00:12:58.440 --> 00:13:01.600
would be eligible for subsidies and

193
00:13:01.600 --> 00:13:05.360
or could be sold on the market.

194
00:13:05.360 --> 00:13:08.600
So electric vehicle
batteries in the European Union

195
00:13:08.600 --> 00:13:10.040
and are a good example of this.

196
00:13:10.040 --> 00:13:15.520
So importers of those products
need to understand and verify the supply

197
00:13:15.520 --> 00:13:21.560
chain emissions upstream in order
to be able to sell them on the market.

198
00:13:21.920 --> 00:13:26.200
And also we see consumer pressure
in particular campaigns

199
00:13:26.200 --> 00:13:30.040
by various NGOs
against high impact products

200
00:13:30.280 --> 00:13:34.840
such as those, for example,
made on land subject to deforestation.

201
00:13:35.320 --> 00:13:38.640
So all of those regulatory, financial

202
00:13:39.280 --> 00:13:42.280
and investor drives are at play.

203
00:13:42.400 --> 00:13:45.280
But there's also the fact,

204
00:13:45.280 --> 00:13:49.960
as we found out in our research,
that it is possible to abate around

205
00:13:49.960 --> 00:13:56.200
40% of the emissions in those eight key
supply chains, relatively low cost.

206
00:13:56.200 --> 00:14:00.400
So this is something
that's probably cheaper to do anyway,

207
00:14:00.520 --> 00:14:04.480
irrespective of all these regulatory
drivers and obligations.

208
00:14:04.760 --> 00:14:10.400
The may be we all at first thought
and if you try to say, well, okay,

209
00:14:10.400 --> 00:14:14.520
well what might this mean
in terms of the cost per unit?

210
00:14:14.520 --> 00:14:19.200
Well, we think about less

211
00:14:19.200 --> 00:14:23.320
than a dollar increase
on a $40 pair of jeans,

212
00:14:23.600 --> 00:14:26.600
2% average cost increase on a car,

213
00:14:27.400 --> 00:14:30.400
maybe $5 increase

214
00:14:31.000 --> 00:14:35.840
on $150,000 construction cost.

215
00:14:36.040 --> 00:14:38.720
These are relatively small amounts.

216
00:14:38.720 --> 00:14:43.320
When you look at them in percentage terms
compared to the costs of these products.

217
00:14:45.000 --> 00:14:45.720
Now, taking

218
00:14:45.720 --> 00:14:49.240
all of that, how actually might we deliver

219
00:14:49.560 --> 00:14:52.560
a decarbonized supply chain?

220
00:14:52.840 --> 00:14:56.640
Well, we've looked at this in some detail,

221
00:14:56.640 --> 00:14:59.640
particularly around the implementation

222
00:14:59.760 --> 00:15:03.800
of the EU carbon border tax
that I was discussing earlier.

223
00:15:04.360 --> 00:15:08.320
We think data is the key
because supply chains,

224
00:15:08.320 --> 00:15:12.640
as you all know, are very complex
and involve a number of partners.

225
00:15:12.640 --> 00:15:15.640
So this little map on the left

226
00:15:15.760 --> 00:15:18.760
we look at, we imagine

227
00:15:18.760 --> 00:15:21.520
some steel being sold in the EU.

228
00:15:21.520 --> 00:15:24.560
It starts off as iron
ore mines in Australia is

229
00:15:24.560 --> 00:15:27.600
then set to Japan
where it's turned into steel.

230
00:15:27.840 --> 00:15:31.680
It's then sail to Rotterdam where
it's imported into the European Union,

231
00:15:32.000 --> 00:15:33.280
then goes to Germany,

232
00:15:33.280 --> 00:15:37.080
where it's made into a car
that might be sold back to Japan again.

233
00:15:37.080 --> 00:15:38.560
You never know where Australia.

234
00:15:38.560 --> 00:15:42.960
So there could be a complete circle
in the emissions in that supply chain.

235
00:15:43.320 --> 00:15:49.240
So making sure that at every stage
in a complex supply chain like this,

236
00:15:49.560 --> 00:15:55.040
there is accurate, verifiable data
about the emissions that can

237
00:15:55.040 --> 00:16:00.560
then be added up and transport
transferred forward as the product is

238
00:16:00.760 --> 00:16:04.440
is transformed, is going to be
is going to be critical.

239
00:16:04.440 --> 00:16:07.640
And you can see on the right hand
side here

240
00:16:07.960 --> 00:16:11.800
examples of some of the questions
we think that producers,

241
00:16:11.920 --> 00:16:16.360
logistics providers and other supply
chain participants should be asking

242
00:16:16.720 --> 00:16:20.120
in order to get to this new reality.

243
00:16:20.320 --> 00:16:23.800
Because without data,
without secure, transferable

244
00:16:23.800 --> 00:16:27.280
and reliable data,
this is not is not going to work.

245
00:16:27.760 --> 00:16:31.600
It also means if you are engaged
in trade compliance,

246
00:16:31.600 --> 00:16:36.600
that the trade compliance process
is going to become

247
00:16:37.360 --> 00:16:40.360
a little bit more complicated

248
00:16:40.360 --> 00:16:43.360
because things like carbon border
restrictions,

249
00:16:43.520 --> 00:16:46.720
other ESG aspects such as human rights
and so forth,

250
00:16:47.080 --> 00:16:48.160
are increasingly

251
00:16:48.160 --> 00:16:52.000
going to be things that will be checked
and regulated at the border

252
00:16:52.600 --> 00:16:58.040
and your trade compliance arrangements
and process is need to be set up

253
00:16:58.040 --> 00:17:02.440
in order to cope with these things
rather than just the traditional issues

254
00:17:02.440 --> 00:17:06.280
such as have I got the right tariff, I've,
I got my certificate of origin, have I,

255
00:17:06.280 --> 00:17:09.400
did my know my customer,
have I avoided sanctions, people

256
00:17:09.400 --> 00:17:12.640
and all of that sort of thing that you're
used to enforcing at the border.

257
00:17:12.839 --> 00:17:17.800
Carbon will increasingly become a border
issue and a trade compliance issue.

258
00:17:19.240 --> 00:17:20.640
So just finally

259
00:17:20.640 --> 00:17:24.240
for me, four steps for next steps

260
00:17:24.839 --> 00:17:28.119
that we'd suggest customs
agencies in the logistics

261
00:17:28.119 --> 00:17:32.800
sector should be thinking about,
particularly if you are in the logistics

262
00:17:32.800 --> 00:17:37.400
business, it's really important to
understand your own emissions footprint.

263
00:17:37.400 --> 00:17:43.560
So, for example, the emissions from ships
or planes or trucks that you operate

264
00:17:43.840 --> 00:17:47.920
because your scope one emissions
or your customer scope three emissions,

265
00:17:48.160 --> 00:17:52.200
your customers increasingly
are going to want to know the emissions

266
00:17:52.200 --> 00:17:55.960
footprint of the goods they buy
and they will start asking you

267
00:17:55.960 --> 00:17:58.960
for this information
if they have not done so already.

268
00:17:59.680 --> 00:18:02.680
Secondly, as I as I was mentioning,

269
00:18:02.760 --> 00:18:07.840
carbon is going to become something
increasingly that is calculated,

270
00:18:07.840 --> 00:18:12.080
assessed and enforced at the border
and sometimes behind the border.

271
00:18:12.080 --> 00:18:15.720
That is going to require new systems
and processes,

272
00:18:16.000 --> 00:18:19.800
whether you are a customs agency
or whether you are a logistics provider

273
00:18:19.800 --> 00:18:22.800
or anybody else involved at the border

274
00:18:22.800 --> 00:18:25.400
in order to prepare and enforce that.

275
00:18:25.400 --> 00:18:28.840
Thirdly, are really important to collect,

276
00:18:29.200 --> 00:18:31.880
share and analyze data

277
00:18:33.280 --> 00:18:34.160
right throughout

278
00:18:34.160 --> 00:18:37.160
supply chains about carbon footprints

279
00:18:37.240 --> 00:18:40.920
in order to improve efficiency
and transparency, not just for you,

280
00:18:41.160 --> 00:18:44.560
but for your customers
who are increasingly going to require that

281
00:18:44.880 --> 00:18:48.200
for their own
reporting and strategic purposes.

282
00:18:48.640 --> 00:18:52.000
And then finally, really,
really important to set targets

283
00:18:52.000 --> 00:18:55.000
for emissions reductions,

284
00:18:55.480 --> 00:18:59.600
both for your own emissions
and those embedded in your supply chains

285
00:18:59.840 --> 00:19:04.600
to benchmark against competitors and peers
to see how you're doing compared to them

286
00:19:04.920 --> 00:19:09.080
and be prepared to transparently
and openly report progress so

287
00:19:09.080 --> 00:19:14.160
everyone can see how we're getting on in
what will need to be a global endeavor

288
00:19:14.760 --> 00:19:18.680
to make sure we get to the net zero supply
chains of the future.

289
00:19:19.040 --> 00:19:20.560
Thank you very much for your time today.

290
00:19:20.560 --> 00:19:23.720
I hope that was helpful and be grateful.

291
00:19:24.120 --> 00:19:27.120
I'll be very happy to respond
to any quick questions or comments.

292
00:19:27.120 --> 00:19:28.600
Thank you. On one hand, back to Liam.