Here is my look at how you can achieve net zero through the use of data and AI

1. How to achieve Net Zero
through Sustainabile and ESG
Reporting
CSM - Paul Young CPA CGA
January 8, 2023

2. Paul Young - Bio
• CPA, CGA (1996)
• Academia (PF1, FA4, FN2, MU1. and
MS2)
• SME – Customer Success Management
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Business Process Change
• SME – Financial Solutions
• SME – Macro/Micro Indicators
• SME – Supply Chain Management
• SME – Data, AI, Security, and Platform
• SME – Internal Controls and Auditing
Contact information email: paul.young@ca.ibm.com
LinkedIn: https://www.linkedin.com/in/paul-young-055632b/
SlideShare - https://www.slideshare.net/paulyoungcga
Twitter: https://twitter.com/paulyoungcpa
Youtube - https://www.youtube.com/user/youngercga1968/videos

3. Agenda
• What does net zero mean?
• Measuring Emissions per Capita
• Measuring Emissions per Km2
• Upstream and Downstream
• Main sources of emissions
• Redefining the term Net Zero
• The importance of ESG (Environmental, Social, and Governance) / Sustainable global reporting standards as part of regulatory
compliance
• Current Status of Global Reporting Standards
• How to audit ESG reporting
• Solutions – IBM Planning Analytics
• Solutions – IBM Cognos Analytics
• Reporting / Challenges with ESG
• Key Sources
• Summary

4. Definition of Net Zero
Net zero refers to a state in which the greenhouse gases going into the atmosphere are balanced by removal out of the atmosphere.
The term net zero is important because – for CO2 at least – this is the state at which global warming stops. The Paris Agreement
underlines the need for net zero. It requires states to ‘achieve a balance between anthropogenic emissions by sources and removals
by sinks of greenhouse gases in the second half of this century’.

5. Definition Emissions per Capita

6. Measuring emissions per Capita

7. Definition Emissions per KM2
Measuring the emissions based on country areas. Calculation is taking the emissions and
dividing it by area of a country including both water and land. Earth provides a natural CO2
absorption through forests, vegetation, and water.

8. Emissions by KM2

9. Main Sources of Emissions

10. Focus on Net Zero
• Main focus of net zero has been on emissions.
• Net Zero should also include the following
• Reducing the waste going into landfill sites
• More efficient and effective management of waterways and water usage
• More efficient and effective management of land through better urban and rural planning
• Managing energy loss through cooling and heating of buildings and structures
• Managing food waste and other household waste
• Better management of plastics including recycling
• Better management of emissions and tailing ponds from manufacturing, construction, power, energy, agriculture, and mining
sectors

11. Net Zero Emissions Flow
11
Upstream applies to suppliers of the organisation. Downstream, to the organisation's
customers. The term covers the emissions from the movement of goods by land, sea and air. It also
includes emissions from third-party warehousing along the supply chain.

12. ESG (Environmental, Social, and Governance) /
Sustainable Reporting
Country Standard Effective Date Link
United States comply-or-explain regime with
some mandatory reporting
features
March 2022 https://www.azeusconvene.com/e
sg/articles/the-global-state-of-
mandatory-esg-disclosures
United Kingdom Section 172 of the Companies
Act
April 2022 https://www.auditboard.com/blog/
uk-esg-law-what-you-need-to-
know/
Malaysia ESG (2006) but revised in 2018 https://www.azeusconvene.com/e
sg/articles/diving-into-bursa-
malaysias-sustainability-
reporting-requirements
Hong Kong Comply or Explain Systems 2013, but amended in 2019 https://www.azeusconvene.com/e
sg/articles/hkex-esg-reporting-
requirements-what-you-should-
know

13. ESG (Environmental, Social, and Governance) /
Sustainable Reporting
Country Standard Effective Date Link
Philippines New ESG Standard 2019 https://www.azeusconvene.com/e
sg/articles/a-guide-to-sec-
sustainability-reporting-for-
philippine-plcs
Singapore New ESG 2016 and revised in 2019 https://www.azeusconvene.com/e
sg/articles/navigating-through-
sgxs-esg-disclosure-requirements

14. Global Accounting Standards
Governing Body Project Link
IASB ESG – Target date (2023) with effective
date being in and around 2025 -
https://home.kpmg/xx/en/home/insights/
2022/11/ifrs-blog-sustainability-
reporting-cop27.html
https://www.ifrs.org/projects/completed-
projects/2021/sustainability-reporting/
FASB FASB – Carbon Credits -
https://www.journalofaccountancy.com/
news/2022/may/fasb-explore-rules-
accounting-esg-credits.html
SEC -
https://www.ey.com/en_us/assurance/e
sg-regulatory-activity-and-standard-
setting-developments

15. Internal and External Audit
Challenges of
ESG/Sustainable Reporting

16. Demo / Solutions – ESG
Reporting with Planning
Analytics

17. Planning Analytics / ESG

18. Sustainable Reporting with
Cognos Analytics

19. Reporting Challenges and ESG (Sustainable) Reporting
(Key Blogs)
• Navigating the complex world of ESG / Sustainable reporting - https://www.etfstream.com/industry-corner/navigating-the-
maze-of-esg-reporting-standards-and-data-sources/ - My work - https://www.linkedin.com/posts/paul-young-
055632b_5-esg-reporting-challenges-and-how-to-address-activity-7000449116157730816-
p2TY?utm_source=share&utm_medium=member_desktop
• Blog - Over 41 percent CFO have ESG Reporting Gaps - https://www.linkedin.com/posts/paul-young-
055632b_activity-6997887049718513664-t97r?utm_source=share&utm_medium=member_desktop
• Tighter investment rules - https://www.bloomberg.com/news/articles/2022-11-18/eu-explores-tighter-rules-
for-esg-funds-amid-greenwash-
concerns?utm_source=twitter&utm_medium=social&utm_campaign=socialflow-
organic&utm_content=business&cmpid=socialflow-twitter-business This ties nicely with my work - Blog - ESG
materiality ranges beyond ‘bottom line’- SEC official - https://www.linkedin.com/posts/paul-young-
055632b_esg-materiality-ranges-beyond-bottom-line-activity-6998634428847595521-
TgWC?utm_source=share&utm_medium=member_desktop
• Blog - ESG materiality ranges beyond ‘bottom line’- SEC official - https://www.linkedin.com/posts/paul-young-
055632b_esg-materiality-ranges-beyond-bottom-line-activity-6998634428847595521-
TgWC?utm_source=share&utm_medium=member_desktop

20. Key links
ESG - https://ibm.box.com/s/je7mo7xiul7d1z6ajakttapqwx5r1xwf
IBM OpenPages -
https://www.ibm.com/common/ssi/ShowDoc.wss?docURL=/common/ssi/rep_ca/9/899/ENUSLP22-
0109/index.html
Envisi/Maximo -
https://envizi.com/?utm_content=SRCWW&p1=Search&p4=43700072775671181&p5=p&gclid=CjwKC
AiA68ebBhB-EiwALVC-NqY2hnuWC9tNm7KOdD3rIDj2lNhupB2390gbgim-
rZLDlJKiUxZQMRoCqfwQAvD_BwE&gclsrc=aw.ds
Maximo / ESG - https://www.ibm.com/blogs/southeast-europe/turning-sustainability-ambition-into-
action-across-central-and-eastern-europe/

21. Template Samples
21
Workforce 1/16 2/16
White 1,500 1,500
Indigeneous 500 500
Hispanic 250 250
Asian 150 150
Black 100 100
TotalEmployment 2,500 2,500
%

22. What is next
• Global Standard is on the horizon with a target date of 2023, but effective date of 2025
• EMEA or industry standards will likely apply to your organization
• Mapping out your data including structured and unstructured data. You may required to involved Business Partners who has
expertise in ESG/ Sustainable reporting
• If you are part of the supply chain (Upstream or Downstream), then you will be required to provide reports on your net zero plan.
• Both the private and public sectors refining their data collection and reporting as part of ESG/Sustainable Reporting
• Working with structure and unstructured data
• Modeling of emissions and circular economy
• Internal audit and compliance of carbon credits and reporting
• Risk Mitigation strategy including data and AI as part of Emergency and Risk Management Planning and Reporting
• RPA and other automation being set up as part of managing all aspects of net zero

23. Any additional questions and/or concerns, then reached
out to Paul.Young@ca.ibm.com