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2. “Our highest priority has always been to arrive at the safest and most practical outcome in light of the current situation while staying true to the vision and mission of the Global Manufacturing and Industrialisation Summit. The #GMIS2020 Digital Series takes a transformational approach towards ensuring a risk-free environment for participants to engage in shaping the future of manufacturing. As the pandemic sweeps across the world, paralysing many aspects of normal life, attention must now turn to how the Fourth Industrial Revolution can be leveraged to restore our economies and our society, taking us from an era of ‘digital disruption’ to an era of ‘digital restoration’.”

4. | OVERVIEW PAGE | 03 Despite knowledge of the looming crisis, human activity is producing greenhouse gas emissions at a record consumption is by far the largest source of greenhouse gas emissions, amounting to 73% worldwide. Of this amount, transportation is responsible for 15% of total emissions, power and heat generation produces 30%, and manufacturing and construction is responsible for 12%. high. Energy ENERGYCONSUMPTIONISBYFARTHE LARGESTSOURCEOFGREENHOUSEGAS EMISSIONS, AMOUNTINGTO73% WORLDWIDE DIGITISING THE CLIMATE CRISES The industrial sector generates approximately a quarter of global GDP and employment, along with roughly a quarter of world GHG emissions whilst other sectors that produce large volumes of emissions are agriculture, such as livestock and crop cultivation (12%); land-use change and forestry, such as deforestation (6.5%); industrial processes of chemicals, cement and more (5.6%); and waste, including landfills and wastewater (3.2%). Introduction The global climate change crisis is at a critical point. The last four years were the four hottest on record and according to the 2019 report by the World Organization (WMO), the Earth’s is close to “an unacceptable risk”. The 2015 Paris Agreement on climate change called for a commitment to actions that would hold eventual warming “well below” two degrees Celsius, and for the pursuit of efforts to limit the increase even further, to 1.5 degrees Celsius. Meteorological All of this activity means that billions of tons of CO2 are released into the atmosphere every year, and according to a ten-year summary of UNEP Emission Gap reports, puts the world on track to maintain a “business as usual” trajectory, easily reaching a temperature rise of 3 degrees Celsius. As a result, it is now even more urgent and governments and industry work together to make a meaningful reduction in emissions to protect the delicate ecosystems that are the only things standing between the global population having enough to eat and drink, and catastrophic global food and water security issues. The concern is that if action to slow global emissions is not taken, temperatures could rise to above three degrees Celsius by 2100, causing irreversible ecosystems that would cause immediate threat to human, and indeed all, life. damage to our

6. PAGE | 05 Digital technology has allowed almost every business the ability to improve effectiveness, resilience, safety and network coordination, empowerment of consumers and enhanced working environments that contribute to improved employee well-being, but it has also presented the opportunity to change how things are made, how consumers behave and the potential to create an economy powered by reinvention allowing the ability to eliminate waste. As a result, digital technologies have the potential to mitigate climate change by reducing emissions, improving organizations' preparedness for natural hazards, and improving their capacity to act. For example, experts predict that digital technology could help reduce global carbon emissions by up to 15 percent by 2030 through solutions in energy, manufacturing, agriculture and land use, buildings, services, transportation and traffic management. This exceeds the combined carbon footprints of the European Union and the United States. Indeed, a recent report by Exponential Climate Action Roadmap highlighted that “enabling the digital industry is the world's strongest influence on stabilising global temperature to ‘well below 2°C’”. Indeed, even when broken down into examples, the effect of 4IR innovations could have on global warming is significant. For instance, according to PwC and Microsoft, using AI could reduce worldwide greenhouse gas (GHG) emissions by 4% in 2030, an amount equivalent to 2.4 gigaton equivalent (GTCO2e) of carbon dioxide emissions – equivalent to the 2030 annual emissions of Australia, Canada and Japan combined. Whilst scientists and activists have been working for decades to understand the components of this issue, technology has been evolving, producing generation-defining innovations that could provide the answer. The Fourth Industrial Revolution (4IR) has a led to the creation of a new paradigm of technology, creating tools such as artificial intelligence, blockchain, the Internet of Things and 5G – all with the potential to fundamentally changing how governments, businesses and industries operate. “ENABLINGTHEDIGITALINDUSTRYISTHE WORLD'SSTRONGESTINFLUENCEON STABILISINGGLOBALTEMPERATURETO ‘WELLBELOW2°C"

7. | ENABLING DIGITAL INDUSTRIES PAGE | 06 THEDIGITALINDUSTRYCURRENTLY CONTRIBUTESJUST1.4% OFTHEWORLD'S TOTALEMISSIONSLEVEL, ANDYETSTILL THEGOALISTOHALVEITSGLOBAL EMISSIONSBY2030 However, if the world is able to meet the steep target of carbon neutrality by 2050, major changes must be made across the board, utilising 4IR technology in sectors such as manufacturing, and construction could be key. In some areas, small steps are being taken. transportation, heating, For instance, in Germany, France, UK and India internal combustion engine vehicles are being phased out. To replace them, these governments are heavily investing in electric alternatives. As a result, it is estimated that by 2040, electric cars could make up 57% of all passenger cars sells worldwide, and 33% of the global fleet may be electric by 2050. In addition to the potential benefits of improved efficiency to help reduce the rate of warming, the digital industry is also leading by example in emission levels. Research shows that the digital industry currently contributes just 1.4% of the world's total emissions level, and yet still the goal is to halve its global emissions by 2030, all while driving the exponential growth of data performance and aiding emission rates economies. Meanwhile, in the UK, the construction industry has been tasked with reducing the carbon footprint of each building constructed by 50% over its lifetime and many countries are actively investing in carbon sequestration, and advanced technologies – all in a bid to achieve the net-zero target. Yet more must be done. oil recovery across global

9. | TECHNOLOGIES PATH TO NET ZERO EMISSIONS PAGE | 08 Some ways key 4IR innovations could contribute to achieving the global net zero emissions target examined below; 1. Artificial intelligence (AI) To achieve a low carbon future, productivity must increase and waste must be reduced. To do this, governments and organisations need to improve efficiency, achieve better use of resources and accelerate the adoption of renewable energy, carbon negative initiatives. decarbonization and AI can help in this regard by improving labour efficiency through access to real-time data insights, contributing to worker and on-site safety through automation and improve safety initiatives, and reducing companies' carbon emissions. For instance, AI algorithms can be used to monitor, manage, and control electric vehicle charging stations to consumption by monitoring the central energy grid whilst controlling the charge to the vehicle – doing so allows the customer to choose the cheapest electricity with the lowest carbon intensity. optimize energy USING AICANREDUCEGHGEMISSIONS BYBETWEEN2.6 AND5.3GIGATONSOF CO2E 4IR TECHNOLOGIES CONTRIBUTING TO NET ZERO EMISSIONS

10. | TECHNOLOGIES PATH TO NET ZERO EMISSIONS PAGE | 09 2. 5G For example, an IIoT network can measure operations inside a factory, but also external elements such as river levels, wind speed, land erosion, the movements of animals and plant life, and measuring bees and beehives – allowing human managers to make decisions that are sensitive to the environment they are working within. By pairing 5G - the super-fast data network - with AI there is the potential to radically align economic, societal, outcomes towards a greener future. 5G allows data to be distributed across a network at a speed that is fast enough to facilitate other 4IR technology, without lag times and with stability and reliability. and environmental An IIoT also has the ability to reduce the carbon emissions caused by processes by significantly reducing the consumption of raw materials, potential to reduce waste and pollution, ultimately creating and contributing to a circular economy. For instance, companies like Ericsson, Telia, and Einride are already providing 5G connectivity solutions that lead to faster and more connected public transforming how we move goods. Using these electric networks and supply chain infrastructure allows a viable and cost-effective alternatives to current land-use patterns that could reduce more than 60% of today's transport emissions. transportation, 3. Industrial Internet of Things (IIoT) The Industrial IoT – the connection of machines to a network that facilitates production and operations - allows many benefits, but the key one is measuring the level of efficiency of industrial processes through sensors. By capturing data on a wide range of factors, including temperature, error levels, speed and output, the technology can track indirect impacts of climate change by measuring external and internal factors affecting production. BYPAIRING5GWITH AITHEREISTHE POTENTIALTORADICALLY ALIGN ECONOMIC, SOCIETAL, AND ENVIRONMENTALOUTCOMESTOWARDS A GREENERFUTURE

11. | TECHNOLOGIES PATH TO NET ZERO EMISSIONS PAGE | 10 4. Blockchain 6. Big data and analytics Blockchain has already revolutionized the way energy is traded via smart contracts, and soon, there will be applications in the energy industry too. decentralisation and therefore, by applying this technology to the energy system, efficiency could be exponentially Consequently, areas of the world that are currently without reliable power, could be better served by a smarter system whilst mature economies could run carbon emission offsetting operations transparency and accountability. It is likely therefore that in organizations will trade in their carbon footprints through cryptocurrency, helping to revitalize national emission trading markets. Many have come to embrace the concept that ‘data is the new oil’ and recognise the potential being able effectively can bring. Large data sets with in- depth analysis allow companies to create better decisions for both the financial health of their business, but also related to wider environmental consequences. to manage data Blockchain allows improved. Big data is already being used to revolutionise cities, factories, businesses, buildings and energy grids to become ‘smart’. And improved efficiency means lower emissions. that facilitate the future, major 5. Virtual Reality (VR)/Augment reality (AR)/Digital twin Companies anticipate production issues that could cause a production line to be stopped. VR and AR help organisation pre-empt an issue, increasing efficiency and reducing costly downtime. currently use analytics to For example, this technology allows a ‘digital twin’ to be created, building a database of data from the asset and the machinery that is combined with modelling and visualization techniques to better understand how the components of an asset behave. For instance, GE have developed a technology that helps operators understand, predict, and optimize the operational performance of their machinery which in turn, reduces the level of carbon emissions, energy consumption, and operating costs within a facility.

12. | GLOBAL EFFORTS PAGE | 11 7. Cloud Platforms Businesses are facing increasingly complex economic challenges as well as societal pressures to shift to more sustainable and responsible practices while simultaneously increasing profitability and one way of doing this is to move activity onto the cloud. Analysts estimate that migration of digital activities to the public cloud can of a 5.9% reduction in the amount of CO2 annually emitted by IT - the equivalent of taking 22 million vehicles off the road. It would appear that many are already adopting such an approach with the latest Accenture Strategy-UNGC survey found 59% of CEOs confirm that they are deploying low- carbon and renewable energy across their operations. The report found that 44% see a net-zero, carbon neutral future for their company and two-thirds view that new technologies like the cloud as essential organizational goals. However, despite the potential of all the 4IR innovations in achieving major leaps forward in efficiency, the critical question is whether digital technologies can be deployed to tackle the climate crisis before it is too late. to achieving their Human activities have led to approximately 1.0 °C of global warming so far, causing worsening floods, storms and droughts that have plunged millions into extreme poverty. Now is the time to act if we are to halt, and ideally reverse the effects of this warming, keeping the world’s temperature from the tipping point that would cause widespread destruction that can no longer be prevented.

13. Uniting the world in shaping the future of manufacturing is the goal of the Global Manufacturing & Industrialisation Summit (GMIS). A unique and unprecedented cross-industry forum, we bring together governments, the business world, and civil society to create a roadmap of the development of a sector that accounts for million jobs, 17% of global GDP, and 84% of world trade exports – ensuring its evolution mirrors the way the world is changing and supports progress toward the UN Sustainable Development Goals. A joint initiative by the United Arab Emirates and the United Nations Industrial Development Organization, GMIS – as a platform for leaders to transform manufacturing, a builder of cross-sectoral partnerships, and a knowledge-base that identifies opportunities for the sector to generate universal benefit – is committed to placing manufacturing at the heart of economic regeneration, policymaking, international collaboration, and contribution to global good. Should you wish to participate or share any of your papers or reports, please drop us a note on research@gmisummit.com The Global Manufacturing & Industrialisation Summit reserves the right to all content contained within its reports and publications.