1.
Stakeholder Identification
in Net Zero Initiatives
Shengru Li and Jerome Silla, UNU-IAS

2.
Outline
1. Stakeholder identification
2. Benefits of stakeholder engagement
3. Stakeholder engagement approaches
4. Stakeholder collaboration

3.
1. Stakeholder identification
Definition
• Stakeholder
• Individual or group that has an interest
in any decision or activity of an
organization
• Stakeholder engagement
• Activity undertaken to create
opportunities for dialogue between an
organization and one or more of its
stakeholders, with the aim of providing
an informed basis for the organization’s
decisions
ISO26000 Definitions

4.
1. Stakeholder identification
Stakeholders in net-zero
WEF Energy Transition Index

5.
1. Stakeholder identification
Roles of stakeholders in net-zero (examples)
• Accelerate the technology readiness of key solutions
• Improve the transformation business case of an industry and reduce
first mover’s risk by supporting technology adoption, creating
demand and enabling access to capital
• Equip with adequate standards, processes and tools to manage
emissions

6.
2. Benefits of stakeholder
engagement
1. Participatory initiatives are more
sustainable
• Build on local capacity and knowledge
• The participants have “ownership” of
any decisions made and are thus more
likely to comply with them
• More likely to be compatible with long-
term development plans

7.
2. Benefits of stakeholder
engagement
2. Decision makers gain greater
insight into the communities they
serve
• Enabling them to work more
effectively and produce better
results
• The communities can learn how the
decision-making process works and
how they can influence it effectively

8.
2. Benefits of stakeholder
engagement
3. Strengthen communities and build
adaptive capacity
• Develop awareness of the issues
within the community
• Reinforce local organisations, and
build up confidence, skills and the
capacity to cooperate

9.
2. Benefits of stakeholder
engagement
4. Improve equity in decision-making
and provide solutions for conflict
situations
• Stakeholder participation in
planning, through priority-setting
and voicing preferences, as well as
in implementation, accords with
people’s right to participate in
decisions that affect their lives

10.
2. Benefits of stakeholder
engagement
5. More cost-effective in the long
term
• Engaging stakeholders may take
longer than conventional,
externally-driven processes
• Stakeholder process is more likely
to be sustainable because the
process allows the ideas to be tried,
tested and refined before adoption

11.
Ladder of participation (adapted from Pretty, 1994)
3. Stakeholder engagement approaches
More participatory
Less participatory

12.
3. Stakeholder engagement approaches
Engagement closer to self-mobilisation is not necessarily better because it is more
participatory
Different levels of participation will be appropriate for different stages of the
project and given the experience of the research team
It is important that the stakeholders understand how they are being involved, how
the information they provide will be used and whether they have any power to
influence decisions
When designing the engagement, it is important to take into account the stage at
which the engagement is occurring in terms of the policy-making process
It may be that the engagement, though very participatory in itself, is not effective
because the scope is too constrained and there is no opportunity for developing
creative solutions

13.
4. Stakeholder collaboration
Source: World Economic Forum and Accenture

14.
4. Stakeholder collaboration
Archetype 1: Net-zero collaboration between customers and suppliers
• Collaboration model: circular supply network*
• Case of Centro Rottami and Tomra
• Centro Rottami is an aluminium scrap recycler
and supplies a nearby foundry in Italy
• TOMRA is a Norwegian multinational corporation manufacturing collection
and sorting products, such as reverse vending machines for the food,
recycling and mining industries
• Enabled by TOMRA’s aluminium scrap sorting technologies, the partnership
guarantees a constant supply of high-purity aluminium (85% recycled content
billet), essential to establishing trust with foundries
• Contributes to Italy’s rank of first in Europe for recycled aluminium
production, achieving 70% recovery
*Suppliers and customers can establish circular supply networks to maximize the reuse and recycling of materials from one
another in a near closed loop

15.
4. Stakeholder collaboration
Archetype 2: Net-zero collaboration between industry and cross-industry peers
• Collaboration model: knowledge sharing*
• Carbon Pricing Leadership Coalition
• Carbon pricing is an approach to reducing carbon emissions (also referred to
as greenhouse gas, or GHG, emissions) that uses market mechanisms to pass
the cost of emitting on to emitters – such as introducing carbon tax
• Promotes the successful implementation of carbon pricing globally by
bringing together leaders from government, business, civil society and
academia
• Strengthen the development and implementation of carbon pricing policies
and enhance the sharing of data, expertise and lessons learned through
various “readiness” platforms
*Knowledge sharing can be relevant between peers sharing similar strategic or operational decarbonization challenges

16.
4. Stakeholder collaboration
Archetype 3: Net-zero collaboration between the wider ecosystem of stakeholders
• Collaboration model: public-private advocacy and collaboration*
• European Clean Hydrogen Alliance
• Part of EU efforts to ensure industrial leadership and accelerate the
decarbonisation of industry in line with its climate change objectives
• Supports the large-scale deployment of clean hydrogen technologies by 2030
• Bring together renewable and low-carbon hydrogen production, demand in
industry, mobility and other sectors, and hydrogen transmission and
distribution
• Promote investments and stimulate the roll-out of clean hydrogen production
and use
*Firms can join forces to ensure that common objectives, roadmaps and needs are adequately communicated to regulators, so
the business environment evolves at a pragmatic and just pace

17.
GROUP WORK!

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