Systems thinking

A systems approach and a common carbon management framework are crucial for achieving Net Zero emissions, says Priyesh Depala.

No organisation can achieve net zero by itself, because none has direct control over all carbon sources, and few have access to sufficient carbon capture opportunities to offset their residual emissions. That is why decarbonisation calls for systems awareness, coordination and collaboration – vertically from top to bottom of the value chain, and horizontally within and between sectors.

This requirement is set out in PAS 2080, the newly updated specification for managing carbon across the built environment. First launched in 2016 and relaunched in April 2023, it is a practical ‘how to’ guide for decarbonising infrastructure and buildings, over their whole lifecycle. PAS 2080 was co-authored by Mott MacDonald.

PAS 2080 encourages carbon emissions to be considered at a system scale. Assets need to be seen in the context of networks; networks in the context of systems; systems in the context of other systems. Organisations are instructed to assess, as best they can, the chain reaction effects when planning, designing, specifying, constructing and operating assets. PAS 2080 provides a framework for doing so in a new section, Clause 8.

Clause 8 requires the asset owner to set a carbon reduction target and communicate it to all members of the value chain. Those organisations must then work together to meet or beat the target.

Achieving net zero by 2050 requires radical departures from business as usual project delivery. Making the changes involves all the organisations involved, vertically and horizontally, understanding their direct control and influence over carbon emissions.

Within the value chain, it calls for mutual trust and respect, supported by commercial arrangements, so that risks are shared proportionately and fairly, intellectual property arising from innovation is correctly assigned, and the benefits shared.

Between organisations within and across sectors, it calls for mutual understanding of carbon reduction possibilities and challenges. Within sectors, organisations can leapfrog forward by sharing knowledge about technical, process and commercial innovations. In different locations, organisations providing the same services – water and wastewater, for example – have different challenges, assets and resources. Collaboration can create opportunities for decarbonisation and, additional value generation, through shared solutions. Collaboration between organisations in different sectors can similarly enable them to shift blockers that were immovable when operating alone.

This is exemplified in the water sector, where water companies are starting to work more closely with farmers and landowners, industrial water users and domestic consumer groups, regulators, NGOs, transport providers and energy suppliers. Viewing carbon alongside water quality and availability at a systemic scale is revealing how others’ actions impact the volume and intensity of water treatment required, in turn determining water companies’ carbon emissions.

The challenges are significant, but so is the potential value. Improving how we collaborate in our data collection, sharing insights and consistency of value measurement across sectors and organisations will take time. However, doing this opens up the opportunity for multiplying the value generated through finite resources, improving resilience across sectors and achieving decarbonisation at an economy level and not just through individual projects.

Systems thinking and collaboration, guided by PAS 2080, are necessary to unlock carbon savings at scale.

Priyesh Depala

an investment planning adviser at Mott MacDonald

A systems view of carbon has been adopted by Ambition North Wales, a coalition of local authorities and universities that is investing £1bn in manufacturing, agri-food, transport, digital and renewable energy projects. Ambition North Wales has set as goals: a 40% reduction in capital carbon, measured against a benchmark metric set out in the outline business case; a 10% net gain in biodiversity – whereby each project will enrich local flora and fauna; and net zero operational carbon. Achieving these goals will require project owners and their supply chains to understanding and address impacts beyond project boundaries.

Systems thinking and collaboration, guided by PAS 2080, are necessary to unlock carbon savings at scale. And they will enable the organisations pursuing those savings to make the greatest progress at least cost.

The UK government’s seminal Infrastructure Carbon Review in 2013 made clear that cutting carbon represented an opportunity to save cost. Projects and programmes over the last decade have shown that to be true, up to 60% or more capital carbon reduction and 40% operational carbon. The ratio of carbon to cost savings is typically 2:1. Driving carbon savings further, and capturing carbon, will require expenditure. A collaborative, systems approach enables the greatest reduction gains to be achieved for best value.