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Customer Stories
How INSEAD financially models its carbon action plan to reduce Scope 3
15ktCO2e
GHG emissions over the 2021-22 academic year for all emission categories.
-67%
INSEAD's commitment to reduce its scope 1 & 2 emissions by 2035.
4
Training facilities on 4 continents in Fontainebleau, Singapore, Abu Dhabi and San Francisco.
the company
Developing responsible managers
Founded in 1957, the Institut Européen d'Administration des Affaires - INSEAD is an internationally recognized private business and management school. Its MBA program is considered one of the best in the world. In 2022, the school trained over 23,000 students through its various training programs at its sites in Fontainebleau, Singapore, Abu Dhabi and San Francisco .
With a community of over 67,000 alumni from more than 180 countries, and having trained over 230,000 executives since the late 1960s, INSEAD's ambition has always been to train responsible leaders who transform companies and society.
With a community of over 67,000 alumni from more than 180 countries, and having trained over 230,000 executives since the late 1960s, INSEAD's ambition has always been to train responsible leaders who transform companies and society.
the context
Leading the way in decarbonation in higher education
For many years now, INSEAD has been integrating the challenges of sustainability and the low-carbon transition of the economy into its teaching programs, its research work and publications, and in raising awareness among its stakeholders and ecosystem.
Eager to put its money where its mouth is, in 2022 the school pledged to reduce its Scope 1 & 2 emissions by 67% by 2035 compared with the reference year 2019. It has also identified and quantified a series of reduction actions that should enable it to achieve these targets.
Eager to put its money where its mouth is, in 2022 the school pledged to reduce its Scope 1 & 2 emissions by 67% by 2035 compared with the reference year 2019. It has also identified and quantified a series of reduction actions that should enable it to achieve these targets.
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However, like many companies, most of the school's carbon footprint is based on its indirect emissions, i.e. its scope 3.
Aware of the business, reputational and regulatory stakes involved in making its own transition on all its emissions, INSEAD wanted to amplify its action and raise its ambitions by replicating on its scope 3 the rigorous process that led to the commitments made on scopes 1 & 2.
In the course of this process carried out on scopes 1 & 2, INSEAD noted in particular the difficulty of making forecasts on the potential reductions, costs and ROI of opportunities to decarbonize operations.
INSEAD therefore wished to be supported and equipped with a high-performance tool to answer the following question: How can we accurately measure and effectively reduce our Scope 3?
Aware of the business, reputational and regulatory stakes involved in making its own transition on all its emissions, INSEAD wanted to amplify its action and raise its ambitions by replicating on its scope 3 the rigorous process that led to the commitments made on scopes 1 & 2.
In the course of this process carried out on scopes 1 & 2, INSEAD noted in particular the difficulty of making forecasts on the potential reductions, costs and ROI of opportunities to decarbonize operations.
INSEAD therefore wished to be supported and equipped with a high-performance tool to answer the following question: How can we accurately measure and effectively reduce our Scope 3?
TENNAXIA expertise
Reconcile financial data and carbon data
INSEAD chose Tennaxia to help it measure and analyze its carbon footprint across all emission scopes, and to model and manage a catalog of decarbonization actions.
To obtain a precise measurement of Scope 3, Tennaxia worked with INSEAD teams to ensure that all emission items were taken into account, and that the carbon accounting for these items was exhaustive. In addition to the emissions classically associated with Scope 3, specific items were studied in depth and refined through tailor-made surveys of stakeholders.
In order to identify the best decarbonization opportunities open to it and prioritize its action plan on the basis of concrete, precise data, the school wanted to model each emissions reduction action precisely, in terms of both its carbon impact and its financial impact.
To obtain a precise measurement of Scope 3, Tennaxia worked with INSEAD teams to ensure that all emission items were taken into account, and that the carbon accounting for these items was exhaustive. In addition to the emissions classically associated with Scope 3, specific items were studied in depth and refined through tailor-made surveys of stakeholders.
In order to identify the best decarbonization opportunities open to it and prioritize its action plan on the basis of concrete, precise data, the school wanted to model each emissions reduction action precisely, in terms of both its carbon impact and its financial impact.
Tennaxia's support, carbon management platform and methodological expertise have enabled INSEAD :
organize efficient data collection for all sites and activities impacting scopes 1, 2 and 3.
refine its scope 3 by mobilizing all stakeholders through dedicated questionnaires.
carry out an in-depth analysis of its various indirect emissions sources in order to identify its decarbonization levers.
to define 10 key strategies to accelerate the decarbonization of the school's activities.
model the impact of emission reduction actions in line with these strategic priorities.
obtain a forecast of the potential costs and savings of each action, including the business repercussions of a change in the offer.
The results
Accelerate decision-making on scope 3 decarbonization
Indirect emissions account for 80% of INSEAD's carbon footprint over the 2021-2022 academic year. INSEAD's main emission categories are the purchase of goods and services, and transportation, notably linked to teacher travel between different sites.
The decarbonization actions identified and modeled in Tennaxia therefore include, among others, ways to reduce the need for long-distance travel: adapting the duration and intensity of training programs, localizing certain key skills within the teaching staff or recruiting local coaches.
The INSEAD Scope 3 project steering team has identified and evaluated 23 potential emission reduction levers. These levers are analyzed in terms of ease of deployment, risk to INSEAD's business model and impact in terms of reducing Scope 3 carbon emissions.
The decarbonization actions identified and modeled in Tennaxia therefore include, among others, ways to reduce the need for long-distance travel: adapting the duration and intensity of training programs, localizing certain key skills within the teaching staff or recruiting local coaches.
The INSEAD Scope 3 project steering team has identified and evaluated 23 potential emission reduction levers. These levers are analyzed in terms of ease of deployment, risk to INSEAD's business model and impact in terms of reducing Scope 3 carbon emissions.
Refined Scope 3 carbon measurement and financial modeling of reduction actions have enabled INSEAD toinvolve and engage key stakeholders to accelerate the move to action (finance managers, purchasing managers, etc.) by basing their discussions on tangible data and analyses comparing decarbonization, financing and business impact.
Financial modeling through a MAC Curve has facilitated the prioritization of Scope 3 decarbonization actions.
Financial modeling through a MAC Curve has facilitated the prioritization of Scope 3 decarbonization actions.
Tackling the school's Scope 3 emissions in depth will require further analysis. However, there are levers with immediate opportunities for experimentation that INSEAD will rapidly deploy. INSEAD also has the opportunity to research, educate and support new ventures aimed at solving climate change issues.
Across all sectors, it is essential that we prioritize the reduction of GHG emissions within our organizations and adopt a transparent approach to reporting them.
With the help of Tennaxia, INSEAD has attained great results in measuring its GHG emissions and identifying potential levers, and it is imperative that we keep up the pace."
Maria Fedorova
Climate Initiatives Manager
Climate Initiatives Manager
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