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Madrid Marriott Auditorium, Spain, December 8th, 2019 Sustainable Revolution 2030 Radical reinvention of business models, open collaboration and -driven technology choices are urgently needed to stem the destructive impact of carbon emissions on our planet.

1 2 Chapters

1. Foreword: The disrupted decade ahead 4 2. Climate emergency: The global call for action, and the challenge for 5 Economy versus environment: The role of government and regulation 6 3. Reinventing business models: Doing things differently, with technology 8 Technology: From villain to savior 10 4. Why ecosystems are needed 12 5. Energy in 2030 14 6. Mobility in 2030 16 7. Smart cities in 2030 20 8. Next steps, right now 24

3 1. Foreword: The disrupted decade ahead

Will you still be in business after 2030? It’s a valid question, with the decade ahead set to be characterized by disruption and reinvention in business to tackle the climate emergency.

Unless organizations collaborate with one another and with their stakeholders to deliver the significant carbon reduction targets recommended by the Intergovernmental Panel on (IPCC), business as usual may not survive beyond 2030. Even the Governor of the Bank of England Mark Carney joined the debate, saying: “Firms ignoring the climate crisis will go bankrupt.” 1

That’s why business leaders must act now. They need to start reinventing their business models and developing the ecosystems that will drive success. The IPCC’s 2030 target gives us all just 10 years to radically transform how we operate within the global economic system. To this end—and with a core mission to help organizations reduce their carbon emissions—at Capgemini, we work with our clients to reinvent their businesses, using technology as an enabler.

There is no time to wait. To reach the carbon outcomes required by 2030, the transformation must begin today.

Cyril Garcia, CEO Capgemini Invent

4 2. Climate emergency: The global call for action, and the challenge for businesses Global business is a major contributor to today’s escalating levels of atmospheric carbon emissions, with just 100 companies responsible for more than 70% of all emissions2. Consequently, business also has the biggest opportunity to be part of the solution.

In September 2019, during more the abilities of the energy sector than a year of protests, thousands to deliver. These pressures on the of school children and students took bottom line are augmented by the to the streets across the world to potential for stiff financial penalties express their concern about climate for non-compliance with tightening change. They were protesting about environmental standards. A much- the lack of action being taken to needed price on carbon would, if deliver the necessary reduction in implemented, add to these costs. greenhouse gas emissions required to keep our climate in balance. There is absolutely no doubt that This was a scientific fact-based carbon emissions are a business- revolt, one that was in line with the critical issue going well beyond changing mood in much of society short-term profitability. At today. No organization, commercial Capgemini, we firmly believe that or governmental, can afford to those organizations failing to grasp ignore these signals—these voices the sustainability agenda will cease will be the voters, consumers and to operate in the hard realities of the employees of tomorrow. environment beyond 2030.

Of course, many businesses are This is, of course, the target already recognizing these trends and date set by the United Nations are starting to act. In an extensive Intergovernmental Panel on Climate piece of research conducted at Change (IPCC) by which global net Henley Business School, Dr James human-caused emissions of carbon Robey, Global Head of Environmental dioxide (CO₂) must fall by about 45% Sustainability at Capgemini, explored from 2010 levels3 on the path to the drivers behind corporate reaching net zero emissions by 2050. motivation to invest in becoming more sustainable. Based on inputs The first target is 2030. With from 170 of the world’s largest business reputations—and the companies, the ability to attract and future of our planet—depending retain the best employees topped on a strong environmental stance the list of drivers, alongside the in the coming years, how many expectations of customers. organizations thriving today will still be here beyond that date? In addition to these reputational drivers, businesses are already facing the hard implications of climate change today—insurance costs are rising as claims for extreme weather events escalate, resource costs continue to rise and increasing demand is outstripping 5 Economy versus environment: The role of government

Economic success breeds longer-term retrospective, there was Elsewhere, the Australian a 41% increase in the world’s CO₂ more emissions in many sectors. Government is making significant emissions between 2000 and 2017. progress in projects through the Renewable Economically, it makes better In our 2019 World Energy Markets Energy Target (RET) scheme that is sense to start the radical overhaul Observatory4, we noted that energy targeted to deliver at least 33,000 of carbon emitting industries, consumption, which is the largest gigawatt-hours (GWh) of Australia’s technologies and cities today, not source of carbon emissions, had electricity from renewable sources in 10 or 25-years’ time. Energy grown globally by 2.3% in 2018, by 20207. Both the Federal RET and expert Hal Harvey11 has calculated driven by a robust global economy. other state policies have offered the higher cost of achieving net At the same time, fossil fuel remains incentives and investments to zero carbon if the transformation dominant, with oil, gas and coal ensure the country is on the right is delayed due to the growth in accounting for three quarters of the track to meet the RET ahead of the volume of infrastructure in the growth in energy demand in 2019. schedule. And in Southeast Asia, the ensuing years. “If you’re going to go World Bank reports8 that a rapidly to zero, go to zero now,” he urged at This link between growth and increasing number of countries a What’s NOW San Francisco event. energy demand creates a very real are implementing a carbon tax or environmental predicament. How reforming their environmental taxes do businesses continue to grow with a growing number of initiatives without worsening this situation? In reflecting their countries’ climate Southeast Asia, for example, primary commitments. In Singapore, for energy consumption is on an upward example, a new carbon tax came trend, with the growing demand into force at the beginning of 2019, being met by fossil fuels5. Thus, while Vietnam is looking at different governments face the daunting options for carbon pricing9. task of producing large amounts of reliable energy to meet the ever- New approaches being adopted increasing demand for electricity. The climate challenge has also given In some developing economies this rise to more dilemma has prompted an evaluation models on the part of some local of the structures of their energy authorities in recent years. Many sector, including power market cities are pushing to make electric design, and of the opportunities vehicles a more attractive option for for augmenting government urban travelers using tax incentives investments towards sustainability. and green driving schemes. We also expect national regulatory regimes Tackling climate change pertaining to climate change to Here we can see that government continue driving new business intervention, as well as business, is models and product development in playing its part in tackling climate industries by 2030. change. Some governments are more bullish about this than others. Broader legislation and mechanisms For example, the Danish Government such as the European Battery has an objective to meet at least Alliance (EBA) will steer progress 50% of its energy needs through to global carbon reduction targets. wind and solar energy by 20306. If you’re going Overall, however, the progress This is viewed as a possible target towards lower carbon emissions “to go to zero, thanks to the efficient Nord globally has been slow. For example, Pool grid interconnections. Such go to zero now the EU failed to reduce its CO₂ interconnections—or ecosystems of emissions between 2015 and 201810. partners—will be essential on the Even more worryingly, and taking a journey to net zero carbon emissions. 6 “ 7 3. Reinventing business models: Doing things differently, with technology

The climate change challenge choices and experiences, rather A green Utopia presents both wide-ranging than simply product purchasing. In Sogeti’s recent report ‘Utopia for 12 threats and opportunities Consumers don’t necessarily want Executives’ , renowned researcher, to buy a car, they’re seeking a lecturer and consultant Professor for the private sector. Yet it hassle-free, cost-effective way to Carlota Perez describes what she is not enough to simply do get from A to B. A sharing economy calls smart green growth and its things better, or to operate and environmental concerns are implication of “a paradigm shift in more efficiently. disrupting car ownership models both business and consumption”. and pushing drivers towards new She continues: “It involves creating The threat of climate change mobility solutions, including ride an incentive framework that moves demands that organizations do sharing and renting. Of course, business to invest and innovate in a things in a wholly different way. Just from a sustainability perspective, it green direction, not only because it as the digital revolution has driven would be even better if these new avoids climate change but because massive disruption for business, now mobility solutions were supported that is the best path to find dynamic the climate crisis must be the next by electric vehicles and local electric demand and profits.” catalyst for widespread reinvention vehicle charging points (when the and transformation. Businesses must electricity is low carbon), which, in In the Utopian world envisaged set up ambitious transformation turn, suggests a whole new business by Perez, and journeys that enable them to reach a model. In the energy sector too, would be the norm with a shift level of full sustainability. we are working with clients to from products to services leading manage a transformation in the way to a gradual dematerialization of This demands new business models in which energy will be generated, gross domestic product (GDP). as companies adapt to survive and distributed, accessed, stored, This Utopian green ideal, in which complete the reshuffling of their protected, regulated and valued over “waste would be embarrassing portfolios of activity to ensure the coming decades. and durability highly desirable” has they are linked to . Business leaders must keep this sustainability at the forefront of their thinking, aligning their products, services and delivery models with the changing lifestyles of today’s consumers—who are increasingly conscious of their environmental footprint.

Envisioning the future This move towards something completely different is part of the future visioning process underway amongst many of our own clients. Schneider Electric, for example, which recently repositioned itself as a provider of “energy and automation digital solutions for efficiency and sustainability”, makes a point of communicating the fact that green business is good business.

We are already seeing the impact of a shift towards consumer lifestyle 8 the potential to bring in additional sources of revenue for companies, creating jobs and social benefits. This corresponds with the concept of a , whereby reuse, sharing, repair, refurbishment, remanufacturing and recycling come together to create a closed- loop system, keeping products, equipment and infrastructure in use for longer. This has both environmental and economic advantages, with one estimate suggesting adopting circular- economy principles could generate a net economic benefit of €1.8 trillion by 203013. CASE STUDY

To this end, companies must pivot SK GROUP to a new model, one that ensures success, while reducing energy Many visionary companies, consumption and fossil fuel-hungry like global energy, chemical, travel. We are currently working petroleum, semiconductor and with several organizations across telecommunications conglomerate diverse sectors to investigate and SK Group, are identifying their roll out the new sustainability-centric 10+ year roadmaps. With this in business models and technology mind, Capgemini Invent has been that will make this happen. This working on a future vision over requires reinvention enabled by the an even longer timeframe for SK lever of new technologies, especially Group, looking at a 30-year horizon. platforms and data. Energy, connectivity and data are This is already happening in certain coming together like never before instances as some pioneering and SK Group is determined to seize companies use their resources to roll the opportunities that this presents. out and scale solutions to today’s Our research and proposals for climate challenges. Capgemini transformative future innovation Invent’s design agency Idean has at SK Group reached into every developed a planet-centric design corner of the energy value chain, approach that moves clients from from demand response and energy the traditional end-user design efficiency to battery networks in effort to a focus on sustainability homes, microgrids and exponential and circular business models. This connectivity in a world where requires organizations to reshape energy demand is expected to triple how they approach transformation through to 2050. projects by designing for humanity and planetary needs, rather than just We identified a gameboard of to get a product or service to market. multiple areas of transformation with the opportunity to ignite new business models, which will inform SK’s innovation efforts in 2020 and beyond.

9 Technology: From villain to savior

In the ongoing drive to We have identified three domains reduce carbon emissions, of technology influence on the response to the climate challenge: technology is viewed as both villain and savior; as both a • The IT estate—minimizing contributor to the problem the environmental impacts of and part of the solution. a business’s own IT systems through consolidation, The energy consumption in virtualization and cloud inefficient technology solutions solutions, as well as by deploying (such as heat producing data energy saving solutions across centers requiring energy-hungry air the hardware landscape. conditioning) is a cause for concern. As is the impact of streaming, which • Wider operations—employing in 2018 emitted as much CO₂ as technology as an enabler to drive a country like Spain14, according efficiency across a business’s to Joseph Tarradellas, honorary entire operations. professor, École polytechnique fédérale de Lausanne (EPFL). • Society—going upstream or downstream beyond the Yet for some, the inefficiency is boundaries of the organization a reason for hope. It offers the to drive wider systemic changes prospect for transformation. And, as with suppliers, customers we focus on programs that advance and partners that enhance environmental sustainability, the sustainability. promise of technology as a means to reduce emissions becomes Digital and artificial intelligence increasingly attractive. (AI) are already proving crucial enablers of innovation in the area The right IT choices of sustainability, for example in a At Capgemini, we view technology game-changing project to protect as one of the key levers available to Sweden’s forests — see facing page. address the mounting challenges They also have the potential to help posed by climate change. While our clients engage and influence technology has its own carbon their customers in line with a greener footprint, research suggests that agenda. Solutions might include the the right IT choices can make a 9.7x use of smart labelling, consumer greater impact on the carbon output analytics, marketing, advertising, and of a system than the system itself15. active engagement through digital means. All of which requires data We believe that by working together collection and architecture systems and embedding technology within to be in place, thus a transformation sustainability strategy and targets, of the underpinning technology we can all collectively make a landscape is needed. difference. Further, all technology investment must be considered through a sustainability lens. Business leaders have a responsibility to identify how technology can enable new lower impact consumption, business and sales models, as well as greener products and services. 10 CASE STUDY

SVEASKOG

In the drive towards 2030, the huge owner, to track and contain the value of trees for absorbing harmful progress of the beetle. The solution carbon from the atmosphere makes uses artificial intelligence, with preserving the world’s forests vital. advanced cognitive image analysis, Sogeti in Sweden has developed Machine Learning and Deep a Geo Satellite Intelligence (GSI) Learning, to produce detailed maps solution that is being used to help that visualize the movements of halt the destructive annual march the bark beetle. Drone technology of the spruce bark beetle. In 2019 is used to verify the accuracy of alone, the bark beetle destroyed the data relating to affected forest 7 million cubic meters of Sweden’s areas, enabling Sveaskog to move forests, double that of 2018. fast to contain the progress of the bark beetles. Sogeti is working with state-owned Sveaskog, Sweden’s largest forestry

of annual investments to energy Capgemini Invent, a tender to efficiency projects in lighting, install, finance and operate solar cooling and heat recovery. A systems on the rooftops of 22 metering system enables energy stores resulted in 20-year leasing consumption to be monitored at all contracts being awarded. This has CASE STUDY stores, and the business is a proud given METRO France its own green holder of ISO 50 001 certification electricity resource with no capital METRO FRANCE for the store energy management investment. New tenders will be systems at all but the most recently requested to develop projects on all METRO France has defined opened stores (yet to be certified). remaining stores. a strategy for greener, more sustainable operations. The French METRO France has also adopted a The PPA pillar of the sourcing arm of international wholesale sustainable sourcing strategy built strategy took a major step forward and food service specialist METRO on two pillars: to produce as much in March 2019 with the first PPA AG established an internal Energy of the energy it needs itself; and to ever signed in France. A wind energy Department in 2014 to manage agree new green sourcing Power producer has been contracted to energy consumption and costs. It Purchasing Agreements (PPAs) with deliver 20% of energy consumption. has an ambitious target to achieve local and regional energy producers. This will diversify risk on electricity a 40% reduction in the amount of prices (at competitive prices), whilst energy it needs to operate by 2030. The business has targeted 20% of meeting sustainability ambitions. To date, several initiatives have its energy consumption to come METRO France is now looking already delivered a 25% reduction. from on-site green sourcing, with for other PPA opportunities with This includes allocating a proportion solar systems planned for all stores. different producers. The first pilot store installation was funded by METRO itself, but the business believed it could accelerate rollout by bringing in third-party investors. With the support of 11 4. Why ecosystems are New mobility ecosystems Ecosystems are already yielding needed unexpected partnerships and the pooling of investments with the potential to drive more sustainable business models:

• Daimler and BMW formed The scale of the Ecosystems are already reshaping a carsharing joint venture. transformation needed to markets and the way we consume They have merged their meet emission reduction products and services. They are two platforms Car2go and targets demands a huge enabling the paradigm shifts that are DriveNow into SHARENOW, level of investment from part of the answer to climate change. enabling them to scale business; one that very few At Capgemini, we work within a their opportunities and to organizations will be able to number of ecosystems, collaborating improve their business model. make on their own. with our clients and with global SHARENOW offers consumers institutions, such as the United a diverse and flexible way to Organizations must find their place Nations and the World Climate move around the world’s city in an ecosystem of new partnerships, Summit, to find solutions to the centers. Cars are available on through which they can combine challenge of climate change. These the street or in designated their investments and leverage their solutions don’t aim to dismantle parking areas and can simply specialist strengths to achieve more the world of business, rather they be dropped off within a than they could by working alone. focus on how to reinvent business Home Area rather than being These ecosystems will touch on models, drawing on ecosystems that returned to the pick-up point. every aspect of a consumer’s life, are collaborative, open and digitally requiring businesses to re-imagine enabled. • Volkswagen and Ford a more sustainable and joined up are collaborating on the response to customer demands. Turning the spotlight on three development of self-driving ecosystems and electric cars. VW chief What do ecosystems look like? Electricity and heat production, executive Herbert Diess said In traditional sustainability terms, transport, residential buildings the tie-up "improves the a marine, desert, or rainforest and commercial/public services positions of both companies ecosystem comprises large are among the biggest carbon through greater capital communities of interconnected emitters globally. This means they efficiency, further growth and plants, animals and other organisms also have the biggest potential to improved competitiveness." both taking from and feeding the make a significant contribution to natural world and atmosphere sustainability in the decade ahead. • In 2018 Honda invested in around them. Similarly, in the For that reason, we have identified the driverless unit operated ecosystems discussed in this paper, three ecosystem types that we by rival General Motors with businesses, industries, public bodies, believe will be part of the climate a view to launching a fleet of academia, social enterprises, non- change solutions of the future. unmanned taxis. governmental organizations (NGOs) There is a clear connection between and consumers connect and feed all three, with both the energy and into a radically transformed business mobility ecosystems flowing into the landscape in order to drive long-term concept of smart cities. sustainable outcomes through to • Energy 2030 and beyond. • Mobility Technology will Where currently separate companies • Smart cities “be an important and even industries operate in silos, enabler as an ecosystem represents a shared Built on trusted relationships, these responsibility to delivering on ecosystems will enable the end-to- organizations use both business and climate change end environmental impact to be objectives. To this end, we are urging measured and managed, for example AI and digital to our clients to look beyond their own through data sharing and the reduce carbon operations, to collaborate with all installation of reporting platforms stakeholders (customers, investors, or supplier collaboration systems. emissions and partners, start-ups, academia and In all of this, technology will be an create new, government) to accelerate our important enabler as organizations collective journey towards achieving use AI and digital to reduce carbon greener business a net-zero economy. emissions and create new, greener business models. models. 12 “ CASE STUDY

INNOENERGY

In October 2017, the European of innovative projects all along Commission launched the European the value chain, from to Battery Alliance (EBA) to allow all recycling. In this context, 200+ Europeans to benefit from less- start-ups active in one or more fields polluting vehicles, while creating a of the battery sector have been competitive manufacturing value identified and contacted, with more chain in Europe with sustainable than 50 business opportunities battery cells at its core. studied, several of which are in the process of applying for the next InnoEnergy, a European innovation investment round. fund for , has been mandated by the EC to A strong cross-sectoral approach steer the initiative and support has been followed, initiating this ecosystem of 250+ industrial, dialog between academics, large academic and institutional players in companies, start-ups and research capitalizing on the job, growth and centers across Europe on various investment potential of the battery research and industrial projects. All market. projects identified and discussed have the creation of a competitive Our Capgemini Invent business European battery sector as is working with InnoEnergy their main purpose, but with an to structure and support the unprecedented emphasis on the activities of the EBA250 initiative: environmental impacts of such from identification of business industrial activities. opportunities to implementation 13 5. Energy—the 2030 vision

The 2030 energy sector will which need to change their business the grid of one region with a lot of be radically different to how models from owners of large assets wind energy connecting with the it looks today. with predictable cashflow toward grid of another region with a lot of being portfolio managers with sun to mitigate the risks of shortage

uncertain long-term cashflow. inherent in the unpredictability of Traditional carbon-fueled utility renewable resources. In February models will be a thing of the past One reason for the increase in 2019, Portland General Electric (PGE) in 2030. Instead, as renewable players in this industry is that and NextEra Energy Resources in costs decline over the coming and digital will have the U.S. developed a major energy decade—e.g. solar module prices lowered barriers to entry, enabling facility co-locating wind (300 MW), dropped by nearly 30% in 201816 new startups to challenge or partner solar (50 MW) and energy storage —the decarbonization of the sector with incumbents. For example, (30 MW). PGE is able to meet about will have gathered momentum. the deployment of smart grids at 50% of its customers’ power needs This is already underway. In 2018 scale will demand expertise in data with emissions-free generation19. there was a jump in the EU’s clean collection, data mining and AI to energy investments, driven by solar improve forecasting and operations. Energy ecosystems already include and wind, while Singapore has been The big GAFAM (Google, Amazon, the end consumer and we expect leading the way in Southeast Asia Facebook, Apple, Microsoft) tech by embracing a greener energy mix firms might also be part of the with solar photovoltaic panels and its picture in 2030, expanding their Open Electricity Market that enables operations into grid management, consumers to opt for green energy17. drawing on their extensive data management capabilities. By 2030 we expect to see the current centralized utility model Regional collaboration to have been replaced by a Energy ecosystems could also be more decentralized, distributed, enabled by policy. For example, as technology-enabled set of new energy expert Hal Harvey points business models. Energy companies out18, smart trades of renewable will no longer be the sole providers energy across some geographies of heat and power. Rather, they in the U.S. are enabling regions will be managing supply and to balance the distribution of demand dynamically, operating renewable energy. Here we can see as energy management platform companies. We are already seeing some companies working within an ecosystem of new market entrants, technology vendors and other partners, which is something that will be the norm in the future. This is a major shift for traditional utilities,

14 this to continue to grow. Through Another interesting business- energy firms face the task initiatives such as microgrids led dynamic in the ‘greening’ of of balancing production and and home-generated energy, the energy sector is emerging in consumption points, and optimizing including solar and photovoltaic Southeast Asia. Here, investors are value based on energy price, CO₂, (PV), customers will be suppliers becoming aware of the regulatory peaks in demand, and availability themselves. New technologies, such and climate change risks associated of renewable energy. Technology is as blockchain, will enable domestic with coal-fired power, and some of driving many of the changes needed energy generation solutions to the region’s biggest financers of to monitor, measure and reduce connect to trading platforms and, in power projects, including leading carbon emissions. For example, this new disaggregated landscape, banks, are withdrawing finance from we will see greater use of smart we expect to see more peer-to-peer new coal projects21. meters and smart grids, as well as marketplaces for energy trading. investment in new, carbon-friendly Surviving the transformation battery storage and EV charging Microgrids are already part of the Who will thrive in this new points. energy mix, with some utilities landscape? Forward-thinking selling new services related to companies are acting now. They The successful companies will be their management. In 2030 many know that they will only survive those open to collaboration with more microgrids will be operating by reinventing their established all the players in this new-look separately from the main grid, business models, pivoting towards market, including the hardware and characterized by small networks sustainability and growing their software solution providers that of electricity users. According to ecosystems. For example, in North will enable the integration of new one report20, the global microgrid America, a surge in the installed base energy resources with existing grid market is expected to reach USD of smart home systems has seen the infrastructure. Some established 17.51 billion by 2025, growing at a emergence of a new business model companies have already expanded CAGR of 17.0%. These microgrids will based on generation and storage into, or acquired businesses in, be powering small areas, such as a at home22. Another new model new, renewable markets. Others municipal district, or facilities like a emerging is that of as-a-service, such are buying or collaborating with university campus, hospital complex, as microgrid-as-a-service and smart technology partners in areas such as industrial site, or prison. mobility services and infrastructure. e-mobility, energy-efficient storage As they transform into energy and the fast-growing EV market. management platform companies, Reinvention is key. For example, Capgemini Invent worked closely with National Grid in the UK on a major project to transform a core CASE STUDY part of its business. This will ensure it can deliver a sustainable, secure, and affordable energy future, with the NATIONAL GRID target to operate the UK’s electricity network with zero carbon by 2025. National Grid System Operator of this major transformation was (SO) sits at the heart of Great to establish a new legally separate Britain’s energy system, running the entity (National Grid ESO) that electricity and gas system networks could adapt to changing customer safely and efficiently, while enabling and industry expectations, and accelerating progress towards a remove any actual or perceived low-carbon energy future. conflicts of interest and provide greater ESO independence and 2025, which include an electricity 2019 marked an historic year for market transparency. To bring system that can operate carbon the organization in terms of its the separation project to fruition, free, and a strategy for clean heat. commitment to sustainability, with National Grid supported by The ESO today is financially and more electricity generated from Capgemini Invent worked with operationally independent from zero carbon sources than fossil government and the industry the wider National Grid business fuels. In May this year, National Grid regulator to define, design and and is facilitating competition in Electricity System Operator (ESO) implement the transformational the onshore transmission market. also achieved its first ever coal-free journey. The National Grid ESO will be fortnight; the first time since the responsible for working with the Industrial Revolution. Sustainability is a key feature in energy industry to tackle some the new ESO mission to enable the of Great Britain’s most pressing 2019 also saw the culmination of a transformation to a sustainable energy challenges. This will two-year transformation program, energy system and ensure the require a whole system (gas and supported by Capgemini Invent, delivery of reliable affordable electricity) approach to support to separate National Grid’s ESO energy for all consumers. To decarbonization of heat, transport business from its main operations— support this mission, the ESO and industrials to support the 2050 “Legal Separation”. The objective has outlined success criteria for net zero target. 15 6. Mobility—the 2030 vision

The widening scope of Why the need to legislate to bring A broader sustainability target environmental legislation about change? Despite higher CO₂ Propelled by regulation and means that regulation will be standards, there was a 4.2% rise incentivization, the business in energy use across the world imperative in the automotive sector a primary driving force in the transport sector between 2014 to transform rapidly will have automotive sector’s approach and 201623 Further, just 7.6% of resulted in organizations embracing to carbon emissions by 2030. transportation in Europe came from new technologies by 2030, such as renewable energy sources in 2017. AI, blockchain and 5G, alongside The automotive industry has been new partnership models. Together, on an ongoing sustainability journey While currently there is a long these will have pushed a more dating back to the 1990s with the journey ahead in pursuit of the UN sustainable agenda and, where introduction of increasingly stringent IPCC carbon reduction target, we needed, rebuilt trust in the accuracy legislation and standards around expect to see a very different picture of manufacturers’ emissions controls particulates, carbon monoxide (CO), emerging in this sector by 2030. and reporting. nitrogen oxides (NOx), hydrocarbons Indeed, the EU standard for heavy and, of course, CO₂. Bringing the duty vehicles is expected to reduce However, at Capgemini, we believe regulatory landscape up to date, CO₂ by around 54 million tonnes that this agenda must extend beyond we saw the introduction of the through to 2030. simply meeting carbon emissions Worldwide Harmonized Light Vehicle targets to embrace a far broader Test Procedure (WLTP) in 2017 Governments and policy makers will context, including other greenhouse and, in August 2019, the first ever also find ways to incentivize greener gases and the end-to-end supply EU-wide CO₂ emission standard for manufacturing and consumer chain. In our 2030 vision for the heavy duty vehicles entered into mobility behaviors, as well as automotive sector, new technology force. By 2030, truck manufacturers innovation around sustainability. makes it possible to track a vehicle in the EU must have reduced the CO₂ from the supply of raw materials, emissions of their annually sold truck such as aluminum and plastic, through fleet by 30% based on their actual production, sales and after sales. By CO₂ emissions. 2030 manufacturers will be able to

16 benchmark the sustainability of their two thirds of all trips in the U.S. external developers share apps and car lines, using blockchain to give are of five miles or less, which new services. traceability of parts. could easily be achieved without a personally-owned car via a mix of The OEMs will be collaborating with The role of the consumer is also walking, scooter hire, sharing, public companies specialized in telematics, part of this mix. Consumers are transport, etc. And, as we will see remote services (e.g. diagnostics), adopting new, greener and more in our discussion on smart cities, infotainment and navigation, flexible approaches to getting greener intermodal transport will be hardware, software and data, as well from A to B. This will be more of a a feature of urban transport models as safety and security (e.g. advanced mobility ‘experience’, rather than in the coming years. However, driver assistance systems). With such just being about vehicles. Over the Papandreou notes that in many cities a broad ecosystem, the successful coming decade, original equipment the public transport options are not OEMs will be those able to reinvent manufacturers (OEMs) will be forced yet reliable enough to get people themselves with a strategic vision to shift from being product-centric out of their cars, so transportation to create the e-mobility business of companies to being product and policymakers must think harder the future. To this end, they should service oriented, offering incentives about this. look to provide and orchestrate and new ways in which consumers open platforms where third parties can get from A to B sustainably. We also cannot expect the internal can develop and offer services that combustion engine on which the will be seamlessly integrated in a Mobility ecosystems and electric bulk of today’s global industry is connected ecosystem. vehicles built to disappear by 2030—if at New partnerships are being all. The challenge will be to get the Electrification is the green option forged to drive innovation in right balance, perhaps by legislating Driven by regulation relating to the face of escalating costs and on sustainable inner-city transport emissions targets, electric vehicles reducing margins as a result of and with eco-friendly taxation in (EVs) will be a key feature in this tougher emissions legislation. The more advanced economies, while world. Market forecasts suggest development of these mobility accepting that delivering mobility in that electric cars will increasingly ecosystems will enable OEMs to currently under-represented regions, dominate global sales, jumping to exploit new possibilities and deliver such as Africa, cannot be achieved 55% by 2040 from just 3% in 202026. new more carbon-friendly use cases. purely with electric vehicles. In China, for example, more than one These include multi-modal transport million EVs were sold in 2018 alone, and car-sharing, both of which offer In 2030 OEMs will be working while in Norway, EVs reached a 32% the end consumer low-carbon, easy- with many new market entrants, market share of sales in 201827. to-access transport options. described in our Connected Vehicle Thus, from a carbon emissions Trend Radar report25 as including perspective, electrification will have More sustainable transport will “established players from six accelerated the transition to greener also require a rethink on the part of industries: automotive, technology, e-mobility solutions by 2030—if consumers about how they travel. energy and utilities, financial complemented by the use of green In a What’s NOW San Francisco services, and increasingly telco and energy to charge the cars, and low- presentation in March 201924, retail”. This is analogous to the emission production values. This Tim Papandreou points out that current iPhone platform on which move to more e-mobility requires radical rethinking and redesign of core business models in order to find new and sustainable sources of value and ensure survival through electrification.

By 2030 “manufacturers will be able to benchmark the sustainability of their car lines, using blockchain to give traceability of parts. “ 17 The end-to-end ecosystem enabling renewable resources for a moderate enable their customers to operate an EV charging infrastructure will price increase28, they are not going sustainably and with very low be broad. It will extend from energy to pay a premium for these green emissions. producers and distributors, to components. charging infrastructure providers, At the same time, as the business battery management and geo- Until recently, the focus of EV model pivots to something more services. Pivoting business models production has been on premium sustainable, there will be social to embrace collaboration is thus mobility, where the cost to the implications that cannot be ignored. essential. We believe that in the consumer is high. This is beginning The impact on those suppliers and years through to 2030 and beyond, to change with some manufacturers employees currently focused on companies operating in connected turning their attention to more traditional fossil-fueled mobility will e-mobility ecosystems must define affordable e-mobility and the be huge. Greener manufacturing a sustainable green energy offering. production of volume segment processes enabled by automation They should consider the incentives vehicles. To promote mass adoption and AI will also have an impact on the and change measures that will over the coming decade, OEMs future workforce. Business success enable private and fleet vehicles and their partners must minimize will be shaped by a company’s ability customers to switch to electric the cost and infrastructure barriers to position itself as a provider of mobility. This is important because to e-mobility. Further, OEMs can eco-friendly mobility solutions, while going green comes at a cost. Indeed, actively strengthen the green value addressing the need to transition while 66% of consumers would of their EVs by providing solutions, employees and, where possible, accept vehicle interiors made from such as green electricity tariffs, that suppliers.

18 66% of consumers in the “ automotive sector would accept vehicle interiors made from renewable resources for a moderate price increase. “

CASE STUDY

AUDI

Car giant Audi is one of the leading industry players driving the shift already up and running is Audi’s towards electric mobility. It has e-tron charging service, launched announced ambitious targets for in February 2019. Audi developed the conversion to electric vehicles. the service to offer its clients the By 2025, Audi plans to offer 30 best experience when it comes electrified models, 20 of which will to public charging of electric be purely electric, with 10 more cars based on one of the biggest offered as hybrid models. charging networks in Europe. The service grants drivers (B2C and At the same time, Audi aims to B2B) access to more than 110,000 be a pioneer in terms of climate charging points in 21 countries protection. By 2025, all production around Europe. Audi’s e-tron sites should be CO₂-neutral, and the charging service continues to evolve company wants to be completely and the manufacturer is working CO₂-neutral by that same year at the on solutions for B2B customers latest. to make charging and related management of electric vehicles a This demands new manufacturing more seamless experience. approaches and new business models. As part of the automotive manufacturer’s e-mobility transformation journey, our Capgemini Invent business has been working with the company to develop new concepts, business models and solutions enabling new approaches. This includes economic and process frameworks for the market adoption of intelligent charging solutions that are linked to home energy management systems, and which integrate photovoltaic facilities or energy storage systems. Among the new business models

19 7. Smart cities, better cities— the 2030 vision

Two thirds of the world’s Platforms and data solutions as part their environmental footprint. They will, for example, enable faster and live in cities. of a smart cities approach could also help them regain control over their greener journeys to work and ensure citizens can communicate in real According to the United Nations, infrastructure and better coordinate time, using smart data as they pursue the urban population grew from just with different stakeholders in new city transportation modes, such 751 million in 1950 to 4.2 billion in the local territories. Of course, in as bike rental and shared transport. 201829. That’s a phenomenal rate parallel with this, any organization of growth. The UN believes that capturing, sharing and storing This is happening right now and will understanding the key trends in this citizens’ personal data in this digital have given rise to the steady growth urbanization over the coming years world has an obligation (both moral in the smart cities concept across the is crucial to the implementation of and regulatory) to put in place the world by 2030. Already being rolled the 2030 Agenda for Sustainable systems and processes needed to out in many urban areas, the concept Development. protect that data. was developed to use and leverage new and emerging technologies, In developing countries, urbanization All of this demands a complete as well as data, to respond to the has seen power demand continue and urgent rethink of how cities environmental and social challenges to exceed supply, growing 5-7% are managed. Without this rethink, that urban living has given rise to. per annum as countries urbanize the IPCC’s 2030 target will not be From 5G to strong internet of things at record speeds30. Further, a 2018 achieved. (IOT) deployment, technology is study of 13,000 cities31 found that already the main driver, but in the the 100 highest-footprint cities Meeting changing citizens’ needs coming decade it must be leveraged worldwide drive roughly 20% of A growing urban population will put correctly to take cities to the next the global . For huge pressure on urban transport level. this trend to be reversed, local systems and energy grids at peak authorities must become smarter, times, as well as demanding From ideation to implementation more connected with partners on appropriate housing infrastructure, Smart cities have begun investing open platforms, and more digitally secure public spaces and modernized in these technologies and will enabled. Technologies can help cities public services. New partnerships continue to do so in the coming make both moderate and significant and digital innovations will help to years. By 2030, they will be entering progress towards their sustainable attract citizens and visitors, improve a new phase, in which smart development goals. citizens’ quality of life and reduce

20 cities will be even more inclusive, and blockchain), e-government efficient and collaborative—in a applications, etc. Cities will have nutshell, ‘better cities’. Technical transformed the management innovations will continue to be of their complex systems and developed to optimize urban traffic infrastructure to reduce emissions, flows (intelligent transportation enabled by technology, in areas such management systems), energy as those depicted here: consumption (via smart meters

Capgemini’s Smart Cities services framework maps the potential space of needs and offers

Governance and innovation strategy

• Civic Tech / inhabitants involvement (participative budget, popular consultation, crowdsourcing, crowdfunding, call for projects) • Innovation ecosystem • eAdministration (citizen relations management, reporting, online procedures)

Building Economy, Social Mobility Energy Environment Urban Living ousing Wellbeing

New services Renewable energy Pollution Energy performance Vision and Third places Soft shared mobility Air quality leadership Coworking Ondemand Energy grids Noise Smart building transportation Public spaces Circular economy Storage Building Information Digital services Nature in the city management and Green spaces Modeling (BIM) Silver economy land use planning Autonomous and Electric meters and services Tourism and culture connected vehicles Waste and pollutant People and goods Natural and industrial management Urban agriculture Electromobility and Smart public lighting risk management new fuels Hybridization, modularity and building Auto-consumption Urban logistics reversibility Heat recovery unit Water and sanitation Flow management Residents’ services Smart parking

Digital infrastructure

Urban data platforms (open data / APIs) Data centers Internet of Things Connectivity (WiFi / 4G / G), Very high-speed networks

Smart Cities develop a multiplicity of innovative services for citizens (inhabitants and visitors), companies, public agents and elected representatives

Adopting an ecosystem approach is identified needs and to push a more citizens and visitors. the only way to make this transition. agenda? In 2030, In some countries, the use of Local governments must bring information about energy, air quality technologies such as AI to analyze on board external partners and and traffic flow will be collected data and predict air quality can’t integrate different sector expertise, via various IOT sensors and devices, come soon enough. For example, technologies and business models including citizens’ smartphones. in the latter part of 2019, India’s air to further develop the evolving Smart connected digital platforms pollution hit global news headlines with schools in Delhi ordered to smart city landscape and scale their will enable authorities to manage close and the citizens of Kolkata urban data platforms. For example, the data to monitor environmental struggling to breathe due to high projects centered around complex impacts, keep traffic flowing, levels of smog. Europe is also not systems (EV charging stations, manage parking, and improve the immune. A recent medical research network automation, and advanced quality of life for citizens. In tandem study32 found that higher air communication systems) will use with this is the need for new policies pollution in the UK triggers heart the operations and infrastructures that govern how data is aggregated attacks, strokes and acute asthma typically owned by energy and from a range of sources within new attacks each year, and contributes to utilities companies. Their smart grids urban ecosystems. 500,000 premature deaths in Europe are already a feature of the smart annually. city landscape, with more on the This will impact the way public- There are already great pioneering horizon. private partnerships are settled. The smart city examples around the private sector will bring funding, world with a mix of objectives, from The value of data digital know-how and innovation happiness in Dubai, to sustainability Fundamental to continued smart capabilities that complement public in Hong Kong. Capgemini has city development will be a shift in sector authority and need for better been at the forefront of smart city how cities use technology to manage data management and usage. The development, working in partner and analyze data. How do they data layer will be—and is already ecosystems to bring the vision for make good use of it to respond to becoming—more and more crucial 2030 and beyond to life. to contributing to the wellbeing of 21 In Dijon, France, we were part » Madrid: Consumer power saw Expect to see more policies and of a consortium developing and thousands of citizens protesting partnerships designed to create rolling out a smart city project in the streets of Madrid to keep sustainable transport models by known as OnDijon across all 23 a diesel ban on Madrid’s city 2030, along with new housing 33 Dijon municipalities . This is center in force after an incoming regulations forcing developers connecting urban equipment mayor tried to reverse the law37. to invest in better energy to a centrally-managed control center, which monitors public Madrid is among many towns consumption in the homes they services and equipment, including and cities in Spain granting build, and incentives encouraging more than 34,000 LED lighting municipal road tax discounts of citizens to leave their cars at home units. Maintenance can be better between 50% and 75% for EVs38. in favor of public transport. coordinated, urban equipment such as traffic lights, street lighting » Copenhagen: With a goal of and CCTV is centrally managed, being the first carbon-neutral and citizens’ transport and travel capital by 202539, Copenhagen across the region is more effectively is on the frontline of adopting organized and coordinated. The sustainable solutions. For city expects to reduce its carbon example, its diesel buses are emissions by 65% as a result of the transformation. being switched to electric in the city center, which is also easily accessible from the local airport Incentives, regulation and taxation by public transport. pave the way for change Pioneering smart cities recognize the need to drive through new policies » Paris: The authorities have for sustainable transport. They take implemented a color-coded car the lead in engaging with transport emissions sticker scheme to operators by both regulating indicate a vehicle’s emissions their contract requirements and level, with the most polluting incentivizing change for citizen vehicles given tightly restricted benefit. access to the city center at certain times. According to recent research, across the ongoing smart city projects » Los Angeles: To reduce traffic globally, 14% primarily focus on and keep children safe, the city energy, 3% on water, 20% on is limiting navigation apps by transportation, 5% on buildings, 34% banning cut-through routes on government and 24% on multi- in residential streets, aiming sector deployments.34Leading smart to stop sending drivers down cities use cases include the following: narrow side streets.

» Stockholm: An EV taxi incentive Government intervention scheme in Stockholm has Investment at national level will also successfully stimulated changes play a part in managing the emissions in driver habits35. The city has challenge of greater urbanization also introduced an EV incentive through to 2030 and beyond. During scheme for taxis at its Arlanda 2019, for example, Singapore has Airport, encouraging take up been investing in research and with a new policy giving drivers development and test-bedding to with EV taxis priority in customer enhance the efficiency of solar PV queues, allowing them to systems and develop innovative generate better business. technologies to implement solar energy systems into the urban » Singapore36: Among the many environment40. Further, with the UN initiatives that place Singapore expecting India’s urban population to at the forefront of smart city reach 404 million by 2050, the Indian development is its Virtual Government made a commitment Singapore platform. This is a 3D to invest in 100 smart cities over five model of the city that enables years41. city authorities to observe multi- system effects, such as how a Continued government new building affects the flow of intervention—both local and traffic, or how parking regions national—will be critical in the develop. development of cleaner, more cities in the coming decade. 22 CASE STUDY

CITY OF DÜSSELDORF

We are helping one of Germany’s To deliver and scale these innovative biggest cities to shape and deliver solutions, a new urban mobility unit its vision for sustainable mobility. has been set up, bringing together City authorities in Düsseldorf aim Düsseldorf’s administration with to reduce levels of motorized an ecosystem of strong mobility transportation and to establish and infrastructure partners. an independent marketplace Our Capgemini Invent business for mobility. By developing an developed a concept for the new innovative digital platform, the city mobility unit and its initial service will offer connected and bundled portfolio, including physical mobility mobility services to its residents, hubs, smart parking solutions and commuters and visitors. the digital platform app.

23 8. Next steps, right now

With irrefutable This is now an urgent strategic 10 recommendations for priority. We have a decade to sustainable business evidence of the get it right—or even less. The To this end, we have defined a set escalating global consequences of getting it wrong of ‘next steps’ for today’s business are unthinkable. Simply improving leaders: environmental crisis, how businesses operate will not be the challenge for enough to meet the IPCC’s 2030 1. Pivot your business model to emissions reduction target. Nor deliver a collaborative response organizations is how will it meet increasingly stringent to the climate challenge, forming to maintain business regulatory requirements. open ecosystems with other businesses, industries, public performance, while Business survival beyond 2030 bodies, NGOs and consumers pivoting to address the demands transformative and to bring about long-term innovative solutions. Paying lip sustainable outcomes. existential threat of service to the challenge will not 2. Embed technology within climate change. How satisfy the growing clamor from your sustainability strategy consumers for greener, more and targets, ensuring every can they hit the 2030 , services, and technology investment carbon reduction target lifestyle solutions. is considered through a prescribed by the IPCC? sustainability lens.

24 3. Set up a transformation program to help you engage and sustainably and managing resources to reach ambitious carbon influence consumers. more efficiently can make an reduction targets. This is a 8. Understand the environmental immediate impact on your costs, company-wide topic, extending impact of your wider operations, productivity and carbon footprint. beyond the sole responsibility of using smart or IOT devices, What’s more, newly developed the CSR officer. available data and reporting Return on Sustainability Investment 4. Ask what new business models, infrastructure. (ROSI) methodology indicates that products or services your 9. Put pressure on authorities sustainability can be monetized, company should be exploring, to set higher sustainability leading to competitive advantage and redesign your products and targets and protect against and shared value for multiple services with a planet focus. environmental dumping. stakeholders. As a driver of financial 5. Measure the environmental 10. If you’re going to go to zero, performance, sustainability impact throughout your supply go to zero now—do not contributes to innovation, employee chain: sharing data and installing delay. Ambitious targets drive engagement and retention, reporting platforms and supplier innovation and change. increased productivity, improved collaboration or coordination consumer sales and marketing, systems. And consider how to Disruption demands radical better supplier risk, and operational influence suppliers’ sustainability reinvention efficiencies. actions, as well as those of your The climate crisis is causing massive customers and employees. disruption. To survive, organizations However, the disruptive force of the 6. Look into instituting an internal must reinvent their business models climate crisis means that this is about carbon price, which can help to and radically transform ways of so much more than the bottom steer more sustainable business working. Sustainability thinking is line. Further, no one company and investment decisions— no longer optional, but the speed at alone can tackle the massive global in 2016 more than 1,200 which you embrace the opportunity transformation needed to address companies worldwide reported to change—and how far you go—will climate change. The biggest impact that they were either pursuing make a substantial difference, both will come when we all look outside internal carbon pricing or to your competitiveness and to the our own operations, engaging with preparing to do so42. planet. partners, suppliers and customers 7. Capture data and deploy the to take an ecosystem view. necessary architecture systems Of course, operating more Sustainability happens within the entire supply chain of value creation, whatever the industry.

There is no time to wait. Pivot your organization to a new, greener ecosystem model and radically change your business model before CASE STUDY it is too late—for our planet and for your business. CAPGEMINI

At Capgemini we continue to evolve energy consumption. At all times and reinvent our own approach to we’re looking for ways in which we sustainability. Having reached our can use new technologies that give 2020 carbon reduction target two us access to cleaner, renewable years early, we are now focused energy sources. The result? By 2018 on delivering our 2030 Science we had achieved a 24% reduction in Based Target as soon as possible. our energy emissions since 2015 and Our Capgemini Invent business To achieve this, we are taking made an 11% cut in travel emissions has already embraced the a holistic approach to energy per head. client challenge and is helping management in our offices and organizations design, build and data centers, enabled by smart As well as these strong deliver their low carbon strategies. technologies. We’re facilitating commitments and successes Through these engagements, we virtual collaboration and promoting internally, we’ve set an ambitious are enabling clients to achieve smart, safe and sustainable business target to help clients save 10 million radical transformation by re- travel as we reduce emissions and tonnes of carbon by 2030. This is inventing almost every aspect of provide alternatives to getting on important to us—we believe that their operations with a sustainability planes or in cars. we can save 10 times as much focus. carbon by helping our clients We’ve installed solar panels and transform than by making savings building management systems, purely in our own business. along with LED lighting and smart buildings controls that have reduced 25 Acknowledgements

We would like to thank the many colleagues who provided us with sector-specific and environmental insight, customer perspectives and valuable validation of the facts and figures used in this report. They include:

Alexandra Luxton James Robey Principal, Capgemini Invent Global Head of , Capgemini Group Annie Hughes Communications and Reporting, Corporate Jean-Baptiste Perrin Responsibility and Sustainability, Capgemini Vice President, Social Impact, Capgemini Invent Group Joy Bhattacharjee Cyril Garcia Senior Marketing Manager, Capgemini Invent CEO Capgemini Invent Kevin Loeffelbein Charlie Weibel-Charvet Principal, Capgemini Invent Senior Manager Technology & Geopolitics, Group CTO Office Mark Payne Dr Rainer Mehl Mark Payne, Vice President & Founder of Managing Director Manufacturing, Fahrenheit 212, part of Capgemini Invent Automotive, and Life Sciences, Capgemini Invent Markus Winkler Head of Automotive & Mobility, Capgemini Group Emmanuel Lochon CMO, Capgemini Invent Ngaire McKeown Editorial Consultant Florent Andrillon Vice President, Energy Transition Global Oliver Jones Lead, Capgemini Invent Director, Global Marketing, Capgemini Invent

Idun Aune Ozlem Bozyurt Service Designer and Circular Design Advocate, Managing Consultant, Capgemini Invent Idean, part of Capgemini Invent

26 References

1Source: The Guardian_ https://www.theguardian.com/business/2018/apr/06/mark-carney-warns-climate-change-threat-financial-system 2Source: https://www.theguardian.com/sustainable-business/2017/jul/10/100-fossil-fuel-companies-investors-responsible-71-global-emissions-cdp-study-climate-change 3Source: IPCC_https://www.ipcc.ch/2018/10/08/summary-for-policymakers-of-ipcc-special-report-on-global-warming-of-1-5c-approved-by-governments/ 4 Source: Capgemini World Energy Markets Observatory 2019 5Source: Capgemini World Energy Markets Observatory 2019 6Source: Capgemini World Energy Markets Observatory 2018 7Source: Capgemini World Energy Markets Observatory 2019 8Source: World Bank Report ‘State and Trends of Carbon Pricing 2019 9Source: Capgemini World Energy Markets Observatory 2019 10Source: Capgemini World Energy Markets Observatory 2019 11Source: What’s NOW_https://www.youtube.com/watch?v=t2GbZ1hWMsQ 12Source: Sogeti ‘Utopia for Executives’2019 13Source: Source: McKinsey Study – “Europe’s Circular Economy” Sept, 2015 14Source: Le Temps https://www.letemps.ch/opinions/streaming-jeux-ligne-contre-climat 15Source: Global e-Sustainability Initiative (GeSI). 16Source: Capgemini World Energy Markets Observatory 2019 17Source: Capgemini World Energy Markets Observatory 2018 18Source: What’s NOW San Francisco_https://www.youtube.com/watch?v=t2GbZ1hWMsQ 19Source: Capgemini World Energy Markets Observatory 2019 20Source: https://www.grandviewresearch.com/press-release/global-microgrid-market 21Source: Capgemini World Energy Markets Observatory 2019 22Source: Capgemini World Energy Markets Observatory 2018 23Source: Capgemini World Energy Markets Observatory 2019 24Source: What’s NOW_https://www.youtube.com/watch?v=YmFNXstS0TE 25Source: Capgemini Connected Vehicle Trend Radar_https://www.capgemini.com/wp-content/uploads/2019/08/Connected-Vehicle-Trend-Radar.pdf 26Source: Capgemini analysis, following Bloomberg 27Source: Capgemini World Energy Markets Observatory 2019 28Source: https://www.tandfonline.com/doi/abs/10.1080/09640568.2011.636578 29Source: United Nations_https://www.un.org/development/desa/en/news/population/2018-revision-of-world-urbanization-prospects.html 30Source: Capgemini World Energy Markets Observatory 2019 31Source: https://phys.org/news/2018-05-carbon-footprints-cities.html 32Source: https://www.bbc.co.uk/news/health-50119981 33Source: https://www.capgemini.com/news/dijon-metropole-launches-a-unique-smart-city-project-in-france/ 34Source : https://www.navigantresearch.com/reports/smart-city-tracker-2q19 35Source: https://smartimpact-project.eu/app/uploads/2018/02/SmartImpact_Supportive-Regs-and-Incentives_A4_AW.pdf 36Source: https://mobility.here.com/smart-city-mobility-7-major-cities-getting-it-right 37Source: https://www.citylab.com/transportation/2019/07/madrid-car-ban-street-map-city-politics-mayor-court-decision/594487/ 38Source: Source: https://endesavehiculoelectrico.com/en/espanol-mapa-de-ayudas-al-coche-electrico/ 39Source: https://www.wonderfulcopenhagen.com/cruise/sustainable-turnaround-port 40Source: Capgemini World Energy Markets Observatory 2019 41Source: Capgemini World Energy Markets Observatory 2019 42Source:C2ES_ https://www.c2es.org/content/internal-carbon-pricing/

27 Capgemini

A global leader in consulting, technology services and digital transformation, Capgemini is at the forefront of innovation to address the entire breadth of clients’ opportunities in the evolving world of cloud, digital and platforms. Building on its strong 50-year heritage and deep industry-specific expertise, Capgemini enables organizations to realize their business ambitions through an array of services from strategy to operations. Capgemini is driven by the conviction that the business value of technology comes from and through people. It is a multicultural company of over 200,000 team members in more than 40 countries. The Group reported 201 global revenues of EUR 13.2 billion.

Learn more about us at www.capgemini.com

A BOUT C APG EMINI INVEN T

As the digital innovation, consulting and transformation brand of the Capgemini Group, Capgemini Invent helps CxOs envision and build what’s next for their organizations. Located in more than 30 offices and 25 creative studios around the world, its 7,00 strong team combines strategy, technology, data science and creative design with deep industry expertise and insights, to develop new digital solutions and business models of the future.

Capgemini Invent is an integral part of Capgemini, a global leader in consulting, technology services and digital transformation. The Group is at the forefront of innovation to address the entire breadth of clients’ opportunities in the evolving world of cloud, digital and platforms. Building on its strong 0year heritage and deep industry specific expertise, Capgemini enables organizations to realize their business ambitions through an array of services from strategy to operations. Capgemini is driven by the conviction that the business value of technology comes from and through people. It is a multicultural company of over 200,000 team members in more than 40 countries. The Group reported 201 global revenues of EUR 13.2 billion.

Visit us at www.capgemini.cominvent

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