Oct 12, 2020

McKinsey: embrace the value chain and boost EBITDA by 10-15%

ValueChain
McKinsey
reports
Bizclik Editor
2 min
Companies that manage their value chain well can establish a significant source of competitive advantage and value creation
Companies that manage their value chain well can establish a significant source of competitive advantage and value creation...

Understanding the mining value chain as a single integrated process and embracing mine-to-market optimisation can generate a 10 to 15 percent increase in EBITDA, according to a McKinsey report entitled The mine to market value chain: a hidden gem

While fragmented responsibilities often cause companies to lose sight of the big picture, the report notes companies that manage their value chain well can establish a significant source of competitive advantage and value creation.

It acknowledges the industry faces pressure on all sides, be it shifts in commodity markets, the COVID-19 pandemic, environmental concerns or regulatory policies. But those that "dissolve silos" and focus on organisational enablement and data/tech architecture will see commercial benefits. 

Companies should boost transparency along the value chain by building a 'value-driver tree' encompassing operations, logistics and sales. Simulation and optimisation are most effective when applied together, which can ensure individually optimized operations with KPIs. Amid uncertain times, an integrated mine-to-market perspective can help create further resilience and maximise shipped throughput in the face of disruption. 

"As digital technologies help remove the barriers to entry and tip the scales of competitive advantage, mining executives will need to ensure their organizations rely on a sustainable business model by proactively envisioning and shaping that model’s role in an integrated end-to-end ecosystem," the report concludes.

"The journey toward an integrated end-to-end mining value chain is complex, but it is also an essential shift to unlocking an untapped source of value. Mining companies must develop a comprehensive mine-to-market perspective to survive down cycles in the short term and strengthen and expand market position in the longer term."

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Dec 3, 2020

Net zero benefits the mining industry and the environment

digital mining
Oren
Emitwise
mining
Dan Brightmore
3 min
Learn how to future proof your business for a zero-carbon world with help from Emitwise and the Oren Marketplace.
Learn how to future proof your business for a zero-carbon world with help from Emitwise and the Oren Marketplace...

How do we get the world to net-zero faster?

Emitwise’s founders, Mauro Cozzi, Eduardo Gómez and Ben Peddie, approached a network of more than 100 of the world's largest enterprises and asked their CEOs, CFOs, and sustainability managers the big question: How do we get the world to net-zero faster? The challenge many shared was the lack of timely and accurate emissions data to enable strategic decisions. Companies often relied on annual audits of their carbon footprint for carbon accounting purposes. However, static yearly results were outdated upon publishing.

Emitwise saves companies an average of 260 working days a year by automating their scope 1, 2 and 3 emissions data. With the added benefits of clean audit trails and auto-populated accounting reports in line with GHG Protocol, all at the click of a button. Their easy to use solution enables businesses to quickly identify the carbon hotspots to target, and the precise real-time data empowers teams to remain agile and respond effectively, making achieving those goals possible.

Unique AI Technology

Emitwise’s unique AI technology empowers businesses to automatically measure, report and reduce their carbon footprint across their operations and supply chain, future-proofing companies for a zero-carbon world. It is the only solution that enables companies to fully automate their carbon accounting across all business units and suppliers, therefore liberating them from the drudgery of collecting and processing emissions data.

By using artificial intelligence to precisely measure emissions in real-time, businesses can identify and tackle carbon hotspots swiftly, enabling them to devise a trackable roadmap to net-zero carbon. At the same time, accurate audit trails and auto-populated annual reports ensure that companies comply with international reporting requirements, and align businesses with global climate targets to mitigate risk across their operations and supply chain. 

The Oren Marketplace

Environmental management, social license to operate, safety, renewable energy to lower emissions and operational efficiency for mining can be supported by a range of digital solutions enabling dynamic operations. To address these issues, Shell and IBM joined forces to create the Oren Marketplace – the first B2B solutions platform for the mining sector. 

With the adoption of many of the digital solutions offered through Oren, mining companies can adapt in real-time to risks or adjust plans ahead of a problem occurring. The goal is a shift towards proactive management as the optimal outcome for all stakeholders – community, shareholders, and employees.

Emitwise was founded with the goal of helping industries across all sectors reduce their carbon footprint. Similarly, Shell aims to become a net-zero emissions energy business by 2050, or sooner, in step with society and its customers. And Oren is focused on offering innovative products and services that can help mining companies track and reduce their emissions. 

“Oren is the starting point for how we help our mining customers to de-carbonise,” explains Carol Chen, Global Lubricants Marketing, Vice President, Shell. “It’s our ambition to work with sectors like mining to help them find their own pathway to net-zero emissions through collaboration. The Oren marketplace offers a great opportunity for collaboration between the miners and technology companies that are joining this digital marketplace.” 

Web Summit

Emitwise will be showcasing its vision for a net-zero future live from Lisbon at this year’s Web Summit. Bringing together the people and companies redefining the global tech industry, the online event welcomes 100,000+ attendees from around the world to hear from more than 800 speakers and view offerings from 2,500 startups covering a vast range of topics from Data Science and Climate Change to AI and Machine Learning. To find out more and book your ticket visit Web Summit. 

Emitwise is one of many solutions providers on the Oren platform seeking to address the pain points and environmental concerns of heavy industries like mining. To discover a range of solutions that can further support your operation’s digital transformation and commitment to sustainability, visit the Oren Marketplace.

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