Stakeholders are pushing organisations to announce increasingly aggressive targets. While many have committed to a 30% reduction in emissions by 2030, target reductions are shifting to 20-30% by 2025 and 50% by 2030.
The days of announcing targets without a credible plan are gone. Major investors are challenging boards, CEOs and CFOs on how they will achieve their committed ambitions.
The business case for an energy transition is stronger than ever. Simple adjustments in cost-focused efforts enhance emission reduction and deliver positive economic outcomes.
Building an energy transition plan that is clear and actionable
Securing lower-cost, low-emission energy for power and primary energy needs
Establishing the pathway for adoption of new technologies
Boards and Senior Executives are now expected to have an informed view of emission reduction and energy transition.
Expectations and scrutiny are increasing, with corporates and governments announcing increasingly aggressive targets and associated transition programs. The days of announcing targets without a credible plan to back them up are long gone.
Many struggle to scope and design an executable roadmap to reducing emissions across their operation. The biggest challenge is balancing competing priorities and ensuring existing governance processes are enhanced to promote and facilitate energy and emission management.
An executable roadmap that takes energy efficiency, renewable energy and mitigation of emissions into account can plot a new way forward. This helps address increased industry pressure and stakeholder demand for tangible solutions.
We have partnered with clients across sectors to develop energy transition roadmaps that will deliver 35-65% reduction in emissions by 2030. In parallel, we are helping clients rethink how to practically achieve their carbon-neutral ambitions by 2050.
Electricity generation accounts for a large proportion of globally emitted greenhouse gases.
By generating or sourcing clean power and electrifying operations, organisations can ensure the reduction of emitted greenhouse gases in their operations.
Organisations often believe a future technology will assist them in addressing their emissions; however, the technology is already readily available, reliable and low-cost and risks can be managed economically.
The risk of greenhouse gas emissions should be underwritten with a transition strategy.
This could encompass a two-phase plan that begins with an emission reduction diagnostic followed by the implementation of a sourcing process to secure a cost-effective, reliable power supply.
When working towards energy transition, many organisations believe their need to act overpowers the need to take a measured, considered approach.
Organisations must define their objectives, goals and targets, as well as how different functions within the organisation need to operate to achieve them.
Further, many do not consider all options available to them. For example, could their financial return be improved by considering tactical decisions, such as improving operational planning and attracting alternative green finance?
No two energy transitions will ever be fully alike, and only through tailored insight of an organisation's needs and opportunities, can a solution be found that avoids costly, ‘off the rack’ approaches to favour synergy and integration.
In implementing a successful energy transition, we underline three critical elements for organisations to prioritise: the need to reduce, renew and mitigate.
Our approach is to rapidly understand what is required, build a roadmap and begin embedding it into the business.
‟Addressing the emission challenge is transforming how the world interacts with and uses energy. Organisations must develop a clear view of where to mitigate risk and where to seize new opportunities. The energy transition is not a technical/engineering problem that needs to be solved over time - it is a fundamental business imperative that needs action now.”
Our client work across industries and functions has provided us with the opportunity to rethink energy, supply and how to capture no-regrets emission reductions.
energy efficiency efforts deliver 10-15% cost savings
additional 10-15% in savings possible through rethinking operations’ energy demand/supply
in addition to cost savings, a 30-50% reduction in emissions is achievable
‟Addressing the emission challenge is transforming how the world interacts with and uses energy. The next 10-15 years will reshape our future. The challenges our clients face in managing this energy transition can be turned into an opportunity. My goal is to help our clients find practical, economic solutions to drive impact for them in their energy transition.”
Founder and Managing Director
Australia and New Zealand
‟In 30 years of consulting, I have not seen a change that will be as transformative and as positive for most of our clients’ economics as energy transition. We first started working on energy efficiency 20 years ago, but the last five years have created exponentially accelerating changes in the pace of requirements and reductions in costs curves. Great opportunities are opening for those who frame the problems well and act fast. In contrast, those who fail to do so will destroy significant value for their stakeholders and struggle to keep abreast of the change.”