Energy Transition

How businesses react to the global acceleration towards emissions reduction will not just shape our present, but their future. Where should a business begin?

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.

The way forward

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.

Are organisations prioritising the elimination of greenhouse gases or begun to diagnose what it might mean to their businesses?

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.

Cost‑effective strategy

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.

Can an organisation be assured that every aspect of its business is performing to its highest capacity or are there blind spots?

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.

Critical elements

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.