Industrial Sustainability and Energy Transition Is Now and the Future
Why Should You Take Notice?
Globally, we are in a critical time of action on climate change. Sustainability and energy transition are now being woven into the core fabric of business strategies of industrial companies, particularly manufacturing, utility, and oil and gas organizations. Environmental, social, and corporate governance (ESG) strategies are being defined and implemented to deal with climate change and address a host of new regulations, corporate disclosure, and financial investment requirements.
ARC Advisory Group can help provide insights on navigating industrial pressures that will inevitably occur.
Industrial sustainability and energy transition encompass a range of topics, including:
- Energy management and efficiency
- Emissions reduction
- Asset performance management
- Net-zero transition
- Renewable energy
- Electric vehicles and mobility
- Transmission and distribution grid
- Impact investing
- Carbon capture, utilization, and storage (CCUS)
- and more……
Critical Challenges Facing Three Key Market Segments
While companies across all markets are wrestling with sustainability and energy-related issues, industrial businesses are under immense scrutiny. Given the asset-heavy, energy-intense nature of industrial companies, it stands to reason.
The industrial pillars below—are at the center of global energy transition and sustainability efforts. When examining the challenges each faces, there are considerable similarities and differences. Additionally, there are dependencies across the three and even the potential for competitive conflict.
1. Manufacturing | Sustainability Must Be Unequivocally Quantifiable
Manufacturing (discrete, hybrid, and process) is under severe pressure from investors, communities, and legislation to improve sustainability while measuring quantifiable improvements. Certainly, it will incorporate most, if not all, digital transformation initiatives already underway or on the drawing board.
2. Utilities | Develop a Market Role That Sits on Solid Ground
Utilities across the globe have been in energy transition for quite some time. The larger investor-owned utilities (IOUs) have been juggling a convergence of market pressures, from tighter margins and flat demand to renewable integration (both utility-scale and distributed across the grid) and catastrophic weather-related events.
3. Oil & Gas | Reinvention Is Key
The Oil & Gas industry creates greenhouse gas emissions across their process lifecycles, from extraction and refinement through distribution and consumption. The industry has unique characteristics related to energy transition as the products and byproducts are ubiquitous across the globe.
How to Move Forward
Sustainability and energy transition challenges are quickly being added to the intense competitive and customer pressures driven by the adoption of a more digital economy. In the same way they approach transformation, companies should not stand still, though they certainly can choose to, at their own peril of course. If they do not, they will be forced to cede those markets to innovators who can.
ARC Can Help
ARC can help you identify and address the key challenges you face, whether you are a technology user or solution provider.
For technology users and industrial owner/operators:
- What ESG and auditing frameworks are available and how do they differ?
- What are the key roles and responsibilities you need to succeed?
- Which initiatives or technologies should you prioritize to improve sustainability?
- How do you quantify the risks and costs associated with your initiatives?
For solution providers:
- How big is the addressable market and where is activity happening?
- In each industry, what are the key use cases?
- How do your solutions map to market opportunity
- Who are your key buyers and influencers?
- Are your solutions positioned correctly?