Energy and Sustainability Programs - Overcoming Challenges: Research by GreenBiz and Schneider Electric

Posted by: YijunW

The energy eco-structure and electrical system are on the edge of transformation. The ways in which we generate and provide energy are shifting gears, and a decentralized energy system is on the way. New technologies are enabling businesses to both produce and consume energy. Many companies are looking at these megatrends to find new ways to reduce costs, meet sustainability objectives and increase resiliency.

Social responsibility is always perceived as an ethical move rather than a financial return. This common opinion is, however, incorrect. According to CDP S&P 500 Climate Change Report, organizations that are actively managing and planning for climate change:

• Generate 18 percent higher on returns on equity than companies that have done an unsatisfying job of managing climate change and 67 percent higher than companies that do not disclose climate change actions
• Are more stable-- with 50% lower volatility of earnings over the past decade than counterparts
• Pay 21 percent higher in the growth of dividends than their peers (CDP)

Furthermore, about 80,000 emission-reducing projects from 190 Fortune 500 companies reported nearly $3.7 billion in savings in 2016, according to World Wildlife Fund's 2017 press release.

Shifting to green generates profit, thus companies hasten their reform of sustainability. According to a 2018 Research Report, carried out by Schneider Electric™ in partnership with GreenBiz Research: "The State of Corporate Energy & Sustainability Programs," more than $450 billion on energy efficiency and sustainability initiatives are spent by companies and corporations per annum. In addition, 63 percent of Fortune 100 companies have set one or more clean energy targets. So, what are these initiatives, and what might be some barriers to achieving energy and sustainability goals for these firms?

The Schneider Electric™ and GreenBiz study examines corporate energy and sustainability programs. One of the key findings in the report is that there is a conflicting view of collaboration. A significant opportunity for improved coordination exists, but limited agreement on barriers is blocking progress. While almost 40 percent of the respondents agreed that there were several subgroups where the lack of alignment was acute. More than 50 percent of surveyees from consumer goods companies and service providers identified coordination as a challenge (Schneider Electric™ and GreenBiz).

In order to overcome the challenge, we need to understand the difficulty comprehensively. The Schneider Electric™ and GreenBiz study shows that the top obstacles of implementing sustainability projects are “[l]imited financial resources”, “ROI not attractive,” and “decentralized programs” were cited by 48 percent, 45 percent, and 41 percent, respectively.

The study also offers a solution to the current challenge. To foster collaboration and accelerate results, companies should:
1. Establish cross-functional teams to work on energy and sustainability projects
2. Share budgets, best practices and data across departments and locations
3. Centralize functions to develop centers of excellence across all places

*The Schneider Electric™ and GreenBiz survey is completed by 236 professionals from North America, Europe, Asia-Pacific and other parts of the world, representing diverse energy and sustainability companies representing between $100 million to $10 billion or more in annual revenue.

To read more, visit:

Schneider Electric™
https://bit.ly/2xBv7Mg
CDP
https://www.starwoodhotels.com/Media/PDF/Corporate/CDP-SP500-climate-report-2014.pdf
World Wildlife Fund
https://wwf.to/2oECpu0