Study by Schneider Electric shows: Companies are not prepared for energy industry

The Survey  by Schneider Electric, 85 percent of respondents are taking action over the next three years to remain competitive with industry leaders in terms of their CO2 reduction plans. However, the projects that have been initiated or are in development are heavily focused on energy, water and waste savings. Outside of renewable energy, few of the companies surveyed are focusing on more mature strategies and technologies for energy and emissions management.

Key findings:

• 81 percent of respondents have implemented measures to improve energy efficiency or plan to do so within the next two years; 75 percent are working to reduce water consumption and waste.
• 51 percent have already completed or are planning renewable energy projects.
• Only 30 percent have implemented or are actively planning to implement energy storage, microgrids or cogeneration - or a mix of these technologies.
• Only 23 percent of respondents have demand response strategies in place or plan to do so in the near future.

"Companies must actively prepare"
"The way we consume and produce energy is undergoing a massive transformation"said Jean-Pascal Tricoire, chairman and CEO at Schneider Electric. "The near-universal focus on energy conservation is positive. However, being adept at consumption is not enough to survive and grow. Companies must prepare for their role as an active participant in the energy market by creating the conditions to generate energy and interact with the grid, utilities, partners and other new entrants. Those that don't act now will lose out."

Two challenges: Collaboration and data management
Internal coordination often blocks progress. Sixty-one percent of respondents said that their company's energy and sustainability decisions are poorly aligned between the relevant teams and departments. This is particularly true for consumer goods and industrial companies. According to the same number of respondents, the lack of collaboration is also a challenge.
Data management was cited as another obstacle to integrated energy and carbon management. Forty-five percent of respondents said that corporate data is highly decentralized and processed at the local or regional level. And of those who cited "inadequate tools/metrics for data sharing and project evaluation" as a challenge to working across departments, 65 percent manage data at the local, regional or national level rather than globally.

Integrated, data-driven approach as a solution
A Example for a company that takes an integrated, data-centric approach is iomart, a leading provider of managed cloud solutions. It coordinates energy efficiency and environmental management across a network of data centers it owns and operates in the UK.

"Data and actionable information are critical"said Neil Johnston, Group Technical Operations Director at iomart. "What happens to the information once it's there, however, is just as important. Our purchasing, energy and sustainability teams compare data and develop joint strategies to manage consumption and emissions and reduce costs. This collaboration has resulted in significant savings for the company and helped us become certified to the ISO 50001 standard and meet the requirements of the Carbon Reduction Commitment."

Study shows progress in several areas
More than 50 percent of the companies surveyed have initiated renewable energy projects or plan to do so within the next two years, led by healthcare (64 percent) and consumer goods (58 percent). In addition, senior management and corporate functions are highly involved in these and other sustainability-focused programs. Seventy-four percent said executives are reviewing or approving initiatives in areas such as renewable energy and sustainability, and that this work is a strategic priority.

While return on investment appears to be the benchmark for energy and sustainability initiatives, companies increasingly understand investments to be longer-term and more holistic. For example, more than half of respondents said that environmental impact is included in the assessment process. Another important aspect is business risk (39 percent).

The study was conducted by GreenBiz Research to identify how companies develop energy and environmental strategies, collect and share data, and coordinate across departments. This practice is also referred to as Active Energy Management Designated. Participants were individuals, executives, board members, and professionals responsible for energy and sustainability management. Respondents represent 11 primary segments, including consumer products, energy/utilities, financial, industrial, healthcare, and technology. Results from samples are subject to variance.

The Research Report contains a detailed summary of the survey (of 236 large companies, at least $100 million in revenue) and results.

You can find news and trends on energy and sustainability topics at Perspectives or follow @SchneiderESS.