COP27: Can we get back on track?

As the dust settles on another COP, it feels timely that 施耐德电气 ’s new CNBC docuseries, just launched recently, highlights the essential actions to get back on the 1.5-degree pathway.

It was clear over the last two weeks that commitments are not yet strong enough to deliver the 1.5 trajectory. A new report from United Nations Climate Change shows that the combined climate pledges of 193 Parties under the Paris Agreement are insufficient – it put the world on track for 2.4C+ by 2100. As of today, just 29 countries have submitted an update of nationally determined contributions (NDCs).

Once again, the key catalyst for decarbonizing energy – demand optimization – remained a blind spot at COP. Supply-side continued to be the focus, grabbing headlines and political eyeballs. Examples included the phasing out of fossil fuel, targeted by climate activists ; renewable mega projects such as those announced by John Kerry and the Mexican foreign minister ,?and the new US initiative to support Egypt in deploying wind and solar.

While these remain important, statistics show that decarbonizing supply comprises 45% of the impact, while demand accounts for 55% of global abatement through more energy efficiency, circularity and electrification. Moreover, all past energy transitions have shown that energy supply has always chased energy demand . The only way for us to make the energy transition at the magnitude we need is to drive ‘consumer’ behavior change at an accelerated rate.

How do we decarbonize energy demand?

1. ?Tackle energy waste. Currently, more than 60% of all the energy that is produced globally is lost or wasted before it is consumed.?When we consider the rising energy prices that are crippling many businesses, reducing waste is non-negotiable. In the immediate term this means using less – turning down thermostats and turning off lights and heating in unused rooms. But there are also digital tools that can help reduce waste, by enabling the monitoring, visualization and management ?of energy production, distribution, and consumption.
2. Electrify demand. Electric vehicle sales have shown what is possible and scalable. In markets where charging infrastructure is more established with incentives and legislation driving adoption, sales of EVs now outstrip petrol and diesel cars. We now need to drive the electrification of domestic heating and cooling through similar incentivization, regulation and legislation.
3. Shift policy to demand side. As we saw at COP27, policymakers are focused on infrastructure. We need to ensure governments complement this with demand-focused policy. That means designing and building with the 2050 endgame in mind. This includes modernizing our existing stock of assets (buildings, mobility, industrial facilities, and machines) at a much faster rate than natural evolution, and expanding and strengthening the current power system infrastructure, in particular the grid.

The good news is all these technologies exist today.

Based on our work with 50% of Fortune 500 companies, we find leading companies follow an integrated approach that is repeated across their sustainability journey.?Whether you are addressing Scope 1 & 2 emissions or tackling scope 3 emissions, the first step to move from ambition to action is to build an enterprise strategy. This involves measuring baselines and setting targets in accordance with the reporting framework (and there are many to choose from: TCFD, GRI, SASB, UNGC), translating corporate targets into BU-level and site-level contributions, and defining governance with KPIs to ensure actions with accountability. Like any company-wide transformation, strategizing requires engaging and aligning with internal stakeholders across your organization, from top floor to shop floor.

The second pillar of the integrated approach is digitization. A single source of truth for your energy and emissions data can be essential for external reporting, as well as monitoring resource usage and identifying new opportunities.?Once you have strategized and digitized, the third pillar is to execute. According to a study from our Sustainability Research Institute, there are 3-key transformations to fast track our progress towards net zero by 2050: electrify operations, reduce energy use, and replace energy sources.

These are all actions that we at #SchneiderElectric have already taken for our own company – and we are engaging with our suppliers to help them with the same.?Our journey to #NetZero has resulted in reductions to our daily energy use through the implementation of our energy savings?plans, our smart factory programs, and our continued investment in our offices and campus facilities.?Our goal is to reduce our global energy use by 10% over the course of 2022 and 2023.

If we can do it, so can you.

Find out more: https://www.cnbc.com/advertorial/a-greenprint-for-a-sustainable-future/