Energy Awareness: First step towards achieving Net Zero Goal

Businesses today have larger obligation towards society in transitioning to a more carbon neutral operations. Well, this time, the buzz around the “Net Zero” is more than just a buzz. Being energy efficient and sustainability compliant is a mandate now. The top priority for most reputed companies is to lay a strong Net Zero roadmap for the future.

By definition, the term “Net Zero” is related to emissions. In our context of the discussion today, we are referring to electricity consumption which causes Scope-II emissions to the atmosphere. Business needs to strategize offsetting this emission through several measured processes, systematically over a period. That is why we call “Net Zero” a journey comprising of two parts. One, reducing the ongoing emission by introducing technology and, two is offsetting the emission through clean energy sources.

Focus on complete visibility and control over existing onsite energy resources becomes extremely crucial, even before we think of integrating Renewable energy in the overall consumption mix. With the absence of a digital twin, chances are high in ending up with an uninformed energy decision. Typically, this is a know your problem phase where energy management technology plays a vital role in measuring the right set of KPIs to ensure all business operations are energy efficient. ?Often, the industry perceives efficiency to be energy savings model, but such proposition is a skewed understanding of the concept. In effect, the exercise of Energy Efficiency is achieved through a combined interventions and monitoring of safety, Standard Operating Procedure (SOP) and electrical Asset Health. The real benefit for the business lies here.

The optimum performance index of the facility’s energy infrastructure further adds value at the enterprise-level in meeting your external and internal ESG compliance. While not yet mandatory in every country, many companies are proactively disclosing ESG data because they understand its significance in communicating their business strategy and purpose.

On the business level advantage, plugging the power pilferages leads to a healthy Energy Performance Index (EPI) allowing the brands to stay ahead of the competition. EPI is one of the metrics or a critical indicator to qualify for a Green Building certification which is backed by Bureau of Energy Efficiency (BEE) standard labelling protocol.

To take a case of a well-known global QSR chain in India, it aims to cut the Green House Gas (GHG) emission 50% by 2030 and to reach net zero by 2050. However, the recently published Annual Results-2021 mentions the utility expense to be at 10% compared to the industry benchmark of 5%. With over 500+ outlets across India, the challenge aggravates with poorly managed and maintained sites. As such, the whole business is a SOP-driven and lack of process monitoring of Kitchen equipment may lead to Health and Safety issues. Hence, being energy smart makes a good sustainability push and lifts corporate value.

In conclusion, to achieve carbon neutrality, companies need to put in place a clear and realistic plan of action. A job is half done if businesses assume that adding more Renewable Energy is the only solution to reduce scope-2 emissions. Of course, renewable energy is an integral part of this whole efforts, but overlooking energy efficiency factor from the equation, can have a cascading effect on the bottom line.