The IKI Spotlight: Energy Transition

Welcome to the Infosys Knowledge Institute’s monthly spotlight on selected major research themes. This month we explore energy transition, as part of our broader focus on environmental, social, and governance (ESG).

The transition from fossil fuels to renewable energy is one of the century’s defining changes. It’s accelerating but perhaps not fast enough. The International Energy Agency projects investments in solar to surpass oil production this year. Even so, energy-related carbon dioxide emissions increased by nearly 1% in 2022. While net zero is the goal, we need solutions now.

A green swan moment

Sustainability pioneer John Elkington describes a green swan event as a positive market trajectory, such as exponential technology’s role as a sustainability catalyst. The recent doubling of clean energy investment is another sign, but they are sometimes driven by subsidies and incentives. Sustainable investment requires science, robust operating models, culture, and profits(!), otherwise it will just create another bubble. Listen/read here

Circularity in electric vehicles

Electric vehicles (EVs) sales are growing rapidly, but cost and supply barriers loom. The Practical Sustainability book explores how EVs and charging stations use sustainable, green designs to reduce carbon emissions and resource consumption. For example, a charging station configurator designs optimal configurations with interoperability. Read here

Digital twins for grid resilience

Even if the world goes completely green overnight, grids still need to modernize to balance the supply-demand dynamics. Digital twins offer great value, saving 10% of cost and increasing ROI by 20%. We need more sophisticated uses to manage and upgrade grids designed originally for uni-directional, fossil fuel power generation. Read here.

A self-driving sustainable cloud

Information and communications technology accounts for about 4% of global greenhouse gas emissions, similar to the airline industry. Academic and corporate experts are seeking ways to make the move to the cloud more sustainable. They have found that an AI blanket control layer can optimize resources and reduce energy consumption. Read here.

Clean energy and carbon emission

Fossil fuels remained the dominant energy source in 2022 and accounted for 82% of global consumption. Even though wind and solar energy hit record high, greenhouse gas emissions grew 0.8%partly due to China easing travel restrictions and rising coal demand. Scope 3 emissions are the biggest component, and a sustainability trends report from Infosys and Manufacturers Alliance identified Scope 3 emissions as the primary challenge for manufacturers. Read here.

To learn more about ESG and energy transition, check out the book and explore the ESG Radar microsite.

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Until next time, keep learning, and keep sharing.

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