In an era of climate change, rising prices and geopolitical tensions, energy management is currently at the heart of business concerns. Nowadays, the energy transition represents far more than just a lever to respond to the environmental emergency or regulatory changes. For organisations, it creates considerable opportunities for effective value creation, from optimising costs to strengthening their competitive performance.
Value creation through CSR
By definition, value creation refers to how a company succeeds in ensuring sustainable growth. This involves creating economic (increasing profits, revenue, sales, etc.), environmental (energy savings, better resource management, etc.) and social value (improved working conditions, job creation, etc.). Ultimately, this contributes to the profitability, productivity of the company and customer satisfaction.
Nowadays, there is no doubt that value creation in business goes through Corporate Social Responsibility (CSR). This approach represents tremendous levers for development and sustainability of organisations. It is an opportunity for value creation for them, but above all an essential condition for their resilience and durability. In this dynamic, the energy transition plays a leading role.
Energy transition, a strategic issue
The energy transition includes a profound transformation of our modes of production, distribution and consumption of energy, in line with sustainable development. More specifically, its purpose is to overhaul the current energy system in order to reduce its impact on the environment.
The energy transition is based on three key principles:
- The shift from an energy system mainly based on depleting and greenhouse gas emitting fossil fuels (oil, coal, gas, etc.) to a system based on investment in renewable energies (wind, geothermal, hydroelectric, etc.);
- Energy efficiency to improve the energy efficiency of existing systems;
- Energy sobriety, i.e. modifying usage, with the aim of reducing energy consumption.
Our current energy model experiences major challenges: Climate change first and foremost, but also the depletion of fossil resources and the increasing technological and environmental risks (waste, accidents, proliferation of radioactive materials, etc.).
The energy transition is thus gradually establishing itself as the vital response to the major challenges of our century. This explains why many businesses, already engaged in a net zero emissions strategy, are tackling the task. Especially since this approach is also synonymous with value creation.
Energy transition, a lever for value creation
Companies that commit to the energy transition will certainly reap new economic and strategic benefits from it. The goal is to create value for them, as well as for all their stakeholders, reaching a balance between the two.
Optimising costs
Reducing energy expenditures and efficiently using resources are major levers for supporting a company’s success and improving its profitability. By rethinking energy-intensive processes, adopting energy efficiency practices and investing in cleaner technologies, companies are able to achieve substantial long-term savings. Optimising energy costs results in better allocation of financial resources, thus allowing companies to reinvest them in other strategic areas.
(Inset) According to Trinomics, a consulting firm specialising in energy, environment and climate change, energy accounts for up to 20% of a company’s production costs, depending on its line of business. Given the inflationary context we are experiencing, where energy prices have reached record highs, this lever makes perfect sense.
Gaining a competitive advantage
The energy transition prompts rethinking how products and services are designed, manufactured and distributed. By investing in sustainable solutions, companies meet the growing consumer expectations in this area. It is by strengthening their credibility and attractiveness to environmentally conscious customers that significant competitive advantage is created, positioning the company as a leader in its market.
Improving brand image
Through this virtuous approach, companies respond to the societal expectations of their various stakeholders. This commitment enhances their brand image, which resonates with their entire ecosystem. This helps to rally stakeholders around partnerships that make sense, retain customers, and attract prospects, new talent, investors and shareholders who care about environmental issues.
What strategies to promote the energy transition?
To integrate the energy transition into a company’s value creation process, it is up to said company to promote this approach. This involves targeted actions to optimise the use of resources and encourage the adoption of sustainable practices at all levels of the organisation.
Conducting an energy audit
The starting point for this process lies in the in-depth analysis of the current energy consumption in companies. This is essential to understand consumption patterns, identify savings opportunities and define priorities.
This assessment, which goes beyond simple consumption surveys, makes it possible to accurately deliver a mapping of energy flows and identify processes and/or equipment with high optimisation potential.
Implementing internal policies
To ensure the coherence and alignment of all departments on the subject, it is essential to develop clear internal policies that everyone has access to. These documents, which take into account a company’s strategic vision, guidelines and associated objectives, must be championed by the company’s leaders and management. This action can then be supplemented by regular communication on projects and the promotion of best practices.
Involving stakeholders
Mobilising stakeholders is indispensable for a successful energy transition within companies. It may be beneficial to organise awareness and/or training programmes for employees so everyone can work together.
To go further, it is also possible to appoint contacts on the subject (e.g. energy sobriety ambassadors) or encourage them to share their ideas. This approach thus reinforces the motivation and individual responsibility of each stakeholder.
Evaluating results
Because the energy transition is a process that is part of continuous improvement, it must be evaluated regularly. This helps measure progress against objectives, adjust action plans and identify new opportunities. By communicating these elements in an intelligible way, companies can also demonstrate their commitment, thus strengthening stakeholder confidence.
The energy transition represents far more than a simple environmental imperative. It can become a real lever for creating value within companies, by enabling them to reduce their costs, stand out from the competition and boost their brand image. Through this strategic approach, organisations can glimpse an opportunity to play a key role in building a more sustainable future for all and prosper economically over the long term.
