Disrupted supply chains, over dependencies, inflation, volatility, uncertainties; recent events have taken a financial toll on the global economy and on companies’ profitability prospects.
Beyond uncertain financial models, trajectories to net zero are equally as challenging. In an attempt to cope with an ever-increasing demand for electricity in the current geopolitical environment, some countries – such as Germany – are pondering the restarting of coal firepower plants to power industries and regain some short-term energy autonomy.
Against this backdrop, energy sobriety will be a key lever to achieve profitability on the road to net zero. Whilst companies may not change or adapt to save the planet, they will change and adapt to survive. Historically, these Darwinist dynamics have initiated the biggest economic turnarounds and led to the implementation of major innovations. This could ultimately realign fundamental economic, financial and environmental objectives.
Supply chain autonomy, profitability and net zero could all be achieved through more discipline in applying simple energy efficiency solutions, and integrating this sobriety as a key design principle in product and business developments.
This is an excerpt from an opinion editorial published in Environmental Finance.