Press
Lagging on Net Zero: Accelerated decarbonisation needed across manufacturing sector, minority have strategies in place
Press
Alfa Energy (an Edison Energy company) says net-zero work will reduce exposure to price volatility and strengthen energy security
[LONDON, UNITED KINGDOM, December 13, 2022] — Energy price volatility and threats to supply have reached a critical level in the UK and Europe, magnifying the “need for speed” messaging heard from leaders throughout COP27. Since wind and solar are the fastest ways to create new energy supplies, and require no fuel, they enable forward-thinking businesses to simultaneously tackle both the energy and climate crises.
However, as Alfa Energy (an Edison Energy company) discovered in a recent online survey of 51 UK and pan-European manufacturers representing sectors including aerospace, defence, transportation, and food, only 24% report having a net-zero strategy, with 32% saying one is in development, and 38% currently not implementing a net-zero strategy at all.
“Many companies are not prepared, and although their current mode of operating might have worked before, they have discovered that not actively protecting their costs through carefully risk-managed forward energy purchasing has left them exposed,” said Damir Ahmovic, President, Europe, at Edison Energy, which recently acquired Alfa Energy.
Poll results were collected during the November webinar, “Building Resilience: A strategic approach to energy and decarbonisation in manufacturing.” When asked to look forward, a combined 74% of the 51 participants reported that decarbonising their business operations and rising energy costs are the two greatest challenges in future-proofing their businesses.
Yet when asked “Do you have a net zero strategy?” the results were:
No: 38%
It’s in development: 32%
Yes: 24%
I don’t know: 6%
Other survey findings:
– Asked “What are you doing to decarbonise your business?” only 19% of the manufacturers responding chose investing in low-carbon technology, with 34% saying they are investing in energy efficiency and 28% buying renewable energy.
– 55% said they manage their energy and sustainability data with spreadsheets, while 28% use energy or sustainability software and 10% outsource to a third party.
– 61% reported not using Life Cycle Analysis/Life Cycle Costing to analyse the environmental impacts of their products and supply chain.
“Manufacturing remains central to the success of most European economies, and decarbonisation efforts are the answer for both reducing exposure to price volatility and bolstering access,” said Ahmovic. “Also, as major energy consumers, there are multiple benefits to manufacturers’ actively working on net-zero goals, such as lowering costs and mitigating climate change.
“Expertise and support are available through consultancies such as ours,” he said. “And through collaboration, companies can find an obtainable roadmap that makes an impact while addressing the energy crisis they’re facing.”
Refinitiv Eikon. (2022). Season Ahead: UK Gas and Power Prices. Available at: https://www.refinitiv.com/en/products/ eikon-trading-software/ (Accessed: 12 December 2022).
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Edison Energy LLC
Global Reach. Local Impact. Edison Energy LLC (DBA in Europe as Altenex Energy and Alfa Energy) is a global energy and sustainability advisory that provides strategy and implementation services to help large corporate, industrial, and institutional clients navigate the transition to a net-zero future.
With the recent integration of Edison, Altenex, and Alfa into one global company, we bring the strength of combined expertise across energy procurement, optimization, renewables, and sustainability solutions. With advanced technological capabilities and expanded international reach, we enable our clients to achieve more positive, measurable impact.
For more information about Edison visit: https://www.edisonenergy.com/
For more information about Alfa Energy visit: https://www.alfaenergygroup.com/
