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Is your company prepared for the global energy transition?

The energy transition process has already started, with several companies adhering to the ESG model. Are you prepared?

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The world is changing the way it produces and consumes, and the future is moving towards a more sustainable model. Proof of this is that the world's largest oil and gas companies have already issued statements predicting the end of the era of fossil fuels and are mobilizing for a change in the energy matrices they traditionally used. The Paris Agreement, signed in 2015, represented a collective commitment by almost 200 countries to reduce the emission of greenhouse gases, which contribute to the increase in global temperature and are generated in large part by the burning of diesel and gasoline in vehicles and industries. If the emission of CO2 does not decrease, it is certain that we will face extremely serious problems still in this century. Because of this, some countries have already set limits for the production of combustion cars, and it is likely that these will have restricted application in the future. A global energy transition has begun.

In this scenario, being sustainable started to add value to companies and brands. Today there are dozens of products that make it clear that they are biodegradable or that their production does not contribute to greenhouse gas emissions, for example, which illustrates how this has become a strong appeal to the public. This appeal, it should be said, is not restricted to B2C companies, but is also important for companies in the B2B universe. Sustainability is one of the criteria used by international companies to choose partners and suppliers, for example, and there is a well-known British organization called CDP Worldwide that estimates how much carbon companies emit: organizations with lower emissions tend to be better seen and attract more investment, for example. There are specialists who even point out that companies that do not adhere to the sustainable model may no longer be accepted on a global level.

Many companies have rethought their positioning on different fronts and adhered to the so-called ESG model (acronym from the English expression Environmental, Social and Governance and used to describe best environmental, social and governance practices). In relation to the environmental issue, this model advocates working using natural resources with low impact, in order to reduce the resources spent per unit produced and thus reduce the environmental impact caused by their products. With many companies seeking to produce with lower impact, there is a potential to reduce CO2 emissions significantly. And the ESG model goes through other spheres as well, advocating social practices that favor plurality in the workplace and governance actions that are guided by ethics, among many other things. The energy transition that is beginning will also have an impact on global geopolitics: oil-rich countries tend to lose their bargaining power (their shares are already in decline), and the great powers will no longer covet territories rich in fossil fuels. The tendency is that the powerful countries will work with the objective of substituting carbon energy by a new matrix to be built progressively, including more and more wind, solar, biomass, biofuel and new forms of storage that include batteries and other technologies. Having abundant oil will no longer be a sign of economic and political power.

The search for becoming sustainable today goes through a change of mindset that involves the so-called 3Ds: decarbonization, by using energy without any carbon emissions, digitalization, as the new systems make use of the internet of things to collect data from different sources and integrate them, and decentralization, as many companies, businesses and households will produce their own energy and sell the surplus, which makes the system more dynamic, complex and participatory.

Is your company prepared for the global energy transition? Getting ahead of your competitors in the quest for sustainability can make all the difference, and there are several possible solutions, from investing in solar photovoltaic plants to using batteries to store energy, which can provide great savings if an intelligent control system is used, as this makes it possible to accumulate energy at cheaper times and save at peak times, for example.

What is worth noting, however, is that although pursuing decarbonization is a global trend and a path that all companies should follow in the near future, it is also a complex process, which may require simultaneous works in civil, mechanical and electrical engineering, environmental licensing and the management of different suppliers. Failure to meet the deadline for implementation of new plants can generate fines and considerable financial loss, so it is advisable to rely on experienced partners with experience in the process.

Context and Challenges

ihm uses its more than 25 years of experience in large industrial projects to offer complete sustainability solutions, such as solar plants, small hydroelectric power plants, wind farms, energy storage through battery banks, grid digitalization and studies to increase energy efficiency, among others. We offer complete advisory services, from design to execution, always with a team of trusted suppliers to ensure on-time delivery.

Interested? Download our full ebook

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Is your company prepared for the global energy transition?

The energy transition process has already started, with several companies adhering to the ESG model. Are you prepared?

August 13, 2021

published by

Business and Energy

Nicolau Bittencourt

The world is changing the way it produces and consumes, and the future is moving towards a more sustainable model. Proof of this is that the world's largest oil and gas companies have already issued statements predicting the end of the era of fossil fuels and are mobilizing for a change in the energy matrices they traditionally used. The Paris Agreement, signed in 2015, represented a collective commitment by almost 200 countries to reduce the emission of greenhouse gases, which contribute to the increase in global temperature and are generated in large part by the burning of diesel and gasoline in vehicles and industries. If the emission of CO2 does not decrease, it is certain that we will face extremely serious problems still in this century. Because of this, some countries have already set limits for the production of combustion cars, and it is likely that these will have restricted application in the future. A global energy transition has begun.

In this scenario, being sustainable started to add value to companies and brands. Today there are dozens of products that make it clear that they are biodegradable or that their production does not contribute to greenhouse gas emissions, for example, which illustrates how this has become a strong appeal to the public. This appeal, it should be said, is not restricted to B2C companies, but is also important for companies in the B2B universe. Sustainability is one of the criteria used by international companies to choose partners and suppliers, for example, and there is a well-known British organization called CDP Worldwide that estimates how much carbon companies emit: organizations with lower emissions tend to be better seen and attract more investment, for example. There are specialists who even point out that companies that do not adhere to the sustainable model may no longer be accepted on a global level.

Many companies have rethought their positioning on different fronts and adhered to the so-called ESG model (acronym from the English expression Environmental, Social and Governance and used to describe best environmental, social and governance practices). In relation to the environmental issue, this model advocates working using natural resources with low impact, in order to reduce the resources spent per unit produced and thus reduce the environmental impact caused by their products. With many companies seeking to produce with lower impact, there is a potential to reduce CO2 emissions significantly. And the ESG model goes through other spheres as well, advocating social practices that favor plurality in the workplace and governance actions that are guided by ethics, among many other things. The energy transition that is beginning will also have an impact on global geopolitics: oil-rich countries tend to lose their bargaining power (their shares are already in decline), and the great powers will no longer covet territories rich in fossil fuels. The tendency is that the powerful countries will work with the objective of substituting carbon energy by a new matrix to be built progressively, including more and more wind, solar, biomass, biofuel and new forms of storage that include batteries and other technologies. Having abundant oil will no longer be a sign of economic and political power.

The search for becoming sustainable today goes through a change of mindset that involves the so-called 3Ds: decarbonization, by using energy without any carbon emissions, digitalization, as the new systems make use of the internet of things to collect data from different sources and integrate them, and decentralization, as many companies, businesses and households will produce their own energy and sell the surplus, which makes the system more dynamic, complex and participatory.

Is your company prepared for the global energy transition? Getting ahead of your competitors in the quest for sustainability can make all the difference, and there are several possible solutions, from investing in solar photovoltaic plants to using batteries to store energy, which can provide great savings if an intelligent control system is used, as this makes it possible to accumulate energy at cheaper times and save at peak times, for example.

What is worth noting, however, is that although pursuing decarbonization is a global trend and a path that all companies should follow in the near future, it is also a complex process, which may require simultaneous works in civil, mechanical and electrical engineering, environmental licensing and the management of different suppliers. Failure to meet the deadline for implementation of new plants can generate fines and considerable financial loss, so it is advisable to rely on experienced partners with experience in the process.

ihm uses its more than 25 years of experience in large industrial projects to offer complete sustainability solutions, such as solar plants, small hydroelectric power plants, wind farms, energy storage through battery banks, grid digitalization and studies to increase energy efficiency, among others. We offer complete advisory services, from design to execution, always with a team of trusted suppliers to ensure on-time delivery.

Interested? Download our full ebook

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