Turning a complex energy market into a time for opportunities

Review of the energy market in early 2023

Despite the energy crisis and tensions on energy supply, how do economic activities continue to withstand such pressure? What of the outlook for companies in 2023? And how do we reconcile economic performance with social and environmental responsibility? The answer to that is resilience!

Introducing Manon Marcadet, climate expert and Bernard Blez, the former Director of ENGIE’s R&D Center and current President of the Passion for Energy movement.

Together, they share recommendations on how to turn this turbulent period into a time for opportunities.

3 QUESTIONS TO...
MANON MARCADET

Expert in climate adaptation and mitigation, and consultant in the public (upskilling for players in climate development and finance, as well as international negotiations) – and private sectors

Since the current hot topic centers on reducing economic vulnerability and safeguarding energy supply, it’s really the job of innovation directors, managers and accountants. It’s their role to drive forward projects!

Since the current hot topic centers on reducing economic vulnerability and safeguarding energy supply, it’s really the job of innovation directors, managers and accountants. It’s their role to drive forward projects!

MANON MARCADET

WHAT IS YOUR TAKE ON THE CURRENT SITUATION?

Already, the health crisis and the halt on the flow of goods highlighted our dependence on a specific economic, social and energy model.

This year, in Europe, awareness has grown of how vulnerable our organizations are when faced with limited resources. Cue a pessimistic, morose outlook looking ahead? Think again!

This two-pronged process should be considered a boost, repositioning energy supply at the center of company strategies.

Once thought of as ecological, this debate is now taking on a new economic dimension. The same can be said of the large-scale climate negotiations currently taking place on the international stage. What’s more, even those who did not implement a climate change mitigation strategy are now forced to develop an interest in adapting to such changes. No matter whether you take an offensive or defensive stance; in this regard, everything is interlinked.

SHOULD COMPANIES AVOID DISCLOSING THEIR CSR APPROACH UNTIL THEY BECOME “STANDARD BEARERS OF THE ECOLOGICAL TRANSITION?”

The answer is no; all you need is clarity on areas for improvement. Though civil society increasingly calls for transparency, this essentially serves to prevent all forms of “greenwashing,” ensuring long-term support for companies.

To date, this has heralded virtuous partnerships with companies and institutions provide an opening for not-for-profits, aimed at jointly developing CSR strategies and their assessments.

For many years, the “ecological” message was the prerogative of certain not-for-profit organizations which, at times, were outliers in relation to the business world. Interests are aligning, now that the illusory wealth has ended: the key is the ability to discern, amid all these “green” recommendations, in an effort to tap into potential cost savings for companies.

CONCRETELY SPEAKING, HOW CAN COMPANIES EMBARK ON THIS REVOLUTION?

Assuming CSR or sustainability is managed by a specialized team, it can be tricky to get your point across internally. Think of it like the Minister of Ecology facing up to the Minister of the Economy!

And yet, inevitably, the economy and sustainability are inseparable.

Since the current hot topic centers on reducing economic vulnerability and safeguarding energy supply, it’s really the job of innovation directors, managers and accountants. It’s their role to drive forward projects!

THE EXPERT STANDPOINT
Bernard BLEZ
Ex-Director of ENGIE’s R&D Center

President of the Passion for Energy movement, consultant and advisor in deploying solutions to accelerate the energy transition and renewables.

Times are tough for companies, faced with the uncertainty of energy supplies, going forward. Some energy-intensive sectors have seen bills increase four or fivefold. Raw material prices have subsequently skyrocketed, affecting many related sectors such as transport, pharma and agriculture.

This negative spiral does not apply worldwide, but is specific to Europe, and will destabilize our industry. Following on from the health crisis and compounding the climate difficulties experienced, it signals a systemic crisis which no one anticipated.

4 RECOMMENDATIONS TO DEPEND LESS ON ENERGY SPOT MARKETS

#1

ENERGY EFFICIENCY

The most cost-effective energy is that not consumed. There are many ways to reduce a company’s energy consumption. These include overseeing optimal use of buildings and their heating or air conditioning, fine-tuning settings for energy-intensive manufacturing processes and investing in more efficient technologies.

#2

MULTI-ENERGY STRATEGY

Developing a multi-energy, multi-supply strategy seeks to reduce sensitivity to shocks for a specific energy source. This involves investment in self-sourced energy, whether photovoltaic, solar thermal or biogas.

#3

LOCAL SOURCING

Local sourcing enables more effective management of suppliers and transport costs.

#4

CIRCULAR ECONOMY

Kick-starting a circular economy to fully capitalize on resources. Remember that some companies’ waste can be transformed into resources for others!

Most significantly, all these recommendations equally focus on transitioning to less carbon-intensive activities with more sustainable development.

ESG (Environmental, Social and Governance) criteria, sustainability and a responsible economy are no longer the “be all and end all” for some eco-responsible companies. Extending our focus beyond the fundamental ecological challenges at stake, they have become integral performance criteria for companies.

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