Schneider Electric, a leader in the digital transformation of energy management and automation, is urging for greater deployment of existing technologies to address climate change. As the world grapples with accelerating climate change, geopolitical tensions, and volatile energy prices, sustainability and energy resilience have become top priorities for both businesses and policymakers. Several senior executives from Schneider Electric are attending the World Economic Forum’s annual meeting in Davos, Switzerland, where these pressing issues are being discussed.
Peter Herweck, CEO of Schneider Electric, emphasized the importance of the energy transition in decarbonization, stating that while the potential of artificial intelligence (AI) is capturing everyone’s attention, existing technologies can already make a significant impact in reducing emissions. Renewable energy generation, digital tools, and electrification can all contribute to lowering energy demand and enhancing energy efficiency. According to Herweck, there is no time to wait for future solutions when there is so much that can be achieved with the technologies available today.
Private sector action is crucial in reducing emissions, with more companies worldwide committing to sustainability and decarbonization. Over 4,200 companies have set emissions-reduction targets validated by the Science Based Targets initiative. The power of energy efficiency is gaining recognition, as evidenced by last year’s conference on the topic organized by Schneider Electric in partnership with the International Energy Agency. A recent report by the World Economic Forum highlighted the potential for energy savings, efficiency measures, and value cooperation partnerships to unlock up to $2 trillion in savings for the global economy and avoid the need for additional power stations if action is taken before 2030.
Scope 3 emissions, which encompass indirect emissions from a company’s value chains, are another significant focus area. These emissions account for more than 70% of a company’s carbon emissions. The disruptions experienced in global supply chains have elevated the importance of addressing Scope 3 emissions. Business leaders are feeling regulatory pressure to initiate decarbonization planning with supply chain partners, and there is growing demand for supply chain decarbonization information from investors and financial entities.
Olivier Blum, Executive Vice President of Energy Management at Schneider Electric, emphasized the need for businesses to go beyond their own operations and collaborate with suppliers, customers, and other partners to promote greater energy efficiency and cleaner energy procurement. Electrification and digital technologies play a vital role in achieving these goals.
In conclusion, Schneider Electric is urging for the wider deployment of existing technologies to tackle climate change effectively. With the energy transition central to decarbonization, renewable energy generation, energy efficiency measures, and digital and electrification tools can significantly reduce emissions. Private sector action, including commitments to sustainability and addressing Scope 3 emissions, is crucial in driving the necessary changes. The potential for energy savings and cooperative partnerships is immense, presenting both challenges and opportunities for businesses worldwide. By harnessing the power of existing technologies and embracing collaboration, it is possible to make substantial progress in mitigating climate change.
