Ahead of the World Economic Forum annual meeting, Schneider Electric has issued an urgent call for governments and organisations across the globe to address the worldwide energy crisis.
The energy management and automation specialist pushed for more sustainability action and increased investments in technologies that will reduce carbon emissions and bolster energy security.
“Today’s climate and energy crises are an economic reality for ever-increasing numbers of people. We must act in our own best long-term, not short-term, interests. We must not avoid the tough decisions. There can be no long-term prosperity without a complete energy transition,” said Jean-Pascal Tricoire, Schneider Electric’s Chairman and CEO.
It’s now or never to tackle the energy crisis
The call from Schneider Electric comes amid spiking energy prices, supply crises, and accelerating climate change. A substantial 38% of global carbon dioxide emissions come from the built environment, while an extra 32% comes from industry.
Schneider Electric’s survey of more than 500 C-Suite executives revealed that corporate sustainability commitments and investments are often hampered by the complexity of decarbonisation. Additionally, stakeholder alignment, budget, technology, skills and regulation pose challenges to sustainability implementation.
“Purpose and profits must align to become powerful forces in the fight against climate change. We already have the technology to avert the energy and climate crises, and to deliver safe, reliable, and sustainable energy distribution and energy use. The urgency for action has never been greater than it is now,” added Tricoire.
The survey also showed that the majority of companies do not have a financial commitment to sustainability and decorbonisation, with only 2% of projected revenue set for these initiatives over the next three years. Of those that will invest, enhanced industrial automation and the upgrading of electrical infrastructure will form a key part of their sustainability plan.
Schneider Electric believes that delivering increased efficiency across existing infrastructure through digitisation and automation will be among the most important levers in the next decade, as it is said to be the fastest and most capital-efficient means for many organisations to reduce emissions.