Simas Abraskevicius, the EUSEW’s digital ambassador, has ignited a crucial conversation about corporate decarbonisation, asserting its pivotal role in achieving sustainability goals and driving economic growth. Abraskevicius, drawing from his extensive career in sustainability, emphasises that corporate decarbonisation is not merely about adhering to regulatory standards but about fostering innovation, energising teams, and unlocking competitive growth. This perspective challenges the status quo, urging companies to view decarbonisation as a strategic advantage rather than a compliance burden.
Corporate decarbonisation involves a comprehensive reduction of greenhouse gas emissions across a company’s entire value chain. This includes everything from energy use in production and logistics to product design and supply chain management. The urgency of this transition is underscored by international climate commitments, such as the Paris Agreement, which mandates a roughly 45% reduction in global emissions from 2010 levels by 2030 to stay on track. Heavy industry, which accounts for nearly 20% of global emissions, faces an even steeper challenge, with expectations to reduce emissions by about 50% over the next decade. While sectors like tech and finance have already begun this journey, industries such as steel and cement grapple with significant hurdles, including high capital costs, technological constraints, and complex supply chain issues.
So, how can companies effectively decarbonise? There is no one-size-fits-all solution; each company must tailor its strategy to its unique operational realities. However, several key measures stand out. Energy efficiency upgrades, for instance, are a cornerstone of many successful decarbonisation efforts. Modernising equipment, streamlining processes, and deploying innovative energy management systems can lead to efficiency improvements of up to 20-30%, resulting in both lower emissions and significant cost savings. These initiatives align with best practices recommended by global energy agencies and sustainability experts, reinforcing their critical role in the transition to a low-carbon economy.
Transitioning to renewable energy is another essential strategy. Companies can procure clean electricity through mechanisms like Guarantees of Origin (GOs), invest in on-site renewable installations, or explore power purchase agreements (PPAs). This shift not only reduces dependency on fossil fuels but also provides a buffer against energy market volatility, often leading to energy cost reductions of 10-15% over time. Such efforts are crucial for reducing the carbon intensity of operations and are widely endorsed by leading sustainability frameworks.
Innovative technologies and process redesign are also vital. Embracing digitalisation, automation, and emerging technologies can re-engineer production processes to minimise emissions. Advanced data analytics, digital twin technology, and solutions like carbon capture and storage (CCS) enable precise monitoring and control of emissions while enhancing operational resilience and efficiency. These technological advancements position companies as leaders in the sustainable industry revolution, lowering operational costs over time and bolstering industrial competitiveness.
However, many companies hesitate to fully embrace these measures due to financial constraints, short-term profit pressures, and the significant upfront investment required for new technologies. Integrating innovative solutions into legacy systems and navigating complex global supply chains can be daunting. Regulatory uncertainties and the absence of uniform policy incentives in some regions further complicate the transition. Yet, the future of decarbonisation is poised to reshape industries in ways reminiscent of the Industrial Revolution. The integration of advanced digital technologies, such as artificial intelligence, blockchain for energy trading, and smart grids, combined with a growing emphasis on renewable energy, will drive unprecedented improvements in energy efficiency and industrial productivity.
Looking ahead, a convergence of policy support, innovative financing mechanisms, and public-private partnerships will accelerate the transition to a net-zero economy. The European Green Deal, for example, outlines ambitious targets to cut emissions by at least 55% by 2030, reinforcing regulatory momentum. Companies that embrace decarbonisation will not only contribute to global sustainability goals but also gain a competitive advantage in a market where regulatory frameworks and consumer expectations increasingly favour sustainable practices. With the right mix of technology, strategy, and policy alignment, corporate decarbonisation will evolve from a compliance obligation into a powerful catalyst for economic growth and environmental leadership. Abraskevicius’s insights challenge companies to view decarbonisation not as a cost but as an investment in their future, sparking a debate that could redefine the energy sector’s trajectory.
