09/14/2023
Source: Energy & Management Powernews
Many business leaders consider decarbonization a competitive advantage. But that the self-set goals will be achieved, apparently a minority expects.
There is no lack of conviction, not at Siemens. The corporation has now published the results of a global survey of business leaders on infrastructure change in terms of energy systems, mobility and buildings. "The survey is based on the conviction that infrastructure change must not only lead to decarbonization, but should also have positive effects beyond that," Siemens explains.
The survey sheds light on the state of infrastructure change, and in doing so, developments in "systems, services, buildings and structures that are necessary for the effective functioning of industries, cities and countries," according to the report. According to the report, decarbonization is considered a top priority for infrastructure change, but has yet to really get off the ground in many places.
While more than half of respondents believe this change is accelerating in their region, a quarter say it is happening "too slowly." Twenty-nine percent of bosses think progress is "coordinated," and 31 percent call it "goal-oriented."
More than half of executives expect decarbonization to give them a competitive advantage. Smaller is the proportion who say their country has developed an effective strategy for decarbonization. Asked specifically about the energy transition, this proportion shrinks sharply. Fewer than 10 percent believe their region - or country - is "advanced, fully integrated and fully scaled on key energy transition goals," according to the survey.
Survey respondents see regulators as primarily responsible, with 31 percent pointing to them. They are followed by the owners of the real assets, investors and shareholders (25 percent). Siemens, citing a McKinsey study, puts the cost of bringing about profound changes in electricity generation, distribution and use worldwide at $275 trillion.
Not least a question of confidence
As far as achieving the decarbonization targets they have set themselves is concerned, the business community is split. 40 percent of companies expect to accomplish what they set out to do this year. 44 percent expect to achieve their goals by 2030. According to the survey, nearly half (47 percent) of companies are already tracking targets for Scope 1 and Scope 2 emissions. The survey suggests "that there is a correlation between confidence in corporate growth prospects and confidence in decarbonization targets," Siemens concludes.
There is still much to be done on corporate buildings. Thirty-seven percent of respondents rate their company as "mature" or "advanced" when it comes to improving the energy efficiency of plants and buildings, it says. When it comes to electrification or decarbonization of heating and cooling, the figure is 30 percent, it said.
Executives see technology and digitization as the most important levers for infrastructure transformation. According to the survey, key technologies that will have a particularly positive impact include "AI-based forecasting and automation, virtual and augmented reality, and 5G mobile networks."
For the Infrastructure Transition Monitor 2023, Siemens surveyed a total of 1,400 executives in 22 countries. The study is available for download .
Author: Manfred Fischer
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