Businesses worried by energy volatility: report

New research from Schneider Electric has found that volatility is a key energy supply concern for businesses, with only one-third (32%) of companies feeling adequately equipped to navigate future energy market volatility.

Schneider Electric’s ‘Sustainability Index, 2023’ report, a quantitative survey conducted with over 500 decision-makers across corporate Australia, focused on the leading concerns regarding energy supply in the corporate sector. Cost and risk management in the face of volatility (42%) and cybersecurity (42%) emerged as the top two concerns, underscoring the need for businesses to adapt to market changes and protect against data breaches.

Climate change and its associated impacts (34%) was the number-three energy supply concern for business leaders, reflecting increased recognition of the impact of climate change on economic performance, combined with growing public interest in climate action following last year’s bushfires, droughts and floods.

The survey highlighted a promising trend among businesses choosing to invest in energy efficiency. Approximately 70% of businesses are currently discussing or implementing strategies to improve energy efficiency, recognising its potential to reduce costs and enhance environmental performance. Additionally, two-thirds (66%) of companies are considering implementing renewable energy solutions onsite, such as solar power.

Electrification and fuel-switching solutions were also popular, with half (50%) of surveyed businesses exploring these options. By transitioning to electrified systems and incorporating fuel-switching solutions, businesses can reduce their carbon footprint and minimise reliance on traditional energy sources, the prices of which are tied to global market circumstances.

“A strong, resilient energy mix is essential for every business,” said Lisa Zembrodt, Principal and Senior Director of Schneider Electric’s Sustainability Business.

“Leaders should create holistic, optimised energy management strategies that look to action efficiency measures, electrify wherever possible and develop a mix of onsite renewable generation, storage and real-time monitoring to help manage and reduce their energy needs,” she added.

The full report can be downloaded here.

Image credit: iStock.com/Rodrigo