Committing to net zero is not only a legal target for businesses, but it also offers ethical and reputational benefits. Policymakers have long highlighted that setting (and reaching) a net zero target can boost a brand’s credibility and resilience, driven by investor confidence in readiness for future regulation.
However, if approached correctly, the path to net zero can also offer new opportunities to further optimise operations and, in some cases, unlock additional revenue streams or cost savings.
Along the way, technology will play a significant role in delivering net zero and harnessing these opportunities. This will require a clear roadmap that combines both buying and building new technology and modernising legacy systems.
Here, we’ll explore how to define this technology roadmap in key areas to achieve a competitive edge on the path to net zero.
Modernising grids and energy storage
As energy grids adapt to accommodate renewables, innovations in energy storage and smart metering are empowering businesses to transition to cleaner energy and the achievement of carbon net zero. Smart meters offer real-time data on energy consumption, which, combined with large-scale battery storage systems, enable more efficient use of renewable energy and reduce reliance on fossil fuel backup generation.
Modern consumers consider both value for money and environmental impact and will pay for products and services that strike the right balance. Sharing insights with customers about their emissions or environmental impact can therefore help companies benefit from customer acquisition and loyalty.
Businesses looking to take things further can enhance their grid management and energy storage software with tailored features, such as renewable energy integration, optimising storage and leveraging advanced analytics. Like with other solutions, integration with operational technology such as Internet of Things (IoT) devices allows businesses to optimise performance while maintaining flexibility for future growth.
On the basis that an energy company’s primary purpose is to create, store and provide energy, we’d expect to see leading companies develop their own software and data solutions and IP to optimise consumption and help stabilise the grid.
Renewable energy management platforms
Essential for monitoring, controlling and optimising the performance of renewable energy, these platforms facilitate efficient management of energy production, storage and distribution, ensuring sustainable and effective energy use. This will be a key enabler on the path to net zero as we introduce cleaner energy sources.
For companies seeking greater flexibility and optimised energy distribution, they can integrate virtual power plants (VPPs), allowing these platforms to aggregate and manage distributed energy resources, such as residential solar panels and battery storage systems, to operate as a unified power source. This technology enables businesses to balance supply and demand in real-time and to sell energy from distributed sources back to the grid – offering a new revenue stream.
In addition, energy storage innovations can be integrated into these platforms to store excess renewable energy generated during peak production times. This stored energy can then be used during periods of low generation, reducing reliance on fossil fuels and enhancing overall grid stability.
Adding such customisation can help provide a significant competitive edge. By leveraging proprietary technologies and tailored solutions, companies can distinguish themselves in the market, offering unique capabilities and efficiencies. This can lead to improved performance, lower operational costs and greater sustainability achievements.
Dashboards and monitoring solutions
Dashboards and solutions for monitoring and reducing carbon footprints are growing in popularity. This reflects a heightened awareness of the importance of environmental ownership and the need to look at emission reduction like a business plan, quantifying emission reductions and setting an internal price for carbon.
Powerful dashboards can handle a variety of data sources, offer extensive functionalities and – critically – are highly customisable. This customisation offers a significant opportunity to integrate with various data sources and apply specific business logic.
By leveraging these solutions, organisations can gain real-time insights into their carbon footprints, identify key areas for improvement and implement strategies to reduce emissions. These platforms help quantify emission reductions and track progress toward sustainability goals, thereby supporting the path to net zero.
In addition to optimising their own operations, businesses that customise these platforms accordingly can unlock additional income streams by providing these insights to clients and customers, monitoring emissions and offering reports.
Eco-friendly asset management
Eco-friendly asset management systems support net zero goals by optimising resource usage and reducing waste, enabling precise energy monitoring and integrating renewable technologies. They allow businesses to efficiently track and report asset management, while adapting to evolving sustainability practices and regulations.
However, these systems can be tailored and enhanced to suit specific operational needs, offering a more responsive system and providing companies with an edge in their operational sustainability. With this tailored approach, systems can be integrated with existing and emerging technologies such as IoT sensors, providing real-time energy monitoring. Businesses can then optimise energy use and minimise their carbon footprint more effectively than competitors. Additionally, as new technologies such as artificial intelligence (AI) enhanced energy optimisation become available, businesses can leverage advanced features to provide unique functionality.
Some of the more basic components of asset management may well lend themselves to off the shelf (OTS) solutions such as asset registers, cost management and enterprise resource planning (ERP) integrations. However, when it comes to predictive maintenance and site-specific solutions, this should be the core value proposition of energy companies, so it would be difficult to completely outsource this to third party software. With a tailored approach across buy, build and hybrid, businesses can rely on efficient and adaptable systems that improve sustainability performance while optimising resources and staying cost-efficient in their sustainability efforts.
Innovative waste management
There is a growing appetite for innovative waste management solutions that streamline processes and enhance recycling efforts. Whether it’s converting waste into energy, such as advanced biogas production and new incineration technologies, or smart bins that use artificial intelligence (AI) to identify and categorise waste, businesses can reap the benefits of innovative waste management.
The core features of these systems allow real-time tracking, route optimisation and compliance reporting. However, when customised for unique business needs, companies can harness increased functionality. By enhancing the system with advanced technologies like IoT, businesses can streamline their waste management processes, reduce errors and optimise waste categorisation. This helps companies reduce costs and improve operational performance ahead of competitors.
Achieving customisation on the path to net zero
On the journey to net zero, software and data solutions will play a central role. Companies eager to achieve differentiation and enjoy a competitive edge must consider how to build and maintain their own IP in the right areas, and how to buy OTS solutions where it makes sense. To do this, organisations should consider the following:
- Develop an effective technology roadmap including decisions on when to buy or build. Companies must decide whether to buy OTS solutions or build customised tools to support their sustainability goals – each option offering distinct advantages and trade-offs. Building in-house brings unmatched customisation but requires more upfront investment and development time. However, ongoing costs are minimal, or related to feature development, which in turn drives additional return on investment.
OTS solutions, on the other hand, deliver speed and short-term savings, but limit flexibility and differentiation over time. These also come with long-term license fees and potential disintermediation from your value chain.
Central to successful sustainability initiatives is the effective management and analysis of underlying data, coupled with robust AI strategies. With an effective strategy, you can leverage actionable insights and implement targeted solutions for improvement.
- Evolve and grow digital skills and expertise
To leverage the potential of tailored software, organisations must upskill staff or recruit those with digital expertise in sustainability focused software development. Outsourced providers with specialised knowledge can offer invaluable support.
- Seize new opportunities
The shift towards sustainability presents a unique opportunity for businesses to innovate and diversify. Invest in software solutions that address environmental challenges to reduce ecological footprint while creating new revenue streams and business models.
Businesses will continue to turn to software and data solutions to help them towards their goals and targets. Those who innovate and push their solutions beyond the norm are likely to enjoy new revenue and business opportunities, along with the ethical and reputational advantages available. Those who simply outsource or buy the solutions are at risk of losing ground in their value chain, being slow to market with new revenue streams and failing to effectively differentiate themselves in a competitive market.
To learn more about the path to net zero and its challenges and opportunities, download our whitepaper: Redefining Power and Policy.