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The changing face of energy leadership today

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The changing face of energy leadership today

  1. 1. Energy leadership and why it’s important to have an energy strategy
  2. 2. Energy leadership delivers competitive advantage The way organisations view energy is changing. The most forward thinking are taking more control of how they source, use and manage energy. We’ve developed a model which describes the four stages of energy leadership. Energy leadership matters because leaders significantly outperform their peers on many business measures. In terms of approach to energy, organisations fall into one of four stages. 2
  3. 3. Stage 1 – Least advanced These organisations see energy purely as a cost of doing business. 3
  4. 4. 51%of organisations surveyed fall into this category. 4
  5. 5. Stage 2 – Quite advanced These organisations have begun to consider the role of energy more broadly. Energy is no longer just a cost of doing business. 5
  6. 6. 25%of organisations surveyed fall into this category. 6
  7. 7. Stage 3 – Very advanced These organisations are likely to have a formal energy strategy. They also continuously measure energy use, seeking opportunities for improvement. 7
  8. 8. 16%of organisations surveyed fall into this category. 8
  9. 9. Stage 4 – Most advanced These organisations have a longer-term energy strategy in place. They employ a dedicated energy team to plan, implement and maintain the corporate strategy and supporting systems. They also have energy specialists who plan, implement and manage their energy estate. 9
  10. 10. 8%of organisations surveyed have achieved this level. JUST 10
  11. 11. What do these levels look like? These headline groupings are interesting – but what do the organisations which fall into each category look like? 11
  12. 12. Least advanced These organisations are: Least likely to consider energy as a source of competitive advantage or to be using smart technology to drive efficiency. Least likely to have dedicated energy resources. Least likely to see the linkages between sustainability and brand. 12
  13. 13. What can they do to improve? View energy as a strategic asset. Create a formal energy strategy. Introduce continuous energy measurement. Introduce energy resiliency provisions to avoid outages/shortages. Build partnerships with energy suppliers. Recognise the link between green energies and their brand identity. 13
  14. 14. Quite advanced These organisations are: More progressive in their attitudes. Moving beyond considering energy exclusively as a cost of doing business. More likely to have dedicated energy staff. More likely to see the linkages between sustainability and their brand. 14
  15. 15. Create a formal energy strategy. Introduce continuous energy efficiency monitoring. Deploy energy resilience measures to cope during outages. Build partnerships with their suppliers. Increase buy-in at the C-suite level. Strengthen their focus on green energy initiatives. What can they do to improve? 15
  16. 16. Very advanced These organisations: Are more likely to have a formal strategy. Measure energy usage on a continuous basis. Have approaches in place to reduce energy risk. Use energy efficiency solutions more widely. 16
  17. 17. Develop stronger linkages between their energy strategy and business goals Increase use of dedicated specialist professionals. Invite more C-suite execs to assist with setting energy strategy. Strengthen energy measurement provisions. Deploy advanced solutions to improve energy resilience. Deepen partnerships with suppliers. What can they do to improve? 17
  18. 18. Most advanced The most advanced energy leaders: Have the most progressive attitudes towards energy. Are the most likely to have a formal energy strategy. Are the most likely to have a dedicated energy team. Are the most likely to be continuously measuring energy. Are the most likely to see energy providers as partners. Have a broad range of senior stakeholders more likely to be involved in setting energy direction. 18
  19. 19. 8%still have room for improvement. Still room for improvement THIS 19
  20. 20. If they are to keep their competitive advantage, energy leaders should focus on: Prioritising energy as a route to deeper efficiency and growth Obtaining buy-in from the C-suite for the energy strategy Strengthening supplier partnership relationships 20
  21. 21. Does your energy strategy really matter? In a word – yes. Having an energy strategy will help you to become an energy leader. 21
  22. 22. A good energy strategy Demonstrates C-level support Defines targets and commits to improving how energy use is monitored Shows how you’re going to meet your targets Shows stakeholders why it’s a good idea 22
  23. 23. 2.5x more likely to be achieving strong financial performance Energy leaders are: 23
  24. 24. 2.3x Energy leaders are 2.3x more likely to be a leading brand in their market 24
  25. 25. Are you ready to become an energy leader? Complete this Energy Leadership Model to see how you can move your maturity levels. FIND OUT YOUR LEVEL OF ENERGY LEADERSHIP Source: The Energy Advantage Report, Centrica Business Solutions. Statistics based on a six country survey of more than 1,000 energy decision-makers in large organisations. 25

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