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Is your company prepared for the energy transition? Peter van Ees, energy expert at ABN AMRO, points you in the right direction with these 5 tips.

Energy transition

09/03/2023 • 5 minute read

ABN AMRO has a strong international commitment to supporting companies through their sustainable transition. But exactly what challenges does this transition bring? Peter van Ees, (New) Energies & Hydrogen Sector Banker at ABN AMRO, gives some practical tips business managers can already apply right now. Because one thing is sure: the transition is in full swing. And those who lag behind will not survive.

1. Know where you stand in terms of legislation

Peter: “First and foremost, it’s important to know exactly what your company will need to do. People often talk about 2050, the year when the EU wants to become climate neutral. That may seem a long way off still. In practice, companies will already need to have achieved a great many goals by 2030. What these goals are will depend on the agreements reached between national authorities and the various trade associations. Have you not yet joined a trade association? Then you should join up just as soon as you can. That way you will know exactly which agreements are already in place and which requirements you will need to fulfil within the next seven years. It gives you both a clear direction and legal protection. In some sectors these agreements are very clearly defined, but others are finding it much harder to come to practical agreements. For example, look at the current problems due to the nitrogen agreement, which has created a lot of commotion among both Dutch and Belgian farmers. In any case, whatever the outcome, it is crucial that you keep yourself as well-informed as possible. Only then can you take specific actions.”

2. Be proactive

Peter: “No company can avoid transitioning to more sustainable business practices. The world is changing and either you’re on board or you’ll be overboard and going under in a few years. At present, most companies are not yet required to report on their carbon footprint under the scope of the Corporate Sustainability Reporting Directive (CSRD). But for some sectors – such as the financial sector – this is already the case. As a bank, we also have to report on all the parties in our value chain. In this way, we are actually required to ensure that parties who are not (yet) obliged to report themselves are reporting anyway, as well as meeting certain requirements. If your figures show that you do not meet certain criteria, this may mean we can no longer do business with your company. And if you’re not on board by 2030? There is sure to be a competitor who is. In other words, it could actually impact your company severely. At ABN AMRO, we therefore always recommend adopting a proactive attitude towards this inevitable transition. Determine where you are today, where you want (or need) to be, and how you will set about getting there.”

3. Invest where possible and be innovative

Peter: “There are a number of things that you can quickly improve in terms of your energy policy. For example, consider switching to certified green electricity. This is easy to arrange and makes a big difference straight away. You can also try to electrify your production process as far as possible. We see these two areas as ‘low hanging fruit’. However, it is likely that you will also need to make various investments: install rooftop solar panels and add a battery too, switch off the lights more often, stop making so many trips by car and set up virtual meetings instead, and so on. These are already obvious changes you can make. We must use the limited green energy we have available – because we are facing major shortages and rely heavily on imports in Belgium too – as efficiently as possible.” 

“In order to reach the 2050 climate target, we will need to manage our energy 40% more efficiently. That will require enormous effort! It means businesses will need to take quite extreme measures. For example, you could copy Agristo, the company we invited to join us in our podcast (in Dutch), and adapt your HVAC system to use the residual heat from your machines for other purposes, such as heating your offices. This is just an example, but my main message is that you must be willing to innovate. Tackle the obvious things first and streamline your business processes wherever possible. What about hydrogen? That is still a far-off vision for the average company at the moment. Producing green hydrogen takes a lot of green electricity, which we simply don’t have available at the moment.”

4. Talk to others in your industry

Peter: “I would like to call on all businesspeople in Belgium to put more time into consulting each other. If you work together, you will get much further, much faster. Of course, that costs time (and money) and for perfectly understandable reasons, we don’t always want to put all our cards on the table. If you want to make major changes, though – such as the construction of a heating distribution network, for example – you really have to sit down together and draw up a joint proposal to obtain the necessary permits and subsidies. It’s the most efficient way to truly make progress. The sense of urgency is there, now let’s collaborate so we can actually make that difference.”

5. Listen to advice

Peter: “Of course, as a business manager, you already have a lot on your plate and defining exactly how best to deal with the (energy) transition is no simple matter. That’s why it’s important to make good use of others’ expertise. An example would be the use of software packages like those from Carbon+Alt+Delete to calculate your carbon emissions. ABN AMRO can also assist you by helping to determine your individual needs and putting you in touch with the right parties. This transition is major and fast-moving. But you don’t have to do it all alone.”

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Article
Energy transition
Entrepreneur
Sustainable business
Entrepreneur & Enterprise
Enterprise
Climate action
Partnerships

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