Energy management – the first step towards net zero (2023 Prediction #3)
The energy management business is booming due to soaring energy costs and will continue to gain in importance in 2023. Energy management solutions are currently the second most frequently used building block of sustainability-related technology for European firms, according to PAC research, just after ESG data monitoring & reporting software. This trend has grown considerably in the course of 2022, and we believe that it will remain highly relevant in 2023.
IT providers are capitalizing on this momentum by creating offerings to help their clients save energy or transition to renewable energy, especially in manufacturing, which is the most energy-intensive vertical. All over Europe, factories have been slowing down or even stopping production, partly due to prohibitive energy costs, and the likelihood of energy rationing is becoming greater every day. Energy management software and IoT solutions are key drivers of energy savings and production optimization, and they can help companies from all industries to navigate this difficult economic environment.
As sustainability in recent years has grown in both awareness and perception by the public and regulators, being able to provide transparency regarding energy management is invaluable for promoting an organization’s activities. Moreover, when looking at the legislative changes bound to take place in Europe in the coming three years, energy management will certainly be a major topic for companies from all industries and of all sizes in the coming months. That means even companies that were off to a slow start in terms of sustainability and energy management will be forced to increase their efforts and implement solutions. Energy management provides energy transparency and optimization but is certainly not the last step towards net zero. Companies have to define broader decarbonization strategies to become net zero in the future by including ecodesign and the principles of the circular economy in their business model.
This blog is part of a series of PAC's 2023 Top 10 predictions