Pace of Change at CERAWeek: Innovation today enables global energy transition tomorrow
A global community of innovative leaders, coming together to address the challenges and opportunities of reducing energy emissions and accelerating the Pace of Change — that was the goal behind this year’s CERAWeek conference, and it certainly did not disappoint.
Comprised of more than 5,800 attendees from 87 nations, delegates stood together in the name of sustainability and climate action, walking away inspired, informed, and ready to continue their journey towards net zero. As a participant myself, I felt particularly inspired by U.S. Secretary John Kerry’s opening keynote focused on the challenges facing the industry today, and what that means in terms of global sustainability targets and ambitions. I also attended sessions that dug into economic growth in the energy transition, strategies to get to net zero, and the importance of people, upskilling, and digital talent.
During the opening keynote, Secretary John Kerry shared that he sees a big gap between climate promise and climate action, stating that: “65% of global GDP is now committed to net zero by 2050. If all COP26 promises were actioned, we would still hit 1.8 degrees. The challenge is, we are not actioning all our promises.” This statement really stuck with me, because the time for talk is over, and real, sustainable change in the energy sector requires action. Action was a resounding statement made by many and a feeling that resonated across the delegation. It is this urgent cry for action that carries across several of the key themes that stood out to me during CERAWeek, and I would like to explore in more detail below.
Global energy security is top of mind.
The geopolitical volatility being experienced around the world was a key discussion topic, no matter the agenda, session, or speaker. With energy companies hyper-focused on increasing oil and gas capacity and ensuring reliable access to energy supplies, there was consensus that solutioning global supply should not happen at the cost of sustainability. There is no right answer for the time being, but one thing is for certain: this is a highly volatile time that is going to put unprecedented demand on the supply chain — and we are all anxious to see how it plays out.
We must democratize access to reliable, clean, and affordable energy for a real transition to become reality.
A substantial part of the global population does not have access to clean, reliable energy today, and without a greater investment in energy infrastructure, transitioning at scale will be a challenge. This problem was characterized by Sunita Narain (Director-General, India Centre for Science and Environment), who described the air pollution problem that still exists in India — even though they have already phased out their last remaining coal-fired power station. So, what is the issue? It is not the coal-fired power stations that are causing the pollution, but a multitude of small-scale commercial coal burners. They are still in use because there is no infrastructure to support the transition to an alternative fuel.
And this is not an isolated issue. Energy infrastructures do not exist in developing communities around the world. Whether it is through gas pipelines or micro-grids, there is a direct need for investment in infrastructure to help accelerate the energy transition globally.
Managing profitable growth for an oil and gas company as it becomes an energy company is fundamental to the energy transition.
In the oil and gas industry, I heard correlation between the businesses companies are in today and what these businesses are then going to scale in terms of renewable energy in the future. Companies like BP and TotalEnergies are heavily investing in wind and solar energy, building out a portfolio and making the transition from oil and gas companies to integrated energy companies, focused on managing electrons instead of hydrocarbon molecules.
Underscoring all themes above is the essential role reskilling must play in our journey towards net zero. That was the topic featured by Accenture’s CEO Julie Sweet in a fireside chat with CEO of BP, Bernard Looney. Together, they believe in putting their people first, getting to know others on an individual basis, and fostering a diverse and inclusive place to work. They described the importance of having purpose as an organization and reflected on the role that companies must play in creating and unlocking talent in their own organizations.
Across the board, participants acknowledged that technology and digital innovation will be critical to achieving their carbon emission targets. As true partners in their sustainability journey, Accenture, Avanade, and Microsoft are there to build new platforms and cloud capabilities that make this transition reality based on growth and innovation, coming together to support them end-to-end.
Andy Brown, CEO of Galp put it best, “The new energy system will be more digital, more intermittent and look very different to traditional oil and gas. We need to find new ways to work, we need to change company culture and open our doors to innovation through partnerships.”
It is clear Microsoft is fully invested in helping clients achieve their sustainability ambitions, having recently released their partnership principles when working with energy companies that commit to net-zero, and highly scoring themselves on greenhouse gas emissions progress based on analyst research. I am thrilled to continue partnering with Microsoft and am confident Accenture’s specialist insights combined with Microsoft technologies will help drive maximum value for our clients, and provide affordable, reliable, and clean energy for everyone on the planet.
Now’s the time to seize the clean energy opportunity and CERAWeek proved to be a key accelerator, bringing leaders, ideas, and new ways of thinking together — all in the name of cooperation and progress.
Several select sessions from CERAWeek are available to the public on-demand, and stay tuned for more content and storytelling around our Accenture Sustainability efforts in the ramp up to Earth Day on April 22nd!
