Navigating the energy transition – a business roadmap to profitable sustainability

CEO of Positive Zero, David Auriau, shares his top guidance for businesses looking to shift to more sustainable operations in ArabianBusiness.

The International Renewable Energy Agency estimates that, between now and 2030, the Middle East will invest an average of $35 billion annually in renewable energy projects

As Chief Executive Officer of Positive Zero, David Auriau has extensive experience across the energy landscape. Through his leadership, Positive Zero has pioneered new ways to build and finance clean energy infrastructure and solutions to assist in the energy transition. David shares his top guidance for businesses looking to shift to more sustainable operations.

Understanding the Challenges

The energy transition is no longer a distant consideration—it is a present necessity. Commercial and industrial businesses are navigating this shift to align profitability with sustainability; however, they still face several challenges when considering whether to implement sustainability measures across their operations, from limited resources and internal expertise to misconceptions about costs and finding the right financing.

Lack of Energy Expertise 

Organizations in the Middle East are increasingly aware of the need for dedicated sustainability functions within their businesses. These companies are starting to bring more structure to their ambitions and develop clear sustainability roadmaps. However, they often require external expertise to assess inefficiencies, benchmark their performance against peers, define clear sustainability targets and implement solutions.

Recognizing the Benefits of the Energy Transition

Before deciding on how to transform towards sustainable operations, businesses need to understand how it can be beneficial. 

Breaking Financial Misconceptions

While organizations may understand that they can improve their carbon footprint through certain measures, it is often assumed that this will come at a great cost, especially in the initial stages of implementation. 

However, this is where decarbonization-as-a-service (DaaS) models can be hugely advantageous. For those unfamiliar with this term, it is essentially a way for businesses to adopt clean energy solutions without any upfront investment. Companies win because they do not have any capital expenditure, and just as importantly, this approach transfers any construction or operational risks to service providers. These organizations can rely on the expert service providers to deliver the expected value, and allow companies to concentrate and invest in their core business. Switching to cleaner and more efficient forms of energy, can be as much to do with making the right financial decision as a responsible environmental choice.

Strategic alignment with Net Zero goals

The energy transition is no longer something that businesses should be putting off. The International Renewable Energy Agency (IRENA) estimates that, between now and 2030, the Middle East will invest an average of $35billion annually in renewable energy projects. Aside from the potential financial benefits of individual companies switching to more sustainable practices, there is an increasing shift in public opinion that ‘green’ organizations are preferable to partner with. Strategically, there is a growing opportunity for companies that can demonstrate their commitments to decarbonization. 

Avoiding complexity and disruption to operations

When businesses decide to adopt changes in their energy infrastructure and performance, another concern that we often hear from leadership teams is whether it will impact their operations. Over the years, we realized the importance in demonstrating a clear roadmap to sustainability that all stakeholders understand. This can help teams to collaborate and align with company goals, while minimizing disruption for colleagues and their business operations. 

Key solutions for maximum impact in the Middle East

Energy transition strategies should be tailored to regional strengths and business-specific needs. The primary consideration when identifying solutions for organizations is understanding supply and demand of energy. 

The first pillar is optimizing energy efficiency (in other words, finding ways to reduce energy demand and energy consumption) across facilities and equipment, which can have immediate returns for a business. Efficiency upgrades through smart technology can quickly decrease electricity and water consumption – typically around 30% - which reduces costs and enhances sustainability.

The second pillar is switching to clean power generation producing energy through sustainable means, in particular on-site generation such as solar rooftops and carports. This ensures long-term energy security and independence for businesses, and more importantly a tariff that is significantly lower than the prevailing utility rates. Solar is particularly relevant to the region, as it has one of the world’s highest solar potentials.

The third pillar is electric mobility, including fleet electrification and charging infrastructure. With sharp declining costs of batteries, EVs have now become competitive or cheaper for many applications, enabling businesses to save costs while meeting their sustainability targets.

Integrated Approach

The most effective approach to energy transition is by integrating a combination of these solutions to amplify carbon emissions reductions, drive operational efficiency, and position businesses as sustainability leaders.

The Road Ahead

The energy transition represents an unprecedented opportunity for businesses to future-proof operations, reduce costs, and demonstrate leadership in sustainability. With a unified strategy and the right partners, companies can navigate this shift seamlessly and thrive on their journey to decarbonization. By taking bold steps today, these organizations can contribute to a cleaner, greener planet while ensuring long-term profitability.