[Accenture] Sustainable Energy for All the Business Opportunity

7/30/2019 [Accenture] Sustainable Energy for All the Business Opportunity

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Sustainable Energy for All:The Business OpportunityA comprehensive analysis of priority actions across 19 industry sectors


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Contents

ForewordIntroduction

Sustainable Energy for All: Its Value to Global Business

Taking Action to Create New Business Value

Priority Actions for Industry: Overview

Five Priority Actions that are Common Across Industries

ConclusionIndustry Executive Summaries

The Automobile Industry

The Chemicals Industry

The Construction Industry

The Consumer Packaged Goods Industry

The Financial Services IndustryThe Food and Agriculture Industry

The Forest Products Industry

The Health Care Industry

The Industrial Manufacturing Industry

The Information and Communications Technology Industry

The Metals and Mining IndustryThe Oil and Gas Industry

The Pharmaceuticals and Biotechnology Industry

The Professional Services Industry

The Renewable Energy Industry

The Retail Industry

The Transportation and Logistics IndustryThe Travel and Leisure Industry

The Utilities Industry

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Energy is central to nearly every major

challenge and opportunity the worldfaces today. Energy enables social andeconomic development, from basic needsto advanced industrial activity. However,energy sourcing and usage also have asignificant impact on the environment,and companies are under more scrutinythan ever about producing and consumingenergy in a more sustainable manner.

To mobilize action and partnershipsfocused on sustainably meeting the

increasing energy requirements ofbusinesses and society, United NationsSecretary-General Ban Ki-moon haslaunched a global initiative. CalledSustainable Energy for All, the initiative hasset three primary objectives, to be met by2030: ensuring universal access to modernenergy services; doubling the global rateof improvement in energy efficiency; anddoubling the share of renewable energyin the global energy mix. SustainableEnergy for Allstrives to leverage the

global convening power of the UnitedNations to mobilize people, organizationsand countries on a broad scale and tofacilitate a rapidly expanding, cross-sectorknowledge and action network.

Industry leaders are currently takingaction to deliver energy access, improveenergy efficiency, and drive renewableenergy deployment, however barriers andchallenges persist, limiting their impact.Sustainable Energy for Allhas beenlaunched to act as a catalyst for action

and to help accelerate the achievementof scale and the pace of implementation.Businesses will play a leadership role asinnovators, solution designers, and driversof investment, but they cannot accomplishtheir sustainable energy and businessgoals alone. Sustainable Energy for All istherefore meant to build and acceleratepublic-private partnerships that can reducerisks, facilitate research and development,and solve policy and financing challenges.

Foreword

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The UN Global Compact and Accenture are

pleased to deliver this analysis of the mostimportant actions the private sector cantake across nineteen different industriesto advance the objectives ofSustainableEnergy for Allwhile simultaneouslydriving business value. Our goal is toprovide guidance and inspire action andcollaboration across all industries, fromenergy producers to energy consumers.

The challenge of sustainable energy willnot be met overnight. We must all continue

to work together to engage the economysmost powerful force, the private sector,to build the foundations of a new era ofsustainable energy. We hope these reportswill help set the stage for private-sectorcontributions to the three objectivesofSustainable Energy for All, from nowthrough 2030.

George KellExecutive Director, United Nations Global Compact

Bruno BerthonManaging Director, Accenture Sustainability Services


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The findings presented in this report, andin the 19 related industry-specific reports,are the result of research, interviews, andfocus groups conducted in support ofSustainable Energy for Allby the UnitedNations Global Compact and Accenture.This collaboration with the private sectorhelped to identify emerging trends, bestpractices, and opportunity areas related

to sustainable energy development. Morethan 70 companies across 19 industriesprimarily Global Compact LEAD companiesand Caring for Climate signatoriescontributed to these findings.

This introductory report, SustainableEnergy for All: The Business Opportunity,provides an overview of the relevance ofSustainable Energy for Allfor business.This overview discusses the opportunitiescompanies have to generate business

value through their actions in support ofSustainable Energy for All; the priorityactions that are common across industries;the key enablers of success (such asfinance and policy); and the value that theSustainable Energy for Allplatform canbring to the private sector. Accompanyingthis overview are nineteen IndustryOpportunity reports that detail priorityactions for specific sectors. Executivesummaries of these nineteen reports areincluded at the back of this document.The priority industry actions identified do

not necessarily represent every relevantaction an industry can take in the areaof sustainable energy; rather, they areintended to embody high-impact areasunder which a company can act to advancethe Sustainable Energy for Allobjectiveswhile simultaneously realizing increasedbusiness value.

The business community is uniquelypositioned to make a significant andessential contribution to advancing the

objectives ofSustainable Energy for All,and to benefit from the opportunities theinitiative presents. Industry as a wholewill be the innovation and technologyengine needed to make progress towardthese objectives providing access to

capital, developing efficient and innovativeproduct and services, supporting continuedresearch and development investments,and enabling knowledge-sharing andlearning across industries and governmentsaround the world. But businesses canonly make a lasting impact if there isalignment between Sustainable Energy forAlland their core strategies for growth,

innovation, and value creation. Amongother things, this report attempts to shedlight on this strategic alignment.

Although industries will share certainperspectives and emphases, each industryscontribution to the initiatives threeobjectives will be different based onattributes specific to that industry andthe companies that comprise itsuchas energy consumption, asset lifetime,product portfolio, level of regulation, and

relationship to consumers. Combined,internal factors (business model, corporatestrategy, consumer base) and externalfactors (extent of regulation, economiccontext) will influence how companies canadvance Sustainable Energy for Allforexample, by changing operations, creatingnew products and services, providing socialinvestment and philanthropy, or promotingadvocacy and public engagement. Thesefactors will also determine which specificactions a company undertakes to increasebusiness value.

The worlds energy landscape is shiftingradically. Massive global businessopportunities and risks will increasinglybe driven by this shift. It is criticalthat business leaders understand theinextricable tie between this shiftingenergy landscape and their own growthand market expansion strategies.

This study provides a knowledge basefor companies looking to take action

throughout the enterprise, from theboardroom to the facility level, to advancethe objectives of Sustainability Energy forAll: benefiting the world while advancingtheir own sustainable business value.

Introduction


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Figure 1: Four Levers for Driving Business Value through Sustainable Energy Actions

What Is Sustainable Energy forAll?

Under the leadership of Secretary-General Ban Ki-moon, the United Nationsis mobilizing key constituencies fromthe private sector, public sector, andcivil society in a major global initiative,Sustainable Energy for All. The goal of theinitiative is to catalyze action around 3clear objectives to be achieved by 2030(see Figure A):

Energyaccess:Ensuringuniversalaccessto modern energy services.

Energyefficiency:Doublingtheglobalrate of improvement in energy efficiency

Renewables:Doublingtheshareofrenewable energy in the global energy mix.

Ensuring UniversalEnergy Access

Improvedhealth

Improved agriculturalproductivity

Empowermentof women

Businessand Employment creation

Economicdevelopment Achievementof

the MillenniumDevelopment Goals

Doubling the Shareof Renewable Energy

Affordableenergy

even where griddoes not reach

Newopportunitiesforsmall entrepreneurs

Decreasedvariabilityin energy costs

Energysecurityandreduced import bills

Reducedenviromentalimpacts

Doubling the Rateof Improvement inEnergy Efficiency

Lighting/appliances

that requires lesspower

Fossilfuelresourcesused more effectively

Reducedenergy costs for consumers

Redistributionof electricity that nowis wasted or lost

Morereliable electricity systems

Achieving thethree objectives ofsubstainable energyfor all...

...makes manydevelopment goalspossible

Figure 1: The Three Objectives ofSustainable Energy for All


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Across the private sector, many businesseshave already embarked on sustainableenergy plans. This raises the question: howcan Sustainable Energy for Allhelp themadvance their strategic goals?

The Sustainable Energy for All initiativeendeavors to achieve three objectives by2030: ensuring universal access to modernenergy services; doubling the global rateof improvement in energy efficiency; anddoubling the share of renewable energy inthe global energy mix. While the initiativewill require commitment and vigorousaction from the private sector, manybarriersfinancial, political, and technicalwill persist as the world works toward

achieving these objectives.Sustainable

Energy for Allis meant to remove someof these barriersthrough its voice,convening power, and focus on mobilizingaction and facilitating new public-privatepartnerships.

A global vision with clearobjectives

The Sustainable Energy for All initiativeprovides a clearly articulated, global, and

shared vision for sustainable energy. It canleverage the unparalleled convening powerand reach of the United Nations to buildconsensus and drive a common agenda.

A significant challenge businesses facein advancing their strategic goals whilepursuing a sustainable energy agendais the complex ecosystem of playersinvolvedinternal company stakeholders,suppliers, customers, communities,governments, and more. Successfully

driving value from action to advanceaccess to energy, energy efficiency, andrenewable energy, will require not onlybusiness innovation and investment, butalso alignment and cooperation withrelevant stakeholders. The UN Secretary

Generals vision for Sustainable Energy forAll, and the three objectives endorsed bygovernments and stakeholders from aroundthe world, provide a common language andshared targets that companies can align

with as they set strategic priorities, addressthe expectations of various stakeholders,and seek foundations to increase cross-sector collaboration.

A platform for collaborationand public-private partnerships

Providing a platform for public-privatepartnerships is one of the core valuepropositions ofSustainable Energy for All.

The initiative has the potential to drive newpublic-private partnerships and enhanceexisting ones by building on synergiesacross relevant sectors of the economy andstimulating constructive dialogue on policy,investment, and market development bygovernments, businesses, and civil society.In addition, Sustainable Energy for Allcancoordinate, support, and contribute tothe actions of relevant international andregional organizations, civil society, andexisting networks (such as the UN GlobalCompactLocalNetworks,theUNResident

Coordinators, and the World Bank), helpingall stakeholders work toward shared andmutually beneficial goals.

Many collaborations and public-privatepartnerships focused on advancing theobjectives ofSustainable Energy for Allareunderway. A group of global public andprivate financial institutions are currentlyworking together to develop de-riskingproposals with the goal of improving thefinancing environment for sustainable

energy investments. A global automobilemanufacturer is exploring opportunitiesto work with the Clean Energy Ministerial(the preeminent forum for internationalcollaboration to accelerate the transitionto a global clean energy economy) to align

Sustainable Energy for All:Its Value to Global Business

strategies for the development and futuredeployment of electric vehicles. Twentycompanies and eighteen countries havepartnered with the World Bank and othersundertheGlobalGasFlaringReduction

Partnership to, reduce wasteful andundesirable practices of gas flaring andventing through policy change, stakeholderfacilitation and project implementation.

Sustainable Energy for Allalso providesopportunities for peer companies withinan industry to collaborate, when they areoften justifiably reluctant to work together.The global objectives of the initiative canprovide a shared target for companies whomay typically compete with each other

to focus the best of the their resourcesin partnershipin a fair, neutral, andrespectful environmental where eachstakeholder is viewed as an equal partnerdriving towards a common interest. Byleveraging Sustainable Energy for Allas aplatform for new, pre-competitive andsafe partnerships, businesses can worktogether to identify cost saving energyefficiency measures or develop innovativeproducts and services.


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Improving the enablingenvironment and coordinatingaction

The Sustainable Energy for All initiativestrives to mobilize bold actions andlarge-scale investments by fostering theenabling conditions necessary for success,supporting coordinated actions acrosssectors, and tapping into a broad arrayof businesses and financiers. Improvingthe enabling environment centers onaddressing shortfalls, specifically relatedto financing and policy. An improvedfinancing environment would encompassa greater availability of capital, at lower

costs, over longer terms for companieslooking to invest in sustainable energy. Itwould mean systemic risk concerns havebeen addressed as well as challengesrelated to the time-horizon by whichreturn on investment is measured. Animproved policy environment wouldinclude regulatory schemes that aresupportive of innovation, that providecertainty and stability, and that treat allenergy investments and technologies withequal importance and equal support (withmechanisms like tax-breaks, subsidies, and

incentives).

One approach to improving the enablingenvironment under Sustainable Energy forAllincludes country level actions. Countrylevel action is focused on supportingdeveloping country governments withthe creation of environments and

institutional frameworks based onclear vision, transparency, predictability,national targets, policies, regulations,and incentives that enable growth,link energy to overall development,

strengthen national utilities, and attractprivate investment to advance the threeobjectives of the initiative. SustainableEnergy for Allalso has the potential toassist governments, in partnership withglobal and local businesses, with thedevelopment of new, or enhancement ofexisting national plans to advance energyaccess, promote energy efficiency, andincrease renewable energy in alignmentwith national circumstances and priorities.In developed countries, country level

actions have the potential to increasethe deployment of domestic renewableenergy and improve energy efficiency fromproduction of primary energy throughthe use of energy services, increase theprovision of public capital for technicalassistance, drive support for pilot projectsand demonstrations, or spur the creation offunding instruments that reduce private-sector risk.

By improving the enabling environmentand coordinating public and private sector

action at the global, regional, and locallevels Sustainable Energy for Allhas thepotential to increase the size of existingmarkets, and lead the creation of new ones.


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Taking Action to CreateNew Business Value

Creating business opportunitiesacross markets

The dynamics of the energy market arerapidly changing. Ensuring universalaccess to modern energy services,doubling the global rate of improvementin energy efficiency, and doubling theshare of renewable energy in the globalmix in less than two decades will requirean energy revolution akin to theindustrial and information revolutions.This energy revolution will depend onan unprecedented level of systemsplanning and coordination, and a sharedvision addressing energy infrastructure,technology, policy, finance, and market

considerations.

Over the next 18 years, the global energylandscape will shift radically as energymarkets will increasingly be determinedby non-Organization for EconomicCooperation and Development (Non-OECD)

countries. In their World Energy Outlook2011, the International Energy Agencystates that, in the period from 2010 to2035, non-OECD countries will account for90 percent of population growth and 90

percent of energy demand growth. China,India, Indonesia, Brazil, and the Middle Eastare predicted to have the highest rate ofgrowth in energy consumption.

This shift aligns closely with the growthand market expansion strategies of manyof the largest private sector businesses.Aseconomies gain access to energy, capital,and economic growth, populations startto demand products and services thatrequire even more energy. If the worldis able to provide energy to its growing

population, it will open large markets forthe private sector across all industries.However, energy access must be providedin a sustainable way in order to minimizeimpacts to the environment and maximizethe long-term value of investments.

In terms of OECD countries, these large,energy-consuming economies alsorepresent considerable market potentialdespite the slower growth in theirenergy use. This is particularly true in

sectors where asset lifetimes are shorter(e.g., household appliances), or where asignificant amount of equipment is nearingthe end of its lifetime, as is currentlythe case in the power sector and withbuildings. Because buildings can lastfor several decades, the construction ofinefficient ones locks in wasteful energyuse for decades.

Business Value Levers

Revenue Growth

Creatingnewbusinessmodels Collaboratingtodevelopnewmarkets Developingnewproductsandservices Movingfromproductstoservices

Brand Enhancement

Showcasinginnovation Collaboratingtoincreasetransperancy Improvingcommunityinvolvement Engagingstakeholders

Cost Reduction

Improvingenergyefficiency Streamliningsupplychainandlogistics Reducingrawmaterialconsumption Changingoperationstoreusewaste

Risk Management

Contributingtopolicyagendas ProtectingLicensetoOperate Integratingriskmanagementactivities Diversifyingbusinessmodelandoperations

Figure 2: Four Levers for Driving Business Value through Sustainable Energy Actions


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Business Value Levers forSustainable Energy for All

There are four ways the private sectorcan drive business value from sustainableenergy actions: revenue growth, costreduction, brand enhancement, and riskmanagement. (See Figure 2) Each of theactions described in this report, and in thesubsequent nineteen industry opportunityreports, is aligned to one or more of thesefour value levers.

1 Revenue Growth

Taking action to advance the three objectivesofSustainable Energy for Allpresents

numerous opportunities to innovate andcreate new sources of revenue throughthe provision of access to modern energyservices (electricity and clean cookingfacilities), and the development of energy-efficient products and renewable energytechnologies. Businesses can develop andadapt products for current andnew sets ofcustomers, expand into new geographicalmarkets for existing or new products,and establish and improve relations withgovernment and policy makers.

The growth and business value of thesenew products and markets is alreadyevident. For example, total investment inrenewable energy reached $211 billionin 2010, up from $160 billion in 2009.1

In addition, the US market for moreenergy-efficient buildings is approximately$236 billion annually, a number that isexpected to triple by 2030, with muchof the revenue going to the information,communications and technology industrywhich is helping to lead the transformation

with new products and services.2 Althoughsmaller in value, the Indian energyefficiency sector has been sized atapproximately $12 billion with $2 billionlinked to energy efficient buildings.3Inaddition, revenue growth is also available

to companies that install combined heatand power or distributed renewablegeneration and then sell excess generationback to the utility. Finally, providingenergy access to the 1.3 billion people

without electricity and the 2.7 billion peoplewithout clean cooking facilities representsan opportunity to develop massive newmarkets4 for fuel and electricity services,in addition to products and services suchas appliances (e.g. stoves and refrigerators)and consumer electronics (e.g. radios andtelevisions)

Other innovation opportunitiesdevelopments that can create newrevenue streams for financial servicescompanieswill come from creative

financing mechanisms such as ClimateInvestment Funds, Green Bonds, CleanDevelopment Mechanisms, public-privateinvestment fund models, pension fundsfocused on sustainable energy themes, andrenewable energy tax credits with a focuson ways to minimize the risk in sustainableenergy investments and thus encouragestakeholders to invest.

2 Cost Reduction

Energy has been a relatively inexpensiveand abundant commodity for years,comprising only a small portion of theoverall cost structure of companies.However, with dynamic geopoliticalsituations and rising energy costs, energyis now a mission-critical commodityfor many organizationsand not simplyfor energy-intensive industries such asmining or chemicals. According to therecent United Nations Global Compact-Accenture CEO Study, 91 percent of CEOswill employ energy efficiency measures toaddress sustainability issues over the nextfive years.5 The potential energy savingsfor industry could equal the total annualelectricity consumption of the US andChina combined.6

To mitigate energy costs, companies froma range of industries can take basic actions,such as implementing enterprise energymanagement processes to better understandand manage energy use, which have the

potential to drive 10 percent to 35 percentreductions in energy usage. Althoughresults vary according to each industry,enterprise energy management can drivesignificant benefits to many sectors 7:

Mining sector: 10 percent to 15 percentreductions in annual energy spending

Chemical sector: 10 percent to 15percent reductions in annual energyusage

Retail sector: 15 percent to 20 percentreductions in annual energy spending

Utilities sector: 20 percent to 25 percentreductions in annual energy usage

Business / public building portfolios:25 percent to 35 percent reductions ofenergy and building maintenance costs

Companies can also improve operationalefficiency and reduce costs through

actions such as heating, ventilation,and air conditioning retrofits or lightingupgrades. Lighting accounts for 25 percentof energy use in commercial buildings incountries such as the US, but as high as60 percent in India.8 Also important is thereuse of waste streams through techniquessuch as combined heat and power. Whilethe conventional method of producingusable heat and power separately has atypical combined efficiency of 45 percent,combined heat and power systems can

operate at levels as high as 80 percent,9

representing a significant potential forbottom-line benefits.


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3 Brand Enhancement

Although intangible assets are difficult to

quantify and directly link to a businessbottom line or top line, a brand with strongassociations to sustainability in the mindsof consumers can be a source of competitiveadvantage, especially in increasinglycommoditized markets. Several recentstudies have explored consumer preferencestoward sustainability. One of these studiesthe Vestas TNS Gallup Global ConsumerWind Survey 2011, which surveyed31,000 consumers, 26 markets, and 31leading global brands, offers insights into

consumer preferences toward climate-friendly corporations and consumerswillingness to make purchases based onsustainability characteristics.The studyfound that consumers believe that climatechange is a serious challenge and thatconsumers show a strong preference forrenewable sources of energy, not onlyto power their homes, but also to powerthe manufacturing of the brands theyconsume.

More specifically, the research found that:

90percentofconsumersworldwidewant more renewable energy.

79percentofconsumersworldwidehave a more positive perception ofbrands produced with wind energy.

50percentofconsumersworldwidewould pay extra for products based onrenewable energy.

Businesses must also work to build

their brand with governments and thelocal communities where they operate.Although often considered primarilysocial and philanthropic, projects such asproviding access to modern energy services(electricity and clean cooking facilities) at

Figure 3: Energy as Percent of Total Operating Costs by Percent of Companies in Each Industry10

100%

Consumer andInfrastructure

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Communitcationand High Tech

Product/Retail

Financials Mining and NaturalResources

Energy andUtilities

0-5% 5-10% 10-20% 20% above

a small scale and local capacity buildinghave multiple benefits including enhancinggovernment and community goodwill, and

creating new micro-economies by trainingindividuals to operate and maintain newenergy sources for long-term managementand educating local community members.These actions not only provide for societalimprovements, but they also help buildbrand awareness, strength, and equity. Inaddition, these are ways to spur and stepinto local energy markets. Although localmarkets may not be profitable in the shortrun, greater business opportunities willcome as the energy demand grows. Other

intangible assets - such as the ability toattract and retain the best talent, companyculture, and ability to innovate can all bepositively impacted by engagement withSustainable Energy for All.

4 Risk Management

Business value creation from riskmanagement can be described in multipleways. For example, renewable energy canact as a hedgea financial mechanismthat can shift a companys energy budget

from a variable to a fixed cost. The hedgeprotects a company against volatileenergy prices and stabilizes a portion ofitsoperationsbudget.Renewableenergycan also act as a regulatory hedge as newcarbon restrictions may be proposed overthe life of long-term generation assets.

From an energy efficiency perspective,industries that require stable, uninterruptedpower sources can deploy combined heatand power systems. For example, hospitalsmust perform critical, lifesaving functionseven when a widespread disaster interruptstheir supply of electricity from the utilitygrid. Combined heat and power systemscan be designed to maintain necessaryinfrastructure and enable the hospital

to operate independently of the grid fora short period. Energy efficiency canalso help limit the risk associated withoperational cost increases by reducingexposure to potential fuel price increases.

Which actions will yourcompany take to drive value?

A companys business model, corporatestrategy, and consumer base, as well asexternal factors such as extent of regulationand economic context, will all influencethe particular actions it chooses to drivebusiness value. For example, as shown inFigure 3 the mining and natural resourcesindustries, and the energy and utilitiesindustries, have the most companies withenergy operating costs of 20 percent andabove, compared to products and retailwhich have no companies with costs at

that level. Thus, mining, resources, andutilities companies are more likely to focusonactionsthatdrivecostreductionsand/or risk management as an approach tosustainable energy.At the same time, theother industries listed in Figure 3 aremore likely to capitalize on the opportunityfor new market development and revenuegrowth through sustainable energy toaddress customer and consumer end energyuse. Additionally, all of the industries inFigure 3 also deal with issues such as,

stakeholder engagement, workforcemanagement, and attracting the besttalent signifying the importance of brandvalue and brand enhancement, which canbe strengthened by a companys approachto sustainable energy.


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The United Nations Global Compact andAccenture have identified actions thatcompanies can take across nineteendifferent industries to advance the threeobjectives ofSustainable Energy for Allwhile driving business value. The purposeof identifying these priority actions is toprovide guidance and inspire companiesacross all industries to take action.

The priority industry actions identified areintended to embody high-impact areasunder which a company can act to: 1)maximize their contribution to achievingthe three objectives of the SustainableEnergy for Allinitiative; and (2) maximizethe business benefits they can realizeby ensuring access to modern energyservices, improving energy efficiency,increasing the use of renewable energy,advancing sustainable innovations inproducts and services, and collaboratingacross industries through transformativepartnerships. The priority industry actionsidentified do not necessarily representevery relevant action an industry can takein the area of sustainable energy.

Different Types ofContributions

Because of each industrys uniquebusiness attributes and characteristics,

different industries will make differenttypes of contributions to the objectivesofSustainable Energy for All. For example,all industries can take actions to improveenergy efficiency and increase their use ofrenewable energy, whereas fewer are in aposition to contribute to improved accessto energy because of the business modelsand the locations in which they operate.Specifically, 49 percent of the priorityactions identified are oriented towardenergy efficiency; 38 percent focus on

renewable energy; and 13 percent targetincreased energy access (see Figure 4).

Energy producers and providerssuch ascompanies in the oil and gas, renewableenergy, forest products, metals and mining,

Priority Actions for Industry:Overview

and utilities industriesare best suitedto contribute to energy access becauseof their energy use or generation profile,and because they often operate in remotelocations where access to energy hashistorically been more limited. Conversely,industries that are consumers of energyshould be more focused on energyefficiency and renewable energy. Detail for

each industrys contribution to the threeSustainable Energy for Allobjectives isillustrated in Figure 5.

Figure 4: Breakdown of Industry Actions by SustainableEnergy for Allobjectives

38%

Energy Access Renewable Energy

Energy Efficiency

13%

49%

Automobile

Chemicals

Construction

Consumer Packaged Goods

Financial Services

Food and Agriculture

Forest Products

Health Care

Industrial Manufacturing

Information and Communications

Metals and Mining

Oil and Gas

Pharmaceuticals and Biotechnology

Professional Services

Renewable Energy

Retail

Transportation and Logistics

Travel and Leisure

Utilities

Total

0% 50% 100%

Energy Efficiency Renewable Energy Access to Energy

Figure 5: Sustainable Energy for AllObjectives by Industry


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There are four ways companies canimplement the identified actions, in amanner that is aligned with core businessstrategies and creates value, to advancethe three objectives ofSustainable Energyfor All.

1. Core Business - Operations: Businessescan transform their operations throughincreased energy efficiency and the useof renewable energy alternatives.

2. Core Business - Products and Services:Businesses can innovate and modifytheir core products and services to meetthe new and developing market demandsfor more energy-efficient products,sustainable energy, and the infrastructureneeded to extend energy access aroundthe world.

3. Social Investment and Philanthropy:Businesses can identify ways to establisha strategic link between social investmentsand their core strategies to increase the

likelihood that such activities will besustained and able to reach scale.

4. Advocacy and Public Policy Engagement:Businesses can seek to engagegovernments (national, regional, orlocal) on relevant issues that protectcompetitiveness and drive opportunities,while working toward the objectives ofSustainable Energy for All.

The largest share of the identified priority

industry actions48 percentare relatedto core business operations, giventhat all companies have a measure ofdirect control over their operations. Theremaining breakdown is as follows: 34percent of the actions are related to core

weak business policies, or increaseengagement. An example of businessmodel innovation that can help companiestake full advantage of the cost savingspotential associated with purchasingenergy efficiency products and servicesis value chain collaboration betweencustomer procurement and suppliersales. This collaboration can help elevate

the importance of total lifetime costof ownership and operation over initiallowest cost when it comes to purchasingdecisions.

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business products and services; 10 percentare about advocacy and public policyengagement; and 8 percent concern socialinvestment and philanthropy (see Figure 6).

Regulatoryenvironments(andthepresence or absence of mechanisms suchas incentives, tax breaks, and subsidies)strongly influence an industrys decision

to engage in advocacy and public policyaround energy. For instance, industriesthat are highly regulated and that aresignificantconsumers/producersofenergy (such as oil and gas companies,chemical companies, and utilities) are mostlikely to already be engaging in publicpolicy advocacy.

The Role of Innovation

Innovation relates to the priority actionscompanies can take to advance theobjectives ofSustainable Energy for Allin two ways: 1) it can help harness thepower of technology to improve energyperformance of operations and theproducts and services available in themarketplace; 2) it can drive financial andbusiness model transformation to enablecompanies to overcome current barriersand challenges.

Some of the identified priority actionsrepresent areas of technologicalinnovation. Whether being appliedinternally to operations, or externallythrough the products and services thatcompanies bring to market, there aresignificant opportunities to advance thethree objectives ofSustainable Energy forAllthrough innovation as new technologiesare developed and deployed. For example,developments in the fields of chemistryand biotechnology are leading to thedevelopment of next generation biofuels;

improvements in energy storage aresupporting the large-scale deploymentof wind and solar power; bettercommunications technology is enablingthe electricity grid to be more efficientand deliver power to consumers moreeffectively.

Other priority actions are focused onfinancial and business model innovationfor the commercialization of technology,the realization of operational benefits,

or to scale solutions. In these cases,stakeholder collaboration is necessaryto develop new financing mechanisms,define regulatory best practices, acton policy implementation frameworks,change unsupportive behavior, improve

48%

Core Business

Operations

Core Business

Products and Services

Social Investment

and Philanthrophy

34%

10%

8%

Advocacy and Public

Policy Engagement

Figure 6: Breakdown of Industry Actions by EngagementModality


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Five Priority Actions that areCommon Across Industries

Increase the energy

efficiency of operations

Increase the use of

renewable energy to

power operations

Provide for energy

efficiency through

products and services

Identify ways to

beneficially reuse

waste streams

Educate stakeholders

on how to achieve

energy efficiency

Automobile

Chemicals

Construction

Consumer Packaged Goods

Financial Services

Food and Agriculture

Forest Products

Health Care Industrial Manufacturing

Information, Communications

and Technology

Metals and Mining

Oil and Gas

Pharmaceuticals and

Biotechnology

Professional Services

RenewableEnergy

Retail Transportation

Travel and Leisure

Utilities

In spite of the differences between industries,many common themes arise based on ananalysis of the actions across all industries.Five priority actions in particular emergedas central to most industries and thereforeare important for executives to consider asthey plot how to have the greatest impacton the three objectives ofSustainableEnergy for Allin the shortest timeframe,

while realizing the increased business value.These priority actions can also help to identifyopportunities for public-private partnershipsand cross-industry collaboration.

The five priority actions that are commonacross industries relate to renewable energyand energy efficiency. As noted earlier,about half of the industries are not wellpositioned to contribute to the objectiveof improved energy access because they

Figure 7: Top Five Common Industry Actions Mapped by Industry

are primarily energy consumers and do nottypically operate in the remote areas whereaccess to energy is a main concern.

The five priority actions common acrossindustries, identified from our research anddiscussions, are as follows:

1. Increase the energy efficiency of operations.

2. Increase the use of renewable energy topower operations.

3. Provide for energy efficiency throughproducts and services.

4. Identify ways to beneficially reuse wastestreams.

5. Educate stakeholders on how to achieveenergy efficiency.

Figure 7 shows these top action areasmapped to the 19 industries represented inthe industry-specific opportunity reports.


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Driving Business Valuethrough the Five MostCommon Industry Actions

The following maps each of the top fivecommon actions across industry to aspecific business value lever:

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Business Value Levers

Revenue Growth

Common action: Provide more energy-efficientproducts and services.

Many industries can drive innovations that reduce the

energy needed to use their products. For example, one notableinnovation is the advent of cold-wash clothing detergent. Thistype of detergent allows consumers to wash their clothes in coldwater while still achieving the same level of cleanliness thathot water provides. The product allows consumers to use lessenergy and thus save on utility bills. These kinds of sustainableproducts contribute to revenue growth for a company asthey transform product availability in the market and drivedifferentiation.

Brand Enhancement

Common action: Educate stakeholders on how toachieve energy efficiency.

Sending a message to consumers about energy conservation

as a way to save money helps build brand value amonga companys various stakeholders. For example, utilitycompanies that educate consumers on energy-efficientpractices and appliances, or that provide free energy audits,can help build their brand in the territories within which theyoperate.

Cost Reduction

Common action: Increase the energy efficiencyof operations.

Many industries have realized significant savings by increasingthe energy efficiency of their operations, which can deliverdirect benefits to the bottom line. For example, the airlineindustry has taken several measures to increase the fuelefficiency of its operations. These measures include using limitedpower to taxi, reducing the weight of onboard equipment,and shortening the flight path distance during takeoff andlanding.

Common action: Identify ways to beneficiallyreuse waste streams.

Many industries have reduced purchased energy costs byreusing waste streams to power internal operations. Forexample, the forest products industry produces two-thirdsof its energy needs on-site11 from facility waste streams suchas wood chips. Compared to other industries, the use ofcombined heat and power in the forest products industry isvery high. In most large pulp and paper producing countries,it is estimated that combined heat and power use in thesector accounts for between 25 percent and 50 percent of

industrial combined heat and power generation.12

Risk Management

Common action: Increase the use of renewableenergy in operations.

A company that increases the use of renewable energy inits operations is less vulnerable to the risk of fuel pricefluctuations. For example, given the significant volatility infossil-fuel prices, chemical companies are pursuing thedevelopment of renewable or bio-based chemical feedstocksBio-based chemical feedstocks can be used to supply directreplacements for existing petrochemical raw materials andcan also serve as new building blocks for chemical production.

Figure 8: Top Five Common Priority Action Areas Mapped to the Four Business Value Levers


15/361717

Conclusion

Sustainable Energy for Allhas beenestablished to improve the global energylandscape over the next two decades byadvancing access to energy, improvingenergy efficiency, and increasing the useof renewable energy. These objectives areinextricably tied with the growth agendasof many of private sector companies.This strategic link can help the business

community make significant contributionstowards the advancement ofSustainableEnergy for Allwhile driving new businessvalue related to revenue growth, costreduction, brand enhancement, and riskmanagement.

Many industries will face a variety ofchallenges and barriers in implementing andscaling their actions related to SustainableEnergy for All. These include countryspecific policy and regulatory barriers, alack of appropriate and available financial

mechanisms, and inflexible or ineffectivebusiness models. For these reasons, noone overarching global solution exists, andindustries must partner and collaboratewith each other, with governments, andwith civil society to develop successfulframeworks and opportunities for change.Sustainable Energy for Allcan thus be acritical enabler for change by establishinga common global vision and with clearobjectives, providing a platform forcollaboration and facilitating partnerships,

and improving the enabling environmentand coordination actionsto ensurethe world has the sustainable energyfuture it needs to create new businessopportunities, increased development, andnew possibilities for the advancement ofmankind.


16/3619

The Automobile Industry

The automobile industry uses substantialamounts of energy in the manufacture ofits products, but perhaps more importantly,the industry determines through the designof its products, how end-users will consume

energy related to their use. Transportationaccounts for approximately one quarter ofglobal energy use. This is projected toincrease by nearly 50 percent by 2030and by more than 80 percent by 2050 inthe absence of new regulations.13 By usingnew materials and technologies to makevehicles lighter and more efficient, and byproducing new and innovative vehicles thatrun on renewable or alternative fuels, the

automobile industry can have a significantimpact on the energy consumption ofconsumers. This influence makes automobilecompanies essential to the global effortto use energy more efficiently and furtheradvance renewable energy.

Because the automobile manufacturingindustry is also a major consumer of

electricity and fossil fuels, the industry hasthe opportunity to transform its operationsand achieve cost savings and hedge againstfuture volatility in energy prices throughmore efficient processes, increased use ofrenewable energy, and more self-generationof electricity.Due to the diversity of theautomotive manufacturing industry and themany finished parts of a vehicle, operationalenergy use must be assessed across the

Priority Industry Actions Business Value Levers Objectives Engagement Modalities

Improve vehicle fuel economy. RevenueGrowth

BrandEnhancement

RiskManagement

Energy Efficiency CoreBusiness:ProductsandServices

Manufacture flexible-fuel vehicles and educate

customers on the usage and benefits of flexible-

fuel vehicles.

RevenueGrowth

BrandEnhancement

RiskManagement

RenewableEnergy

EnergyEfficiency

CoreBusiness:ProductsandServices

Manufacture automobiles that derive energy

from sources other than petroleum.

RevenueGrowth

BrandEnhancement

RiskManagement

RenewableEnergy

EnergyEfficiency


Make production processes more energy efficient

and identify opportunities to reuse waste

streams.

CostReduction

RiskManagement

Energy Efficiency CoreBusiness:Operations

Use renewable energy to power operations. BrandEnhancement

RiskManagement

RenewableEnergy CoreBusiness:Operations

Promote gas-saving strategies among drivers. BrandEnhancement Energy Efficiency Advocacy&PublicPolicyEngagement

The findings presented here are the result of research, interviews, and focus groups conducted in support of the development of theSustainable Energy for All initiative by the UN Global Compact and Accenture. More than 70 companies across 19 industriesprimarilyUN Global Compact LEAD companies and Caring for Climate Signatoriescontributed to these findings. Specific to the automobileindustry, the following companies and organizations provided valuable input and contributions: BMW AG, Daimler AG, Hyundai, andRenault-Nissan.

Industry ExecutiveSummaries

entire supply chain; from raw materials, toparts production, to manufacturingassembly, in order to optimize efficiencyand renewable energy use.

For automobile companies to advance theirbusiness opportunities related to energyefficiency and renewable energy, theindustry should focus on six priority

actionsmapped to the business valuelevers, objectives, and engagementmodalities ofSustainable Energy for All:


17/36

The Chemicals Industry

Chemical companies are major consumersof electricity and fossil fuelsprimarily oiland natural gas. For this reason, they havea significant opportunity to transform theircore operations through improved energyefficiency and through innovations insustainable energy.

Equally important, the industry can drivegrowth and innovation both for itselfand for its customers because it is also aprincipal supplier of materials that makethe global economy more energy efficient.Over 96 percent of all manufacturedgoods are directly touched by the businessof chemistry.14 Producing a wide rangeof innovative solutions, the chemicalsindustry is also enabling the developmentof new, renewable energy technologies


Improve the energy efficiency of production

processes.

CostReduction

RiskManagement


Use more energy-efficient techniques to generate

electricity and steam in operations.

CostReduction

RiskManagement


Develop products and services that drive

consumer energy efficiency and enable increased

renewable energy uptake.

RevenueGrowth

BrandEnhancement

RiskManagement

EnergyEfficiency

RenewableEnergy


Establish an integrated, enterprise energymanagement function within the organization.

CostReduction RiskManagement


Beneficially reuse waste streams as process

inputs or to generate energy.

RevenueGrowth

BrandEnhancement

RiskManagement



Develop more renewable and bio-based

feedstocks.

RevenueGrowth

RiskManagement



Use more renewable energy for operational

energy needs.

BrandEnhancement

RiskManagement


The findings presented here are the result of research, interviews, and focus groups conducted in support of the development of theSustainable Energy for Allinitiative by the UN Global Compact and Accenture. More than 70 companies across 19 industriesprimarily UNGlobal Compact LEAD companies and Caring for Climate Signatoriescontributed to these findings. Specific to the chemicals industry,the following companies and organizations provided valuable input and contributions: Braskem, Dow Chemical Company, DuPont, Eni,Novozymes, Sasol, and Yara

and solutions. It has a significant potentialimpact on consumer energy consumptionand is essential to the global effort to useenergy more efficiently and to advancerenewables.

For chemical companies to advance theirbusiness opportunities related to energyefficiency and renewable energy, the

industry should focus on seven priorityactions mapped to the business valuelevers, objectives, and engagementmodalities ofSustainable Energy for All:


18/36

The Construction Industry

The construction industry uses andconsumes a significant amount of rawmaterials many of which are energyintensive to process and produce. It isestimated that as much as 50 percent ofall materials extracted from the earth aretransformed into construction materials.Moreover, these materials account forapproximately 50 percent of all wastegenerated prior to recycling.15 Workingwith its customers, the industry hassignificant opportunities to become moreenergy efficient primarily through the useoflessvirginrawmaterialandthereuse/recycling of waste.

Opportunities also exist to drive businessvalue through more sustainable productionand operations. Companies can collaborateacross their supply chain to improve theenergy efficiency of new construction, andalso engage stakeholders to improve theenergy efficiency of existing buildings.

For construction companies to advance

their business opportunities related toenergy access, energy efficiency, andrenewable energy, the industry shouldfocus on seven priority actions mappedto the business value levers, objectives,and engagement modalities ofSustainableEnergy for All:


Reduceconsumptionofrawmaterialsbysourcing

recycled, repurposed and renewable resources.

BrandEnhancement

RiskManagement



Increase the use of renewable energy and alternative

fuels.

BrandEnhancement

RiskManagement


Increase energy efficiency of processes and

facilities.

CostReduction

BrandEnhancement

RiskManagement


Support the construction of infrastructure tosupply energy to local communities.

RevenueGrowth BrandEnhancement

Energy Access CoreBusiness:Operations SocialInvestmentandPhilanthropy

Construct and renovate buildings so they

are energy efficient and produce their own

electricity.

RevenueGrowth

BrandEnhancement

RiskManagement

EnergyEfficiency

RenewableEnergy


Facilitate product recycling and identify

opportunities to beneficially reuse waste.

CostReduction

RiskManagement


Promote energy-efficient building codes and

regulatory incentives for more energy-efficient

building projects.

RevenueGrowth

BrandEnhancement

RiskManagement

Energy Efficiency Advocacy&PublicEngagement

The findings presented here are the result of research, interviews, and focus groups conducted in support of the development of theSustainable Energy for All initiative by the UN Global Compact and Accenture. More than 70 companies across 19 industriesprimarilyUN Global Compact LEAD companies and Caring for Climate Signatoriescontributed to these findings. Specific to the constructionindustry, the following companies and organizations provided valuable input and contributions: Lafarge and Skanska


19/36

The Consumer PackagedGoods Industry

The consumer packaged goods industryis resource intensive, using energy atmany different points throughout theproduct lifecycle. Sourcing, manufacturing,packaging, distribution, consumption, and

disposal all require significant amountsof energy. Consumer packaged goodscompanies are continuing to expand intoemerging markets and develop productswith a very high replacement rate bothfactors which impact the industrys use ofenergy.

Consumer packaged goods companies cantake advantage of a number of businessvalue creation opportunities associated

with sustainable energy. The supply chainand packaging areas represent potentialopportunities to reduce costs, as wellas improve brand value as consumersbecome more interested in sustainablesupply chain issues such as productpackaging. Manufacturing processes canbe optimized to reduce costs in the areasof water use, electricity and steam use, and

refrigeration. Non-process energy use inmanufacturing and distribution facilities,such as lighting and heating, ventilation,and air conditioning, can also drive downenergy consumption, reducing costs.Improving the energy efficiency of theproducts themselves will position consumerpackaged goods companies to driverevenue growth by capturing a growingsegment of sustainable consumers. Further,the transportation and distribution of


Reduceproductpackaging,andincreasetheuse

of renewable feedstock in its manufacture.

CostReduction

BrandEnhancement

Energy Efficiency

RenewableEnergy

CoreBusiness:Operations

CoreBusiness:

Products and

Services

Increase the energy efficiency of operations in

manufacturing and distribution.

CostReduction

BrandEnhancement


Create products that enable consumers to be

more energy efficient .

RevenueGrowth

BrandEnhancement

RiskManagement


SocialInvestmentand

Philanthropy

Use renewable energy to power operations and

facilities.

BrandEnhancement

RiskManagement


Reducetheamountofenergyrequiredto

refrigerate and cool products.

CostReduction EnergyEfficiency CoreBusiness:Operations


Minimize energy required to source, treat, heat,

and transport water.

CostReduction

BrandEnhancement

RiskManagement



The findings presented here are the result of research, interviews, and focus groups conducted in support of the development of theSustainable Energy for All initiative by the UN Global Compact and Accenture. More than 70 companies across 19 industriesprimarilyUN Global Compact LEAD companies and Caring for Climate Signatoriescontributed to these findings. Specific to the consumerpackaged goods industry, the following companies and organizations provided valuable input and contributions: The Coca-ColaCompany, and Unilever.

products can be made more efficient,driving cost savings and risk managementthrough improved trucking routes andintermodal transport. These areas representa future focus area for consumer packagedgoods as they look to drive business valueand advance sustainable energy.

For consumer packaged goods companies

to advance their business opportunitiesrelated to energy efficiency and renewableenergy, the industry should focus on sixpriority actions mapped to the businessvalue levers, objectives, and engagementmodalities ofSustainable Energy for All:


20/36

The Financial Services Industry

The financial services industry has asignificant opportunity to drive thedevelopment of sustainable energy intwo ways. First, it can finance projectsto expand energy access, improve energyefficiency, and increase the developmentof renewable energy sources. Thisfinancing can be provided traditionally,or via innovative financing mechanisms.Directing capital towards sustainableenergy investments has the potentialto drive significant revenue growth andincrease brand value for the financialservices industry.

Secondly, the financial services industrycan transform their own operations,specifically their use of buildings and data


Direct more capital toward energy access and

the commercialization of energy efficiency and

renewable energy technologies.

RevenueGrowth

CostReduction

BrandEnhancement

Energy Access

Energy Efficiency

RenewableEnergy


Increase energy efficiency of operations. CostReduction

BrandEnhancement

RiskManagement



facilities.

BrandEnhancement

RiskManagement


Support microfinance institutions that work on

energy access, energy eff iciency, and renewable

energy.

RevenueGrowth

BrandEnhancement

Energy Access

Energy Efficiency

RenewableEnergy


SocialInvestmentand

Philanthropy

Support policy frameworks that drive investment

in energy access, renewable energy and energy

efficiency.

RevenueGrowth

BrandEnhancement

RiskManagement

Energy Access

Energy Efficiency

RenewableEnergy

AdvocacyandPublic

Policy Engagement

centers, so that they consume energy moreefficiently and realize cost savings. Whilethe overall operations of the financialservices industry are not overly energyintensive, there are select opportunitiesto save energy across the asset portfoliowhile mitigating risk associated withvolatile energy costs as well as reducingcosts.

For financial services firms to advancetheir business opportunities related toenergy access, energy efficiency, andrenewable energy, the industry shouldfocus on five priority actions mappedto the business value levers, objectives,and engagement modalities ofSustainableEnergy for All:

The findings presented here are the result of research, interviews, and focus groups conducted in support of the development of theSustainable Energy for All initiative by the UN Global Compact and Accenture. More than 70 companies across 19 industriesprimarilyUN Global Compact LEAD companies and Caring for Climate Signatoriescontributed to these findings.


21/36

The Food and AgricultureIndustry

The food and agriculture industryconsumes energy by harvesting,processing, and selling food. The industryrelies heavily on petroleum-based fuels topower equipment and vehicles to harvest

crops, raise livestock, and distributethe products produced. It also requireselectricity and heat for manufacturing andprocessing. While increasing energy costsand decreasing margins have more recentlydriven companies towards increasingenergy efficiency, there is potential foradditional improvement. There is alsopotential for companies in the food andagriculture industry to drive increasedbusiness value through renewable energy(whether through using biofuels or

producing input feedstock for second-generation biofuels development) andthrough providing energy access in areaswhere modern energy services are limited.

Food and agriculture companies have aunique opportunity to use their wastestreams to create new sources of revenueand reduce costs. Companies generate

plant and animal matter that can be usedas an energy source either to generateenergy on-site or as a feedstock for othersto use. This can help reduce purchasedelectricity costs by generating energyon-site, and increase revenue throughthe sale of biomass. Additionally, on-site energy generation from renewablesources can protect against potentially

rising energy costs and help improve brandvalue as companies making investmentsto increase the use of renewable energyare often viewed as more sustainableto customers. Additionally, foodand agriculture companies have theopportunity, through the use of improvedtransportation and infrastructure, betterinsulation of food storage facilities, andreductions in packaging and food waste, toreduce energy consumption and improveefficiency across the operational profile.

For food and agriculture companies toadvance their business opportunitiesrelated to energy access, energy efficiency,and renewable energy, the industry shouldfocus on six priority actions mapped tothe business value levers, objectives, andengagement modalities ofSustainableEnergy for All:


Create closed-loop systems that reuse waste

streams as production inputs.

CostReduction

RiskManagement

Energy Efficiency

RenewableEnergy


Increase the energy efficiency of growing food

crops.

CostReduction

BrandEnhancement

RiskManagement


Increase the energy efficiency of production,

packaging, and transportation processes.

CostReduction

BrandEnhancement

RiskManagement


Increase the use of renewable energy to meet

operational energy needs.

BrandEnhancement

RiskManagement


Use waste streams to provide energy access in

areas where access is limited.

BrandEnhancement EnergyEfficiency CoreBusiness:

Operations

SocialInvestmentand

Philanthropy

The findings presented here are the result of research, interviews, and focus groups conducted in support of the development of theSustainable Energy for All initiative by the UN Global Compact and Accenture. More than 70 companies across 19 industriesprimarilyUN Global Compact LEAD companies and Caring for Climate Signatoriescontributed to these findings. Specific to the food and agricultureindustry, the following companies and organizations provided valuable input and contributions: Netafim, PepsiCo, Sekem.


22/36

The Forest Products Industry

The forest products industry is a majorconsumer of energy, the fourth largestindustrial sector globally in terms of energyuse.16 Additionally, it is one of the leadingindustrial producers of renewable energy.The competitive edge of this industryis based on resource and operationalefficiency and on the sustainability of itsraw materials and products. This expertiseis the foundation for a bio-based andsustainable future.17

The forest products industry has thepotential to play a leading role inintegrating and optimizing raw materialresources, increasing operational energyefficiency and producing biomass energyboth for its own operations and for retail.It also has a significant opportunity

to transform its core business modelthrough innovations in sustainable energyby producing biofuels for retail in itsprocessing plants along with traditionalpaper and wood products.


Beneficially reuse waste streams to generate

energy and expand renewable energy use for

operations.

CostReduction

BrandEnhancement

RiskManagement

Energy Access

Energy Efficiency

RenewableEnergy


Improve the energy efficiency of operations. CostReduction

BrandEnhancement

RiskManagement

Energy Efficiency

RenewableEnergy


Promote the development of new feedstocks. RiskManagement RenewableEnergy CoreBusiness:Operations

Modify current or create new pulp and paper

manufacturing facilities as new innovative

bio-refineries.

RevenueGrowth

RiskManagement

Energy Efficiency

RenewableEnergy



Expand production and sale of wood pellets as

a renewable energy source in home heating,

cooking and power generation.

RevenueGrowth

BrandEnhancement

Energy Access

RenewableEnergy


Support regulation to develop sustainable

forestry management standards, access to raw

materials and renewable energy policies.

BrandEnhancement

RiskManagement

Energy Access

RenewableEnergy

Advocacy&PublicPolicyEngagement

For forest products companies to advancetheir business opportunities related toenergy access, energy efficiency, andrenewable energy, the industry shouldfocus on six priority actions mapped tothe business value levers, objectives, andengagement modalities ofSustainableEnergy for All:



23/36

The Health Care Industry

The health care industry is energy-intensive. Hospitals can consume 2.7 timesmore energy than typical office buildings.18While many such facilities have turnedto energy-efficiency strategies to offsethigh costs caused by rising energy prices,there is still a significant opportunityto transform core operations throughimproved energy efficiency and throughinnovations in sustainable energy. Thebusiness case to pursue energy efficiencyprojects in the healthcare industry isstrong. In some cases, the cash flowbenefit of small cost savings for a hospitaloperating at a narrow margin can beanalogous to significantly increasingincremental revenue.19 In addition to costsavings resulting from reduced energyconsumption, hospitals and health care

facilities that have invested in energyefficiency have realized benefits in termsof reputation, staff retention and patientcare.

For health care companies to advancetheir business opportunities related toenergy efficiency and renewable energy,the industry should focus on three priorityactions mapped to the business valuelevers, objectives, and engagementmodalities ofSustainable Energy for All:


Increase energy efficiency of operations. CostReduction

BrandEnhancement


Increase the use of renewable energy to power

operations.

BrandEnhancement

RiskManagement


Develop and purchase energy-efficient medical

devices.

RevenueGrowth

CostReduction

BrandEnhancement

RiskManagement

EnergyEfficiency CoreBusiness:ProductsandServices




24/36

The Industrial ManufacturingIndustry

Industrial manufacturing is energyintensive in most aspects of the productionprocesses it runs from an operationalstandpoint. It demands on- and off-sitepower, large amounts of process energy

for the manufacture of goods, and non-process energy to maintain facilities.Industrial manufacturers continue toexplore new ways to reduce energy coststhrough technologies such as combinedheat and power, variable frequencydrives, and advanced insulation. Byreducing energy consumption, industrialmanufacturing companies can drivebusiness value by lowering operationalcosts and the total cost of goods sold. Thishas the potential to improve profitabilityas well as manage risks associated withvolatile energy prices.

For industrial manufacturing companiesto advance their business opportunitiesrelated to energy efficiency and renewableenergy, the industry should focus on fivepriority actionsmapped to the businessvalue levers, objectives, engagementmodalities ofSustainable Energy for All:


Increase use of combined heat and power and

distributed renewable power generation at

manufacturing facilities.

CostReduction

RiskManagement

Energy Efficiency

RenewableEnergy


Improve the energy efficiency of operational

processes.

CostReduction Energy Efficiency CoreBusiness:Operations

Incorporate more energy-efficient design into

core product streams, and explore the practical

use of new and emerging technologies.

RevenueGrowth Energy Efficiency CoreBusiness:ProductsandServices

Empower employees to cut energy consumption

through behavioral changes and continuous

improvement programs.

CostReduction

BrandEnhancement


Increase cross- industry collaboration and

partner with academic institutions and policy

makers to drive innovation and technological

breakthroughs.

RevenueGrowth

CostReduction

Energy Efficiency

RenewableEnergy

SocialInvestmentandPhilanthropy

AdvocacyandPublicPolicyEngagement

The findings presented here are the result of research, interviews, and focus groups conducted in support of the development of theSustainable Energy for All initiative by the UN Global Compact and Accenture. More than 70 companies across 19 industriesprimarilyUN Global Compact LEAD companies and Caring for Climate Signatoriescontributed to these findings. Specific to the industrialmanufacturing industry, the following companies and organizations provided valuable input and contributions: EADS NV, Embraco,Grundfos and Tata Group.


25/36

Information andCommunications Technology

The information and communicationstechnology industry provides a widerange of products and services, and leadsinnovation efforts across electronics,software, and telecommunications. The

industry acts as an important enablerfor other industries; nearly every otherindustry relies on the technologies,communications services, and software andhardware produced by the information andcommunications technology industry.

The information and communicationstechnology industry has, and will continueto have, a tremendous impact on the ability

of governments, private sector companies,and individuals to provide energy access,achieve energy efficiency, and incorporaterenewable energy into the global energy mix.Technologies like demand side managementfor the electrical grid will allow utilitiesand renewable energy companies to bettermanage electricity flows and to incorporaterenewable energy into the electrical grid.

Other technologies, like onboard telematics,have allowed logistics companies tomanage their fleets with more informationand efficiency. In short, the products andservices provided by the information andcommunications technology industry are atthe heart of almost every other industrysoperations. In this way, companies in theinformation and communications technologyindustry can have a far-reaching impact on

the Sustainable Energy for Allobjectives notonly by improving the energy efficiency oftheir own operations, but also by providinginnovative products and services to enableother industries and companies to achievetheir sustainable energy objectives. At thesame time, information and communicationstechnology can simultaneously drivebusiness value as demand for their

innovative and enabling products increases.

For information and communicationstechnology companies to advance theirbusiness opportunities related to energyaccess, energy efficiency, and renewableenergy, the industry should focus on ninepriority actions mapped to the businessvalue levers, objectives, and engagementmodalities ofSustainable Energy for All:


Increase virtualization of products, services, and

processes.

RevenueGrowth

BrandEnhancement


Develop products and services

that enable cities and urban areas to be more

energy efficient and integrate renewable energy.

RevenueGrowth

BrandEnhancement

Energy Access

Energy Efficiency

RenewableEnergy


Continue development of products and services in

support of smart grids.

RevenueGrowth

BrandEnhancement

Energy Efficiency

RenewableEnergy


Develop products and services to improve the

energy efficiency of travel and logistics.

RevenueGrowth

BrandEnhancement


Develop products and services that improve the

energy efficiency of vehicles.

RevenueGrowth

BrandEnhancement


Improve the energy efficiency of the products and

services offered to the market.

RevenueGrowth

BrandEnhancement

RiskManagement


Increase the energy efficiency of operations. CostReduction

RiskManagement



facilities.

BrandEnhancement

RiskManagement


Support policies that encourage information

and communications technology-enabled energy

efficiency and renewable energy.

RevenueGrowth

CostReduction

BrandEnhancement

RiskManagement

Energy Efficiency AdvocacyandPublicPolicyEngagement

The findings presented here are the result of research, interviews, and focus groups conducted in support of the development of theSustainable Energy for All initiative by the UN Global Compact and Accenture. More than 70 companies across 19 industriesprimarilyUN Global Compact LEAD companies and Caring for Climate Signatoriescontributed to these findings. Specific to the informationandcommunicationstechnologyindustry,thefollowingcompaniesandorganizationsprovidedvaluableinputandcontributions:ARM,Cisco, Ericsson, Infosys, Intel, SK Telecom, Telefonica S.A.


26/36

The Metals and MiningIndustry

The metals and mining industry is uniquelypositioned to not only drive businessvalue related to energy efficiency andincreased use of renewable energy, but alsoas it relates to access to modern energy

services as companies in this industry canbe a catalyst for sustainable developmentin areas with little or no existing energyinfrastructure. This characteristic shared bysome companies in the metals and miningindustry the operation of facilities inremote areas provides the opportunityto link access to energy with corestrategic business value drivers, like riskmanagement for example, by protectingthe license to operate and brandenhancement though community outreachand collaboration. This opportunity isone of collaboration and partnership as itrelates to broader development concerns of which access to energy is a primaryenabler, and is reflective of metals and

mining companies providing energyservices individually.

Additionally, the products produced bythe metals and mining industry are criticalto drive sustainable energy forward asthey are components in the solutionsthat enable improvements in energyefficiency and the increased deployment of

renewable energy. Not only can the metalsand mining industry drive innovation foritself through changes in its operationsand products and services but also forthe communities that host its activitiesand the customers who purchase itsproducts.

For metals and mining companies toadvance their business opportunitiesrelated to access to energy, energyefficiency, and renewable energy, theindustry should focus on seven priorityactions mapped to the business valuelevers, objectives, and engagementmodalities ofSustainable Energy for All:


Partner with local governments and utilities

to provide energy services to communities

surrounding operational locations.

BrandEnhancement

RiskManagement

Energy Access CoreBusiness:Operations



Improve the energy efficiency of current operations. CostReduction

RiskManagement


Build advanced energy considerations into the

design and development of new assets and

operations.

CostReduction

RiskManagement

Energy Efficiency

RenewableEnergy



Diversify the portfolio to develop products and

generate materials that drive energy efficiency

and renewable energy uptake.

RevenueGrowth

RiskManagement

Energy Efficiency

RenewableEnergy


Use waste and process outputs as fuel sources. CostReduction

RiskManagement

Energy Efficiency

RenewableEnergy



Use more renewable energy sources to support

operational power needs.

BrandEnhancement

RiskManagement

RenewableEnergy CoreBusiness:

Operations

The findings presented here are the result of research, interviews, and focus groups conducted in support of the development of theSustainable Energy for All initiative by the UN Global Compact and Accenture. More than 70 companies across 19 industriesprimarilyUN Global Compact LEAD companies and Caring for Climate Signatoriescontributed to these findings. Specific to the metals andmining industry, the following companies and organizations provided valuable input and contributions: China MinMetals, InternationalCouncil on Mining and Metals, and Vale.


27/36

The Oil and Gas Industry

The oil and gas industry sits directly at theheart of the production and consumptionof energy. About half of all energy suppliedto the world is provided by oil and gas andenergy demand is expected to continue togrow.20 Although recent economic turmoilhas reduced energy consumption the pastfew years, 2010 saw a strong rebound withconsumption growing 5.6%, the highestrate since 1973 across all forms of energyand all regions.

The oil and gas industry is energy intensiveand requires significant amounts of energyto extract resources from the ground,

process them, and transport them tothe end-user. Although fossil fuels willcontinue to dominate global energy usefor the foreseeable future, the oil and gasindustry can still affect change along thesupply chain by promoting national energyplans, investing in new renewable fuels,and increasing efficiency in their ownoperations.

For oil and gas companies to advance theirbusiness opportunities related to access toenergy, energy efficiency, and renewableenergy, the industry should focus on fivepriority actions mapped to the businessvalue levers, objectives, and engagementmodalities ofSustainable Energy for All:


Use more renewable energy sources and

emphasize energy efficiency throughout the

entire fuels supply chain.

CostReduction

RiskManagement

Energy Efficiency

RenewableEnergy


Reducetheflaringofgasfromoperationsand

identify opportunities to reuse captured gas on-site

or provide energy to local communities.

RevenueGrowth

CostReduction

RiskManagement

Energy Access

Energy Efficiency



InvestinR&Dandutilizecorecompetencies

to bridge the gap from fundamental research

to commercialization of liquid renewable

transportation fuels and renewable generation

technologies.

RevenueGrowth

RiskManagement

RenewableEnergy CoreBusiness:ProductsandServices

Promote international trade in sustainable energy

products.

RevenueGrowth

RiskManagement

Energy Access

Energy Efficiency

RenewableEnergy


Use innovative business models and create new

products and services to improve energy affordability

and to enable access to clean cooking and heating

solutions.

CostReduction

RiskManagement

Energy Access CoreBusiness:ProductsandServices


The findings presented here are the result of research, interviews, and focus groups conducted in support of the development of theSustainable Energy for All initiative by the UN Global Compact and Accenture. More than 70 companies across 19 industriesprimarilyUN Global Compact LEAD companies and Caring for Climate Signatoriescontributed to these findings. Specific to the oil and gasindustry,thefollowingcompaniesandorganizationsprovidedvaluableinputandcontributions:AequitasResourcesHoldings,Eni,IPIECA,RoyalDutchShell,Statoil,andTotal.


28/36

The Pharmaceuticals andBiotechnology Industry

The pharmaceutical and biotechnologyindustry invests significantly in researchand development, acting as a technologyengine for many other industries including healthcare, alternative energy,

chemicals, fuels, and agriculture.Additionally, the industry has theopportunity to advance the availabilityof commercial-scale second generationbiofuels which can help the automobileand transportation sectors become moresustainable and efficient.

Opportunities also exist to drive businessvalue through more sustainable operations.The industry has a significant opportunity

to transform core operations throughimproved energy efficiency and increaseduse of renewable energy to poweroperations. Companies can also collaborateacross their supply chain to createproducts that use less energy in their lifecycle. These actions collectively will helpdrive energy cost savings and mitigateclimate change risks while advancing

renewable fuel sources.

For pharmaceutical and biotechnologycompanies to advance their businessopportunities related to energy efficiencyand renewable energy, the industry shouldfocus on seven priority actions mappedto the business value levers, objectives,and engagement modalities ofSustainableEnergy for All:


Increase the energy efficiency of operations. CostReduction

BrandEnhancement


Drive

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[Accenture] Sustainable Energy for All the Business Opportunity

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