Zapping through the myths and mumbo-jumbo to win the race for renewable energy

Patience Nabukalu, climate activist from Uganda, speaks as youth activists hold signs encouraging leaders to tackle climate change and emissions at the COP27 climate summit. Photo / AP

They know what needs to be done - but often don’t have a clue how to do it.

That “ambition gap” is afflicting hundreds of Kiwi companies who know climate change presents a threat but struggle to get support for change, a new Schneider Electric survey found.

And a professor of sustainable energy said many companies, especially smaller ones, might just not be aware agencies already exist to help.

“This research shows the barrier isn’t the why but the how,” Schneider Electric’s executive GM Ray Dunn said.

“Just like any journey, it is better when you have some good tunes on, are in good company and have someone alongside you with the tools and resources to support you to get where you want to go.”

The Schneider survey quizzed 300 Kiwi business decision-makers and found 96 per cent had already noticed benefits of adopting sustainable solutions.

But less than one-third had the ability to benchmark their own sustainability performance against comparable organisations.

Sometimes digesting the concepts around sustainable energy could seem like a big deal, but companies should wake up to the long-term savings from embracing smarter energy solutions, Dunn added.

“While double glazing and optimised air-con systems aren’t as exciting as 100-metre wind turbines and EVs, the impact of energy efficiency is immense.”

Ray Dunn of Schneider Electric says renewable energy, and its benefits, are about more than big wind turbines. Photo / Brett Phibbs

Dunn said a sustainable approach to energy use promoted decarbonisation, reduced waste, and extended equipment lifespans.

People in retail, construction, telcos, manufacturing, utilities and other sectors were surveyed. Half the firms surveyed already had to report on sustainability in their business plans.

But SMEs had the lowest uptake and sense of urgency to adopt sustainability solutions.

Schneider Electric asked decision-makers to name benefits they’d noticed from adopting sustainability solutions. More than one-third cited increased efficiency and productivity.

Reducing carbon footprint, committing to positive social impact, setting sustainability targets and improving a company’s reputation were the next most frequently cited benefits.

But many firms wondered how to get help setting goals for sustainability.

“We don’t have a true baseline that we are comparing ourselves against,” one big wine company told Schneider Electric.

“There are no benchmarks or means of comparison, so it’s hard to track progress,” Spark finance manager Vinit Mahna said.

Only 43 per cent of all respondents had already invested in energy and resource efficiency. But 69 per cent planned to invest in more on-site renewables in the next five to 10 years.

The same number planned to boost investments in transport or clean fleet initiatives.

Apart from the long-term juggernaut of climate change, clean fleets could potentially help with more immediate shocks, such as oil and fuel price volatility.

“Looking ahead, renewable energy is seen as the most important area in enabling sustainability targets over the next five to 10 years, followed by energy and resource efficiency measures,” Mumin Bhat of Schneider’s EcoStruxure Power division said.

Sometimes, we’re arguably not the best judge of our own character or performance. Dunn said there was a big gap between how well businesses perceived themselves and actions they were actually taking.

The survey found 80 per cent of decision-makers agreed renewable energy would bring benefits to New Zealand within the next decade.

But 60 per cent said the country was falling behind other developed countries taking action on climate change.

Renewable energy is the most crucial part of enabling sustainability targets over the next five to 10 years, Mumin Bhat of Schneider Electric's EcoStruxure Power says. Photo / Supplied

And some respondents complained that the Government wasn’t doing enough to help, and a lack of incentives were stopping them adopting sustainable technology.

“Meanwhile, medium-sized businesses struggle most with a lack of buy-in from employees and a lack of dedicated personnel and training to drive adoption internally,” the study added.

About 37 per cent of people Schneider Electric surveyed said the Government had the biggest impact on combatting climate change.

Medium-sized firms were more likely to mention a lack of financial resources to invest in sustainable technology, along with a need to prove a return on investment to business stakeholders.

The report said companies viewing sustainability as an onerous box-ticking exercise were missing out.

“We’ve seen time and again that positioning sustainability as only a compliance exercise fails in the long term,” the Schneider report added.

“Ultimately, decarbonisation requires change management. It requires team members to think differently, act differently, and be rewarded differently.”

Professor: Cut the gobbledygook

Professor Emeritus Ralph Sims of Massey University said the Energy Efficiency and Conservation Authority (EECA) and Sustainable Business Network could help businesses.

Sims said some companies probably weren’t aware of these organisations, especially with so many pressing economic and labour issues.

“They haven’t really got much spare time to talk about saving energy, even though it saves money.”

Sims, professor of sustainable energy, said many people working in science weren’t good at communicating to a wider audience.

He said for that reason, the IPCC (Intergovernmental Panel on Climate Change) hired specialist communicators.

Sims said arguments about sustainability often focused too much on negatives, rather than benefits of adopting clean sustainable technology.

Earlier this year, a Genesis survey found New Zealanders were less optimistic about reaching the carbon neutral milestone by 2050 and less sure how to get there.

That Genesis survey also found Kiwis were less certain about the timeframe for a move to totally renewable electricity generation.

Sims said some people just thought climate change was the distant future’s problem.

“There’s still the impression for many people to say climate change is not going to happen tomorrow or in my lifetime. Actually, it is important.”