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ENERGY & FORECASTS

Exhibit 2

these tax incentive splits show majority bipartisan and respond in real-time to rapidly evolving
support. circumstances, whether they be related to
In addition to driving the uptake of renewable ener- supply chain function or acceleration of tran-
gy and energy efficiency, current utility prices could sition risks. The need is certainly not new, but
make the business case for hard-to-abate industry its intensity and the magnitude of the effort re-
decarbonization more attractive. Putting forward quired even for the most mature corporations
high-impact, ready-to-deploy cases could secure are.
up to 40 percent energy-cost reductions and deliv- • Accelerate decarbonization of core oper-
er significant additional earnings (Exhibit 2). ations. Companies would benefit from focus-
ing on levers most directly under their control
Finally, the current situation further underscores (such as their production process) or those
the importance and urgency of adaptation. Even that provide strategic advantage by hedging
a short-term detour is still a detour and a further against energy price volatility or future tran-
accumulation of physical risk. Actions and invest- sition risk. This would be particularly true for
ments in adaptation were already inadequate be- commodity firms experiencing cash windfalls
fore the war and are even more so at this juncture. with high prices. This also means building a
strong green procurement muscle, with re-
Navigating the moment, spect to both raw materials and components,
reflecting new risks and realities. Industry as-
driving toward transition sociations and public–private collaboration
would likely also be required to address supply
Our earlier research catalogued the actions that constraints.
key stakeholders could take with respect to the • Support multinational cooperation. Inter-
net-zero transition. We will not reiterate them here national sustainability agreements, commit-
but focus on the key actions that we believe have ments, standards, and practices can also be
become more timely and critical in light of the con- championed and driven by industry associ-
flict. ations and ecosystems. Corporations could
and should endeavor to increase the momen-
Governments can’t accomplish the net-zero transi- tum through their commitments and actions at
tion alone. Private-sector leaders have an opportu- this juncture. This means taking a leadership
nity to assume more prominent roles in advancing role at the company level, at the industry lev-
this critical goal. Success, however, requires vi- el, and within ecosystems as users can help
sionary and forward-looking leadership at both in- influence providers and their practices. This
dividual and institutional levels. In that connection, leadership could indeed prove a critical factor
companies could consider three actions: in determining the impact of the war on the
• Strengthen the risk identification and re- prospects of the net-zero transition.
sponse muscle. One consequence of the
war is a clear increase in global volatility. Now For government leaders, a more active role in en-
more than ever, it is important to develop a ro- ergy markets seems natural in light of conflict. The
bust capability for managing under uncertain- rise in energy and commodity prices, as well as in
ty. A key requirement is to be able to identify concerns about energy security, gives leaders an

30 30 Impiantistica Italiana - Luglio-Agosto 2022