WORLD-GEN June/July 2018

WORLD-GEN June/July 2018

WORLD-GENERATION JUNE/JULY 2018 14 PERSPECTIVE NEW YORK, NY – Spurred by consum- er demand for eco-friendly practices, many businesses across the U.S. are moving aggressively to reduce their carbon foot- print, including a major embrace of renew- able energy and alternative-fueled vehicles, according to Deloitte’s annual Resources Survey.   The survey shows that businesses see addressing climate change as key to long- term industry resilience. Sustainability seems no longer optional – it has become important to fostering business growth and satisfying a wide range of stakeholders, including customers, suppliers, partners, employees and investors.  Although 86 percent of residential con- sumers believe the government should be active in setting a vision and path for ener- gy strategy, it is the private sector that is advancing the cause to manage resources for cleaner, more resilient, secure and affordable energy supplies.   Businesses are not waiting for govern- ment to act on addressing climate change. They have picked up the gauntlet. They are now driven to double down on their energy management efforts as they view their long-term viability through the climate lens.  KEY FINDINGS Of the 87 percent of businesses familiar with the U.S. pulling out of the Paris cli- mate agreement, 4 in 10 are reviewing or changing their energy management poli- cies in response, with 75 percent of those increasing their commitment and invest- ment in energy management.  About 70 percent of customers are demanding companies procure a certain percentage of electricity from renewable sources.  The number of companies with carbon footprint goals has jumped to 61 percent in 2018, from just over half the year before.   Sixty-eight percent of residential con- sumers say they are concerned about cli- mate change and their personal carbon footprints, outpacing the previous high of 65 percent in 2016.  Nearly three-fourths (74 percent) of residential consumers stated that climate change is caused by human action, up six percentage points from 2017.   RENEWABLES RATED KEYTO ENERGY INDEPENDENCE, MILLENNIALSTIPTHE SCALE More than three-fourths (76 percent) of survey respondents cited renewables as key for achieving energy independence, jumping five percentage points from 2017. This seems to represent a change in mind- set with many respondents now seeing a connection that was once widely thought to be implausible.  In addition, many millennials – greener and “techier” than other generations – see renewables as the answer to their environ- mental concerns. In fact, 64 percent rank utilizing clean energy sources among their top three most important energy-related issues. Also, they are more likely to adopt new solutions, such as electric vehicles, home automation systems and time-of-use rates.   BUSINESSES MAKING EVS AN EASY CHOICE Many businesses not only say reducing their electricity consumption is important to staying competitive but they also are helping to transform the transportation sec- tor as more consumers and employees eye electric vehicles and hybrids as a prime pick for their next vehicle.  Business respondents expect gasoline or diesel vehicles will make up less than half (49 percent) of their transportation fleets by 2020. If so, it would mark the first- time vehicles powered by alternative fuels will constitute a majority of corporate fleets. In fact, businesses are accelerating their efforts to support employees who drive electric vehicles, with well over half (56 per- cent), offering EV charging stations. Fifty- two percent of these businesses own the charging stations themselves, while 41 per- cent belong to the building owner.  BUSINESSESTURNTO SELF-GENERATION FOR GREATER CONTROL OVER ENERGY On-site generation also is on the rise as distributed resources are increasingly viewed as being realistic and cost-effective, and as businesses desire greater control over their energy supplies in terms of price, quality and reliability. Fifty-nine percent of businesses now generate some portion of their electricity supply on-site, and of those businesses, 13 percent are using renew- ables, 13 percent use on-site co-generation and 10 percent are using on-site battery storage.   Nearly half of business respondents are working to procure more electricity from renewable sources, and nearly two-thirds (61 percent) said combining battery stor- age with renewable sources would motivate them to do more. Additionally, businesses are responding to increased power outages by purchasing backup generators, adding battery storage units, and expanding the amount of electricity they self-generate. SMART HOME APPS NOT CATCHING ON, CYBER CONCERNS COOLING INTEREST Despite support for more innovative DELOITTE SURVEYS BY MARLENE MOTYKA,CLASS OF 2017 Deloitte US and Global Renewable Energy Leader (continued page 16)

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