70% of energy suppliers working towards net zero

A new survey shows that Australian energy suppliers are actively engaged in implementing strategies to help achieve net zero goals.

Publicis Sapient's Next Stop Net Zero global benchmarking report surveyed 375 CIOs, CDOs, CTOs and digital decision-makers at energy suppliers across Australia, France, Germany, Switzerland, the UK and the UAE to gauge their efforts in realising net zero emissions by 2050.

The report indicates clear intent from Australian energy suppliers to use digital business transformation to drive net zero outcomes, as well as strong influence from government, energy consumers and investors. 78% of Australian energy suppliers surveyed cited increased pressure from customers to become more environmentally sustainable as a key challenge during the last five years — the highest rate across all regions surveyed. In addition, 88% of Australian respondents expressed that the net zero agenda presented them with an opportunity to transform their business more broadly.

"Energy suppliers will play a central role in realising Australia's vision to achieve net zero by 2050. Embracing new technology and digital business transformation will be pivotal in propelling energy suppliers and the broader Australian economy in their journeys towards net zero outcomes. The Next Stop: Net Zero findings reiterate the significance of digital business transformation in enabling net zero outcomes while also ensuring safe, reliable and affordable energy for consumers," said David Leung, Senior Manager Strategy & Consulting, Publicis Sapient.

According to the report, Australian energy suppliers are more concerned than their global peers about increased competition from 'digital native' challengers and how they should respond. 44% of respondents expressed that the challengers were an extremely influential motivator in driving their corporate digital transformation agenda (compared to an average of 28% across other regions).

"Relative to other parts of the world, there is strong central focus, consumer appetite and supportive technological conditions for new digital energy business and market models in Australia. This means incumbent businesses need to think-through and action competitive responses as challengers rapidly approach and consume new value pools. The net zero mission has become a powerful mantra for driving digital transformation strategies, providing an opportunity for energy suppliers to transform themselves from the inside out. If energy suppliers are to realise their net zero ambitions, a significant re-evaluation of their digital strategies needs to take place," he added.

Click here to download the full report.

Image credit: ©stock.adobe.com/au/Romolo Tavani