Schneider Electric, the leader in the digital transformation of energy management and automation, is calling for an urgent rethink of investment priorities and greater collective action to spur global climate change efforts at the upcoming WEF in Davos.
Scenarios by Schneider’s Sustainability Research Institute show that stimulating a demand-led transition is the only scenario in which emissions will fall fast enough to limit global warming to 1.5 degrees. The Research Institute will be launching the Towards Net Zero Buildings: a practical pathway e-book at Davos, looking at how the current deadlock of supply vs. demand can be broken. Key findings include:
- Just 1-1.5% of building stock in Europe is renovated each year. Renovation levels need to reach 3% a year to meet Paris commitments
- Financing remains the biggest obstacle to investment in sustainable buildings[1] but investing in decarbonization technologies, and digital and city ecosystem services maximize value creation for all stakeholders
- Energy efficiency technology provides significant opportunities to reduce energy consumption ranging from 10 to 60%, depending on geographies and the quality of existing assets
- Digital energy efficiency solutions bring 20-30 per cent carbon abatement across the building stock, bringing highly competitive paybacks and cost savings for consumers, well below 8 years in average
The e-book provides a practical roadmap for governments and industries to balance the costs of the energy transition with the additional burden on communities, particularly in the current unpredictable climate. It also features a new framework for future-proofing buildings for buildings developed in conjunction with WEF which presents a model and a toolkit to accelerate investment to decarbonize cities. Importantly, the framework emphasizes the need to unlock value for all. Through the adoption of existing technologies that abate carbon and deliver a net benefit to consumers, while creating value for the economy and communities.
Schneider Electric has been on its own sustainability journey, paving the way as an Impact company for the past 20 years, and believes that accelerating action against a backdrop of high and volatile energy prices, requires a shift in strategy. In addition to investment to increase renewable energy capacity, creating demand for clean energy via a consumer-driven transition is now essential.
In line with this approach, Schneider Electric is also announcing the creation of 2,500 green jobs worldwide to aid the acceleration of climate action across all facets of the economy. The jobs, primarily field services roles, will focus on helping Schneider’s customers digitize and decarbonize facilities, modernizing assets by promoting a sustainable and circular economy approach and providing advice on sustainability strategies.
[1] WGBC “Beyond the Business Case”