GUIDELINES FOR AN INTEGRATED ENERGY STRATEGY
Helping companies achieve their sustainable energy objectives
Solutions
The solutions element contains the measures you deploy to improve energy efficiency, transition to low-carbon energy sources and reduce climate impact. Below is a simple process to evaluate and prioritize these measures.
What you should be aiming for?
- Carry out a comprehensive assessment of options and apply financial, environmental and social decision-making criteria;
- Prioritize options based on their net benefits to the company and society, focusing firstly on the higher impact measures where there is a clear route to delivery;
- Coordinate strategy implementation with other business priorities to minimize disruption.
Discover BT’s solutions for an integrated energy strategy
Introducing the three categories that your strategy will consider
To implement your integrated energy strategy, you need to prioritize the measures that will deliver your vision. There are three main measures.
In all three measures, collaboration with upstream and downstream stakeholders is key to successful implementation. Suppliers play a major role in improving energy efficiency and reducing GHG emissions through the products and services they supply.
Engagement with customers can potentially drive demand for products and services that are more
Collaboration with upstream and downstream stakeholders has the potential to identify wasted energy resources and create solutions that introduce circularity.
Assessing strategic options using a broader range of criteria
Developing your integrated energy strategy involves assessing all energy inputs and outputs, and considering how these could become more efficient, more circular and low-carbon by engaging with your supply chain and customers. This means that the measures you will deploy will need to be evaluated against a broader range of criteria than traditionally used.
The choices that you make will ultimately depend on a combination of:
- How fast you want to decarbonize energy and the opportunities that exist to decarbonize;
- Your time horizon for making investment decisions;
- The role you want to play in your energy-related value chain and the opportunities that exist to play that role;
- The opportunities to collaborate with upstream and downstream stakeholders;
- Your desire to capture new commercial opportunities and realize competitive advantage;
- Your appetite for risk and for exploring new opportunities.
We have outlined a simple process that can be applied to any energy input or output.
We have outlined a simple process that can be applied to any energy input or output.
Below, we suggest new criteria to inform your decision-making in two stages: identify and assess options and select suppliers/partners. Ultimately, your corporate and sustainability strategy will also inform the criteria you apply.
Identify and assess options
PROCESS | TRADITIONALLY USED CRITERIA | ADDITIONAL CRITERIA |
1. Evaluate your energy inputs
2. Evaluate your energy outputs
3. Engage with suppliers/partners to gather market intelligence
4. Define the business need and complete the options appraisal
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Life-cycle financial return: Assessing the capital investment, operational expenditure and cost savings over the whole life span of the asset. Evaluation of metrics including return on investment, internal rate of return and net present value. Operational risks and opportunities: What are the risks and benefits of this solution over other options? Solution maturity: How well established is the solution? Solution availability: How many suppliers are there for this solution? Supply chain: How resilient is the supply chain for this solution? |
Economic indicators:
Environmental indicators across the value chain:
Socio-economic indicators across the value chain:
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Stage: Identify and assess options - Process
1. Evaluate your energy inputs
2. Evaluate your energy outputs
3. Engage with suppliers/partners to gather market intelligence
4. Define the business need and complete the options appraisal
|
Stage: Identify and assess options - Traditionally used criteria
Life-cycle financial return: Assessing the capital investment, operational expenditure and cost savings over the whole life span of the asset. Evaluation of metrics including return on investment, internal rate of return and net present value. Operational risks and opportunities: What are the risks and benefits of this solution over other options? Solution maturity: How well established is the solution? Solution availability: How many suppliers are there for this solution? Supply chain: How resilient is the supply chain for this solution? |
Stage: Identify and assess options - Additional Criteria
Economic indicators:
Environmental indicators across the value chain:
Socio-economic indicators across the value chain:
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Select suppliers/partners
PROCESS | TRADITIONALLY USED CRITERIA | ADDITIONAL CRITERIA |
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Full range of quantitative and qualitative supplier and measure evaluation criteria to assess financial characteristics, supplier quality, track record, and operational performance. | In addition to the new criteria included above, it’s important to consider:
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Select suppliers/partners - Process
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Select suppliers/partners - Traditionally used criteria
Full range of quantitative and qualitative supplier and measure evaluation criteria to assess financial characteristics, supplier quality, track record, and operational performance. |
Select suppliers/partners - Additional criteria
In addition to the new criteria included above, it’s important to consider:
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The recommended route is to begin with pilot projects to reduce your risk exposure. Measure the impact of pilots by collecting real data and getting insightful feedback from project stakeholders. This will help to obtain buy-in from internal stakeholders, while supporting and accelerating implementation and achievement of your strategy.
TOP TIPS |
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QUESTIONS TO CONSIDER |
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