How Financially Constrained Organisations Can Invest in a Decarbonised Future

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Why Investing in a Decarbonised Future Makes Good Commercial Sense

Terms such as “decarbonisation” or “Net Zero” once appealed to a niche market. However, the effects of the global pandemic served as a rude wake-up call for everyone. Both environmentalists and scientists have been advocating for sustainable, yet resilient, businesses that will help mitigate the effects of climate change.

Transitioning towards a decarbonised future sounds challenging, but risks related to climate change may threaten even the most profitable of organisations. The risk of litigation poses as a threat to private organisations where citizens want companies to be held accountable for their GHG emissions which threaten their livelihoods.

In addition, company directors may also face legal liabilities from their stakeholders for a failure to disclose these actions, which has an impact on their companies’ financial performance.

Aside from the aforementioned risks, there are significant upsides to investing in sustainability, particularly towards Net Zero:

  • fulfill obligations to key stakeholders
  • reduce carbon emission and overall carbon footprint
  • reduce operating costs
  • develop goodwill with various stakeholders with vested interests
  • attract shareholders and investment from impact funds or sustainable as a result of lower corporate risk profile in terms of Environmental Social Governance factors
  • attract customers who prefer or support sustainable organisations that demonstrate leadership on climate change action

Many organisations have or are planning to commit to Carbon Neutral or Net Zero ambitions. Despite these ambitions however, in many cases, organisations have limited ability to spend Capital Expenditure (CAPEX) on non-core operations. 

Innovative Approach to Net Zero that preserves your CAPEX Budget 

There are a number of energy-saving strategies that can help reduce operating costs and overall carbon footprint of your organisation. Specialist integrators such as Ecosave can partner with organisations to co-create sustainable, connected and integrated energy infrastructure solutions for business, precincts and territories.

If there is no capital budget or traditional funding sources available (i.e. debt or equity), an Energy-as-a-Service (EaaS) partnership is a potential avenue to consider.

EaaS has a flexible contracting model, allowing various delivery and ownership options within the portfolio to ensure maximum benefits are realised. Under certain conditions, customers pay for an energy service without making an upfront capital investment.

EaaS is an outcomes based, customer-centric business model to:

  • Monetise and share value created
  • Integrate energy generation and efficiency solutions
  • Increase decentralisation and digitalization in order to maximise efficiency
  • Fund the deployment of assets to achieve Net Zero

EaaS achieves decarbonisation through low-carbon technologies and smart city style digital solutions to support Net Zero ambitions.

EaaS covers a combination of energy/water/waste infrastructure, services and digital solutions that support Net Zero ambitions. In addition to Ecosave’s traditional energy conservation measures, some of the solutions covered in an EaaS partnership may also include:

  • Solar PV
  • Energy Storage Systems
  • Green Mobility – Electric / Hydrogen Fuel Cell including large vehicles such as buses and freight
  • Green Hydrogen generation, storage and refueling solutions
  • District Heating and Cooling Systems (DHCs)
  • Smart cities solutions utilising Internet-of-Things (IoT) including Digital Twin/Modelling/Simulation; smart lighting/parking and CCTV/traffic management
  • Waste including Waste to Energy and sustainable Water solutions

The benefits of an EaaS include:

  • Meet Net Zero Goals – EaaS offers integrated solutions combining green energy generation, energy efficiency and circular economy to accelerate achievement of sustainability goals
  • Preserve CAPEX – EaaS is structured as a service contract; funded from OPEX budget rather than requiring upfront CAPEX deployment
  • Reduce Complexity – As the owner of the assets and responsible for the guarantee of the outcomes, maintenance and operations are the responsibility of Ecosave
  • Incentivised to achieve Win-Win outcome – Delivery of savings above agreed levels are shared 50% / 50%, resulting in an incentive for us to exceed ambitions and accelerate achievement of Net Zero outcomes

Partner with Ecosave to utilise our EaaS delivery model and preserve your capital for core business whilst ensuring long term sustainability success. To find out more about EaaS at Ecosave, connect with our MD, EaaS Tolga Dagli.

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