BCG on Energy

Direct investments are needed to reduce the costs of the clean technologies needed to reduce greenhouse gas emissions, lower green premiums, and ultimately accelerate their widespread adoption. BCG's Jim Larson and Mike Boots from Breakthrough Energy explore the Breakthrough Energy Catalyst initiative and the private sector's crucial role in advancing climate technology innovation.

Accelerating the Energy Transition through Customer Demand When we bought our home in London over a decade ago, I investigated installing a heat pump as part of the renovations. The process and the number of providers I had to deal with put me off… five years later when our (new) neighbours renovated their home, they went with a heat pump, at least partly because the process had become a lot more user friendly. It is clear that the energy transition needs to accelerate significantly if we are to meet our targets. Through my own experiences I’ve seen how important it is to be more customer-centric, as one of the keys to success. In a report I co-authored, we explore how a customer-centric approach can make the energy transition 2-5 times faster. We found that companies in sectors like building, transportation, and manufacturing are already seeing promising results. For example, solar adoption in India, EVs in the EU and USA and heat pumps in Europe could collectively reduce global emissions by 1.5 GT CO2e, or 4% of today’s carbon emissions. The key takeaway? While supply-side interventions like regulations and incentives are crucial, they're not enough. The real game-changer lies in creating sustainable products and services that customers want—not just feel they should adopt. By focusing on delivering superior performance, cost competitiveness, and added value, companies can drive a faster, more resilient transition to green energy. In my own efforts to connect with our energy transition goals, I recently visited the rooftop heat pumps at BCG’s London office—an impressive sight! Interested in learning more? Read the full report here: https://lnkd.in/er-k3XkA #EnergyTransition #Sustainability #CustomerDemand    

🚀 BCG’s latest study reveals that while low-carbon tech has grown by 42% since 2015, hydrocarbon demand is also rising. To accelerate the energy transition, we must shift the focus to customer demand. Placing customers at the center of sustainable energy offerings can speed up transitions by 2-5 times and ensure lasting impact. Learn more about how a shift from "should" to "want" can drive meaningful change. 🌍 Read the full report: https://lnkd.in/gTCeE4ER Ekaterina Sycheva, Jamie Webster, Maurice Berns, Rich Lesser, Alexander Ohm, Lauren Taylor, Rina Su, and Bas Sudmeijer

We are proud to announce our strategic insights partnership with #Gastech2024, a key event driving discussions on the future of energy! Our experts Alex Dewar, Anshul Gupta, Ramya Sethurathinam and Stevan Jovanovic will be actively contributing to the dialogue on transforming and advancing the global energy system in the new industrial age. 📅 Join us from 17-20 September in Houston as we engage with industry leaders to explore Low Carbon Solutions and drive the energy transition forward. We look forward to impactful discussions on the role of gas in the evolving energy landscape. #Gastech2024 #GlobalEnergy #Sustainability

As industries decarbonize and transform the need for infrastructure that respects the environment is greater than ever. BCG’s latest insights show how to harmonize infrastructural growth with nature conservation. By integrating nature-positive strategies, companies can lead the way in sustainable development and a thriving ecosystem. Is your infrastructure plan natured aligned? Explore more here: https://lnkd.in/gYqWVesn #Decarbonization #EnergyTransition

BCG’s analysis of total shareholder returns (TSR) in the energy sector from 2019 through 2023 reveals significant performance differences across and within subsectors. 📈 Top energy companies excelled in TSR by mastering in these key areas. 1️⃣ They doubled revenue growth through effective capital management and strategic business models. 2️⃣ Leaders are 35% more likely to achieve cost savings and reductions via proactive reduction programs, strengthening margins. 3️⃣ These companies were 40% more likely to maintain consistent shareholder payouts and 30% more likely to have growing valuation multiples by de-risked earnings, consistent payouts, and balance sheet health. 4️⃣ 80% utilized strategic transactions to optimize their portfolios. This multi-faceted approach enabled top performers to navigate challenges and outperform their peers consistently. Know more about it: https://lnkd.in/er22VczH

Boston Consulting Group (BCG) is proud to once again serve as a knowledge Partner for the much-anticipated Indonesia International Sustainability Forum 2024 (ISF 2024) We will be hosting a thematic session during the forum titled “Strengthening Cross-Border Collaboration: Electricity Trading and RE Supply Chain Development Potential.” This session will bring together key stakeholders in the renewable energy supply chain ecosystem to discuss challenges and explore potential solutions. If you are registered as an ISF 2024 delegate, we warmly invite you to join us. With your participation, we hope to shape concrete next steps to advance Indonesia’s renewable energy supply chain beyond just power exports. Event details below: 📅 Date: Friday, September 6th ⏲ Time: 9:30 – 11:30 a.m. (Jakarta time) 🏢 Venue: Jakarta Convention Centre, Merak 3 Room Contact isf@bcg.com for more information on the program. #ISF2024 #SoutheastAsia #BCGonEnergy

Boston Consulting Group (BCG) has just released a groundbreaking study: "Turbocharging the Energy Transition by Boosting Customer Demand: Shifting From Should to Want." Our research reveals that companies and governments can make significant progress towards truly accelerating the energy transition by placing the customer at the heart of new low carbon energy solutions. Customer-centric transitions can happen 2-5 times faster and have greater lasting impact. This shift from "should" to "want" is key to driving meaningful change and successful business models 🌍 Read the full report to learn more about how customer-centric strategies can lead the way in the energy transition. https://lnkd.in/gTCeE4ER Ekaterina Sycheva, Jamie Webster, Maurice Berns, Rich Lesser, Alexander Ohm, Lauren Taylor, Rina Su, and Bas Sudmeijer

The copper supply crunch is real, and it's going to impact industries across the board. With prices soaring and demand outpacing supply, businesses need to brace for significant disruptions. Our research shows that the gap between copper demand and supply could hit 20%-30% by 2030, depending on how aggressively renewable energy is adopted. Now’s the time to rethink strategies: boost production, invest in recycling, and consider alternatives. Is your business prepared for the copper challenge? Learn more: https://lnkd.in/gEhYiH8y #CopperCrunch #Sustainability #EnergyTransition #Circularity

The scale of durable #carbondioxideremoval (CDR) varies regionally, influenced by the maturity of existing climate policies and financing capabilities. Europe and North America are leading the way in implementing climate policies, creating big opportunities to drive demand for CDR. In contrast, Asia Pacific faces more challenges due to varying policy maturity and high decarbonization costs. Asia Pacific is expected to have high residual emissions (those that are difficult to avoid or fully eliminate) due to economic and industrial growth, a lack of regional consistency in the advancement of climate policy, and the high cost of decarbonization and durable CDR. Reaching net zero in Asia Pacific is key to global climate goals. Expanding the scope of existing and proposed demand drivers and creating new ones will be key to boosting CDR demand in this region and worldwide. 🚀https://lnkd.in/gEBeRK3S #ClimateAction #CarbonRemoval #Sustainability #NetZero #Decarbonization