If you think the push for industrial decarbonization will eventually fade away, you are probably mistaken.
The move towards industrial decarbonization is well on its way, attracting some serious players and significant government spending.
If the recent DOE announcement of $6.3 billion to advance decarbonization technology isn’t enough to convince you of the market’s potential, then keep an eye on how large multinational companies position themselves.
One such example is the new partnership announced between industrial equipment, controls and software company Schneider Electric and engineering consultancy Bain & Company. The two firms are striking a new plan to create a pipeline of tech and strategy to facilitate industrial decarbonization initiatives.
Companies of this scale don’t announce a deal like this unless they are almost certain of the outcomes.
The new partnership follows a series of collaborations between the two companies. Bain brings advisory expertise in decarbonization, manufacturing excellence, supply chain enhancement, performance improvement and operational delivery. Schneider Electric’ brings experience designing and implementing industrial carbon reduction and energy use transformations.
The demand for decarbonization strategies is becoming a critical market space in the global industrial sector. More than 4,000 companies have committed to carbon reduction targets over the next 25 years, and many of those companies will demand carbon reduction from suppliers in their respective value chains. Bain launched its Sustainability and Responsibility Practice ten years ago and says this segment has grown 65 percent per year over the past five years.
“At Bain & Company we are constantly enhancing the breadth and depth of our capabilities and expertise to help our clients accomplish their [environments, social and governance] ESG goals and secure the greatest potential and value from their decarbonization and energy efficiency journeys. Our partnership with Schneider Electric will be a critical accelerator of our ambition in this arena,” said Hernan Saenz, partner and leader of Bain’s Global Performance Improvement practice.
Schneider Electric says the partnership will harness its portfolio of digital decarbonization solutions and its network of more than 2,500 experts in over 100 countries covering energy and carbon management, renewable energy procurement, ESG, and efficiency. The company manages more than $40 billion in energy spend on behalf of its clients annually.
“The global demand for corporate decarbonization has accelerated rapidly, driving new pressures for companies to make meaningful progress on energy efficiency, renewable energy procurement, and electrification,” said Steve Wilhite, president of Schneider Electric’s global Sustainability Business. “Our partnership with Bain & Company will advance decarbonization and the energy transition for our clients, driving greater resilience and faster results.”
