Decarbonisation Summit: sustainability makes companies more competitive

The summit brought together over 400 business representatives to explore how to address grid capacity issues, leverage subsidies to make commercial properties more sustainable and embrace circular production methods. These and other insights were shared at the Summit to help companies turn sustainability into a strategic advantage. “Sustainability creates opportunities for businesses,” says Steven Peters, Head of Sector Research at ABN AMRO. Steven was closely involved in organising this second ABN AMRO Decarbonisation Summit, which was held to coincide with the ABN AMRO Open tennis tournament at Rotterdam Ahoy.

“The summit is just one more way ABN AMRO is helping companies move forward on their path to sustainability,” Steven says. As various speakers emphasised, decarbonisation isn’t just crucial to meeting the EU’s 2030 climate goals. Research shows that it also makes good financial sense. The transition to a low-carbon economy can boost competitiveness, both at home and on the international stage.

Inspiration from Mario Draghi

A major theme of the summit was the influential report by the former ECB president Mario Draghi entitled The Future of European Competitiveness. Published at the behest of the European Commission, the report outlines strategies to strengthen European competitiveness. “Draghi sees a clear connection between competitiveness and decarbonisation,” Steven says. Draghi also points out that Europe faces structurally higher energy costs than the US or China, and advocates a coordinated approach to both decarbonisation and better competitiveness in Europe.

Draghi believes decarbonisation represents an opportunity for Europe to lower energy prices, take a global lead in clean technologies and ensure its own energy independence. “The solutions Draghi proposes for Europe can be applied at the company level, too,” Steven explains. “Even if geopolitical developments slow the pace of sustainability, businesses that have embraced renewable energy will be less vulnerable to rising energy prices. Plus collaboration can give both countries and companies a real edge.”

Sharing knowledge

Reflecting on input from a number of business owners at the event, Steven continues, “Smart technology and targeted funding can help organisations meet their sustainability goals faster. That’s good for society and for individual companies, too.” Feedback from attendees confirms that sustainability is a top priority for them – right alongside growth and profitability.

However, a poll of participants showed that many businesses, particularly SMEs, still face challenges when it comes to sustainability, including a growing number of regulatory demands and a lack of expertise. The good news is that ABN AMRO’s sector specialists are seeing a marked increase in expertise in low-carbon technologies across nearly every industry. “Lots of businesses are willing to share what they’ve learned,” Steven says. “A behind-the-scenes look at another company’s operations can be instructive and inspiring. Business owners should be tapping into the knowledge of their clients, industry peers, government authorities and the bank.”

It was for that very reason that this year’s summit again included a number of practically oriented breakout sessions, says Steven: “These covered topics like energy efficiency, electrification, grid congestion, digital technology and carbon credits.”

Collaborating in energy hubs

Steven notes that one area where collaboration can truly accelerate the low-carbon transition is grid congestion – a growing problem that’s already limiting the capacity of businesses to operate. Not surprisingly, the breakout session on this topic drew a large crowd. One promising solution is energy hubs. These are clusters of businesses – often located in the same industrial park or area – that manage their own electricity usage collectively. A Utrecht-based entrepreneur shared his company’s experience as part of an energy hub in an ABN AMRO report on grid congestion. It’s a steep learning curve, but the results are worth it. His advice to other business owners? Take action. By joining forces with others in the area, members of an energy hub can often make better use of limited grid capacity. Another example is Kronenburg Techniek, which resolved its grid congestion issues a year and a half ago by implementing a smart energy management system with energy storage when building its new premises in the Dutch municipality of Houten.

Taking the next step

In addition to the summit, ABN AMRO shares much of its sector-specific knowledge – including practical advice and solutions targeting a range of sectors – on its dedicated decarbonisation theme page. “By sharing knowledge, experience and real-world solutions, we’re actively helping business owners develop their expertise,” Steven concludes. “After all, the more knowledge businesses have, the more effectively they can take the next step on the road to sustainability.”

Would you like input from ABN AMRO on ways to make your business more sustainable?