Energy consumption needs to be made into a boardroom issue

Downtown Dubai. Reducing energy consumption in the UAE is critical to the success of its national strategies to decarbonise and reach Net Zero by 2050. Nur Photo

The world has entered a new era of accelerated climate action – one in which we must now hold all stakeholders accountable. The test lies in ensuring that the commitments we make translate into results.

This can be observed in the private sector’s charge towards managing and reducing energy demand, further aligning with the UAE’s sustainability goals.

Reducing energy consumption in the UAE is critical to the success of its national strategies to decarbonise and reach Net Zero by 2050. It is also vital to protect the economy against the impact of climate change that can so easily disrupt supply chains and trading conditions. Public utility companies for water and electricity must address the issue head on to manage their own energy usage and in turn, influence and encourage others to act.

Consumers must be armed with the tools and knowledge to be able to manage their use of water and electricity more responsibly. Traditional measures like switching lights off when leaving a room, turning devices off at the plug rather than leaving them on standby and using eco modes on appliances can be taken a step further thanks to innovative digital technology.

By investing in newer, more efficient equipment, utilities can ensure lower costs, make upkeep more affordable and and increase accuracy and reliability. Smart meters, for example, provide accurate usage details and help consumers identify areas where they could reduce their consumption. A smart meter can show a household how much it costs to bring the oven up to temperature or complete a washing cycle. This information may lead to more limited use of the appliance and better planning, benefitting both the consumer and the planet long term. Similarly, many households can use a mobile application to turn lights and devices off remotely.

For utility companies, lower energy consumption can translate into lower bills and cost saving mechanisms; these cost savings can be passed onto the customer, creating a competitive advantage. Competitive advantage can also be gained through a genuine commitment to sustainability and corporate social responsibility.

Public-private partnerships are powerful board-level agreements that play a key role in advancing sustainability goals

The need for companies to demonstrate their commitment to society and the planet is no longer merely a gesture; it must be embedded in the culture of an organisation –as it already is in several organisations around the world. Today, consumers demand transparency from companies. A lack of authenticity can undermine a company whose values do not meet consumer expectations.

The UAE’s pro-climate, pro-growth strategic approach to economic prosperity has meant a wealth of policies, support, and funding in favour of businesses prioritising sustainability.

The UAE Energy Strategy 2050 aims to triple the contribution of renewable energy and invest between Dh150 billion Dh200 billion by 2030 to meet the country’s increasing demand. Business leaders who diversify their operations to bring the organisation’s core strategy in line with these national goals can tap into emerging green infrastructure and renewable energy markets. They can also avoid regulatory shifts – changes to regulations and laws that are hugely costly to those unprepared.

Across the UAE, we are seeing our major industries such as construction, oil, manufacturing, agriculture and others, diversifying operations and investing in renewable and sustainable solutions to reduce their carbon footprint. This has only been made possible by a united, collaborative national approach with a focus on one common goal: to achieve Net Zero by 2050.

On a global scale, companies such as Google and Siemens are making significant strides in sustainability. Google has fully transitioned to renewable energy for its data centres and offices since 2017, and continues to reduce energy use with smart technology and AI.

Siemens has significantly cut energy consumption by enhancing the energy efficiency of industries and buildings through upgraded infrastructure. On the national level, the UAE's Masdar and Emirates Nuclear Energy Corporation (Enec) are pioneering sustainability efforts; Masdar, by leading numerous global renewable energy projects, and Enec, by developing nuclear energy, greatly contributing to the reduction of the country’s carbon emissions.

The critical difference between energy consumption conversations in individual departments compared to board and executive level is the difference between small operational tweaks that have minimal impact on wider society, and large-scale strategic discussions and partnerships that transform.

Public-private partnerships (PPPs), for example, are powerful board-level agreements that play a key role in advancing sustainability goals much faster than traditional government-led approaches.

PPPs can boost investment, drive innovation, and bring state-of-the-art solutions to life. For example, at EtihadWE, we have built a major reverse osmosis desalination plant, significantly reducing energy consumed in producing potable or drinkable water to supply the Northern Emirates. We have achieved this through collaboration with private companies that are addressing sustainability at board level.

In companies that have led climate action from the top, we see a filtering down that positively impacts customers.

The UAE’s national strategies call for a collaborative approach to optimise energy resources and reduce consumption. Therefore, by integrating energy considerations into the highest levels of decision-making, business leaders can better align their operations with sustainability goals, gain a competitive advantage, reduce costs, boost efficiency, enhance brand value, and lead the way in creating a country that thrives economically, socially and environmentally. To this end, all stakeholders need to act decisively and effectively.