The Crucial Role of Digitalization in Energy Transition

The interconnections between the energy transition and digital innovation shows no sign of stopping. A telling 81% of large-company executives see digitalization as being key to their energy transition plans.

A recent Reuters survey polled 800 senior decision makers, revealing how they were approaching challenges around software adoption, digital technologies, and their transition to net zero.

Building and navigating digital capabilities are at the center of these decision-makers’ efforts, but they underscored an equally important factor in determining whether they’d see desired results: people. “The majority of software solutions require workforce adoption if outcomes are to be achieved.” The sponsorship of executives and leadership was just as crucial as individual contributor onboarding for the success of digital initiatives.

Similarly, when asked about what the top three drivers for organizational investment in carbon emissions management tools, company mission was named as No.1, followed by regulatory compliance, and stakeholders and investors. The ethos and involvement of people is crucial to the momentum of decarbonization efforts.

But progress doesn’t get made without the right plan in place. Over 60% of respondents agreed that their organization needs a more accurate way of measuring carbon emissions and reporting. Given that 68% of large companies are making strategic decisions based on emissions data and insights, it’s crucial that reporting be accurate, actionable, and relevant to the parties who are in charge of paving the path forward:

Even with this perceived lack of investing, larger companies do seem to be pursuing adoption of digital tools, with the following three being the most sought after tools:

While barriers to digitalization include deployment and adoption challenges, a lack of understanding of the need for new software, and lack of budget for said software, it is undeniable that the trajectory for digitalization is still forging ahead. More than half of large organizations stated that they are operating with a cloud-first IT strategy, and many expressed their desire for composable software to create custom solutions for their organizational needs.

Despite perceived barriers to digital adoption, it’s clear that there is no going back to the way things were done before: organizations are harnessing digitalization to create improved business models for deployment, and workforce readiness.

Read the full Reuters report for a comprehensive pulse on the industry as it works toward the energy transition and better business outcomes.