Despite the progress, two-thirds of respondents revealed that they still rely on basic methods, such as energy bills and spreadsheets, to monitor and manage their energy usage. This lack of sophisticated data management tools is impacting decision-making and hindering efforts to improve sustainability.

“Companies should not wait to establish and act on a decarbonisation plan,” Zembrodt says.

“The tools and technology exist today to improve efficiency and cut emissions, leading to lower energy costs.”

“In an environment of greater transparency, progressive companies are optimising their sustainability and emissions performance, and with that they’re improving efficiency and are better able to attract capital.”

Pacific Energy, a key player in Australia’s energy sector, is one player that is not waiting.

The company, which serves mining outfits and state-owned utilities, has been deploying stand-alone power systems across Western Australia. These systems aim to reduce carbon emissions and improve grid reliability and safety.

Daniel Jackson, managing director of renewables at Pacific Energy, says data plays a key role in driving sustainability.

“Monitoring, analysing, and reporting data is vital to process improvement and operational transparency, both of which contribute to overall sustainability,” says Jackson.

“Using data created by Schneider Electric’s Insight & Gateway products, Pacific Energy collates significant data that helps clients assess and report on energy use and carbon reductions.”

And Jackson stresses the importance of immediate action. “The time for businesses to act on decarbonisation is now, and the ability to provide reliable tangible data will make all the difference in whether you are successful in developing and implementing your strategies,” he says.

“This is a once-in-a-lifetime challenge to undertake an energy transition, and business does need government support to legislate, where appropriate, drive new and emerging technology with grants and promote public awareness.”

Jackson says the coming mandatory climate related financial disclosure requirements are a concern because they will be “a large piece of work for many businesses”.

“It’s mandatory for large business but will indirectly impact small to medium business as well,” he says.

“As a manufacturer here in Australia, cost is ever front of mind, but we see sustainability as a competitive advantage and we have taken many steps to develop and implement our sustainability plans.”

Pacific Energy’s partnership with Schneider Electric has been pivotal in enhancing efficiency across one of the world’s largest interconnected grids.

The collaboration has led to significant reductions in energy use by decreasing reliance on traditional thermal generation sources and increasing renewable energy penetration.

The increasing investment in digital technologies is reflective of a broader trend in the business world. The Sustainability Index survey found that 53 per cent of companies are increasing their investment in digital transformation, 39 per cent in automation, and 36 per cent in renewable power.

Among the surveyed companies, 46 per cent reported investing more in AI and analytics, a notable increase from three years ago.

Zembrodt says that the investment in AI is not surprising. “Businesses are actively investing in digital tools to help understand, control, and reduce energy usage,” says Zembrodt.

Crucially over two-thirds, 67 per cent of businesses, say that a lack of data impacts their decision-making.

“Information is power. Data is key to managing climate risk – without it, companies don’t have insights into what’s driving their emissions.”

The survey also revealed a significant digital divide. Two-thirds of companies are still using basic tools like energy bills or spreadsheets, which presents a major barrier to effective decision-making and efficiency improvements.

“Most companies agreed that data limitations were impacting their decision-making,” Zembrodt says. “This is a significant barrier to monitoring and improving efficiency and sustainability.”

Looking ahead, businesses face the challenge of aligning with the new climate-related financial disclosure requirements. Less than one in five companies currently have a comprehensive decarbonisation roadmap, and 40 per cent have yet to start their decarbonisation efforts.

The looming regulations will require companies to disclose their climate-related financial information, a move expected to enhance transparency and comparability across industries.

“The role of technology is critical in the management of the net zero transition,” says Zembrodt. “While development and use of AI tools can be demanding on power supply and grid systems, these tools can also offer great support for business in monitoring and controlling emissions.”

As businesses navigate this transformation, the focus must remain on leveraging technology to achieve sustainability goals while meeting regulatory requirements.

To download the full Sustainability Index, 2024, please visit Schneider Electric, where last year’s report is also available.