Dramatic energy price increases, combined with supply chain bottlenecks, rising business costs and stakeholder demands to decarbonise, all pose huge challenges for international manufacturers operating in highly competitive markets.
With varying pressures on international manufacturers, it is important to have a long-term risk managed energy strategy in place to help create price stability. This maximises opportunities for savings, efficiencies, and ultimately carbon reductions. It is equally as important to retool for a new era in which sustainability is seen no longer as a cost, but as a critical value differentiator that is essential to growth.
Our consultants have been serving manufacturers across the globe for over 20 years. We always think about the bigger picture, so we can help you manage your energy and sustainability requirements better and smarter.
Marie Eustace, Client Relationship Manager at Alfa Energy Group, discusses the challenges and solutions for international businesses from an energy and sustainability perspective.
Energy forms a significant element of business cost to international manufacturers. The recent volatility in the gas and power markets has therefore hit this industry hard. With energy cost being included in the price per unit sold, higher costs mean more expensive products. To remain competitive, managing energy price risk is critical.
Other common challenges faced by manufacturers with a pan-European or global presence include:
A credible energy management strategy will address all of these challenges.
The slow but steady move towards sustainable manufacturing has been driven by several forces; a desire to reap the rewards it offers, a need to offset risks and costs, and increasing shareholder and customer demands. Underpinning all of these is the growing urgency to address the profound climate crisis, the impacts of which are becoming more apparent and irreversible.
Sustainability has never been more important. The EU projects that it will reach net zero carbon emissions by 2050 and aims to cut its emissions by half over the next decade. This ambitious target places a particularly stringent set of demands on the manufacturing sector because it accounts for a large share of global emissions.
Whilst facing change in the coming years, manufacturers have a major opportunity with net zero to innovate their processes, reduce their energy consumption and use their sustainability credentials as a value differentiator. To achieve this a comprehensive approach based on a solid net zero plan, that takes into account scope 3 emissions, behaviours and other factors, is vital.
Energy & Water Management
Supply Contract Procurement
Energy Estate Management
Non-Commodity Cost Optimisation
Net Zero Strategy
Renewable Energy Certificates
Carbon Footprint Audits
ESOS / EED
SECR / TCFD
UK & EU ETS
Greenhouse Gas Reporting
ISO 50001 / ISO 14001
“Alfa Energy’s programme has produced a comprehensive cost reduction result across the ITW pan EU portfolio. The focus now is to review in-country pass-through costs, including compliance schemes to reduce consumption, while increasing energy sources from renewables. I would not hesitate to recommend Alfa Energy to other end-users.”
Mike Colwell, Director, NA Indirect Materials & Services and Global Energy, ITW
Alfa Energy Group moved this global industrial business from a fixed term contract to a risk managed flex approach across Italy, as part of its wider European strategy, with cost savings year-on-year mounting to 23% in 2021.READ
Alfa Energy Group’s procurement solutions during the height of the Covid pandemic yield this global adhesive manufacturer a 27% saving for H.B Fuller’s 2021 and 2022 powercontract and a 11.6% saving for the company’s 2022 gas contract.
Turn your data into meaningful insights through software to drive cost reduction, manage energy price risk, and help reach your decarbonisation goals.
We offer both managed and standalone SaaS platforms to our international manufacturing clients choosing to manage their energy and sustainability requirements in-house.
Our software solutions:
Remember, you can’t manage what you don’t measure.
Head of Sustainability and Asset Management
Energy Markets & Risk Manager
European Energy Risk Manager
Head of Major Business
Head of Bureau Services
Head of Industrial & Commercial Sales
Head of Service Delivery Europe
The challenges, opportunities and solutions from an energy and sustainability perspective
This report explores:
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