Singapore companies need to improve on the people-centric aspects of energy management, according to an Accenture study.
The report, Driving Energy Transformation, found out that while the organisations generally perform well in the technical side of energy management, they are less mature in areas such as organisational structure, performance management and incentives.
"It is easy to assume that efficient energy management is an issue of technology alone," said Ynse de Boer, managing director of Accenture Sustainability Services for ASEAN. "To achieve sustained success, however, it is critical that companies empower people as agents to drive transformational change within a more holistic and structured approach to energy management."
Together with the National Environment Agency, Accenture conducted a qualitative survey of 100 energy intensive companies in Singapore for the report. The study aims to help these companies assess their current level of maturity of energy management capability following the introduction of the Energy Conservation Act in Singapore. The Act came into force on 22 April this year, requiring companies to take steps toward managing their energy consumption and boosting energy efficiency.
The report also reveals that levels of energy management maturity vary between different industry sectors and within some industries, highlighting the diverse nature of opportunities across Singapore's industrial companies. For example, biomedical manufacturing and petrochemicals have high maturity levels in energy management. On the other hand, transport engineering has lower maturity levels, which means that sector may have an opportunity to embrace energy management principles.
The report also reveals that Singapore-based organisations, with local operations only, have a somewhat lower level of maturity in energy management, compared to business units of global multinationals and locally-headquartered multinationals.
"Singapore companies could work towards achieving greater benefits if they aim for a more comprehensive Enterprise Energy Management approach, covering technology, people and processes in a way that supports transformational change, improves compliance and potentially reduces costs," said de Boer.
The Accenture report recommends that policy makers could support companies by helping to establish internal reporting capabilities. A common set of tools would help businesses plot trends, identify energy intensive processes and measure their performance against benchmarks. The report also suggests that the variance in energy management maturity could be addressed if policy makers and companies collaborate to establish a common platform to share best practices across and within industry sectors.
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