Energy efficiency is essential in building a strong Environmental, Social and Governance (ESG) strategy. With industries responsible for over a third of global energy consumption and related CO₂ emissions, optimizing energy use is no longer just an environmental concern — it’s critical. Here, Thomas Feßl, Business Development Manager at automation supplier COPA-DATA, explores how optimizing energy efficiency can help companies to enhance their resilience, improve sustainability and achieve their ESG goals.
ESG compliance and the regulatory landscape
The urgency of implementing energy efficiency measures in industry has never been greater. Recent data shows that 2024 is the warmest year on record, with global average temperatures now exceeding 1.6°C above pre-industrial levels for the first time. This alarming shift pushes the planet beyond the critical threshold established by the Paris Agreement to limit global warming to 1.5°C. Without immediate action to reduce greenhouse gas emissions, the risks for the environment, economy, and society are substantial.
Governments worldwide are tightening their sustainability regulations, making energy efficiency key for ESG compliance. The European Union’s Corporate Sustainability Reporting Directive (CSRD), for example, mandates that large companies disclose their energy efficiency initiatives and emissions data starting in 2025. Similarly, the Energy Efficiency Directive sets ambitious targets, demanding a 11.7 per cent reduction in final energy consumption by 2030 and requiring energy audits for high-consumption businesses.
To stay ahead, companies can adopt international standards like ISO 50001, providing a structured framework for energy management. This standard ensures measurable goals, systematic tracking and continuous improvement. Carbon pricing and emissions trading systems further incentivize efficiency by linking energy management to financial performance.
Improving efficiency in industrial operations
Industrial energy consumption is projected to rise between 1.8 per cent and 3.1 per cent annually over the next 25 years. This highlights the need for proactive energy saving measures.
With renewables growing in significance in the global energy mix, one key approach is incorporating greener resources — such as solar or wind — into operations. Along with reducing reliance on fossil fuels, this change strengthens energy security and enhances sustainability credentials, aligning with ESG adherence.
In addition to harnessing cleaner power, incorporating intelligent systems can offer energy optimization. Digital solutions are transforming energy management, and advancements in smart technologies mean it is now easier than ever for businesses to integrate digital strategies into their operations. This allows them to improve both energy efficiency and compliance with ESG frameworks, while reaping the additional benefits of increased productivity and reduced costs.
Harnessing digital technologies
Digital transformation is a powerful enabler of energy efficiency. Integrating smart technologies can optimize processes using automation and control systems to minimize waste and enhance productivity. Real-time monitoring using smart meters, AI-powered analytics and Internet of Things (IoT)-enabled sensors provides valuable data-driven insights into energy consumption levels and predictions on energy demand. This allows businesses to identify areas they can cut consumption for more efficient processes.
Beyond improving operational performance, automated tools can simplify ESG reporting for greater transparency and regulatory compliance. Automation systems can then use this data to dynamically adjust energy use based on real-time needs.
Another game-changing technology is the digital twin — a virtual model of a physical system that simulates real-world scenarios to test and refine energy-saving strategies. By trialling processes in a risk-free digital environment, companies can use the resulting data to implement changes that can cut costs and improve governance before making real-world changes.
Automation platforms for ESG excellence
To manage digital assets and meet rising ESG expectations, intelligent energy management solutions are essential. COPA-DATA’s zenon software platform seamlessly integrates smart technologies and monitors and optimizes energy consumption in real time. It can also support the development of an effective digital twin, providing instant feedback and actionable insights.
zenon simplifies sustainability reporting by ensuring compliance with global standards like ISO 50001 and supporting transparent data collection and analysis. The platform’s real-time monitoring capabilities enable faster response times to operational changes, enhancing both efficiency and reliability.
With global pressure mounting to cut both carbon emissions and energy consumption, energy efficiency is a strategic necessity. companies that embrace digital energy management solutions can gain a competitive edge, achieving efficiency and ESG goals while securing long-term business success.
Energy efficiency is crucial for industrial ESG strategies and long-term competitiveness. Companies that embrace digitalization, automation, and data-driven decision-making will enhance sustainability while ensuring regulatory compliance. Proactive energy management not only contributes to a greener future but also strengthens market positioning and economic resilience.
Find out how COPA-DATA’s software solutions can help you improve efficiency with automation here.
