The race is on to reach carbon neutral. In a recent AmCham survey, 45 per cent of AmCham members said they intend to be carbon neutral by 2040, with 60 per cent intending to achieve that goal by 2050.
Schneider Electric is running ahead of its peers, with a target of 2025, and the company was recently recognised as the World’s Most Sustainable Company by Time and Statista. Chris Collins leads Schneider Electric’s business in Ireland. “We’re a business that is dedicated to achieving sustainability in all its forms,” he says. “Our focus on developing technologies that regulate energy usage and cut energy waste has enabled us to maintain extremely high standards across our manufacturing, operations and supply chains.”
Schneider Electric is investing heavily in new smart factories and facilities across Ireland and the UK, powered completely by electricity from renewables.
“We recently opened our new low-carbon Irish headquarters in Dublin,” says Collins. “Powered by 100 per cent renewable-energy-sourced electricity, the office is equipped with the latest smart building controls that adjust temperature and lighting based on occupancy, to ensure comfort and cut energy waste.”
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Schneider Electric is working with clients on rapid energy transition, which is forcing companies to restructure, develop and implement energy efficiency plans in a short space of time. It’s a big challenge, but there are real benefits, says Collins.
“Ultimately the organisations that embrace sustainable strategies can unlock tangible savings on capital and operating expenses,” he says. “By adopting smart technologies, monitoring energy usage and investing in renewables businesses not only improve efficiency but also positively impact the environment and local communities, creating a compelling business case for a sustainable model.”
It can also win business, attracting a growing market of eco-conscious customers, says Collins: “Businesses gain this competitive edge by aligning with consumer preferences for environmentally responsible products and services, fostering brand loyalty.”
In another AmCham survey, when members were asked what the priorities for Ireland should be regarding climate action, 59 per cent said investing in renewable energy solutions, 36 per cent said tax incentives for businesses to implement more sustainable practices and 6 per cent called for more ambitious targets for the country.
“There is a huge appetite for sustainability and renewables in this country,” says Collins. “However, delays in planning permission for onshore wind, solar farms and microgrids is slowing down the transition to renewables in Ireland. This is holding up projects, blocking investment and ultimately preventing Ireland from achieving its net-zero targets.”
Swift action is needed to speed up the planning process to develop sites, create new jobs and supply chains, and bolster the green economy.
Some of Schneider Electric’s clients in the life-sciences and data-centre sectors are exploring how to generate their own energy by hosting renewables on their sites, as well as looking at ways to share any excess energy they generate.
“They just need more encouragement from the Government to press ahead,” says Collins. “Greater investment and resourcing in renewables will stimulate construction projects, develop new supply chains and spur the growth of the green economy, creating more jobs in the process.”
IDA Ireland is stepping up to support the companies it works with. Internationally recognised climate expert Dr Matt Kennedy is global head of client transformation with the agency, leading initiatives embedding sustainability and digital solutions within its client companies.
“As the state investment agency, we want to ensure that all of the clients we’re engaging with are achieving the right sustainable outcomes. Often, our engagement with them is bespoke to what our clients’ needs are and what challenges they’re facing,” he says.
Energy is a key criterion for industry. “What we ultimately find is that there is a real drive for companies to deliver more renewable energy within their portfolio,” says Kennedy. “Clients are seeking more green, more affordable, more competitive energy, and they want that energy to be reliable and secure.”
He sees the manufacturing companies located in Ireland as having ambitions that align with or in some cases exceed Ireland’s own national climate plan. “Not only have they plans in place and ambition, but they’re investing hundreds of millions of euros to develop carbon neutral manufacturing facilities.”
They’re also investing in breakthrough technologies. He cites examples such as Boston Scientific as leading the charge “on that journey in terms of investment for carbon-neutral manufacturing”, and Eli Lilly, which he says is among the companies “deploying some of the largest solar parks within Ireland”.
Another IDA Ireland-supported company, Keurig Dr Pepper (KDP), recently announced plans to invest €6.44 million in its Newbridge hub to reduce Scope 1 and 2 emissions by at least 30 per cent and power its production facility with 100 per cent renewable power.
“Ultimately, it’s about harnessing the most frontier technology so they can achieve their ambition, and we’re there to help them, to nurture them and enable them to create that ambition within Ireland,” says Kennedy.
He also notes that FDI sustainability has a knock-on effect on the supply chain. “Our foreign direct investment doesn’t operate in a vacuum,” he says. “The companies operating on their supply chain, most likely within the geography that they exist in, are often SMEs, Irish indigenous companies, Enterprise Ireland-supported companies or high potential start-ups.
“The foreign direct investment clients are looking to be resilient, not only in their operations as a stand-alone entity but also in how they are engaging with all their suppliers and working with them on their Scope 3 emissions.
“Ultimately, these projects are theirs, and what we’re there to do is to help them to deliver and enable their performance so that they make a valuable impact, not only in terms of their business but in our economy as well.”