A.T. Kearney launches new Energy Transition Institute
With action against climate change becoming a growing focus from a wide range of actors, A.T. Kearney recently launched not-for-profit The Energy Transition Institute. The Institute aims to better inform businesses about the effects that energy transition may have on their operations and those of their wider value chains.
The transformation of the global energy network, at both a country and a local level, is set to bring about considerable changes in the energy value chains, as well as more widely in terms of evolving demand – from electrification to energy market trends.
The effects of climate change, which could see major consequences for current and future generations, saw the signing and ratification of the Paris Agreement in 2016. The accord includes an increased impetus towards shifting the world to low-carbon sustainable growth; with many countries, local authorities and households currently considering options to clean up their respective value chains. Businesses too are increasingly confronting reality, and responsibility for the consequences of their actions; opting to transform their value chains in line with global sustainability goals.
The rise of new behaviours, from small scale distributed energy to electric public and private transport, is being facilitated by the development of new technologies and their fast falling prices. Consultancy firms have, already shown significant interest in the segment – which has seen a number of large scale energy producers and transmitters utilising internal consulting capabilities, from firms like Edison, in a bid to better understand the market, create new business models and support the transition.
Fast paced development in the segment means that companies face the risk of disruption, particularly from the combination of better distributed energy and inexpensive storage. In a bid to support companies globally understand their respective market segment challenges, A.T. Kearney has launched a new non-profit, in the form of the independent Energy Transition Institute.
The Institute combines the firm’s expertise, collaboration with third-party companies and academic experts to investigate various features of the energy transition, including, among others, technological insights and economical perspectives of climate change, mitigating global warming; energy security, ensuring safe and reliable energy; energy costs, providing efficient, affordable energy; and social acceptance, meeting end-users’ demand for sustainable energy solutions.
“Energy transition... has profound consequences for our clients and impacts entire industries, including oil and gas, utilities, equipment manufacturers, automotive, transportation, infrastructure, and governments,” said Richard Forrest, chairman of the board at the new Energy Transition Institute. “Our investment in the Energy Transition Institute reinforces our commitment to stand side by side with our clients to identify how best to capture the opportunities and address the challenges faced in this uncertain shift.”
Commenting on the collaboration with their parent firm, fellow board member Antoine Rostand meanwhile said that he was “delighted” to have A.T. Kearney as the main partner of the former SBC Energy institute. He added, “The unrivaled energy technology insight of the Institute combined with the deep strategy and energy expertise of A.T. Kearney will create a powerful player to inform decision-makers on their complex energy transition journey. Through our joint efforts we will enable leaders across industries to make the right strategic and transformative choices founded on a deep understanding of energy transition trends.”
