How CSRD can drive improved processes, planning and power usage, according to Deloitte and HyTEPS
Demonstrating work is carried out in accordance with CSRD requires detailed reporting and auditing that clearly shows how companies deal with electricity and energy in the context of the climate objectives. NExsT asked two environmental reporting/auditing and power specialists to shed some light on the matter.
“Improved energy efficiency is an important contributing factor to corporate social responsibility. It’s vital not to assume that your performance is as good as it can be because you have the latest hardware and processes in place. You have to come up with new insights and ideas by continuously measuring, monitoring, simulating, and analysing. Making sure the quality of voltage and current - Power Quality - is in good order can play a significant role in complying with CSRD. This approach can lead to more efficient use of electricity. That lowers energy consumption and directly supports the goals of CSRD: to promote sustainability in corporate activities. Companies can cut costs associated with energy waste and equipment malfunctions. Such economic efficiency can be reported under CSRD, as it demonstrates a commitment to sustainable and efficient operations. Enhanced reliability of industrial processes and reduced risk of downtime due to power-related issues can also be an important aspect of compliance reporting under the CSRD, as it showcases effective and sustainable operational management. A smart approach to power avoids risks associated with power failures, equipment damages, and data losses, all of which are relevant to the reporting and risk assessment requirements of CSRD.”
“What’s more, monitoring and optimizing power use helps you hit targets and keep improving, without affecting key processes. Adjustments can be made with the absolute certainty that equipment will keep working without downtime. By zooming in and mapping complex relationships between devices and components, you can make informed adjustments, track sources of unexpected measurements, and implement durable, effective remedies. It’s key to look at the system as a whole. What is the grid doing? What causes fluctuations? How do components affect each other? Data collection and analysis are key, helping uncover usage patterns, for example. Through active filtering, reactive power compensation, and other proactive approaches, network performance can be maintained. Furthermore, increasing the capacity of an existing installation through smart measurements and effective measures is key to efficient, cost-effective, sustainable utilization of electrical power, as well as optimal grid interfacing.”
“It's vital to remember that theory and practice are very different things. Devices from different vendors might all be neatly within specifications - but connect them all at the same time, and anything can happen! It's vital to consider the complexity of your system.”
Managing Director HyTEPS
“I think the CSRD is a good initiative. We now have uniform requirements for all large companies. CSRD not only requires measurements and reporting to be carried out, but also demands that an auditor validates figures submitted. Explicit reporting on the supply chain is mandatory. Companies can’t just say, “We’re compliant, and that’s where our responsibility ends”. Companies not only need to file reports, but also uncover their energy consumption and impact on the entire supply chain. For example: how much oil or coal has been used for the energy you consume for example? Can you optimize consumption or create a plan of action? You need to map out a path to improvement based on your reporting. To do this, you need data, as well as clear objectives and a strategy. What are your goals and KPIs? A baseline measurement, to which you can continuously compare new developments, is vital. You need to map out sustainability and link it to your core activities in all areas.”
“You need to measure, provide insight into consumption, and develop plans to reduce this. Only when all relevant parameters are measured will you gain real insight into how you can use electricity more efficiently. You can use metrics and indicators to make comparisons with past performance, or with other companies and the industry as a whole. It will also be possible to check whether you are compliant with standards and achieving your goals. You have to know what to measure, how to measure it, and what to do with that data. Deloitte works with organizations to identify challenges and opportunities. We provide insight so that companies can make the right choices and formulate solutions: for example, using other energy carriers, dealing with energy management differently, or relocating certain activities.”
“These developments will help boost urgency among businesses. The financial sector is now paying more attention to this. The fact that the energy grid is no longer always available also creates urgency. Companies that don’t have an action plan in place aren’t likely to stay in business for long. If your company has set a zero target but hasn’t put any plans into action to achieve that goal, customers, shareholders, and employees will start asking questions!”
Risk Advisory Europe lead sustainability, Deloitte
Wim Bartels has been a senior partner in the field of sustainability for 20 years.
He is a former member of the the Taskforce on Climate-related Financial Disclosures and a current member of the EU Sustainability Reporting Board. Wim is currently focusing on reporting transformation in light of upcoming regulations and required changes at companies.
Jorlan Peeters founded Power Quality company HyTEPS 16 years ago. Succession is well organised, ensuring HyTEPS remains an independent, family-owned business with matching values and social obligations. The company is growing in terms of technical challenges, highly specific services and solutions, accreditations such as ISO 9001:2015 / VCA*, and internal employee and customer training.
