The Energy Transition and the Role of Competencies
The Economist published “The Preliminary Round,” by cartoonist KAL, depicting the earth boxing (and winning) against the novel coronavirus. Waiting just outside the boxing ring and looking very angry, is a much larger opponent, Climate Change.
This imagery represents that while the world is still battling COVID-19, the push for sustainability and renewable energy is still looming. In recent years, progress has been made and the IEA predicts 2021 will see a rebound in the drive for clean energy. A Science Direct Study reported via the World Energy Outlook that renewable energy will be the fastest-growing energy source around the world over the next 20 years.
The Energy Transition
The energy transition is a global move from fossil fuels into renewable, clean energy sources, specifically with a goal to reduce from “fossil-based to zero-carbon by the second half of the century” (IRENA). Deloitte reports for those in heavy industries (i.e. energy, resources, and industrial industries), progress is being made in six key areas:
- Decarbonizing energy sources and finished products
- Increased operational energy efficiency
- Identifying new investment opportunities
- Developing new technologies
- Adjusting to new policy mandates
- Managing consumer and stakeholder expectations
Despite the market disruption, “the energy transition will likely continue to be a priority” with 89% of executives reporting a sustainability plan already in place, or in development. Steps considered in these plans are developing low-carbon products with cleaner fuels or renewables and projects to target net-zero emissions by 2050. Additionally, for oil and gas companies, 60% responded that a low-carbon future would have a positive impact on their organization.
Competency Management’s Role
This energy transition interrupts the status quo because it structurally disrupts the way the organization works, as well as the supply and demand of products. To support these disruptions, and to comply with sustainability plans and policy changes, companies will have to shift to different working models. Does this entail finding a new workforce with knowledge, skills, and experience in renewable energy/sustainability? Does it mean your company will have to merge with another to acquire the full depth of knowledge and equipment needed?
There is no doubt that skills and competencies will play a critical role in this energy transition, but there is one differentiator among companies that will be of vital importance. Those with a digital solution will have a comprehensive view of their internal talent, enabling easy identification of those ripe for reskilling and upskilling to compare to future market demands. Those without a digital solution will be forced to outsource their talent or acquire a new workforce in the open market to meet demands.
With a comprehensive view of your internal talent, you are given the opportunity to save funding where reskilling and upskilling is possible and put the savings toward developing a sustainability plan and advancing energy transition initiatives.
Support your organization’s sustainability plan for the environment, and your workforce, by requesting a demo here.