ESS Expo 2024: Emerging Trends & Key Takeaways for Energy Brokers

As an energy broker, the Environmental Services & Technology Expo (better known as the ESS Expo) may not be high on your list of must-attend tradeshows. But as businesses are increasingly seeking additional guidance and support around energy efficiency, sustainability and waste management, it’s certainly worth keeping tabs on the key trends that are emerging and how you may need to diversify the knowledge and service(s) you offer in the not-to-distant future… 

To help keep you in the loop, we visited the ESS24 show on Day 1 and as well as having conversations with potential partners to add to our existing water/waste, siteworks and sustainability partners, also found the time to take in some of the talks and panel discussions on offer.  

Strong Opinions & Recurring Themes

Perhaps unsurprisingly considering the theme of the show, some strong opinions were voiced – some of which might be quite difficult to accept for those that are hearing them for the first time.  

3 overarching themes emerged throughout the day, appearing in all of the talks we attended in some way. Those themes are: 

1. The need for (more) data 
   
2. The need for a change in mindset (and Systems)
   
3. The need to start making small transitions (not necessarily big changes), now 

Read on for a quick summary of each of the talks we attended, and what these emerging trends may mean for you as an energy broker… 

Decarbonising the Supply Chain 

First up, and slightly differently than billed, was a discussion around decarbonisation and carbon management, on the EFW & BioEnergy Stage.  

We only managed to attend the first 10mintutes of this talk due to a scheduling clash, but it raised a topic that we went on to hear about a few times throughout the course of the day: the need to tackle Scope 3 emissions. 

The built environment currently accounts for over a third of global energy demand, and therefore has a crucial role to play as we work towards the goal of zero-carbon energy. However, the complex nature of buildings means it can often be difficult to pinpoint where energy efficiency strategies and decarbonisation investments can be implemented with greatest impact. 

NetZero requires reduction of supply chain emissions 

For most businesses, the path to NetZero starts with understanding – and minimising – their carbon footprint. And this starts with reducing and mitigating your Scope 1 and Scope 2 emissions, i.e. the direct and indirect emissions from the power that fuels the business (and its logistics). 

However, most carbon is in the supply chain (Scope 3) – both upstream and downstream – so the big “To-Do” for businesses here is to consider the value chain (e.g. suppliers), and to then start engaging.  

At the minute, decarbonisation targets may seem remote and unobtainable, but they are getting closer. NetZero is a maturing journey, but (lack of) data is a big problem. So a data management plan is another good place to start.   

Businesses need to ask themselves: “What data do we already have?”, then “What data do we need? How will/can we access it?” 

Sustainability 4.0: A Just & Regenerative Approach 

Next up was a very thought-provoking presentation from Dr Sally Uren (CEO of Forum for the Future), on the need to change our mindset towards sustainability – and the systems we have in place, both as businesses and a society. 

This talk also started by highlighting the need to rapidly decarbonise to help keep global temperature rise as close to 2oC – half of the 4o we’re currently heading for – by the end of the century. 

To achieve this, businesses need to fundamentally change the way they operate, focusing less on profit, and more on sustainability. We need the private sector to step in and invest into sustainable and nature-based solutions – something which GB Energy is well-aligned with – and, ultimately, have the courage to transform. 

We need to raise our ambitions when it comes to sustainability, and move towards Sustainability 4.0, a “just & regenerative approach”. 

Mindset change matters most 

Our existing systems are not broken, they are doing what they are designed to do (which, post-World War II, was profit maximisation). Instead, we need to shift the system. There are different leverage points that can be used to change process, but changing mindset is the hardest.  

“You can’t have a sustainable anything in an unsustainable system.”
– Dr Sally Uren, CEO, Forum for the Future

Customer demand is a lagging factor, but there are things that businesses can be doing now, to help: 

• Focus on potential: what’s the potential that we’re not seeing here? 

• Solving for interconnected challenges: what does the broader transition look like? 

• Co-creation: designing in collaboration with users, and through the supply chain 

• Valuing “lived experience” – for example, EDF looked at alternative solutions to closing the northern power station, investing in retraining so local employment didn’t suffer 

The good news is that, rather than simply treating it as a basic due diligence exercise, ESG (Environmental, Social, and Governance) is becoming more of a trend as businesses are wanting to understand the value and where the opportunities are by making more environmentally friendly, eco-conscious decisions. 

Turning Trends into Actions 

Next up was a panel discussion on the Circular Economy & Sustainability Stage on how consultancies are translating sustainability trends into action, hosted by Dr Debbie Fletcher. 

This session saw a panel of leading consultants (Alex Tate, EY; Julia Baker, Mott Macdonald; Sam Reeve, Resource Futures; and Simon Gandy, SLR Consulting), tackle some hot topics and share their unique perspectives on the ever-shifting sustainability landscape. 

Interestingly, the first question up for discussion picked up where the previous talk left off, asking whether “ESG are the right metrics for stakeholders and investors?” – to which all panellists agreed it probably wasn’t the best place to start. 

CSRD (the EU’s Corporate Sustainability Reporting Directive) is the stem of sustainability and is what businesses need to fix (first). Specifically, getting better value out of the resources they are throwing away (as well as the things they are producing).  

TNFD (the Taskforce on Nature-related Financial Disclosures) is also growing at pace. 

CSR is not yet compulsory for (smaller) organisations, but it can help you get ahead of the competition. Other drivers for increasing numbers of Circular Economy studies include: 

• Legislation/regulation increasing engagement and action 

• Risk Management from a brand perspective (and not just greenwashing!), and de-risking the supply chain 

• Recruitment & Retention (candidates want to work for “good” companies) 

• Growth & Innovation in the Business and Environmental Sector 

The need for better data and collaboration 

However, at this stage, the pace of expectation far outstrips business knowledge and understanding who need data and reporting as a start.  

But as every client is at a different starting point, it makes hard for consultancies to help as there is always a need for tailored solutions (as off-the-shelf solutions don’t always add value). Data – or rather, the lack of it – is also needed for consultancies to  deliver maximum value. 

“Lots of legislation means often the response is just to freak out – it needs to be made more accessible.”
– Alex Tate – Senior Manager, Climate Change & Sustainability Services, EY

Collaboration is needed but difficult.  It was also recognised that there is a challenge in getting smaller business voices involved in policy because of various socio-economic issues, meaning it is often driven by large businesses, academia and NGOs. 

The environmental impact of business operations 

Environmental impact extends beyond waste materials. Ask, what energy does your business use to administer/support/deliver services? Travel & accommodation can also be an easy way to be more mindful, especially when it comes to carbon impact.  

Likewise, PPE is a huge problem. For example, replacing helmets simply because they have a small dent could easily be avoided.  Renewable energy can have a big impact on environmental biodiversity – is the land having a positive impact/use.  

Businesses are becoming more concerned about “getting things wrong” than they are about doing things for the sake of it – there is less tokenistic greenwashing. 

Some final thoughts of the panellists before we headed to the next talk: 

• Circular economy is not yet top of agenda – but it will be! We’re currently using 1.75x capacity of the World’s resources – it’s not going to last! Knowledge of supply chain/value chain is crucial to addressing the problem.  

• Data will become one of the main ways of sorting the problem – building a more accurate picture of the organisation to understand risk and opportunity is key. 

• AI is relevant here – it allows you to do things faster, at scale, and gives the ability to see things/connect data that we can’t as humans. However, human input – and collaboration – is still needed to tackle sustainability problems. 

• Produce less, use better, recycle and reuse. The current approach – Produce > Use > Throwaway “Stuff” – is really bad for carbon emissions. There are lots of small, easy-to-make changes that every business can adopt. 

Transitioning to (Climate) Change 

Rounding off the day was a very insightful interview with Chris Packham who shared his views on how we’re responding to the climate and nature crises, what action we should expect from our politicians and Government. 

*This session was being recorded live for the Planet Positive podcast, so if you’re interested in listening to the full interview, keep your eyes and ears out for its release on 26th September. 

 As you might expect from a conservationist, the first topic of conversation in this talk was Biodiversity – which is a huge concern as principal habits are in decline, not just in the UK, but globally.  

Climate breakdown is becoming more severe – weather, sea temperatures, wildfires etc – and more common. We need to look at opportunities, and not be scared by the bigger problem scale.  

Chris highlighted that on the day of the interview, Labour were only 70 days in (14/16 days of meaningful governance) but have already made some gestures about what they intend to do in the future. GB Energy, onshore windfarms and investment in Solar (which he saw as positives), but there has been nothing on Water Policy (in particular relating to shareholder dividends). 

A Review has been announced, but Chis emphasised that we don’t have 10 years; we have 5 at best to keep things manageable, and stressed that focusing on immediate crisis management is important.  

Change is needed – now

So, how do we find a friendly ground? By instigating “transitions”, and “escalating”. Money, effort and ideas are needed now. 

“We don’t have time for conversation, we need action. It’s time to leave fossil fuels in the ground; we need to “transition” to renewables ASAP”
– Chris Packham  

Everyone needs a wake-up call that change needs to happen – now!  Opposition needs to come with proposition. It shouldn’t be just “Stop”, but “Stop, and do this…” 

The tipping point for Social Change 

25% of the population need to make a change for (social) change to happen. But rather than thinking about the numbers, the best thing for everyone to do is to just grow your own communities and foster engagement where you can. 

Towards the end of the interview there was a very impassioned discussion of how addressing the housing crisis is a government challenge that will have long-lasting impact (on mental health as well as the environment) and the role/need of Solar, grey water solutions, EV charging, and insulation if people are going to be able to afford to live in “affordable housing”. 

Chris also highlights that the Housing Issue only reflects 6% of the UK’s landscape, whereas Farming & Forestry affects 83-86% of surface – so this is actually where we need to focus.  

“Farming Policy needs to change, not just farmers. It’s not thinking outside the box; there is no box”
– Chris Packham

If this is something you’re interested in, then the last 15-minutes of the interview are particularly worth listening to. 

Everyone has a role to play in moving us towards a “better” future. See what you can do, and do it now: Lower your carbon footprint and change where your money is (- to an ethical bank that doesn’t invest in “bad” things).  

Preparing for the future, today 

Navigating continual regulatory and technological changes (and hurdles) in the energy sector is tricky enough as it is. But by taking a wider view of the conversations and developments happening in adjacent industries and understanding the bigger picture can make you – and your customers – better prepared to meet the longer-term challenges.  

If the talks at ESS are anything to go by, maybe it’s time to start opening discussions around energy analytics and data, measuring and minimising their carbon footprint, and taking some of the simple first steps to start transitioning to more sustainable operations.  

Because, like it or not, they’re conversations that are going to become increasingly important as 2030 – and the UKs energy consumption and carbon reduction targets – draw ever closer.  And, with TPI Commission Transparency updates coming into effect later this year, it’s an easy way to add some additional value to the broker service you provide. 

Interested in learning more about additional products & services available as a member of the OnlineDIRECT Broker Community? Visit the Energy Efficiency and Environmental Sustainability & Reporting pages on our website, or get in touch with your Account Manager.