Minimize carbon and maximize profit

Revamping your carbon mitigation strategies

As pressure keeps mounting on energy companies to reduce greenhouse gases (GHG), what could they do to achieve continued profitability and manage their carbon footprint at the same time? In this point of view, we explore ways of developing effective carbon management capabilities needed to maintain profitable growth.

Profitable carbon management

Many energy companies approach carbon management with little clarity around the impact on profitability or the capabilities they need to bring about the change. We have seen many companies start investing in new capabilities to measure, manage, and abate carbon. But what more can energy companies do today to establish and sustain profitable carbon management?

Challenges to profitable carbon management

Given the increased importance of incorporating carbon-related factors into operational, commercial, and strategic decisions, organizations should consider the following challenges:

Finding the right balance

To balance carbon-reduction commitments against profitability, organizations should incorporate the cost of carbon into planning and budgeting cycles at a business unit and asset level with enough granularity to enable near-term operational planning and real-time decision-making essentially incorporating the carbon impact into optimization models. Making strategic choices and trade-off decisions across the enterprise requires enhanced visibility into value chains to understand how commodity and carbon price volatility will affect profitability and margins.

Minimize carbon, maximize profit

As O&G companies continue to compete in an environment of carbon-driven considerations, the winners will doubtlessly be those who develop ways to integrate existing practices with future value chain optimization goals. Download our point of view to learn more.

Get in touch

Charlie Sanchez
Managing Director
Deloitte & Touche LLP
+1 713 982 2442

Chad Aussprung
Senior Manager
Deloitte & Touche LLP
+1 713 982 3890

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