AW Strategic Approach Towards Carbon Foot Print Issue

AW strategic approach towards carbon foot print issue

Executive summary

The Finnish sustainable energy firm AW-Energy has just developed an anchoring wave energy system. The strategic environment of the organization is carefully examined in this case study. The examination of important risk variables, the study of long-term dependability, and the mapping of coastal wave energy are among the proposals. Once AW-financing Energy has been depleted, they will need to show progress to acquire grants and further funds to continue using their power source. This will give the business a secure foundation in the market for green energy. The main focus will be set on developing a strategic plan with numerous features as a means of the company showcasing how they tackle the carbon footprint issues which continue to aggravate climate change.

Introduction

The rising energy demands are placing a strain on the planet's environmental assets. A common goal of the developed world is to increase energy output using renewable energy sources. According to a theoretical study, ocean wave energy is more readily available and has a higher energy density than other renewable energies. However, because the present cutting-edge technologies and their management are expensive, there is still a considerable distance to travel before ocean tides can be used to generate electricity on a large scale. Consequently, a calculated method is needed to use energy consumption better. Organizations that successfully manage their energy are typically found to have it ingrained in their culture, and the strategy itself may even be part of the company's broader strategic plan. Thus, strategic planning is crucial in determining how companies, such as AW-Energy, ought to develop various approaches such as policy development, use of sustainable innovations, and implementing of various management positions to alter the organizational behavior as a means of reducing the carbon foot print experienced by the company and its environs.

As mentioned earlier in Australia, substantial organizations, for instance, AW-Energy, ought to develop an optimal management framework. The plan's goal will be to ensure the company is taking all reasonable steps to control energy use to keep costs low while positively influencing local environmental efforts (HBR, 2020). By creating effective, reliable, and affordable technology, ocean wave power extraction may be increased, moving it from the fringes of energy production to the center. Diverse corporate departments will determine the energy policy plan's complexities, which might only be justified once yearly utility costs exceed annual revenue inflow. It is vital to offer optimal and shrewd options since the shortcomings of currently used technology might greatly raise the price of power generation (Danish et al., 2020). Electricity production focused on wave energy has seen little commercialization since the net cost of electricity generated by ocean sources is greater than conventional energy.

The official, documented strategy plan will take the shape of a screenplay. Strategic planning specifies certain targets or objectives, the steps to be done, and how effectiveness will be evaluated (HBR, 2020). Undocumented generation practices inside a company may need to be consistent in their goals and comprise a series of immediate tactical activities rather than longer-term strategic ones. These tactical activities could be easier to terminate or reverse in the routine allocation of operating supplies, even though they might need fewer organizational resources (HBR, 2020). Although tactical activities are better for enhancing strategies, they might need more permanency to produce significant long-term benefits.

Strategic approaches

Current Strategic approaches

The section gives a synopsis of the tactical tactics used today for wave and tidal current energy. Collaborative members are now engaged in adopting suitable yet realistic policies and activities to address the problem of climate change concerning energy usage, the firm and concerted. In the past, the company's administrators have taken swift action to solve the concerns of the environmental and energy problems brought on by an increased carbon footprint (Wang et al., 2018). Additionally, laws and administration on energy supplies are needed to address the complications of rising energy usage and environmental degradation, both of which exacerbate the problem. As a result, the firm has called for a systemic shift towards more effective energy policies, which calls for a well-planned series of activities encompassing all management areas, from local to international. As a result, a wide range of policy instruments was implemented, including transferable emission permits, taxes, incentives, and rules like feed-in tariffs for generating renewable power with their rival energy corporations (Uihlein & Magagna, 2016). To achieve energy savings relative to an established baseline energy usage level utilizing carbon fuels, the firm increased the percentage of alternatives in energy needs by a fifth of their annual production (Maria-Arenas et al., 2019). Therefore, the current approaches used in tidal and wave energy mainly revolve around collaborative members where various policies are implemented.

Possible strategic approaches

Based on present trends, it is desired to minimize Carbon footprints to lessen the proportion of carbon dioxide in the environment and the substantial danger that climate change represents to everyone's well-being. The complicated climate change truth upset social structures, economic models, and ecosystems. Many big corporations have already encountered extreme heat records, wildfires, shortages, and floods, which have taught them about the inherent threats of climate change (Danish et al., 2020). Others are becoming aware of the hazards associated with market transformation due to the new standards that consumers, shareholders, and policymakers have set. The next ten years will see an increase in these disturbances. For many years, businesses have been urged to lower carbon dioxide emissions. But for the majority of firms, a dedication to Carbon dioxide reduction and process optimization is quickly becoming the standard (IRENA , 2022). Significantly, some of the biggest businesses are setting the pace for the new carbon-positive sector. For instance, businesses may promote a corporate-wide commitment to reducing carbon emissions. This implies that everybody within the company needs to support efforts to lower their carbon output (Krog & Sperling, 2019). This can only be accomplished if the organization explains why it is committed to reducing carbon emissions. In addition, they could meet with staff members and clients to discuss their objectives and get feedback. Employees are more likely to uncover fast wins and develop team synergies to reduce carbon dioxide emissions more rapidly when they all strive toward similar carbon-neutral objectives (Maria-Arenas et al., 2019). Personnel is essential to the success of the downsizing since a significant portion of the work that must be accomplished revolves around behavioral change. The firm may look at methods to gauge the carbon output of its operations as a potential strategy to enable them to track progress. In order to map out how they may reduce their carbon footprint, businesses can now use a variety of technologies that have been developed (Noman et al., 2021). Savings in resources and energy can frequently offset the expense of advisory services. Therefore, changing the organizational behaviour towards the collective output experienced is crucial and can be used as an approach if properly planned.

Another precaution is to use carbon-conscious firms to supply the materials needed to build the tidal wave infrastructure. One of the most effective initiatives firms can make to the low-carbon revolution is to promote other creative enterprises (Chen et al., 2022). One should consider their marketing firm, the packaging they utilize, their travel preferences, and the drink they provide for their staff. Moderate, carbon-negative choices can aid cut emissions in practically every field. You may participate in emission neutrality initiatives and lessen their environmental impact by considering their carbon output when choosing providers (Bertoldi, 2022). Guidelines can be further designed and put into place inside power corporations as a potential countermeasure. As a result, measures like a carbon tax or cap-and-trade should be implemented. The carbon price strategy would lower emissions by offering a significant incentive to be more productive and employ cleaner power sources (Danish et al., 2020). In contrast, the cap-and-trade system establishes an overall limit and a cap on carbon output before allocating or auctioning off the privilege to release carbon and allowing the purchase and sale of these release rights in an energy market. This, developed infrastructure may aid in increasing the efficiency of power generation and various pollicies such as cap and trade systems may be implemented as an approach towards combating elevated carbon foot prints.

Strategic plan and justification

Organizational approaches need to be devised given the existing strategic stances taken, which mainly concern the usage of policies to offset the power use issue posed by the increasing requirement. To begin with, AW-Energy would consider the proper design of relevant laws to be crucial in facilitating the transfer of adequate private financing into clean energy investments in tidal and ocean wave energy (Krog & Sperling, 2019). Therefore, it is crucial to comprehend how to establish efficient frameworks inside the business while working with local and regional officials to support investments in renewable energy and the associated risk return. However, establishing a particular renewable energy statute and regulations in Australia has received the majority of attention in earlier research on energy policy (Noman et al., 2021). According to the envisaged strategic approach, the goal is to instigate investment by increasing public awareness of the need for and continued advancement of wave energy. This will boost the actual figure of sustainable power generated or the proportion of waveform sustainable power in energy output supplied within a given period (Maria-Arenas et al., 2019). Establishing an effective energy policy plan is essential since it impacts the economy, the environment, and technological advancement.

The created policy will center on a cap-trade program and a revision of organizational objectives and standards. As a result, the policy will have a closed loop encompassing six key operations to be appropriately implemented. These processes involve the creation, monitoring, and modification of policies as well as their design and execution. Additionally, five standard measures will be used to determine if the planned method is effective or not when it comes to the creation of sustainable energy policies (Wang et al., 2018). The degree to which the purposes are reached, the utilization of innovation to reduce costs, equity, organizational viability—the degree to which the policy will have political support—and the degree to which the strategy can be implemented in other corporate divisions are among them. The business functions between the management teams and significant persons within the business will be significantly impacted by the level of policy execution allocated to the strategy, according to the established processes (Uihlein & Magagna, 2016). Therefore, effective energy monitoring will include replacing outdated equipment with new ones. Appropriate organizational workplace relationships that guide the staff toward a shared goal are essential to the company's ability to reduce its carbon footprint and that of its surroundings. Despite the substantial project management activities that are intrinsic to the majority of energy management techniques, ongoing attention is required if decreased carbon emissions are to be sustained over time (Noman et al., 2021). Therefore, as current political, technical, and economic developments offer chances for energy conservation, future improvements call for ongoing system monitoring.

 New technology will be included in advancing the established policies to reduce the corporation's total carbon footprint. As a result, the system-wide study of the complexity created by the innovations being implemented in the system is required for modeling energy strategies. It is necessary to understand the intricate relationships between the variables influencing the decision-making procedure and the potential options to develop an efficient policy (IRENA , 2022). According to numerous empirical research, to minimize the regional Carbon footprints, authorities and investors must aggressively encourage the adoption of renewable energy sources and support appropriate policy initiatives and policy regulations (Krog & Sperling, 2019). Fixing the remuneration value for a good or service, such as a feed-in tariff or carbon tax, is the easiest energy strategy. However, the impact of a feed-in-tariff or carbon tax is often distinct in various locations, drawing significant interest from government officials and academic specialists (Bertoldi, 2022). A crucial component of creating a successful strategy is modeling renewable energy policy.

Three crucial policies are encouraged to guarantee sustainable growth while considering the abovementioned principles. The Energy Efficiency Standard (EES) will be implemented to promote energy savings, and the Feed-in-Tariff (FiT) will be enacted to persuade users to use wave energy more quickly and to spread technological advances alongside advanced power generation (Bertoldi, 2022). All of these will contribute to creating a cap-and-trade system, ultimately aiding in reducing the carbon footprint. Following this strategy, an organization sets an annual cap on the entire amount of carbon emissions and then sells portions of this cap to utilities, government agencies, and the like (Danish et al., 2020). The dealing element of this strategy comes from the fact that these firms acquire shares akin to permits for generating a particular amount of carbon and may then transfer them to others (Uihlein & Magagna, 2016). The benefit of this strategy is that the outputs are subject to a defined cap, making them foreseeable and under management.

ConclusionStrategic planning is crucial in determining how companies, such as AW-Energy, ought to develop various approaches such as policy development, use of sustainable innovations, and implementing of various management positions to alter the organizational behavior as a means of reducing the carbon foot print experienced by the company and its environs. As such, organizations that successfully manage their energy are typically found to have it ingrained in their culture, and the strategy itself may even be part of the company's broader strategic plan. In the developed strategic plan, organizational approaches need to be devised given the existing strategic stances taken, which mainly concern the usage of policies to offset the power use issue posed by the increasing requirement. Thus, AW-Energy would consider the proper design of relevant laws to be crucial in facilitating the transfer of adequate private financing into clean energy investments in tidal and ocean wave energy case study. Additionally, changing the organizational behaviour towards the collective output experienced is crucial and can be used as an approach if properly planned within the company. Thus, the developed strategic plan possesses various features which are crucial in reducing the company’s carbon foot print.

Recommendation

Improving access to inexpensive, dependable, and appropriate energy sources while mitigating environmental concerns at all stages are the major problems for sustainable growth. Delivering sufficient and cheap fuel supplies, promoting energy savings, speeding the use of alternative energy sources, and expanding the spread and use of other sophisticated energy solutions may help assure the creation of policies for sustainable growth. By creating effective, reliable, and affordable technology, ocean wave power extraction may be increased, moving it from the fringes of energy production to the center. New technology will be included in advancing the established policies to reduce the corporation's total carbon footprint. As a result, the system-wide study of the complexity created by the innovations being implemented in the system is required for modeling energy strategies.

Reference List

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