Service - Leadership in Government - Issue 75
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S<br />
energy<br />
resett<strong>in</strong>g of supply cha<strong>in</strong>s. Management trends are<br />
laser-focused on bus<strong>in</strong>ess cont<strong>in</strong>uity <strong>in</strong> the short term.<br />
While address<strong>in</strong>g resilience, this restructur<strong>in</strong>g has<br />
highlighted the opportunities for improvement and<br />
future aspirations. “As Covid-19 impacts every aspect<br />
of our work and life, we have seen two years’ worth of<br />
digital transformation <strong>in</strong> two months,” Microsoft CEO<br />
Satya Nadella reports. BASF CEO Mart<strong>in</strong> Brudermüller<br />
attests, “There’s much more you can do via <strong>in</strong>creased<br />
digitalisation. This is all further potential to br<strong>in</strong>g<br />
costs down, also <strong>in</strong> the years to come. It’s a positive<br />
aspect.” These digitisation opportunities are central to<br />
readjust<strong>in</strong>g cost bases <strong>in</strong> the short term.<br />
Amid all of the social impact,<br />
market turbulence and stimulus<br />
packages, it is important to keep<br />
track of the least understood driver<br />
of change: consumer sentiment.<br />
Improved<br />
risk-return<br />
profile eg via<br />
risk mitigation<br />
tools, access to<br />
growth markets/<br />
new asset<br />
classes, scale<br />
(asset pool<strong>in</strong>g),<br />
DFI/ MDB<br />
experience.<br />
Improved development, eg via<br />
technical assistance, standard<br />
sett<strong>in</strong>g, pipel<strong>in</strong>e and policies.<br />
Corporate emissions targets are positive for the<br />
energy transition, but we have yet to see the full force<br />
of government regulation and consumer buy<strong>in</strong>g power<br />
demand<strong>in</strong>g this shift. It is not <strong>in</strong>conceivable that Scope 3<br />
or some form of end-to-end carbon pric<strong>in</strong>g becomes<br />
embedded <strong>in</strong>to the cost of produc<strong>in</strong>g and sell<strong>in</strong>g globally.<br />
Keep an eye on a low-carbon future so you are<br />
prepared for the market shifts that seem <strong>in</strong>creas<strong>in</strong>gly<br />
likely <strong>in</strong> the mid-term. Embedd<strong>in</strong>g decarbonisation<br />
strategy is a must-have that requires new and deeper<br />
capabilities across the bus<strong>in</strong>ess.<br />
BLENDED FINANCE is the use of capital designated for projects<br />
or programmes with developmental outcomes, to reduce the<br />
perceived risk and attract commercial capital from private<br />
<strong>in</strong>vestors who would otherwise not have participated.<br />
CHALLENGES OF MUNICIPAL ENERGY EFFICIENT PROJECT IMPLEMENTATION<br />
Source: F<strong>in</strong>anc<strong>in</strong>g Municipal Energy Efficient Projects<br />
Source: SIDSSA 2020<br />
12 | <strong>Service</strong> magaz<strong>in</strong>e