Addressing the Energy Industry’s Net Zero Goal with Contingent Workers

In the contest against climate change, businesses today are witnessing tremendous pressure to undertake a proactive approach to minimize energy usage and carbon emissions. This gigantic transition has caused the energy industry to reconsider its resource allocation and investment approaches. The requirements of bringing alterations in almost every aspect of business operations, from production to supply chain management, make it necessary for energy companies to attain flexibility and agility. It is equally important for energy companies to bring in specialized talents who can efficiently support their net zero initiatives while helping them cope with financial constraints and unpredictable business circumstances.

This article gives you an insight into the net zero scenario for businesses at present, followed by the key challenges that the energy sector is facing while addressing the net zero goal. It also discusses the ways in which contingent workers can help energy companies mitigate net zero challenges.

Understanding the net zero scenario

Considering the need to decarbonize the global economy and save the world from global warming, the IEA (International Energy Agency) has published Net Zero Emissions by 2050 (NZE). This report unveils a roadmap for the global energy industry to attain zero carbon emissions by the end of 2050. This goal drives energy companies to evaluate and refine their initiatives toward Sustainable Development Goals (SDGs), making significant improvements in air quality. 

The central force underpinning the net-zero transition is the prompt deployment of clean and sustainable energy technologies. To recognize the long-term benefits of the net-zero goal, it is of utmost importance that energy companies start improvising their plans now, invest in the latest technologies, and, of course, switch to a more flexible and scalable energy industry staffing model.

Predominant net zero transformation challenges in the energy sector

The major issues that energy companies face while paving the way for net-zero carbon emissions are:

• Imbalance between supply and demand: Though ‘net zero’ is the ultimate goal of the global energy industry, the journey may not be the same for every company. While one company may only be required to make minor changes in its supply chain to attain the goal, others may need to transform their entire production process for the same. The increasing demand for cleaner and greener energy along with the economic uncertainties and climate change norms and regulations usually affect the balance between supply and demand for companies. This imbalance further causes them to scale their operations based on market situations.

• Implementation of cleaner technologies: To develop a cleaner energy system and reduce carbon footprint, energy companies need to prioritize the implementation of digital tools and technologies in their core business operations. For instance, cloud sustainability solutions can enable companies to analyze historical data and market changes to predict future environmental impact. The implementation of such advanced technologies call for new measures and unique skills.

• Shortages of green skills to push the transition: The rapid pace of green transformation needs energy companies to deploy talented teams immediately. If their existing teams do not possess the desired skills and competencies to channel the change, companies need to consider creating blended teams with workers who excel in renewable spaces and thoroughly understand the policies and norms related to net zero transition.

• Disruption of operations: The net zero transition seems to be more challenging when energy companies lack a tactical decision-making strategy. For an effortless transition, the companies need to overcome financial constraints and at the same time, optimize resource allocation in order to avoid disruptions in their existing operations.

• Lack of resilience in existing teams: Despite demonstrating clear and concise sustainability goals and initiatives, if energy companies do not have a future-proof workforce, they might fail to drive innovation and change. Hence, it is essential that companies invest in upskilling and reskilling programs to make their existing teams resilient and adaptable to change.

How the energy industry can resolve net zero transition challenges with contingent workers

The net zero transition is indeed challenging for the energy sector. However, one of the best ways of dealing with the challenges is the deployment of a flexible workforce model through contingent workers. 

1. Prevail over skill shortages

Green skill shortages in the energy sector can be filled by contingent workers. As stated before, the net zero transition calls for an urgent deployment of talented professionals. So, if the existing workforce lacks the required skills and knowledge for the transition, companies can hire independent contractors or temporary teams on a contractual basis alongside upskilling their existing teams. 

2. Maintain consistent momentum in operations

By utilizing specialized contingent workers, energy companies can not only remain adaptable to market changes but can also indulge in tactical decision-making when it comes to budget constraints. In addition to skills and competencies, contingent workers give companies the opportunity to scale their workforce as per business situations, thereby preventing any disruption in operations.

3. Getting control over demand fluctuations

The integration of contingent workers into business operations eliminates the need to overhaul the workforce entirely. Instead, the energy companies can include contingent workers to suit their short-term needs and release them accordingly. This innovative workforce strategy is sure to be fruitful for managing fluctuating demands in the energy sector, especially in the face of the net zero transition. With skilled contingent workers, companies can create better risk management strategies and deal with supply-demand imbalances more effectively.

4. Refined and resilient workforce

Contingent workers, when hired through staffing agencies, usually come with extensive experience and specialized skills that can smoothen the path of net zero transition for energy companies. Unlike existing employees, experienced contingent workers are unlikely to restrict the path of change and innovation. In fact, with their in-depth knowledge of renewable energy policies and norms, they will help make the transition faster.

5. Easy implementation of technological innovations

With flexible, resilient, and talented contingent teams, it definitely becomes easier for energy companies to implement the latest tools and technologies in their day-to-day operations. Not only that, but the execution of cleaner and greener technologies also becomes easier when they have contingent workers who specialize in renewable energy.

Conclusion

As energy companies are shifting towards the net zero transition, numerous changes are taking place in their business operations, strategies, and approaches. Though the changes have set perfect grounds for more job opportunities, there are challenges prevailing in the sector due to the rapid pace of transformation. To cope with the challenges and move forward towards the net zero goal smoothly and efficiently, energy companies need to integrate contingent workers into their business operations. 
If you are a top-tier player in the energy industry and you intend to draft a refined workforce strategy for attaining sustainability goals, partner with Denken Solutions. Specialized in energy industry staffing, we can provide you with high-grade contingent talents who can help you with a flawless net zero transition.