Essent is Taking Steps towards its Circular Goals with Data Analysis, an Inspiring Vision, and a Concrete Action Plan.
Challenge
Essent has set ambitious circularity targets for 2035 and 2050, but needed insight into the current level of circularity of its products to determine which targeted actions are needed to achieve the goals.
Results
Through data analysis, the Moonshot approach, and strategic insights, we helped Essent measure their current circularity level, define an inspiring vision around their 2035 target, and create a concrete action plan to achieve it.
Client
Essent supplies gas, electricity, heat, and energy services to over 2.5 million consumers and businesses in the Netherlands and Belgium.
In short
Essent aims for a circular economy with ambitious goals for 2035 and 2050, but lacked clear insight or an action plan to achieve them. Through thorough data analysis of the environmental impact of their products and various stakeholder interviews, we mapped over 30,000 tons of CO2 and identified key material flows.
Through the development of an inspiring Moonshot vision and a concrete action plan with six circular strategies, Essent now has a clear picture of how they can achieve this circularity. This project not only provides insight into the current footprint but also helps mobilize internal and external stakeholders to realize structural changes.
Reducing the environmental impact of renewable energy technologies such as solar panels, heat pumps, and batteries is crucial to achieving a sustainable energy transition. Understanding this impact and how to address it can be challenging and complex.
Challenge
Translating Goals into Concrete Actions
As an energy supplier, Essent is at the forefront of the energy transition, but it also recognized that this also entails another sustainability challenge: the materials transition. To make the energy transition a success, it’s essential to reduce the reliance on fossil fuels for energy products themselves, increase the use of renewable materials, and limit our dependence on other countries. In response to this challenge, Essent set ambitious circular targets for 2035 and 2050, taking the lead in achieving a sustainable and affordable energy transition. Although these targets were established, an inspiring vision and a clear roadmap for achieving them were lacking.
Insight into Current Impact
Additionally, there was little to no detailed insight into the current CO₂ emissions, material footprint and material flow of the products Essent brings to market, such as solar panels, heat pumps, and gas boilers. Without this information as a starting point, it is difficult to formulate concrete improvement opportunities and set priorities so that Essent can chart an effective course towards circularity.
Process
Work quickly began, the first step: defining the exact scope and collecting all necessary data. Subsequently, a Current State Assessment was performed on a selection of Essent’s purchased products, and we gained insight into the current CO₂ emissions and material footprint. Simultaneously we supported Essent in professionalizing their supply chain sustainability and risk framework. The results of the assessment were ultimately with key business stakeholders translated into a Moonshot-vision to inspire employees and partners and guide efforts in the right direction. Based on the current insights and Moonshot vision 6 circular strategies and a concrete action plan were developed to help Essent realize their ambitions for 2035.
Deep Dive into the Process
Insight into the Current Environmental Impact
From the scoping phase, 14 “bestselling” product groups from Essent’s product portfolio were selected, including solar panels, heat pumps, and gas boilers. To gain a clear understanding of the current circularity of these products, they were extensively analyzed. For this, data was collected from supplier-, purchasing-, and product information to gather the material composition of each product, examine these materials throughout the product’s entire lifecycle, and measure the associated CO₂ footprint.
Some concrete examples examined were: where do the current materials in Essent’s products come from? Are they virgin or recycled materials? What happens to them at the end of the product’s lifespan? And from which supplier is it purchased? We also spoke with numerous industry partners in the supply chain to identify circular opportunities. By analyzing the data in this way and engaging with the industry, Essent, through the identified largest CO₂ and material hotspots, not only gained insight into where the greatest improvements were possible and which products and processes in their value chain contributed most to the environmental impact, but also how improvements could be implemented.
An Inspiring Future Vision
In addition to quantifying the impact, it was essential to develop an inspiring vision that would motivate employees, partners, and stakeholders to contribute to Essent’s circular ambitions. Through surveys and interviews with key individuals both within and outside Essent, the factors tat drives them in the transition to a circular economy, what vision they have for the energy systems of the future, and what role Essent could play in this, were mapped.
By talking to partners from the supply chain, we learned how open everyone was to tackling the circularity challenge together
These insights were translated into a “press release from the future”, describing how Essent will have achieved its circular goals by 2035. During a Moonshot workshop, this vision was further refined and made concrete. The result was a future-oriented and inspiring goal that can serve as a guideline for the coming years.
Six Circular Strategies and a Roadmap
Based on the insights from the data assessment and the Moonshot vision, a “circular flywheel” was developed. The idea behind this is to create positive momentum and achieve continuous growth through small successes that build upon each other and accumulate over time. Specifically, this included an action plan with six circular strategies that Essent can implement across its products and categories to improve its footprint.
These strategies formed the basis for the circular action plan, in which each strategy was translated into concrete action points within a roadmap towards 2035. This enabled Essent not only to adopt a long-term vision but also to take immediate steps towards their circular goals.
Results
Thanks to this project, Essent now has clear insight into the environmental impact of its products, including the main CO₂ and material hotspots in the value chain. It also delivered an inspiring Moonshot vision that motivates employees and partners and guides the circular strategy.
Furthermore, a concrete action plan with six circular strategies and a roadmap towards 2035 has been formed, with which Essent can systematically realize its circular goals.
This approach helps Essent accelerate the energy transition in a sustainable and circular way.
Next Steps
Although the project has yielded valuable insights and a clear roadmap, circularity remains a continuous process. An important next step is to further improve data transparency by collecting more primary data from suppliers and waste processing partners. This will help to map the environmental impact of Essent’s value chain even more accurately and take more targeted action.
Additionally, the transition to a circular economy requires continuous effort and adaptability. There are no easy solutions, but by consistently investing in strategic improvements and adopting a learning mindset, Essent can make lasting progress.
Conclusion
Essent has taken a big step in its transition to a circular economy by gaining insight into the environmental impact of its products and developing an inspiring vision and roadmap This project proves that data-driven strategy development, combined with a strong vision and concrete action plans, is key to successful sustainable transformation. With this approach, Essent has not only laid a foundation for its own circular ambitions but also sets a standard for the broader energy market.
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Suzanne Hazelzet
Suzanne Hazelzet
