The need for digitisation, electrification, and energy efficiency to meet decarbonisation goals of net zero by 2050 is reshaping business and technology strategies.
This is according to Schneider Electric EVP international operations Manish Pant, further highlighting four key trends shaping industries today including regional supply chains; infrastructure development; climate change; digitisation and artificial intelligence.
Pant shared these trends and highlights during his keynote speech at the Schneider Electric Innovation Summit in Sydney 2025 held on 17 and 18 March.
Regional supply chains came out in the top four as there was a greater decoupling of global economies that everyone needs to be ready for. At the same time, there was also a reshoring of industries to build a regional supply chain.
The reshoring of industries and the focus on regional supply chains is intricately linked with the second mega trend of infrastructure development. For example, Australia is expecting a population increase of two million by 2030 and seven million by 2050.
“This growth demands new infrastructure both to support the growing population and the wealth creation happening alongside it,” said Pant. “At the same time, existing infrastructure must be brought in line with net zero goals.”
Currently, the rate of modernisation of buildings is at about 2 per cent, he claimed, while 80 per cent of buildings will still be around by 2050.
“This means we must accelerate the decarbonisation of existing infrastructure while building new infrastructure, such as energy grids, transportation systems, hospitals, and schools, with net zero goals from the start,” said Pant. “This is both a challenge and an opportunity for us to address.”
The third mega trend of climate change impacts everyone. In Australia, for example, Cyclone Alfred, was one of the strongest tropical cyclones in 50 years, highlighting the increasing intensity and variability of weather patterns.
“We also see fires and floods in other parts of the world,” noted Pant. “These extreme weather events are a visible manifestation of the effects of carbon emissions, emphasising the urgent need for decarbonisation.”
The good news Pant said was that more than 100 countries have committed to net zero targets, mostly by 2050 or 2070.
“Many countries are also focusing on energy efficiency, with several pledging to double their efforts,” he said. “This will require significant investments to mitigate the effects of climate change.
“Australia has set an example for the world, with economic growth (represented by the blue curve) and carbon emissions (represented by the orange curve) becoming decoupled.”
According to Pant, Australia doubled its gross domestic products between 2007 and 2010 while seeing a peak in emissions in 2007.
“This shows it’s possible to grow economically while reducing carbon emissions and serves as encouragement for emerging economies [to] continue their economic growth while managing their carbon emissions,” he said.
Corporations were also stepping up their commitments to net zero, according to Pant. Over the last five years, the number of companies committing to net zero goals through the Science-Based Targets Initiative (SBTi) has increased ninefold.
Companies of all sizes were engaged in this journey, with over 7,200 companies globally taking part in SBTi, notably 35 per cent of these companies are based in the Asia-Pacific region; and small and medium enterprises accounting for 54 per cent of the commitments.
However the need to act with suppliers is critical, Pant said.
“Schneider was collaborating with other industrial sectors, such as semiconductors, food, and beverage industries, to deploy solutions that reduce emissions,” he said.
“While we are making these commitments, a challenge remains, data. A survey we conducted found that while many companies are making commitments, only 10 per cent are delivering on their targets.
“The primary barriers include lack of technological expertise, insufficient data, and financing challenges.”
This ties in with the fourth mega trend of digitisation and AI, which plays a vital role in sustainability because it provides the means to make energy visible.
“It allows us to track energy usage, generate data, and leverage that data to improve efficiency through AI,” Pant said. “The world is increasingly digital, and in the industrial world, this means more software-defined systems for automation and energy management.
“This shift is changing how industries operate and requires us to adapt.”
According to Pant technologies like digital twins, carbon twins and energy twins are redefining the way it designs, builds, operates, and maintains assets throughout their life cycles.
“AI is advancing rapidly, and its adoption is accelerating faster than previous technologies, such as the internet,” he said. “In just two months, AI reached 100 million users, a feat that took seven years for the worldwide web to achieve.
“This rapid growth is exciting, as it presents new opportunities to use AI to drive net zero goals.”
