Course Preview | Profitability and Sustainability in the Energy Industry from Texas Executive Education
4:55 min
843
Hello all and welcome to the program. As modern human societies, we rely heavily on natural resources to meet our daily needs. We extract minerals to power our homes, manufacture products, and farm for food to feed our ever-growing population. However, it's crucial to remember that these resources are limited, and we also need clean air, water, and land to support healthy ecosystems. Unfortunately, our extraction of resources, agriculture, manufacturing, and consumption activities have negative impacts on both local and global environments and communities. So, how can we address this conflict between growing demand and limited resources?
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The United Nations World Commission on Environment and Development came up with the term ""sustainable development"" in the early 1980s to define a way for development that meets present needs without compromising the ability of future generations to meet their own needs. In terms of the business world, the practice of sustainability has evolved over the years from socially responsible investing to corporate social responsibility, culminating in today's ESG concept, which is Environment Social Governance concept. This concept is still evolving. Ultimately, a business must be able to remain financially viable while helping to solve environmental and social problems to be sustainable. This idea of doing well financially while doing good socially and environmentally is represented in the shared value concept.?
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In this elective, we approach sustainability from several angles within the context of the energy sector, a prime target for reducing carbon emissions and other environmental impacts. Hence, we start with a couple of modules by Doctor Beach to impart a fundamental understanding of energy balance across energy systems, that is, energy inputs and outputs. There are trade-offs associated with all energy technologies in terms of economic and environmental costs.?
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In another module, Professor Hales will discuss how companies incorporate ESG into long-term strategy, highlighting the relationships between people, planet and profits. In addition to internal drivers, reporting requirements and standards by financial regulators, investors and independent standards organizations drive these strategies. Each industry, including the energy industry, and each company, must consider its unique circumstances in terms of location of their operations, technologies that are available to them and socioeconomic conditions to choose strategies and business models that can create shared value.?
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I will discuss the art and science of valuing energy companies using financial data and example calculations across numerous segments ranging from extractive industries to new energy companies. In another module, I will compare technical, nontechnical, and commercial risks during energy project development. Examples will cover diverse technologies and geographies. Nontechnical risks include the role of ESG considerations in obtaining the social license to operate. In our final module, I will describe financing energy projects across different technologies and geographies. Examples will shed light on project risks, in particular how sustainability considerations impact project valuation by lenders.?
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Overall, these six modules should provide decision makers across the energy industry with a solid foundation for identifying sustainable value creation opportunities in a rapidly evolving business environment with many risks and uncertainties. So, get ready to dive deep and learn more.?
?
?
The United Nations World Commission on Environment and Development came up with the term ""sustainable development"" in the early 1980s to define a way for development that meets present needs without compromising the ability of future generations to meet their own needs. In terms of the business world, the practice of sustainability has evolved over the years from socially responsible investing to corporate social responsibility, culminating in today's ESG concept, which is Environment Social Governance concept. This concept is still evolving. Ultimately, a business must be able to remain financially viable while helping to solve environmental and social problems to be sustainable. This idea of doing well financially while doing good socially and environmentally is represented in the shared value concept.?
?
In this elective, we approach sustainability from several angles within the context of the energy sector, a prime target for reducing carbon emissions and other environmental impacts. Hence, we start with a couple of modules by Doctor Beach to impart a fundamental understanding of energy balance across energy systems, that is, energy inputs and outputs. There are trade-offs associated with all energy technologies in terms of economic and environmental costs.?
?
In another module, Professor Hales will discuss how companies incorporate ESG into long-term strategy, highlighting the relationships between people, planet and profits. In addition to internal drivers, reporting requirements and standards by financial regulators, investors and independent standards organizations drive these strategies. Each industry, including the energy industry, and each company, must consider its unique circumstances in terms of location of their operations, technologies that are available to them and socioeconomic conditions to choose strategies and business models that can create shared value.?
?
I will discuss the art and science of valuing energy companies using financial data and example calculations across numerous segments ranging from extractive industries to new energy companies. In another module, I will compare technical, nontechnical, and commercial risks during energy project development. Examples will cover diverse technologies and geographies. Nontechnical risks include the role of ESG considerations in obtaining the social license to operate. In our final module, I will describe financing energy projects across different technologies and geographies. Examples will shed light on project risks, in particular how sustainability considerations impact project valuation by lenders.?
?
Overall, these six modules should provide decision makers across the energy industry with a solid foundation for identifying sustainable value creation opportunities in a rapidly evolving business environment with many risks and uncertainties. So, get ready to dive deep and learn more.?
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