Report on Customer Perception of Sustainability in Italy's Energy & Utilities Industry
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EO Plan for Coronavirus: Actions
ke Now
19 outbreak is unlike any previous crisis:
crisis-response approaches will not be
Report on Customer Perception of Sustainability
CEOs need to act now, and act aggressively.
in Italy's Energy & Utilities Industry
and, Simon Henderson, David Schannon and
enz
March 2021
In collaboration withAbout the authors and collaborations
Roberto Prioreschi – Partner, Italy & Turkey Managing Director
Alessandro Cadei – Partner, EMEA Energy and Utilities Sector Leader
Franco Baronio – Partner, Italy Bain Social Impact Leader
Ugo Bello – Associate Partner, Energy & Utilities and Sustainability
Martina Pagani – Manager, Energy & Utilities and Bain Social Impact
Benedetta Flammini – Director Marketing and Communications
Mariagrazia Midulla – Head of Climate & Energy
Antonio Barone – Head of Communication
Giuliana Improta – Sustainable Business Manager
Fabrizio Bertolelli – Corporate Marketing Manager
Delia Langer – Corporate Partnerships Officer
Special thanks to for research partnership
This work is based on secondary market research, analysis of financial information available or provided to Bain & Company and a range of interviews with
industry participants. Bain & Company has not independently verified any such information provided or available to Bain and makes no representation or
warranty, express or implied, that such information is accurate or complete. Projected market and financial information, analyses and conclusions contained
herein are based on the information described above and on Bain & Company’s judgment, and should not be construed as definitive forecasts or guarantees
of future performance or results. The information and analysis herein do not constitute advice of any kind, are not intended to be used for investment purposes,
and neither Bain & Company nor any of its subsidiaries or their respective officers, directors, shareholders, employees or agents accept any responsibility
or liability with respect to the use of or reliance on any information or analysis contained in this document. This work is copyright Bain & Company and may
not be published, transmitted, broadcast, copied, reproduced or reprinted in whole or in part without the explicit written permission of Bain & Company.
Copyright © 2021 Bain & Company, Inc. All rights reserved.Bain & Company in collaboration with WWF Italy
A CEOPerception
Report on Customer Plan for Coronavirus: Actions
of Sustainability to Energy
in Italy's Take Now
& Utilities Industry
Let’s start at the top: Take care of your people. Around the world, that’s everyone’s first duty—to
At a glance
themselves, their loved ones, their friends and neighbors. For millions of brave healthcare workers
and others, it means caring directly for those who are sick.
If you’re a CEO, taking care of people also means taking care of your employees and customers. This
crisis brings into sharp relief that it’s the efforts of employees and the loyalty of customers that will
Energy customers Sustainability has become a key purchasing driver for more than
see a company through these extraordinary
80% of energy times. The job
& utilities of the
(E&U) CEO, simply,
consumers, is to do
according to everything
a survey
recognize the high
possible to make sure
value of sustainabilitythey’re taken
of care
about of.
3,200 Italian customers, performed by Bain & Company in
collaboration with the WWF Italy.
In the E&U
That principle is the first of the priorities in space,
the CEOthree top plan
action “personas”
we layemerge
out below,as strongly
but it’s woven
throughout the other priorities as sustainability-driven,
well. Of course, anybased
CEOonmust
age, consider
spending what’s
capabilities, education,
happening to
and attitudes:
revenues right now. Our prescription, though, goes back to people. The best way to take care of reve-
• Younger
nues now is to focus on their ultimate consumers
source. Do what’s(Planet
neededSaviors):
to build3trust
million people,
and loyaltystudents,
with your
customers now, and that loyalty will survive beyond this crisis. Remember, there will be a beyond. to
and young workers, often financed by families, strongly sensitive
broad environmental issues.
• High
Finally, this crisis will change us all. It’sspenders (Tech
hard to step Addicts):
back 2.5 million
right now, but as people, professionals
CEO, carve out time to
and entrepreneurs, well-educated and with high income, loyal to
think about what the future will look like, how employees and customers will be changed by this crisis,
sustainable technology products.
and what your company will need to do to meet their new needs.
• Middle-income adults (Saver Ecologists): 20 million people, white
and blue collars, often part of single-income families, savers, and
The situation keen to recycle.
The value at stake behind these personas is paramount: Possibly more
• The process of containment and thanslowing
50% of the spreadvalue
customer of Covid-19 in each
in the power will create
countrysegment
domestic 1 major
, for an
disruption in itself, irrespective of the seriousness of the virus spread
overall potential of €1 billion, driven by:
• personas’ willingness to buy more (if products are sustainable)
• Prepare for the worst, and be thankful if it doesn’t happen; a wait-and-see approach is a nonstarter
and pay more (up to 10% premium for products with sustainable
features); and
• There’s a high likelihood of a substantial revenue disruption, leading to a potential liquidity crisis
• personas’ higher satisfaction and thus loyalty to sustainable
for many businesses
suppliers, who display a Net Promoter ScoreSM 20 to 40 points
• The recovery may not be a quick higher than less plan
bounce-back; sustainable ones. quarters of lower revenue
for multiple
•E&U Employees and customers areE&U
players have playersexperiencing
probably seem to performfearbetter than other industry peers in terms of
or panic
a native advantage sustainable market positioning, mainly building on a “native advantage”
• You need to appoint a senior,related
fully dedicated Covid-19
to green energy war room
transition teamtransformation
as a core focused on this all day,
lever.
related to the green
every day However, a big step forward is needed to systematically integrate
energy transition, but
sustainability into E&U core offerings and operations, given that:
•“full
Aspotential”
CEO, you must be out in •front with ais planned
Ambition cascadeon
mainly focused ofprospective
possible actions,
carbonprobably more
neutrality, not
Is still to be achieved
aggressive than your team can always
imagineuntil Scope
right now3, and with limited coverage of circular economy
on the sustainability metrics, i.e., not fully defining a strategic role for E&U incumbents in
•ambition,
Customersoffering,
will change some behaviors permanently,
the sustainability accelerating prior trends; bold action now
transition.
business
can set models,
you up forand
success through the downturn and
• Sustainable products and beyond
services are not fully representing an
communication underlying decarbonization strategy, and often with limited market
Actions to take now reach and improvable customization for personas.
There are several moves that CEOs can take right now to help mitigate the effects of the outbreak and
come through stronger on the other side.
Yearly gross energy supply margin, net
(1)
AofCEO
cost Plan
of credit,
for cost to serve, and
Coronavirus: cost ofto
Actions acquisition,
Take Now with an average churn rate of ~20%.
Note: Net Promoter ScoreSM is a service mark of Bain & Company, Inc., Fred Reichheld, and Satmetrix Systems, Inc.
Source: WWF-Bain Consumer Survey 2020
1
3 the world, that’s everyone’s first duty—to
Let’s start at the top: Take care of your people. Around
themselves, their loved ones, their friends and neighbors. For millions of brave healthcare workers
and others, it means caring directly for those who are sick.Bain & Company in collaboration with WWF Italy
A CEOPerception
Report on Customer Plan for Coronavirus: Actions
of Sustainability to Energy
in Italy's Take Now
& Utilities Industry
Let’s start at the top: Take care of your people. Around the world, that’s everyone’s first duty—to
themselves, their loved ones, their friends and neighbors. For millions of brave healthcare workers
• Business models are not yet “circular”, with sustainability
and others, it means caring directly for those who are sick.
requirements often transferred to upstream suppliers.
• Stakeholder engagement is achieved mostly through technology
If you’re a CEO, taking care of people also means taking care of your employees and customers. This
partnerships, while community impact still is not deployed as a
crisis brings into sharp relief that it’s the efforts of employees and the loyalty of customers that will
core value-creation driver.
see a company through these extraordinary times.
• Sustainability The jobisofnot
reporting thefully
CEO, simply, into
integrated is toeconomic
do everything
and
possible to make sure they’re takenfinancial
care of. dashboards.
That principle is the first of the priorities
Next-gen in the
E&U players thusCEO action
need plan
to fully we laydecarbonization
combine out below, but it’s
withwoven
a
Sustainability
throughout @ Core
the other 360-degrees
priorities as sustainable
well. Of course, any CEOapproach,
must encompassing
consider what’s social and
happening to
requiresright
revenues a drastic environmental issues, crossing organizational boundaries, and
now. Our prescription, though, goes back to people. The best way to take care of reve- spanning
shift in mindset on their ultimate
nues now is to focus diverse, adjacent
source. Do sectors. In otherto
what’s needed words,
buildthey
trustneed
andto proactively
loyalty with your
shift to next-generation Sustainability @ Core, radically reshaping their
customers now, and that loyalty will survive beyond this crisis. Remember, there will be a beyond.
business by:
• driving further innovation and investment on sustainability, to
Finally, this crisis will change us all. It’s hard to step back right now, but as CEO, carve out time to
reach a unique positioning on cutting-edge technologies that will
think about what the future will look like, how employees and customers will be changed by this crisis,
accelerate decarbonization;
and what your company will need• toaddressing
do to meetthe their newatneeds.
“value stake” of sustainability for consumers,
• adapting value proposition to sustainability-driven personas;
The situation • reengineering business models through circular lenses along the
whole value chain, while further leveraging digitalization to make
• The process of containment andsustainable
slowing the models
spreadscalable and flexible;
of Covid-19 in each country will create major
• leveraging
disruption in itself, irrespective best-of-breed
of the seriousness of thepartnership
virus spread ecosystems to overcome
industry boundaries and develop new markets, while fully linking
community
• Prepare for the worst, and be thankful impacthappen;
if it doesn’t to core business; and approach is a nonstarter
a wait-and-see
• raising stakeholder awareness on decarbonization and
sustainability
• There’s a high likelihood of a substantial results
revenue (along theleading
disruption, full value
to chain), through
a potential rigorous
liquidity crisis
for many businesses impact assessment and more focused communication.
• The recovery may not be a quick bounce-back; plan for multiple quarters of lower revenue
• Employees and customers are probably experiencing fear or panic
• You need to appoint a senior, fully dedicated Covid-19 war room team focused on this all day,
every day
• As CEO, you must be out in front with a planned cascade of possible actions, probably more
aggressive than your team can imagine right now
• Customers will change some behaviors permanently, accelerating prior trends; bold action now
can set you up for success through the downturn and beyond
Actions to take now
There are several moves that CEOs can take right now to help mitigate the effects of the outbreak and
come through stronger on the other side.
Source: WWF-Bain Consumer Survey 2020
A CEO Plan for Coronavirus: Actions to Take Now
1
4
Let’s start at the top: Take care of your people. Around the world, that’s everyone’s first duty—to
themselves, their loved ones, their friends and neighbors. For millions of brave healthcare workers
and others, it means caring directly for those who are sick.Bain & Company in collaboration with WWF Italy
A CEOPerception
Report on Customer Plan for Coronavirus: Actions
of Sustainability to Energy
in Italy's Take Now
& Utilities Industry
Let’s start at the top: Take care of your people. Around the world, that’s everyone’s first duty—to
themselves, their loved ones, their friends and neighbors. For millions of brave healthcare workers
Customer Perception and Value of Sustainability
and others, it means caring directly for those who are sick.
Ifin the
you’re Energy
a CEO, &ofUtilities
taking care Space
people also means taking care of your employees and customers. This
crisis brings into sharp relief that it’s the efforts of employees and the loyalty of customers that will
see a company through these extraordinary times. The job of the CEO, simply, is to do everything
Many have
possible anointed
to make suresustainability
they’re takenas theof.
care
Top energy-related products and services for
Efficient home appliances:
“next digital,” a “must-win” battle in the light of CLIMATE
purchasing
ACTION
potential 2
, by persona
LEDs, white goods…
irreversible
That environmental
principle is the first ofchanges, pressured
the priorities in thebyCEO action plan we lay out below, but it’s woven
all stakeholders alike, and increasingly 86%
throughout the other priorities as well.demanded
Of course, any CEO must consider
Younger consumers what’s
(Planethappening
Saviors) to
by modern customers. The Covid-19 pandemic
revenues right now. Our prescription, though, goes back to people.
AFFORDABLE AND
The green
best
Efficient way
home to take care of reve-
appliances:
100% energy
CLEAN ENERGY
CLIMATE
has made this trend even more evident.
ACTION
LEDs, white goods…
nues now is to focus on their ultimate source. Do what’s needed to build trust and loyalty 79% with your
Building on evolving customer preferences, Bain 86%
customers
& Company, now, and that loyalty
in collaboration will
with WWFsurvive
Italy,beyond this crisis. Remember,
CLEAN WATER
there will be a beyond.
Products to optimize water conservation:
AND SANITATION
Softeners…
AFFORDABLE AND
conducted a survey of about 3,200 consumers to CLEAN ENERGY
100% green energy
Finally, this crisis will change us all.
value sustainability in the E&U sector.
It’s hard to step back right now, but as CEO, carve out 74%time to
79%
think about what the future will look like, how employees and customers will generation:
Distributed be changed by this crisis,
AFFORDABLE AND
Products
PV, to optimize
Integrated water conservation:
CLEAN
CLEAN ENERGY
PV storage…
WATER
According to survey results, environmental and
and what your company will need to do to meet their new needs. AND SANITATION
Softeners…
social sustainability in E&U has become a crucial 74%
74%
The situation
purchasing driver, with 4 out of 5 consumers Products contributing to well-being
ZERO
HUNGER
AFFORDABLE AND Distributed generation:
recognizing its importance when choosing of local communities
NO
CLEAN ENERGY
POVERTY
PV, Integrated PV storage…
DECENT WORK AND
ECONOMIC GROWTH
an electricity offer — almost in line with fast- 71%
• The process of containment and slowing the spread of Covid-19 in each country will create 74% major
moving food and beverage products. Other
disruption in itself, irrespective of the seriousness of the virus spread Products contributing to well-being
ZERO
sectors lag behind: sustainability drives 60% of
HUNGER
of local communities
NO
POVERTY
•consumer
Preparepreferences in and
the mobility industry,
DECENT WORK AND
for the worst, be thankful if it doesn’t happen; a wait-and-see approach is 71% a nonstarter
ECONOMIC GROWTH
40% in apparel, less than 20% in banking and
•insurance.
There’s An innovative
a high segmentation
likelihood of therevenue disruption, leading to a potential liquidity crisis
of a substantial
Italian population based on age and spending High spenders (Tech addicts)
for many businesses
capabilities has resulted in the identification CLIMATE
ACTION
Efficient home appliances:
LEDs, white goods…
•of three top sustainability-driven
The recovery may not be a quick segments or
bounce-back; plan for multiple quarters of lower revenue
“personas,” displaying specific sustainable energy 84%
•product preferences,
Employees aligned to
and customers areclear underlying
probably experiencing fearAFFORDABLE
or ANDpanic
CLEAN ENERGY
CLIMATE Efficient
100% home
green appliances:
energy
ambitions:
ACTION
LEDs, white goods…
•• Younger
You need to appointare
consumers a senior, fully dedicated Covid-19 war room team focused on this80%
Planet Saviors, all day,
84%
whoevery
areday
focused on 360-degree social and CLIMATE
ACTION Electric mobility:
Electric vehicles, bikes…
AFFORDABLE AND
environmental protection through responsible 100% green energy
CLEAN ENERGY
• energy
As CEO, you must be out in front
use and prefer products that promote with a planned cascade of possible actions, 75%more
probably
80%
aggressive empowerment.
community than your team can imagine right now Smart solutions:
INDUSTRY, INNOVATION
AND INFRASTRUCTURE
CLIMATE Electric mobility:
• High spenders are Tech Addicts willing
ACTION
Thermostats, integrated systems…
Electric vehicles, bikes…
SUSTAINABLE CITIES
• toCustomers will change some behaviors permanently, accelerating prior trends; bold action
73% now
AND COMMUNITIES
paymore for products that combine 75%
can set you up for success through
technological features with a beneficial the downturn and beyond
AFFORDABLE AND Distributed generation:
Smart solutions:
INDUSTRY, INNOVATION
CLEAN ENERGY
environmental impact (e.g., electric vehicles, PV, integrated PV storage…
AND INFRASTRUCTURE
Thermostats, integrated systems…
Actions to take
home automation). now 70%
SUSTAINABLE CITIES
AND COMMUNITIES
73%
Distributed
There are several moves that CEOs can take right now to help mitigate generation:
the effects of the outbreak and
AFFORDABLE AND
CLEAN ENERGY
PV, integrated PV storage…
come through stronger on the other side. 70%
(2)
Purchasing potetial reflects the level ofAinterest
CEO (top
Planproduct = 100%) and declaration
for Coronavirus: Actions toofTake
propensity
Now to purchase by interested consumers.
Source: WWF-Bain Consumer Survey 2020
1
5 the world, that’s everyone’s first duty—to
Let’s start at the top: Take care of your people. Around CLIMATE Efficient home appliances:
themselves, their loved ones, their friends and neighbors. For millions
LEDs,of brave healthcare workers
ACTION
white goods…
and others, it means caring directly for those who are sick. 100%73%
AFFORDABLE AND
CLEAN ENERGY
Distributed generation:
PV, integrated PV storage…
Bain & Company in collaboration with WWF Italy 70%
A CEOPerception
Report on Customer Plan for Coronavirus: Actions
of Sustainability to Energy
in Italy's Take Now
& Utilities Industry
Let’s start at the top: Take care of your people. Around the world, that’s everyone’s first duty—to
themselves, their loved ones, their friends and neighbors. For millions of brave healthcare workers
• Middle-income adults are Saver Ecologists, Middle-income adults (Saver Ecologists)
and others, it means caring directly for those who are sick.
linking energy efficiency to economic savings CLIMATE
ACTION
Efficient home appliances:
and having a strong awareness of environmental LEDs, white goods…
If you’re a CEO, taking care of people also means taking care of your employees and customers.100% This
pollution, resulting in an appreciation for
crisis bringsproducts.
“circular” into sharp relief that it’s the efforts of employeesRESPONSIBLE
and the loyalty of customers that will
see a company through these extraordinary times. The job of the CEO, simply, is to do everything
CONSUMPTION
100% green energy
AND PRODUCTION
The survey
possible also analyzed
to make sustainability
sure they’re taken carepractices
of. 91%
usually embraced by E&U players, both through RESPONSIBLE Electric mobility:
CONSUMPTION
direct
That effort (e.g.,
principle policies
is the first offorthe
building renovations
priorities in the CEO action plan weElectric
lay outvehicles,
below,
AND PRODUCTION
bikes…
but it’s woven
and smart cities) as well as sponsorship of
throughout the other priorities as well. Of course, any CEO must consider what’s happening 83% to
third parties (e.g., grants to nongovernmental
revenues right now. Our prescription, though, goes back to people.Smart The solutions:
best way to take care of reve-
CLEAN WATER
organizations). The three personas have a
AND SANITATION
Thermostats, integrated systems…
nues now is to focus on their ultimate source. Do what’s needed to build trust and loyalty with your
sensibility toward sustainable practices that 81%
customers
reflect theirnow, and that
product loyalty will
preferences. survive
Planet beyond this crisis. Remember, there will be a beyond.
Saviors AFFORDABLE AND Distributed generation:
appreciate grants for environmental nonprofits;
CLEAN ENERGY
PV, integrated PV storage…
Finally, this crisis
Tech Addicts will
prefer change us all.
cooperation It’s hard
on urban to step back right now, but as CEO, carve out
mobility time to
81%
and smart
think aboutcities; Saver
what the Ecologists
future seek
will look like,energy-
how employees and customers will be changed by this crisis,
efficiency
and policies
what your for buildings.
company will need to do to meet their new needs.
Despite
The the proven customer appreciation for
situation
both sustainable offerings and practices, E&U players today still do not fully engage in proactive
customer education. Customer awareness on sustainability is indeed mainly based on “pull
• The process of containment and slowing the spread of Covid-19 in each country will create major
channels”: More than 60% of customers get their information through spontaneous research,
disruption in itself, irrespective of the seriousness of the virus spread
friends’ advice, communities, and social media, while fewer than 40% being are targeted through
institutional and sales campaigns.
• Prepare for the worst, and be thankful if it doesn’t happen; a wait-and-see approach is a nonstarter
•E&UThere’s
playersaare failing
high not only
likelihood of to tap all available
a substantial channels,
revenue but also
disruption, to create
leading strong content
to a potential oncrisis
liquidity
social media, especially relevant for Planet Saviors, most E&U players focus only a small posts
for many businesses
shared on sustainability, and with no a clear leitmotiv, i.e., a clearly shared ambition on specific
•environmental / social
The recovery may nottopics.
be a quick bounce-back; plan for multiple quarters of lower revenue
Research found that social media communication is more powerful and customer awareness
•stronger when and
Employees a brand is associated
customers with a experiencing
are probably clear, recognizable
fear ortopic;
panic“unfocused” E&U players are
missing an opportunity to increase their visibility on social media and gain positive mentions.
• You need to appoint a senior, fully dedicated Covid-19 war room team focused on this all day,
every day
•Sentiment
As CEO,ofyou
earned
mustmentions offront
be out in users,with
by focus (percentage
a planned cascadeofoftotal)
possible
3
actions, probably more
aggressive than your team can imagine right now
• Customers
Not focusedwill
on changeNet
some behaviors permanently, accelerating
positive Focused on prior trends; bold action now
Net positive
sustainability mentions 7% 12%
can set you up for success through the downturn and sustainability
beyond mentions
Actions to take now
There are several moves that CEOs can take right now to help mitigate the effects of the outbreak and
come through stronger on the other side.
From July 2019 –June 2020 for eight energy
(3)
A CEO players
Plan in
forItaly.
Coronavirus: Actions to Take Now
Sources: Synthesio Social Media analysis; WWF-Bain Consumer Survey 2020
1
6
Let’s start at the top: Take care of your people. Around the world, that’s everyone’s first duty—to
themselves, their loved ones, their friends and neighbors. For millions of brave healthcare workers
and others, it means caring directly for those who are sick.Bain & Company in collaboration with WWF Italy
A CEOPerception
Report on Customer Plan for Coronavirus: Actions
of Sustainability to Energy
in Italy's Take Now
& Utilities Industry
Let’s start at the top: Take care of your people. Around the world, that’s everyone’s first duty—to
themselves, their loved ones, their friends and neighbors. For millions of brave healthcare workers
In fact, sustainability is one of the Elements of Value® not yet properly tackled by E&U players,
and others, it means caring directly for those who are sick.
which are still mostly focused on responding to core, traditional purchasing drivers, such as
price, convenience, offer quality, and customer care. However, customer perception is evolving,
Ifand
you’re a CEO,
today taking prefer
consumers care ofapeople
provideralso means taking care of your employees and customers. This
crisis brings into
that responds sharp
well reliefsustainable
to their that it’s the efforts of employees and the loyalty of customers that will
priorities
see vs. one
a company that offer
through theseattractive
extraordinary times. The job of the CEO, simply, is to do everything
Key characteristics of energy-related products
loyalty plans.
possible to make sure they’re taken care of.
and services vs. consumer needs
Planet Saviors Tech Addicts Saver Ecologists
E&U principle
That players could
is theleverage thispriorities in the CEO action plan we lay out below, but it’s woven
first of the
Consumer interest index 1
element, targeting specific personas
throughout the other priorities as well. Of course, any CEO must consider what’s happening to
though a more rounded portfolio Consistency with
revenues right now. Our prescription, though, goessustainability
back to people. The best way to take care of reve-
of offers and policies, while actively priorities
nues now is to focus on their ultimate
creating awareness through targeted source. Do what’s needed to build trust and loyalty with your
customers now, and
communication. Thisthat loyalty
could notwill
onlysurvive beyond Price
thisconvenience
crisis. Remember, there will be a beyond.
boost corporate reputation and brand
Finally, this crisis
perception, willprovide
but also change austangible
all. It’s hard to step back
Quality andright now, but as CEO, carve out time to
reliability
economic
think about advantage.
what the future will look like, how employees and customers will be changed by this crisis,
and what your company will need to do to meet their new
Quick andneeds.
Indeed, the survey found that nearly effective
Customer Care
80% of people in the three sustainability-
The situation
driven personas would be willing to Loyalty
programs
buy extra products from the same
• The process of containment and slowing the spread of Covid-19 in each 0 country
10 30create
20 will 40 major
50
energy provider, if these display
disruption in itself, irrespective
sustainable features; and for such of the seriousness of the virus spread
products,40%–60% would be willing to
• Prepare for the worst, and be thankful if it doesn’t happen; a wait-and-see approach is a nonstarter
pay a price premium.
Effects perceived by E&U consumers with
• There’s a high likelihood of a substantial revenue disruption, leading to a potential liquidity crisis
increasing Sustainability focus by players (%)
4
Economic benefits would not only
for many businesses
improve the short-term P&L of sustainable Planet Saviors Tech Addicts Saver Ecologists
•players, but also their long-term
The recovery may not be a quick bounce-back; plan80% for multiple quarters of lower revenue
positioning. Of which, 80% willing to
•Customer satisfaction,
Employees as measured
and customers are probably experiencing fear or panic pay a premium of up to
10%, remaining 20% willing
by the Net Promoter Score, ranges to pay over 10% premium
60
•from 20need
You (among Planet Saviors)
to appoint a senior,tofully
40 dedicated Covid-19 war room team focused on this all day,
(among
everyTech
day Addicts) percentage points
higher for energy providers that meet
40
•consumers’
As CEO, sustainable
you must beneeds.
out in front with a planned cascade of possible actions, probably more
In aaggressive
highly competitive
than yourmarket such
team can imagine right now
as energy retail, this is a paramount
•factor: E&U players
Customers at the forefront
will change of
some behaviors 20
permanently, accelerating prior trends; bold action now
sustainability
can set you not only
up for can sell
success more the downturn and beyond
through
and better, but also retain customers Potential to acquire Willingness to pay
longer. to take now
Actions new products a price premium
There are several moves that CEOs can take right now to help mitigate the effects of the outbreak and
come through stronger on the other side.
Notes: Elements of Value® is a registered
A trademark
CEO Planoffor
BainCoronavirus:
& Company; 1 Actions
= elementtowith
Takehigher
Now interest; 2 = percentage of total panel.
Sources: Bain Elements of Value methodology, WWF-Bain Consumer Survey 2020
1
7 the world, that’s everyone’s first duty—to
Let’s start at the top: Take care of your people. Around
themselves, their loved ones, their friends and neighbors. For millions of brave healthcare workers
and others, it means caring directly for those who are sick.Bain & Company in collaboration with WWF Italy
A CEOPerception
Report on Customer Plan for Coronavirus: Actions
of Sustainability to Energy
in Italy's Take Now
& Utilities Industry
Let’s start at the top: Take care of your people. Around the world, that’s everyone’s first duty—to
themselves, their loved ones, their friends and neighbors. For millions of brave healthcare workers
Sustainability in the Energy & Utilites Industry:
and others, it means caring directly for those who are sick.
IfStatus and
you’re a CEO, Emerging
taking Models
care of people also means taking care of your employees and customers. This
crisis brings into sharp relief that it’s the efforts of employees and the loyalty of customers that will
see a company through these extraordinary times. The job of the CEO, simply, is to do everything
The Energy
possible & Utilities
to make sure sector
they’remay relycare
taken on aof.“native advantage,” especially on environmental
sustainability; energy transition is at the core of its operations, and not an adjacent ambition. Given
theirprinciple
That earlier moves,
is thesuch
first as
of RES commitments
the priorities in theand
CEOenergy-efficiency
action plan we lay investments,
out below,E&U
but incumbents
it’s woven are
well-positioned on global sustainability indexes, but other industries, such as mobility
throughout the other priorities as well. Of course, any CEO must consider what’s happening and apparel,to
are
gaining ground.
revenues right now. Our prescription, though, goes back to people. The best way to take care of reve-
nues now is to focus on their ultimate source. Do what’s needed to build trust and loyalty with your
To reinforce their positioning on sustainability practices, leading E&U players are now striving to take
customers now,shifting
the next step, and that loyalty
from will survive
a “native beyond
sustainability this crisis.toRemember,
advantage” thereintegrated”
a “sustainability- will be a beyond.
approach,
incorporating environmental and social sustainability elements in their core operations and offering.
Finally, this crisis
The challenge is towill changethe
combine ustraditional
all. It’s hard to step
focus back rightreduction
on emissions now, butthrough
as CEO,renewables
carve out time
with to
a 360-degree
think about what decarbonization
the future willeffort (e.g.,how
look like, aiming for real zeroing
employees of fossil will
and customers fuels)
beand with aby
changed newly
this crisis,
expanded
and social
what your role (e.g.,
company ensuring
will need toresponsible
do to meet operations along the full value chain). E&U industry
their new needs.
current progress on the sustainability spectrum — from the native sustainability advantage to the
sustainability-integrated
The situation model — has been assessed through a comprehensive framework, mapping
the positioning of 11 Italian E&U players (national incumbents, private and foreign players, digital
•newcomers)
The processon five core pillars: and slowing the spread of Covid-19 in each country will create major
of containment
disruption in itself, irrespective of the seriousness of the virus spread
A Ambition E Stakeholder
and targets Where to play How to win awareness
• Prepare for the worst, and be thankful if it doesn’t happen; a wait-and-see approach is a nonstarter
B New products C Business models reshaping
Sustainable Results
andoftechs
5
• There’s a high likelihood
investments a substantial revenue disruption,
Sustainable leading
Green transform’n to a potentialmeasurement
Sustainable liquidity crisis
Sustainable driven evolution resource supply of operations end-of-life
for many businessesof current portfolio
«Green Digitization of
Supply» operations Recycle / reuse Certifications on
Development of
• The recovery
renewables may not100%
be green
a quick bounce-back; plan for multiple quarters
energy of lowersustainable
of outcomes
revenue processes
and practices
«Social Asset
Supply» optimization
• Employees and customers
Distributedare probably experiencing fear or panic
generation Plant Certifications on
Coal Recycled / Resource usage reconversions sustainable results
decommissioning reused materials optimization
• You need to appoint aNew
senior, by dedicated Covid-19 war room team focused on this all day,
fully
products
adjacencies
every day
Green hydrogen D Ecosystem engagement
External
investiments Energy efficiency Impact on New Innovative communication
• As CEO, you must be out in front with a planned
Communitycascade of possible
partnerships actions,
co-financing probably more
aggressive
Science-based
than your team
Smartcan
homeimagine right now Integration Sustainable focus
General on energy Green bonds of communication
targets on social media
value chain
• Customers will change some
Mobility behaviors permanently, accelerating prior trends; bold action now
& sharing
Impact linked Integration
can set you up for success through the downturn to core
and beyond
among different
Start-up Appreciation by
Carbon neutrality incubators end users
Smart HSocial / Eco-design business value chains
Actions to take now
Sustainability KPIs
There are several moves that CEOs can take right now to help mitigate the effects of the outbreak and
come through stronger on the other side.
New product analysis focuses on end A
(5)
consumers,
CEO Plan and
fortherefore on domestic
Coronavirus: / residential
Actions to Take clients.
Now
Source: WWF-Bain Consumer Survey 2020
1
8
Let’s start at the top: Take care of your people. Around the world, that’s everyone’s first duty—to
themselves, their loved ones, their friends and neighbors. For millions of brave healthcare workers
and others, it means caring directly for those who are sick.Bain & Company in collaboration with WWF Italy
A CEOPerception
Report on Customer Plan for Coronavirus: Actions
of Sustainability to Energy
in Italy's Take Now
& Utilities Industry
Let’s start at the top: Take care of your people. Around the world, that’s everyone’s first duty—to
themselves, their loved ones, their friends and neighbors. For millions of brave healthcare workers
The evidence indicates that the systematic integration of sustainability into E&U ambition, offerings,
and others, it means caring directly for those who are sick.
operations, and communications has not achieved yet its full potential.
a) Ambition and targets are mostly focused on prospective carbon neutrality, not entirely capturing
If you’re
bothathe
CEO, takingofcare
potential of peopledecarbonization
full-fledged also means taking andcare of your employees
a “all-green” investmentand customers.
portfolio This
that also
crisisincludes
brings into
clearsharp relief
capital that it’s
allocation onthe
newefforts
fuels.of employees and the loyalty of customers that will
b) aSustainable
see productsthese
company through and technologies
extraordinaryare oftenThe
times. conceived
job of theas CEO,
“image repositioning”
simply, tools, rather
is to do everything
thanto
possible coremakevalue-creation
sure they’relevers
takenreflecting
care of. an underlying decarbonization strategy. As such, they
do not always benefit from a targeted go-to-market strategy and achieve limited market reach, with
Thatpoor customization
principle is the firstforofpersonas.
the priorities in the CEO action plan we lay out below, but it’s woven
throughout the other priorities aspositioning
c) Business models’ sustainable mostly refers
well. Of course, any CEOto state-of–the-art
must considerpolicies
what’s on responsible
happening to
supplies, as well as minimized impact of own operations through digitally enabled models.
revenues right now. Our prescription, though, goes back to people. The best way to take care of reve-
Circularity of materials, assets and equipment must still achieve its full potential.
nues now is to focus
d) Ecosystem on theirisultimate
engagement source. Do
often conceived as what’s needed
technology to build trust
development and loyalty
through with your
“sustainable open
customers now, while
innovation,” and that loyalty willpartnerships
cross-sector survive beyond this crisis.
for improved Remember,
products there will(e.g.,
go-to-market be aO&M
beyond. for
electric mobility) and asset fleet decarbonization (e.g., Green H2 development consortia for sectors
Finally, thisit crisis
where willand
is useful change us all. It’s hard
truly necessary) to step
are still back
poorly right now,
leveraged. butimportant,
Most as CEO, carve out time to
community
thinkimpact
about is not the
what yet future
at the core of energy
will look operations,
like, how employees but and
E&Ucustomers
players canwill
revise their roleby
be changed asthis
local
crisis,
development
and what your company / innovation promoters.
will need to do to meet their new needs.
e) Stakeholder awareness is constrained by sustainable results-measurement practices that are not
always compelling, with limited integration of financial and sustainability criteria.
The situation
• The process of containment and slowing the spread of Covid-19 in each country will create major
disruption in itself, irrespective of the seriousness of the virus spread
• Prepare for the worst, and be thankful if it doesn’t happen; a wait-and-see approach is a nonstarter
What is Next:
•There’s a high likelihood of a substantial revenue disruption, leading to a potential liquidity crisis
How tobusinesses
for many Move to Next-Gen Sustainability @ Core
• The recovery may not be a quick bounce-back; plan for multiple quarters of lower revenue
•To fully transition
Employees to customers
and a sustainability-integrated approach, Energy
are probably experiencing fear or&panic
Utilities players shall embrace next-
gen Sustainability @ Core, radically reshaping their core businesses to embrace sustainability as a new
•source
You of value.
need to appoint a senior, fully dedicated Covid-19 war room team focused on this all day,
every day
Based on the findings of our customer survey and the current E&U positioning on the sustainability
•framework,
As CEO,few youactionable
must be outlevers have been
in front with aidentified
plannedas steps that
cascade E&U players
of possible needprobably
actions, to quickly
more
undertake to embrace next-gen Sustainability
aggressive than your team can imagine right now@ Core.
• Increasingly drive innovation and investment spending on sustainability to reshape business
• portfolios
Customers andwill
develop
changesustainable products
some behaviors and technologies
permanently, aligned
accelerating to an
prior underlying
trends; bold action now
decarbonization
can set you up forstrategy.
success through the downturn and beyond
• Address the “value at stake” of sustainability-driven personas, adapting value propositions and
Actions
offeringstototake now needs.
purchasing
There are several moves that CEOs can take right now to help mitigate the effects of the outbreak and
come through stronger on the other side.
Source: WWF-Bain Consumer Survey 2020
A CEO Plan for Coronavirus: Actions to Take Now
1
9 the world, that’s everyone’s first duty—to
Let’s start at the top: Take care of your people. Around
themselves, their loved ones, their friends and neighbors. For millions of brave healthcare workers
and others, it means caring directly for those who are sick.Bain & Company in collaboration with WWF Italy
A CEOPerception
Report on Customer Plan for Coronavirus: Actions
of Sustainability to Energy
in Italy's Take Now
& Utilities Industry
Let’s start at the top: Take care of your people. Around the world, that’s everyone’s first duty—to
themselves, their loved ones, their friends and neighbors. For millions of brave healthcare workers
and others, it means caring directly for those who are sick.
Natively Sustainability Sustainability Sustainability
1 2 3
advantage integrated @ Core
If you’re a CEO, taking care of people also means taking care of your employees and customers. This
crisis brings into sharp relief that it’s the efforts of employees and the loyalty of customers that will
see a company through these extraordinary times. The job of the CEO, simply, is to do everything
possible to make sure they’re taken care of.
That principle is the first of the priorities in the CEO action plan we lay out below, but it’s woven
throughout the other priorities as well. Of course, any CEO must consider what’s happening to
revenues right now. Our prescription, though, goes back to people. The best way to take care of reve-
nues now is to focus on their ultimate source. Do what’s needed to build trust and loyalty with your
New product
customers now, and that loyalty will survive beyond this crisis. Remember, thereand
will be a beyond.
Sustainable practices technologies Business model
re-shaping
Finally, this crisis will change us all. It’s hard to step back right now, but as CEO, carve out time to
RES
think about what the future will look like, how employees and customers will be changed by this crisis,
technologies
and what your company will need to do to meet their new needs. Ecosystem
Stakeholder engagement
awareness
The situation
• The process of containment and slowing the spread of Covid-19 in each country will create major
Entry and scale-up
disruption of irrespective of
in itself, Sustainability boostofand
the seriousness Radical business reshaping
the virus spread
natively sustainable integration to business and generation of new sources
• RES technologies
Prepare operations
for the worst, and be thankful and offering
if it doesn’t of value approach is a nonstarter
happen; a wait-and-see
• There’s a high likelihood of a substantial revenue disruption, leading to a potential liquidity crisis
for many businesses
Transitioning
• The recovery may not be a quick bounce-back; plan for multiple quarters of lower revenue
• Employees and customers are probably experiencing fear or panic
• You need to appoint a senior, fully dedicated Covid-19 war room team focused on this all day,
• Reengineer
every day business models to become really end-to-end sustainable, revise asset operations
and the value chain through circular lenses, also leverage digital enablers (e.g., circular economy
• platforms)
As CEO, you must be out in front with a planned cascade of possible actions, probably more
• Leverage
aggressivebest-of-breed partnership
than your team ecosystems
can imagine right nowto boost the market reach of new sustainable
products, while developing compelling territorial strategies aimed at creating a loyal local customer
• base, but alsowill
Customers wider economic
change impact through
some behaviors employment
permanently, and district
accelerating priorinnovation.
trends; bold action now
• Raise stakeholder
can set you up for awareness on sustainability
success through results,
the downturn andthrough
beyondrigorous impact-assessment
certification and more focused communication, leveraging the potential of social media with
Actions
messagingto take now
that looks and feels customized to personas’ attitudes.
There are several moves that CEOs can take right now to help mitigate the effects of the outbreak and
come through stronger on the other side.
Source: WWF-Bain Consumer Survey 2020
A CEO Plan for Coronavirus: Actions to Take Now
1
10 the world, that’s everyone’s first duty—to
Let’s start at the top: Take care of your people. Around
themselves, their loved ones, their friends and neighbors. For millions of brave healthcare workers
and others, it means caring directly for those who are sick.Bold ideas. Bold teams. Extraordinary results. Bain & Company is a global consultancy that helps the world’s most ambitious change makers define the future. Across 59 offices in 37 countries, we work alongside our clients as one team with a shared ambition to achieve extraordinary results, outperform the competition, and redefine industries. We complement our tailored, integrated expertise with a vibrant ecosystem of digital innovators to deliver better, faster, and more enduring outcomes. Our 10-year commitment to invest over $1 billion in pro bono services brings our talent, expertise, and insight to organizations tackling today’s urgent challenges in education, racial equity and social justice, economic development, and the environment. Since our founding in 1973, we have measured our success by the success of our clients. We proudly maintain the highest level of client advocacy in the industry, and our clients have outperformed the stock market 4-to-1. For more information, visit www.bain.it WWF's Mission is to build a future in which people can live in harmony with nature. With 5 million supporters, a presence in around 100 countries and more than 2,000 active projects, WWF is the world's largest nature conservation organisation. Founded in 1961, the World Wide Fund for Nature was set up with the aim of protecting and conserving nature and the planet's ecological processes. In Italy, WWF was founded in 1966 and is now present throughout the country. The support of members and donors has made many of WWF Italy's achievements possible: among these is the protection of over 30,000 hectares of nature through the creation of the Oasis System, a network of protected areas throughout Italy. On an international level and in Italy, WWF has been working for years with important companies, both to support conservation projects and to initiate paths to improve environmental policies and practices, convinced that the business world plays a key role in finding sustainable and viable solutions to current environmental challenges. For more information, visit www.wwf.it
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