Center for Sustainable Business | ROSI™ Energy Decarbonization Framework

Energy has been the foundation of global economic growth and development. The global energy sector is rapidly evolving, with growth in global energy demand surging in 2024 to 2.2%, faster than the annual average rate of 1.3% seen between 2013 and 2023. While energy underpins economic activity, the energy sector accounted for 76% of global GHG emissions, hence decarbonization of the energy sector becomes increasingly urgent.

NYU Stern CSB, in collaboration with PwC, applied the Return on Sustainability Investment (ROSI™) framework to the energy sector to develop a framework of critical decarbonization strategies and practices that can drive financial value creation and/or value preservation.

The Energy Decarbonization Framework catalogues practices that are used across the sector in the oil and gas, wind, solar, geothermal, hydroelectric, nuclear, hydrogen and bioenergy industries.  It suggests quantitative methodologies that can be used to build the internal business case for decarbonization for companies within the sector. The application of the framework explored benefits in the value driver categories of risk management, operational efficiency, talent management, sales and marketing, customer loyalty, stakeholder engagement, media coverage, supplier relations and innovation. The good news is that there are numerous actions that companies in the sector can take. Points of caution are that the regulatory environment has a significant impact on the sector, perhaps more than has been seen in other frameworks, but companies should still stay the course.

Through research, CSB identified that the decarbonization practices could be grouped under four categories explained below:

Click below to explore each of the fuel types, including specific practices and monetization tools that can help calculate the financial benefits of sustainability investments.

DISCLAIMER: These resources are provided by NYU Stern Center for Sustainable Business for informational and educational purposes only. They are not to be used for commercial purposes except through prior written agreement. While every effort has been made to ensure the accuracy and reliability of the data and calculations contained within these resources, NYU Stern Center for Sustainable Business makes no warranties, express or implied, regarding their completeness, accuracy, or fitness for a particular purpose. Users assume full responsibility for any decisions made based on the outputs of these resources. New York University and its affiliates, faculty, staff, and students shall not be liable for any direct, indirect, incidental, or consequential damages arising from the use of these resources. These resources are provided “as is” and may be subject to updates or modifications without notice. Users must cite NYU Stern CSB when using the resources and references to ROSI™ materials. Users should verify all results independently and consult with appropriate professionals before relying on the data and results provided. By using these resources, you acknowledge and agree to these terms.

Thank You to our Collaborators and Research Team

The framework was designed with practical knowledge from and interviews with a variety of industry companies, NGOs and independent consultants.

CSB contributors to the project include Tensie Whelan, Chisara Ehiemere, Divya Chandra, and Beverly Teng.

CSB expresses its gratitude to Donovan Gordon (Principal Consultant, DHG Consulting, LLC and Former Director of Clean Heating & Cooling, NYSERDA) for his valuable contributions to this project.