The United States currently produces around six billion tonnes of greenhouse gas emissions per year, making it one of the worst polluters in the world.
In 2022 the Inflation Reduction Act (IRA) was introduced to promote renewable energy initiatives and carbon reduction.
Grants, loans and tax credits through the act worth US$639bn will be given to companies investing in green energy.
This financial support for decarbonisation is expected to lower US net greenhouse gas (GHG) emissions 40% by 2030.
The IRA sets the stage for major change, giving energy and utility companies an opportunity to invest in sustainable infrastructure and C-suite executives the opportunity to influence the future of sustainable energy.
The act is a chance to accelerate sustainability targets, preventing further damage to the environment.
So far, only US$239bn has been allocated, and Capgemini is looking to help businesses navigate the intricacies of the IRA fund to maximise benefits and reduce GHG emissions.
Capgemini is a prominent global consulting and IT services firm known for its comprehensive service offerings, strong financial performance and commitment to sustainability.
Founded in 1967 and headquartered in Paris, the company has acquired and developed data tools to support companies with innovation.
Cyril Garcia, Head of Global Sustainability Services and Corporate Responsibility for Capgemini says: “In today's ever-changing business world, sustainable practices are no longer optional but essential.”
Capgemini offers a range of services including a quantum computing lab and engineering.
The company employs 340,000 team members and made over €22bn (US$23.7bn) in 2023.
Capgemini says C-suite executives need to move quickly to make the most of IRA incentives.
Chad Klekar is the Vice President for Resources and Energy Transition at Capgemini and works with companies to successfully obtain IRA funding.
He says: “When it comes to understanding and taking advantage of the US Inflation Reduction Act, every member of the C-suite has a role to play.
“The act is far more extensive with opportunities and incentives than most companies realise.
“Unfortunately, it's not always easy to interpret the content and it can certainly be difficult to navigate the bureaucratic application process.”
Chief Executive Officer – CEOs must align the company vision and green strategy across the C-suite and support leaders in understanding the potential impact of IRA on their areas of responsibility.
Chief Financial Officer – CFOs should analyse and measure how carbon reduction affects overall costs and technology requirements.
Chief Operations Officer – COOs need to evaluate the current mix of suppliers to understand how they can optimise IRA credits and funding, and consider how company costs and energy supply will be affected by carbon reduction.
Chief Revenue Officer and Chief Strategy Officer – CROs and CSOs need to monitor competitors to decide how aggressive targets should be and understand the reporting requirements or the need to make public commitments to access IRA funds.
Chief HR Officer – CHROs need to make IRA-compliant hiring and staffing decisions and develop talent by understanding the IRA’s apprenticeship program requirements.
Tax executives need to forecast the long-term viability and cost of projects and understand the investment and incentive terms of IRA tax credits.
Although C-level executives all have different roles in the IRA process, Capgemini’s framework gives opportunity for a more seamless flow of ideas.
Capgemini believes that great partnerships with a wide variety of organisations heavily contributes to its success in sustainability.
Aiman Ezzat, Capgemini CEO says: “A sustainable future is achievable only with deep collaboration”.
The company uses its strong partnerships to tackle issues spanning environmental sustainability, diversity and inclusion and digital inclusion.
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