The Data Dilemma

A COMMISSIONED STUDY CONDUCTED BY FORRESTER CONSULTING ON BEHALF OF GE VERNOVA, DECEMBER 2024 The Data Dilemma: Why GHG Emissions Strategies Stall At Collection And Validation

Executive Summary Effective greenhouse gas (GHG) emissions strategies help companies lower their carbon footprint, improve energy efficiency, and comply with environmental regulations which, in turn, can enhance their brand reputation. Most companies have process-driven GHG emissions goals; failure to meet GHG emissions goals include negative impact on stakeholder confidence and brand reputation. In October 2024, GE Vernova commissioned Forrester Consulting to explore how the energy sector is prioritizing GHG emissions initiatives. We surveyed 279 global respondents at energy, heavy industrial, chemicals, oil and gas, power generation, and mining and material companies and found that while managing GHG emissions is a high priority, respondents struggle with the data management needed to do so successfully. ABOUT FORRESTER CONSULTING Forrester provides independent and objective research-based consulting to help leaders deliver key outcomes. Fueled by our customer-obsessed research, Forrester’s seasoned consultants partner with leaders to execute their specific priorities using a unique engagement model that ensures lasting impact. For more information, visit forrester.com/consulting. © Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. Forrester®, Technographics®, Forrester Wave, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. [E-61351] Project Team: Vanessa Fabrizio, Senior Marketing Consultant Contributing Research: Forrester’s Technology research group © FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. 2 3

Performative Sustainability Is Out: Organizations Are Embedding Sustainability In Their Processes GHG emissions strategies are evolving to be more process driven, and less focused on quick wins like purchasing offsets. Today, organizations are moving beyond performative actions to more fully embrace sustainability in their processes. It’s key they get this right as failure to meet GHG emissions goals has high consequences. “Which of the following are included in your greenhouse gas (GHG) emissions strategy?” Decreased customer satisfaction Government fines and penalties Regulatory compliance Reputational damage Failure To Meet Emissions Goals Can Have Costly Consequences Moving to more sustainable energy sources 73% Implementing carbon removal technology/solutions 70% Implementing more efficient operation and production practices 62% Making a public commitment to be net zero in a set timeframe 56% Purchasing carbon offsets 30% 73% 67% 62% 54% 5 © FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. 4 Base: 279 global decision-makers at organizations with a sustainability initiative and a carbon emissions solution Note: Multiple responses accepted; not showing all responses Source: A commissioned study conducted by Forrester Consulting on behalf of GE Vernova, October 2024

Data Management Is As Important As It Is Challenging Respondents understand that data management is critical to meeting their emissions goals; however, respondents also said these same data management actions were extremely challenging. Managing GHG Emissions Is The Biggest Barrier To Meeting Respondents’ Goals Respondents indicated that the most challenging aspect of implementing their emissions strategy was collecting and validating GHG emissions data. Respondents said that all three GHG scopes could be difficult to manage, depending on their goals; however, they indicated that scope 3 is the most challenging. ACTIVITY CRITICAL TO NOT IMPORTANT* CHALLENGING TO NOT CHALLENGING* Mapping collected data to key emission reduction KPIs 7.9 8.2 Data validation 8.1 7.9 Data collection 8.1 7.8 Monitoring and tracking progress toward KPIs 8.1 7.9 Data reporting 8.1 7.8 65% Collecting GHG emissions data (scope 1,2, and 3) is a main challenge in accomplishing our GHG goals. Validating GHG emissions data (scope 1,2, and 3) is a main challenge in accomplishing our GHG goals. 56% *On a scale of one to 10, with one being critical or challenging. 7 © FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. 6 Base: 279 global decision-makers at organizations with a sustainability initiative and a carbon emissions solution Note: Showing mean responses Source: A commissioned study conducted by Forrester Consulting on behalf of GE Vernova, October 2024 Base: 279 global decision-makers at organizations with a sustainability initiative and a carbon emissions solution Source: A commissioned study conducted by Forrester Consulting on behalf of GE Vernova, October 2024

“Where is your current emissions software falling short?” Current Emissions Software Is Falling Short Respondents Are Looking To Upgrade Their Emissions Software On average, respondents would allocate close to 20% of their current budget for emission management software towards a solution that: • Automates and validates GHG emissions data (Scope 1, 2 & 3) • Measures performance based on your KPIs and provides insights • Recommends actions to operationalize abatement plans Allowing our organization to keep up with production demand without compromising our emissions goals 68% Improving data validation 61% Increasing the ROI of our emissions technology 59% Improving data collection 59% 9 8 © FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. Base: 279 global decision-makers at organizations with a sustainability initiative and a carbon emissions solution Note: Showing top responses Source: A commissioned study conducted by Forrester Consulting on behalf of GE Vernova, October 2024

Respondents Value Emissions Software That Provides Automation And Personalization As respondents look to upgrade their GHG emissions software, they find automation and personalization capabilities to be valuable. More than three-quarters of respondents are looking for a solution that provides automated data collection and real-time monitoring. Outside of data, respondents are looking for a solution that is customized to their business needs and KPIs. “How valuable would the following be in an emissions management solution?” Automated data collection and real-time monitoring 77% Advanced analytics 74% Customized dashboards and reports 73% Recommended metrics and KPIs 72% Holistic management of GHG 72% Carbon offset management 68% 11 © FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. 10 Base: 279 global decision-makers at organizations with a sustainability initiative and a carbon emissions solution Source: A commissioned study conducted by Forrester Consulting on behalf of GE Vernova, October 2024

Key Recommendations Find reliable sources of emissions data. Scope 1 and 2 data are easy to locate but must be clean, reliable, and complete. Scope 3 data is harder to find, but often the biggest piece of the pie: It’s no longer good enough to leave it for later. Progress beyond reporting to mitigation. Emissions reporting is important for many stakeholders, and the first step to improve something is to measure it. But reporting alone doesn’t fix anything. Firms need tools that help automate emissions data processes and use insights to help work towards their net-zero goals and optimize decarbonization investments. Methodology In this study, Forrester conducted an online survey of 279 respondents. The study began and was completed in October 2024. Note: Percentages may not total 100 due to rounding. Demographics REGION North America 40% LATAM 22% EMEA 23% APAC 16% EXAMPLE 1,000 to 4,999 22% 5,000 to 9,999 32% 10,000 to 19,999 33% 20,000+ 13% EXAMPLE Energy and/or heavy industrials 32% Chemicals 23% Oil and gas 21% Power generation 14% Mining, metals, and chemicals 10% 13 © FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. © FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. 12

Explore More Download the full study: The Data Dilemma: Why GHG Emissions Strategies Stall At Collection And Validation RELATED FORRESTER RESEARCH How AI Will Accelerate The Green Market Revolution, Forrester Research, Inc., August 30, 2024. The Environmental Sustainability Services Landscape, Q3 2024, Forrester Research, Inc., Aug 21, 2024. CONTACT GE VERNOVA Read now © FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED.

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