In today’s climate, where sustainability and environmental concerns are a significant topic, it is unsurprising to see many businesses and industries across the globe making changes to their operations, processes, and the power behind them. Renewable energy, that which is drawn from a source that isn’t depleted when it’s used (such as solar, wind, and water), is being introduced into companies as a replacement for traditional energy sources that often make use of fossil fuels or highly pollutant methods of use.
There are many reasons why these businesses are adjusting their spending and making room in their budget in order to switch to renewable energy, and we’re going to look at five of them.
Renewable Energy Helps Companies Meet ESG Targets
The use of renewable, clean energy means that there are less harmful emissions (such as carbon dioxide) being released from the process over the lifetime of the source, this has a considerable impact on the volume of emissions that a business is generating – and can substantially reduce the carbon footprint.
ESG reporting has many different frameworks and approaches, but the measurement of harmful substances and emissions is common, and specific targets are often aimed for by companies in every industry. In order to reach carbon neutral or negative, renewable energy is an extremely appropriate method of generating and using power.
The Use of Renewable Energy Appeals to Consumers and Investors
In 2021, around 37% in the US stated that they strongly agreed with energy generated from renewable energy, and year on year there has been a global uptick in the number of people who care about its usage, and how it affects their attitudes towards companies.
Customers are willing to vote with their wallets, and with the internet and social media – it is very easy to examine what companies are saying, and whether they’re following through on those actions. This not only has an impact on the bottom-line and profits, but reputation and trust as well.
Investors, who are looking to add to their Environmental, Social, Governance (ESG) investing profiles are going to look for companies that match their vision and values, and renewable energy is an attractive option. As more focus is given to environmental concerns, and investors look at the stability of ESG investing, it is unsurprising that investors are seeking out those who are actively making their companies more attractive and future-proof with sustainable developments.