Sustainability can no longer be an afterthought for any business. As the climate crisis grows more urgent, investors, top talent, partners and customers all prefer companies that prioritize sustainability.
An energy sustainability strategy, when properly implemented, will support and contribute to the success of a company. A well-executed plan assists in a variety of business goals:
Economic Benefits
- Renewable power purchase agreements (PPAs) can lower energy costs in many markets by accessing wholesale market pricing.
- Renewable power can be a source of revenue in many markets through virtual power purchase agreements (VPPAs), capacity revenues, and REC arbitrage.
- According to Harvard Business Review, investors have a documented and increasing preference for companies with significant environmental, social and governance (ESG) commitments.
- Young consumers prefer brands with stated ESG commitments, and companies that do not commit to sustainability have difficulty attracting the best young talent, as noted by the Wall Street Journal.
Risk Management
- Renewable PPAs and VPPAs can hedge rising energy costs over the long-term.
- In a fluctuating regulatory environment, implementing sustainability measures now ensures a simpler future in case of stricter carbon pricing or emissions regulations.
- By diversifying their energy mix, businesses can ensure greater stability in the case of grid disruption.
Environmental Benefits
- Switching to renewable sources and cutting demand reduces greenhouse gas emissions and is the single biggest contribution companies can make to limit global temperature rise to 1.5°C above pre-industrial levels.
- Widespread sustainable energy use is crucial to preventing loss of biodiversity, coral reef ecosystem collapse, decreased food security, more frequent and extreme weather events, and many other significant consequences of climate change.
