Corporates who are actively implementing decarbonisation strategies – especially during COVID-19 - could be able to achieve a competitive edge.
While the world continues to deal with COVID-19 and it's short and long term economic effects, already there is significant debate questioning what the pandemic means for the fight against climate change. It may seem that the climate agenda is now on the back burner given the expected financial crisis and depressed price of oil. However, despite the short term consequences from COVID-19, climate change continues to pose an existential risk to shareholder value.
Investors are all too aware of the climate-related financial risks and will be further driving a renewed corporate push to develop and implement decarbonisation strategies. Governments may also accelerate their renewable energy policy as part of COVID-19 fiscal stimulus programs. Companies who are daring to take action now, could achieve a competitive edge on the road to energy transition.
Renewable energy sourcing
This blog and publication highlight one option in the road to decarbonisation: sourcing renewable energy. It will be followed by a series of blogs, aiming to provide you with clear insights into the rationale of sourcing renewable energy. This publication provides an overview of the different strategic options available to procure renewable energy and offers a practical approach for a successful development and implementation of an energy sourcing strategy.
Rationale for sourcing renewable energy
Renewable energy sourcing can create long term value by providing multiple benefits to your company:
Achieving the optimal result for your company
When developing a renewable energy sourcing strategy, corporates need to assess the different available options, taking into consideration and balancing multiple factors:
- Financial impact on short and long term
- Flexibility to adjust to changing demand or technologies
- Implementation risks
- Impact to existing operations
- Carbon reduction potential and related ESG impact
As a result, renewable energy sourcing requires an integrated (through different corporate 'lenses') and phased approach to deliver optimised strategies, robust implementation roadmaps and governance, helping to give your company that vital competitive edge.