• Rudolf Stegink, Partner |
2 min read

Corporates that actively implement decarbonisation strategies could be able to achieve a competitive edge.

Context

While the world continues to deal with extra-ordinary geopolitical developments as well as COVID-19 and its short- and long-term economic effects, already there is significant debate as to what these developments mean for the fight against climate change. It may seem that the climate agenda is now on the back burner, given the potential recession and supply chain challenges. However, despite the direct consequences from recent market developments, 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 in order to reduce their dependence on Russian oil & gas and mitigate further increases in energy costs. Companies that 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. They 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 the 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.

Conclusion

Over the last few years, leading companies have been taking an active role in the reduction of their carbon footprint, with renewable energy procurement being a central theme. While significant challenges exist due to geo-political developments and potentially additional COVID-19 waves, we believe that companies that are actively developing and implementing decarbonisation strategies could be able to achieve a competitive edge on the road to energy transition.

Renewable Energy Sourcing
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