When sourcing renewable energy, corporates face a number of key challenges and need to secure the right combination of expertise to create long term value.
Tech giants like Apple, Google and Netflix are doing it. Consumer goods companies like Heineken, Unilever and Wal-Mart are doing it. TelCo's like T-Mobile, AT&T and KPN are doing it. What? Actively lowering their carbon footprint by rolling out energy efficiency programs and/or (directly) procuring renewable energy instead of conventional energy (from the grid). Why? Is it purely driven by stakeholder pressure and consumer demand?
This article is the first of a series of articles aiming to provide you with clear insights into the motivation for such companies to spend significant time and money on reducing their carbon emissions. It will highlight the different strategic options available to achieve this reduction and offers a practical approach in achieving a competitive edge in the road to energy transition.
Companies each have their own distinct motivations for lowering their carbon footprint. The rationale can be broken down into three main elements:
Improve cost management
A set of opportunities with different investment characteristics is emerging, creating new services and business models within the (renewable)energy space for corporates to benefit from:
When sourcing renewable energy, corporates face key challenges and need to manage different risk profiles as operations could span different geographies and markets. As such, they have to form views on the main considerations being technical, economic or social/environmental or related to governance.
As a result, renewable energy sourcing requires an integrated and phased approach to deliver optimised strategies, robust implementation roadmaps and governance helping to give your company that vital competitive edge.
Leading companies are taking an active role in the reduction of their carbon footprint for multiple reasons and through multiple options, often consisting of procuring renewable energy. In order to develop a new carbon strategy, an integrated approach should be taken, involving all the relevant corporate expertise and functions. This article is part of a series of articles, each focusing on one or more of the corporate 'lenses' showed earlier (such as finance, technology, markets, etc.), providing practical lessons learned from earlier experiences.
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