Global warming is the greatest threat facing the planet today. When we say "planet," it is not just the physical features therein but also the people and businesses therein, and scientists are warning that we are at the tipping point. The rising temperatures have started thawing polar ice at a faster rate than expected, sinking coastal lands and making drought more extensive. The good thing is that we now have a solution for it: turning to ESG clean energy.
So, what exactly is clean energy? What are the main categories of clean energy that you should consider? What benefits does your company get for shifting to renewable or ESG clean energy? Keep reading for all the answers to questions you might have about ESG clean energy use in your company.
What is ESG Clean Energy?
The term "ESG clean energy" is a combination of two parts, "ESG" and "clean energy." ESG is an abbreviation for environmental, social, and governance aspects of a company. The term is used to help bring to the fore the commitment and results of sustainability efforts. The whole idea is to ensure that companies are responsible for their actions to help make the planet a better place.
Clean energy, also known as alternative energy, means that it is sustainable or cannot run out. For example, solar energy from the sun is sustainable because it replenishes itself naturally. Also, clean energy should not have carbon emissions. For example, coal and petroleum are the main sources of carbon and other harmful emissions associated with global warming.
To significantly reduce harmful carbon emissions and reduce global warming, we must transition from fossil-based to clean energy.
With clean ESG clean energy, you are sure of cutting down the carbon footprint of your company by a huge margin. This might be all that you need to target achieving carbon neutral status. Make sure to get it right because this is one of the primary factors that people in search of new investment opportunities check before committing to specific companies or projects.
The Benefits of Shifting to ESG Clean Energy for Your Company
ESG clean energy comes with a long list of benefits, and you should not miss them. Here is a summary of the main ones:
- Using clean energy as a renewable source of power helps to keep the cost of energy in your company low.
- Can help to improve your sustainability score.
- Crucial in reducing the risk of greenwashing when preparing an ESG report for your company.
- Gives you satisfaction of helping to address the challenge of global warming.
- Comes in handy for compliance with increasingly pro-green policies.
- With energy options, such as solar, you get 100% control over energy production. No reliance on third parties.
- Using renewable energy, such as solar, gas or wind generated electricity will help to ensure even the future generation has ample resources to cater for its needs. Remember that if you are unable to meet the targeted carbon emission reduction, it is possible to buy carbon credits from the carbon market.
- You might get tax relief from the market for shifting to renewable energy.
- Makes it easy for your company to win the support of investors and other stakeholders.
The Main Types of ESG Clean Energy Options
So, which energy option is the best for your company? The following are the four main types of ESG clean energy that you should consider.
- Solar Energy
Sunlight is among the most abundant and free forms of clean energy resources available to us today. So much is this energy that the amount reaching the earth's surface in only one hour is enough to power the planet's requirements for the entire year.
To harness solar energy, you should install solar panels in a location where they can get direct sun radiation. Most people opt to install them on the rooftops of their premises, but you can also use solar farms. Around the equator and tropics, solar energy can be a highly reliable source of power. If your company is located in higher latitudes, make sure to factor in the direction of the sun when installing the solar panels.
- Wind Energy
Wind is another plentiful ESG clean energy source that you can count on to power your company. You might have seen wind farms in different countries and regions. To harness wind energy, wind turbines are used to run generators that produce electricity. Most companies prefer to buy wind energy from companies that have installed turbines, but it is also possible to use an off-grid generation system.
You might want to work with experts in wind energy production to identify the best model of harnessing wind power, depending on your energy needs, location, and local policies.
- Hydro Energy
This is perhaps one of the most commercially exploited types of ESG clean energy for commercial purposes. The energy is exploited by creating a barrier on a river and directing the flow to drive turbines and generate electricity. Often, installing your own turbines for electricity production might not be viable because it might impact the river ecosystem. Also, it is a costly undertaking, and most countries only allow companies that specialize in power production.
The best idea to shift your company to hydro energy is to buy from top-rated producers. This means that the process of shifting from, say coal or diesel fired engines, is fast and cost-effective.
- Geothermal Energy
Another example of an ESG clean source of energy is geothermal, which is the natural heat below the earth's surface. It is harnessed to help with heating or generate electricity that is supplied to commercial and individual consumers via the grid. Geothermal energy is mainly harnessed by countries located in areas with active seismic activities. Good examples of countries producing geothermal power include the US, Indonesia, Turkey, Italy, and Iceland.
Other forms of ESG clean energy sources that you might want to check include tidal energy (harnessed from ocean tides) and biomass energy (generated from industrial and agricultural wastes).
One More Thing: You Need to Accurately Report Your ESG Efforts
The efforts you make to shift to ESG clean energy should not simply be about cutting operating costs. You should ensure that the efforts are captured accurately in your company’s ESG report for stakeholders. Indeed, the whole move to shift to clean energy should sprout as one of the ESG reporting goals.
ESG reporting allows you to tell stakeholders about the efforts being made for sustainability. So, ensure to select a good reporting framework and sustainability management software to gather data, analyze and create accurate reports. At Diginex.com, we have some of the best ESG programs, such as diginexESG and experts that you can count on to build your company's sustainability profile.
Talk to us today to learn more about ESG clean energy and get the assistance you want to take your company to the next level.