There is not a day that goes by when the three letters “ESG” are not in the headlines.
ESG stands for Environmental, Social, and Governance.
ESG has become an important measure of corporate responsibility and a key influence on customer and shareholder trust.
A growing number of Fortune 500 companies are issuing ESG reports to track how well they are performing in these areas, and investors are taking notice.
The International Financial Reporting Standards, or IFRS, is expected to issue ESG standards in the coming months.
This will provide guidance for ESG audits for companies worldwide.
Over the past few decades, businesses “going green” and building sustainability have transformed from simple marketing ideas into full market trends.
Industries across the globe, from transport to food production and even clothing, have seen companies with environmental responsibility at their centre grow dramatically in market share.
Sustainability is not just popular right now. It is here to stay, and every industry will need to address its carbon footprint.
As companies commit to reducing their environmental impact and set deadlines for becoming carbon neutral, commercial real estate businesses will also need to move towards more sustainable operations in the coming years.
Even outside of regulatory requirements, companies across the globe have spent the past few years making and executing sustainability promises.
In March 2021, 30 of the UK’s FTSE 100 companies committed to becoming carbon neutral by 2050, setting the stage for businesses across Europe and beyond to follow suit.
Another factor driving the sustainability market trend is a shift in affordability.
While technology aimed at reducing carbon emissions was once considered prohibitively expensive, the cost of monitoring energy usage has steadily decreased over the past several years.
At the same time, the cost of fossil fuels has continued to rise.
Green energy technologies such as solar and wind are proving to be reliable, while the price of oil continues to fluctuate.
An investment in renewable energy is a direct investment in the sustainability of our planet, delivering a positive financial return along with significant environmental benefits.
The renewable energy transition is already underway.
Wind and solar installations are booming, supported by government programmes and growing investment across the industry.
These renewable technologies are now able to produce energy more economically than coal and natural gas in many cases.
Public support for the environmental movement has also continued to grow, further strengthening the shift towards cleaner energy solutions.
Renewable energy projects offer more than just electricity.
They help stimulate the economy by creating new jobs across every sector of the industry, while also producing zero greenhouse gas emissions during operation.
Many companies are now seeking to include renewable electricity in their ESG efforts.
This can help reduce the environmental harm associated with fossil fuels, lower greenhouse gas emissions, increase the supply of renewable energy, and support a just transition towards an ESG-driven economy.
Procuring renewable energy from offsite sources, often through a local electricity utility, can help a company uphold its environmental responsibilities to people and the planet.
If you are a business owner or company employee exploring sustainability options and would like to investigate solar or renewable energy solutions, contact Smart Energy Answers.
