Environmental, social, and governance (ESG) goals and practices have been widely adopted in recent years as more businesses see the value in incorporating ESG aspects into their strategy and operations.
Corporates, investors, and customers increasingly seek ESG solutions to lessen their negative environmental consequences. Solar energy is becoming popular for organisations as a quick and affordable approach to support their ESG objectives. To put it more precisely, solar energy is basically the heat and light from the sun that solar technologies can capture. Businesses essentially use these technologies to produce renewable “green” power. But how effective are they? We will examine ways solar energy can be a successful ESG solution.
How solar energy is the best ESG solution
Businesses are under increasing pressure to improve their sustainability. ESG goals, or environmental, social, and governance goals, are increasingly being used by regulators, customers, investors, and other stakeholders to gauge a company’s performance and even to lessen the influence of the supply chain on the environment. Here are ways solar energy can be an excellent and efficient method to enhance the ESG performance of your company:
1. Immediate impact
Solar energy’s biggest advantage is that its effects are immediate and tangible. As previously mentioned, solar technologies are used to harvest solar energy, and commercial solar panels, or photovoltaic cells, are the most popular device. When sunlight strikes these panels, the photons excite the excited electrons, which then get freed from their atoms and travel through the photovoltaic cells to produce electricity. As soon as you turn on these solar panels, you offset the electricity you consume locally and cut down on your scope 1 carbon emissions, defined as direct greenhouse gas emissions from company-owned resources.
2. Economic return
Using solar energy can reduce the amount of electricity from a utility required to run a facility, reducing reliance on utilities. This low-cost, clean energy source can immediately offset a corporation’s utility use. Using solar energy can reduce electricity expenses by giving businesses access to a low-cost, environmentally responsible power source. Recent reports claim that the price of renewable technology like solar panels and wind turbines is dramatically falling. Further encouraging the adoption of renewable technologies in ESG practices is that even the cost of large-scale solar installations has fallen over the last ten years. Because of this, using solar energy would not only give business organisations a win-win situation with ESG by encouraging beneficial environmental changes but will also help to protect against rising energy costs.
3. A huge social element
Although a commercial solar energy system’s environmental impact is primarily positive, it also has a positive social impact that will boost your ESG ratings in the eyes of consumers and stakeholders. When your town uses more electricity than usual, such as during prolonged heat waves, solar power helps ease the burden on the grid. By supporting your neighbourhood solar companies with your solar investment, you’re generating green employment, preparing employees for the shift to a green economy, and supporting your neighbourhood. Additionally, customers and employees favour businesses that demonstrate their commitment to ESG and net zero, so you may end up hiring more top talent.
4. Easier implementation
Solar is not only a highly affordable renewable energy source but also very easy to implement because it only needs a roof or outdoor space,and doesn’t require industry participation or behaviour changes like other ESG practices do. As long as they have access to their building’s roof, almost every type of business can consider this. The use of solar energy also requires little maintenance because high-quality solar panels can last for decades without needing significant system maintenance.