The use of renewable energy could become a competitive advantage for organizations in the marketplace.
FREMONT, CA: More than ever, businesses are searching for ways to deploy changes to operations to mitigate their effect on the environment. Leading companies pledged to become carbon negative by 2030, followed by announcements by other organizations keen to mitigate their use of natural resources and mitigate emissions. In recent years, driven by the evolving affordability and availability, switching from fossil fuels to renewables has become straightforward. Here is what energy procurement looks like.
Large, global firms are sitting at the forefront of sustainability and renewable power procurement. The majority of the companies have sustainability and renewable energy targets. This increase in investments in sustainability efforts - and especially in renewable energy - is gaining momentum as the link between sustainability and financial performance becomes significant. Enterprises are looking at these investments from a financial value perspective and beyond the emotionally driven motivation. As the world feels the increasing impacts of climate change, there is value in sustainable and climate-resilient assets. Companies are mitigating carbon emissions and generating financial returns while generating platforms and incentives as models for others to follow.
Corporations must pursue their unique sustainability journey and structure their values and principles upfront before getting into the finer operational details. Investment strategies must be powered by the right amount of metrics that can track progress effectively by analyzing foundational metrics like energy usage intensity, water usage intensity, and GHG intensity of their operations.
Corporations are overcoming these barriers innovatively, signing PPA deals with other buyers and negotiating for flexible contracts. Also, financial instruments in synthetic PPAs are cropping up, which offer some relief from long-term contracts by providing shorter terms at a premium. Based on organizations' risk profiles, this market is evolving to provide differently structured renewable power supply contracts for different types and sizes of buyers. All this leads to a strong wave of implementation as more companies hop on the renewable energy bandwagon.
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