Good Energy for Good Business: How Eco-Labelled Renewable Energy Can Power A Sustainable Economy

The failure to adequately manage corporate energy can leave a company vulnerable to risks, such as changing regulations and legal requirements. What is more, being seen as a big polluter carries detrimental effects for any brand.

18.10.2017

CSR.dk

by Natalia Gorina, Sales Director Carbon & Renewables at South Pole Group

*Come and hear Natalia speak about renewable energy and other forms of 'Good Energy' at SB'17 Copenhagen, taking place October 30th through November 1st in Copenhagen.*

For a growing number of companies, electricity is a prime resource in the value chain. However, several global corporations have come under fire from the general public, shareholders and major NGOs with regards to energy procurement. The failure to adequately manage corporate energy can leave a company vulnerable to risks, such as changing regulations and legal requirements. What is more, being seen as a big polluter carries detrimental effects for any brand.

More and more companies have set themselves a target of growing the share of renewable energy in their consumption. These commitments have been reflected in the global investments in sustainable energy: the past year witnessed an investment in renewables capacity that was roughly double that in fossil fuel generation. According to the latest report by the United Nations Environment Programme and Bloomberg New Energy Finance, the corresponding new capacity from renewables was equivalent to 55% of all new power, the highest to date.

Leading businesses and renewable energy experts have also joined forces to form RE100, a global initiative aimed at motivating and recruiting major companies to use 100% renewable power across their operations. Launched at the New York Climate Week back in 2014, the campaign has continued to gather momentum, drawing commitments from over 100 leading companies in just the span of three years. The initiative is also a reflection of the wider interest to disclose and communicate corporate performance in energy: calculating and, more importantly, reducing emissions from purchased or acquired electricity (“Scope 2 emissions”) is a prerequisite for inclusion in the CDP’s prestigious Carbon Disclosure Leadership Index.

Nonetheless, joining initiatives and disclosing data alone will not be enough to boost corporate brand image and ranking, nor to ensure the “greenness” of energy. A key challenge for today’s multinational companies is the difficulty, in certain jurisdictions, of tracing whether the electricity they consume was produced using renewables or fossil fuels and nuclear. For tracing the origin of power, renewable energy certificates (RECs) are key. RECs contain and disclose the renewable sources from which the electricity is consumed and are issued for every megawatt-hour (MWh) of electricity produced by a power station. Currently REC systems exist in the U.S., Canada, Europe (going by the name of ‘Guarantees of Origin’), Australia, and Japan, as well as in several developing countries under the International REC Standard.

However, not all RECs are the same in terms of impact. Only certain RECs with eco-labels ensure that the sources of energy are additional – or, in other words, that the purchased renewable energy certificates have had or will have an impact on the development of new renewable energy installations and yield added ecological value.

An example of an eco-label is EKOenergy: the supplier of EKOenergy labelled RECs contributes 0.10 Eur/MWh of to the Climate Fund, which in turn makes investments in new off-grid small scale renewable energy projects in developing countries. The fund contributed over 300’000 Euro so far in new solar installations in some of the world’s poorest countries.

Another eco-label is GoldPower: GoldPower labelled RECs stem only from recently built power plants that contribute to Sustainable Development Goals (SDGs) and have quantifiable, positive impacts on communities. Developed together with the WWF in 2009, GoldPower has recently been updated to include the Gold Standard Renewable Energy Label.

Major market influencers and RE100 signatories have purchased GoldPower in the past, including the likes of SAP, Microsoft, Novo Nordisk and Tetra Pak. In the words of Mario Abreu, VP Environment at Tetra Pak: “We want to support the transition to a low-carbon, sustainable economy so it is incredibly important to us that the renewable energy we buy comes from new or recently built installations that also provide broad sustainability benefits for local communities.”

So why should other brands care? There are a plethora of benefits gained from a pivot towards renewable energy, and especially if sourced from projects that additionally contribute in a substantiated manner to the SDGs. Companies not only reduce their carbon footprint, but also demonstrate their commitment to their employees, customers and investors. Equally importantly, smart corporates can hedge against risks: the move to a low-carbon future is inevitable, and as societies and economies unlock from fossil fuels, the transition to renewables makes long-term economic sense for businesses.

As in the case of Tetra Pak, companies are becoming more demanding about how exactly their green power is produced. And rightfully so: leading organisations are already leveraging renewable energy certificates to hedge against transitional risks, reach their sustainability targets, and reflect an essential character of their brand. The unique capacity of eco-labelled RECs to secure new renewable energy production, mitigate business risks, and engage local stakeholders in projects is an indispensable asset in the global pursuit for renewable energy and a greener economy.

Natalia Gorina is a senior professional with ten years of experience in commodity markets and consulting. She has identified, negotiated and executed structured transactions involving purchase and sale of emissions reductions. Natalia is an experienced consultant in a broad range of climate change and sustainability topics and has a solid track record in the sale of carbon credits and renewable energy certificates. At the end of this month, Natalia will be speaking at SB'17 Copenhagen, taking place October 30th through November 1st. South Pole Group is a Renewable Energy Partner for the event.

Dansk Standard

Sponseret

DSB anvender ISO 14001 til at skabe struktur på deres arbejde med bæredygtighed

Rambøll A/S

Sponseret

Final Call: ESRS Deep-dive webinar

Relateret indhold

28.03.2025CSR.dk

Offentlige bygherrer vil bruge færre nye råstoffer

27.03.2025ANDERS ANDERSENS RENGØRING

Sponseret

OVERSHOOT DAY 2025

27.03.2025Lübech Living ApS

Sponseret

Vedvarende energi hos Lübech Livings leverandører er ikke en tilfældighed

27.03.2025Troldtekt A/S

Sponseret

Nyt showroom i Aarhus: Oplev karakterfulde Troldtekt akustikløsninger – og interiør fra otte andre brands

26.03.2025CSR.dk

Overraskelse: Mange virksomheders klimaindsats går godt

26.03.2025CSR.dk

Nemmere at klare opgaven med producentsansvar

25.03.2025CSR.dk

I Sønderjylland lever drømmen om grønne flyrejser

24.03.2025CSR.dk

Pantkop i Aarhus er en succes – nu udvides systemet

Hold dig opdateret med CSR.dk

Tilmeld dig nyhedsbrevet og følg med i alt som rører sig indenfor ESG og bæredygtig udvikling Nyhedsbrevet kommer kun to gange ugentligt. Herudover sender vi dig relevante temaer og spændede events.

Se flere temaer

Events

Se alle
UN Global Compact Network Denmark
Webinar
Nordic Nature Starter Pack: Deep dive on water stewardship

Webinar 4: In this webinar we will zoom in on water stewardship and how companies can build water resilience and strengthen water management to reduce water impacts in their own operations and the value chain.

Dato

02.04.2025

Tid

09:00

Sted

Online via Zoom

Verarca
Event
Få styr på CO2-beregningen

Klimaregnskab uden bøvl – Få styr på scope 1, 2 og 3 med få klik

Dato

04.04.2025

Tid

10:30

Sted

Online

Bureau Veritas
Kursus
ISO 14001 Intern Auditor

På ISO 14001 Intern Auditor træner du forskellige auditeringsteknikker og -værktøjer, og hvordan du udfører intern audit af din virksomheds miljøledelsessystem i henhold til de strategiske og operationelle kravelementer i ISO 14001 standarden.

Dato

07.04.2025

Tid

08:00

Sted

Haraldskær Sinatur Hotel & Konference, Skibetvej 140, 7100 Vejle

Bureau Veritas
Kursus
ISO 14001 Intern Auditor

På ISO 14001 Intern Auditor træner du forskellige auditeringsteknikker og -værktøjer, og hvordan du udfører intern audit af din virksomheds miljøledelsessystem i henhold til de strategiske og operationelle kravelementer i ISO 14001 standarden.

Dato

07.04.2025

Tid

08:30

Sted

Vejle

Aros Business Academy
Kursus
Livscyklusvurdering (LCA)

Tag på kursus i livscyklusvurdering, og lær at styre LCA-processen med blik for din organisations behov – så I ikke ender med at kaste penge efter noget, der ikke kan bruges.

Dato

07.04.2025

Tid

09:00

Sted

Kuglegårdsvej 2, 1. sal, 1434 København

CABI
Webinar
Taler du om sygefravær med hele medarbejdergruppen?

Hvorfor skal du som leder tale om sygefravær med hele medarbejdergruppen og ikke kun 1:1? Den fælles snak er helt central for at kunne forebygge og håndtere sygefravær, og den handler om langt mere end bare sygefraværstallene. Dette webinar giver dig viden og inspiration til at komme i gang med den fælles snak i medarbejdergruppen.

Dato

08.04.2025

Tid

08:30

Sted

Online