A PPA (power purchase agreement) is a smart way to reduce your energy costs. But did you know it can also contribute to your ESG goals? Discover how embracing green energy is vital to being a responsible corporate citizen.
Global challenges such as climate change, biodiversity loss, resource scarcity, and humanitarian crises have made it clear that we need a more sustainable business landscape. As a result, consumers, investors, employees, and regulators are calling on companies to be more transparent and responsible.
In response, many organizations are setting ESG (environment, social, and governance) targets to become more sustainable. Setting clear ESG goals demonstrates that your organization is committed to corporate social responsibility (CSR) and positive business conduct.
Why have ESG targets become so important?
As ESG is holistic in nature, it extends sustainability beyond environmental factors and shows awareness about important social and community issues. Companies without ESG goals risk turning away investors, losing customer and employee confidence, damaging their reputation, or even fines from government regulators.
On the other hand, well-defined ESG goals reward your business with reduced operating costs and carbon emissions, a stronger corporate image, and more interest from ESG-driven investors. For companies of all sizes, having an effective ESG strategy has become critical to achieving sustainable long-term growth.
Of course, setting ESG targets is only the first step. Next, your company needs an action plan with the measures, partnerships, and initiatives required to achieve them in the desired timeframes.
The role of clean energy in an ESG strategy
A common ESG goal is to reduce carbon emissions by switching from fossil fuels to renewable energy. The good news is that you can achieve this without any capital investment, infrastructure upgrades, or increases in your operating costs. The solution is a power purchase agreement, known as a green PPA. It’s a long-term electricity contract (generally 10 to 25 years) between a renewable energy producer and a company, known as an off-taker.
Under a PPA, you receive a defined volume of clean energy at a fixed price (often below market rates) for the duration of the agreement. It can significantly reduce your operating costs and carbon footprint, but it also demonstrates that your company is committed to sustainability and the health of our planet.
How can a green PPA contribute to your ESG targets?
A green PPA can be critical to your decarbonization goals. For example, your company may commit to achieving net-zero emissions by 2040. In this case, a green PPA can provide a percentage of your energy demands and its verified data allows you to track your progress over time. The fixed power costs also protect your business from future price rises and market volatility.
Over time, you can combine your green PPA with energy-saving initiatives and other measures to neutralize your carbon footprint. To help your decarbonization efforts, a PPA includes guarantees of origin (GO) for the clean electricity supplied, where available.
How Enery’s ESG initiatives enhance your PPA
Signing a PPA reduces carbon emissions and supports the growth of renewable energy. But your PPA can go even further with the right industry partnership. At Enery, we work closely with your company to create the most sustainable solutions, factoring in your ESG targets and long-term goals.
Through our renewable energy portfolio across Central and Eastern Europe, we invest in a diverse range of ESG activities. They support people, communities, and ecosystems while contributing to the UN Sustainable Development Goals.
Some of our recent initiatives include:
- Hosting sheep grazing, beehives, and pollinator fields at many of our solar PV farms to improve soil quality, wildlife populations, and biodiversity.
- Supporting community aid programs in Eastern Europe that assist children and families in need.
- Arranging school visits, open days, and working with educational centers to promote the UN SDGs and the benefits of renewable energy.
- Social decarbonization initiatives, such as donating a solar PV system to a community hospital in Bulgaria.
If you’d like to learn more about Enery’s ESG activities, you can read our 2022 sustainability report.
Make a green PPA part of your ESG strategy
With a PPA, you can reduce your costs and carbon footprint while supporting environmental and social projects – but only with the right industry partnership.
Headquartered in Austria, Enery is one of the leading clean energy producers in Central and Eastern Europe. Using renewable portfolio optimization, we develop our projects in specific geographical locations to produce clean energy at the lowest possible cost. We work with a wide range of companies to decarbonize their energy supply and meet their ESG targets.
To discover more about how a green PPA can enhance your business, contact our team.