The global corporate landscape has undergone a profound transformation, transcending the conventional pursuit of profit maximization to embrace a broader spectrum of environmental, social, and governance (ESG) considerations. This shift underscores an increasing awareness of the intricate interconnectedness between business operations and the world at large. In this context, clean energy technologies have emerged as a vital catalyst for ESG excellence, backed by compelling data that highlights their pivotal role in reducing environmental impact, fostering job creation, engaging with communities, and promoting ethical governance.
Given the new obligations and climate goals established under the Paris Agreement, the corresponding Nationally Determined Contributions (NDCs), and the escalating greenhouse gas (GHG) emissions, the swift and effective innovation in renewable energy is now of paramount importance. Transitioning towards clean energy and decarbonization is not merely a choice; it has become an inevitable imperative for our very existence. Nevertheless, it’s worth noting that we are still sourcing our power from the Indian Grid, which derives its energy from a mixed source, resulting in the emission of 830 grams (approx.) of CO2 equivalent for every unit of electricity consumed.
Reducing Environmental Impact
Advancements in technology and design have paved the way for small-scale installations on the flat roofs of office and apartment buildings, harnessing the power of solar or wind energy. These innovative systems incorporate multiple wind turbines integrated beneath photovoltaic roofing. This holistic approach has the potential to generate 30-40% more energy ensuring 24/7 power generation. Additionally, organizations are actively developing hydro panels capable of converting water vapour into potable drinking water. Other noteworthy innovations include the production of solar panels from food waste, blade-less wind energy solutions, solar/wind trees, public and personnel transport systems powered by solar energy, vertical-axis wind turbines, and offshore power generation. Some authorities are actively exploring the deployment of floating solar panels on lakes and reservoirs, with a focus on minimizing disruption to the local ecosystem. Additionally, they are considering the installation of solar panels on water canals, which can serve the dual purpose of generating energy and retaining water within the canals during the summer months.
From Corporate Social Responsibility (CSR) to ESG considerations, government compliance agencies are actively participating. Initiatives include the Central Pollution Control Board (CPCB) addressing plastic waste and establishing an extended producer responsibility (EPR) market, the Perform, Achieve, and Trade (PAT) scheme by the Bureau of Energy Efficiency (BEE), Renewable Energy Certificate (REC) markets, the Business Responsibility and Sustainability Reporting (BRSR) framework under the Securities and Exchange Board of India (SEBI), and the Carbon Program under the Ministry of Environment, Forest and Climate Change (MoEF-CC). These efforts collectively contribute to a more comprehensive and sustainable approach to addressing environmental and social challenges.
Creating Jobs and Engaging Communities
Employment within the renewable energy sector, encompassing solar and wind, is anticipated to experience a substantial rate of growth, exceeding the average for all job categories. Projections indicate an impressive 8% growth rate from 2022 to 2030. This not only contributes to a reduction in unemployment but also plays a pivotal role in stimulating economic expansion.
In areas where solar panel installations are carried out, a standard practice allocates 2% of the investment toward Corporate Social Responsibility (CSR) initiatives aimed at enhancing local infrastructure and supporting the nearby community. Similarly, in proximity to windmills, especially where medicinal herbs are prevalent, local labour is employed, and a portion of the profits is shared with the local community.
Fostering Ethical Governance
A study conducted by Ernst & Young (EY) reveals that 97% of institutional investors incorporate ESG factors into their investment decision-making processes. This underscores the escalating significance of ethical governance and transparent reporting. If we contemplate this trend, it becomes evident that there is substantial potential to address and mitigate climate-related risks. The underlying concept is to adapt and harness technological advancements to reduce our environmental footprint, promoting conservation and sustainability.
India is endowed with rich geographical diversity and abundant natural resources, positioning it to potentially emerge as a global leader in Environmental Technology and Development (ET&D) efforts. India has already set ambitious targets to enhance its carbon sequestration by 2.5 to 3 billion metric tons of CO2 equivalent through afforestation and expanded tree cover by 2030, while also striving to decrease emission intensity by 45% compared to 2005 levels. Despite India’s long-term goal of achieving net-zero emissions by 2070, there is optimism that this target can be reached ahead of schedule through continuous capacity-building and fostering national and international collaborations in research and development.
Furthermore, as we progress in tandem with these advancements, our actions naturally align with the support of fundamental SDGs such as employment generation, responsible consumption and production, affordable and clean energy, economic growth, climate action, and partnerships.
The Crucial Role of Clean Energy Technologies
The International Renewable Energy Agency (IRENA) predicts that transitioning to renewable energy sources could potentially elevate global GDP by $98 trillion by 2050, while also generating 42 million jobs. These statistics underscore the economic advantages of adopting clean energy technologies. According to the World Economic Forum, companies prioritizing sustainability and clean energy innovations tend to exhibit greater resilience during economic downturns, as they are more adept at risk management.
Innovations in clean energy technologies represent not only a responsible choice but also a fundamental driver of Environmental, Social, and Governance (ESG) excellence, as evidenced by compelling data. They mitigate environmental impacts, spur job creation, engage communities, and encourage ethical governance. Sustainable-minded businesses recognize that embracing clean energy isn’t merely a means to a greener and more responsible future but also a pathway to enduring success in an ever-evolving business landscape. As the global community increasingly emphasizes ESG considerations, clean energy technologies will remain a cornerstone of corporate strategies aimed at a sustainable and responsible future.
