What is ESG and why does it matter for the renewables sector

The renewables sector is growing and thriving. While annual reports prove the financial health of a business, ESG reporting shows the benefit for society and for the environment.

ESG reporting strategy differs for every business, but here’s what it might involve:

Environmental

The ‘E’ in ESG quantifies a company’s environmental impact and allows reduction targets to be set. Measures include considering the supply chain and delivery of work, including:

• Ways to combat climate change
• Reducing or offsetting carbon emissions
• Enhancing biodiversity
• The effect on air and water quality
• Combating deforestation
• Managing waste responsibly
• Energy management and responsibly using natural resources

Social

This part of ESG deals with how the company interacts with society and improves lives, considering:

• People and management policies
• Community outreach
• Charitable donations
• Gender pay gap reporting
• Employee engagement
• Data protection and privacy policies
• Human rights and slavery statements

Governance

This differs from business to business and takes in industry legislation. A robust ESG policy will have specific details regarding:

• Industry best practices
• Training on policies and policy violation tracking
• Board composition
• Business continuity planning
• Business ethics and anti-bribery
• Risk management
• Cyber security

Transparency is vital in ESG reporting, and quantitative and qualitative data must be included. ESG policy gives confidence to investors, clients and prospective employees, as well as accountability to existing clients and employees.

ESG and the renewables sector

Environmental credibility and accountability sit front and centre for the renewables sector, so exhibiting their environmental credentials has never been more important. As developers of renewable energy work to provide sustainable energy solutions, their developments have a tangible effect on the environment. ESG reporting gives the opportunity to showcase specific environmental initiatives within projects, such as mitigation for bird impacts in offshore wind, net positive solutions such as wildflower planting around solar farms, or community initiatives in villages close to onshore wind farms.

ESG strategy is a vital part of business strategy. ESG supports success and enables a business to demonstrate sustainable practices, ethical impact and good governance. It takes in legal reporting requirements and documents policies and procedures that enable businesses to deliver.

We’re keen to learn how we can support our clients in their ESG journey. Whether you are at the beginning of learning about ESG, or writing your own ESG report, please take 2 minutes to complete our survey about your ESG practices, and any areas we can support you.

If you’d like to speak to APEM Group about ESG, please contact us.