Building operations account for 30% of global energy consumption and...
Climate change is something highly concerning. NASA data suggests that CO2 is at its highest in two million years. Humans have a major role to play here.
Businesses from different industries are now leveraging energy efficiency tactics for better sustainability. Authorities are also mandating ESG regulations that organisations need to follow to adhere to sustainable practices.
But what is the relationship between energy efficiency and ESG goals? If you are also confused about all that, make it a point to read this blog to the end. Here, we will learn how energy efficiency aligns with a business' ESG goals.
In simple terms, it is an indicator of how effectively one is using energy for a particular purpose. You can think of it as a ratio of the power you use to achieve a specific outcome to the amount the system uses.
A higher rating means better and more effective use of all energy with minimal wastage. This metric plays an important role in facilitating a proper and sustainable approach.
The full form of the abbreviation is Environmental Social and Governance. These reports help different stakeholders determine the company's performance in these three areas.
When a company uses the right ESG compliance strategies, it reveals a number of things about it. It shows that the company cares for the environment and has a responsible approach to employees. It also shows that it follows ethical governance practices and is more reliable and stable.
Simply focusing your efforts on energy-efficient ESG initiatives will do no good unless you have the right goal in place. That said, here are some of the most important ESG goals that a business in 2025 needs to focus on:
The first that businesses need to focus on is better waste and water management. This means taking the right steps to minimize waste and recycle as many resources as possible. They must also leverage the right strategies to control water consumption more effectively and avoid wastage.
The next important area to focus on is reducing the business's overall footprint. They can do this by implementing diverse renewable energy solutions like solar panels. These solutions can be ground-mount or on roofs as long as they help reduce carbon emissions.
The interconnected world creates the need for an inclusive environment. You must focus your efforts on building a workforce representing diverse backgrounds and opinions. This will promote inclusivity and help businesses make the most of their diverse workforce.
The workforce is the key asset of any organisation. Businesses should focus on promoting the well-being of their staff. This means creating a workplace that encourages looking after one’s health and overall development.
The final area to focus on is ethical governance within the organization. A good way to start here is by establishing guidelines for avoiding unethical practices. These guidelines should also develop accountability in decision-making and increase transparency.
Promoting sustainability and energy efficiency is not a goal you can easily achieve without the right ESG goals in place. You must identify specific priorities for your business and take a proper approach accordingly. Hence, here are some of the best practices you can follow on this front:
The first thing that you must do here is define quantifiable targets and goals. This means setting measurable and clear targets with the relevant industry standards. For instance, you could aim to lower the business's energy consumption by a certain percentage.
Another important thing that you must do on this front is conduct a detailed and effective ESG audit. Here, you need to start with determining the areas that your business prioritizes. Then, you must see where the business stands in each of these areas and set your goals accordingly.
Active participation from all the stakeholders is one of the best ways to set and realize the right ESG goal. You must involve both internal and external stakeholders to establish a more comprehensive approach. This means bringing together everyone from customers to workers and suppliers for a better approach.
Effective monitoring is one of the most important requirements for ensuring you get the most out of your ESG goals. You must remember that these goals tend to be on a continual basis, and monitoring them is imperative. You must examine regularly and make necessary changes to meet the growing standards and expectations of the market.
It should come as no surprise, but aligning energy efficiency with ESG goals comes with multiple advantages. For starters, this helps enhance your brand's reputation by demonstrating your commitment to sustainability. This also helps lower energy costs and enhance your business's financial performance.
More importantly, taking this unique approach to managing ESG goals reduces any potential regulatory pitfalls. You can continuously make efforts to address social and environmental concerns to ensure effective compliance at all times. This will go a long way in terms of helping the business stand out in the crowd and drive better sustainable growth.
Green energy for ESG is much more than a mere environmental concern in today's day and age. Instead, it has become a more effective way to promote the growth of sustainable businesses in the long run.
This will go a long way in ensuring a business complies with all the relevant environmental and social standards. So make sure you keep this information in mind and use energy efficiency to meet your ESG goals.
Building operations account for 30% of global energy consumption and...
As we step into 2025, New York real estate remains a dynamic and...