How can corporate sustainability reporting and disclosure reflect the impact of renewable energy sources?

1 Why report and disclose renewable energy sources?

Corporate sustainability reporting and disclosure are voluntary or mandatory practices that involve disclosing information on the environmental, social, and economic performance of a business. Reporting and disclosure can help businesses demonstrate their commitment to sustainability, enhance their reputation and trust, identify risks and opportunities, and engage with stakeholders. Renewable energy sources are a relevant topic for reporting and disclosure, as they can show how a business is reducing its greenhouse gas emissions, contributing to the transition to a low-carbon economy, and supporting the Sustainable Development Goals.

2 What are the standards and frameworks for reporting and disclosure?

Businesses can use various standards and frameworks to support their sustainability reporting and disclosure, such as the Global Reporting Initiative (GRI), the Task Force on Climate-related Financial Disclosures (TCFD), the Carbon Disclosure Project (CDP), and the Science Based Targets initiative (SBTi). These frameworks cover topics such as energy consumption, emissions, renewable energy sources, financial impacts of climate change, environmental performance, and emissions reduction targets. The GRI provides a comprehensive set of indicators and principles for sustainability reporting, while TCFD recommends a framework for disclosing the financial impacts of climate change. CDP collects and publishes data on environmental performance, including renewable energy targets and sources. Finally, SBTi helps businesses set and validate their emissions reduction targets in line with the Paris Agreement.

3 How to measure and report the impact of renewable energy sources?

Businesses need to collect and analyze data on their energy consumption, sources, and emissions in order to measure and report the impact of renewable energy sources. Additionally, they need to define and communicate their goals and strategies for increasing their renewable energy share and reducing their carbon footprint. To assess the impact of renewable energy sources, key metrics and indicators include the total amount and percentage of renewable energy consumed or sold by the business, the avoided emissions or carbon intensity of the renewable energy sources compared to other alternatives, as well as the cost savings, revenue generation, or return on investment of renewable energy projects or initiatives.

4 How to disclose and communicate the impact of renewable energy sources?

For businesses to disclose and communicate the impact of renewable energy sources, they need to adhere to the standards and frameworks relevant for their sector, region, and audience. Additionally, it is important for them to make sure that their disclosure and communication are transparent, consistent, accurate, and verifiable. To achieve this, they should use clear and concise language and visuals to convey the key messages and data. Furthermore, providing context and explanations for the data and metrics is essential; this includes sources, methods, assumptions, and limitations. It is also beneficial to highlight the benefits and challenges of renewable energy sources such as environmental, social, and economic impacts. Additionally, showcasing stories and examples of renewable energy projects or initiatives helps with engagement; this includes locations, partners, technologies, and outcomes. Finally, it is important to engage with stakeholders by soliciting their feedback and input on the disclosure and communication.

5 What are the trends and opportunities for reporting and disclosure?

As businesses face increasing pressure from regulators, investors, customers, and society to address climate change and sustainability, reporting and disclosure of renewable energy sources are evolving and expanding. Integration of renewable energy sources into the broader sustainability agenda and strategy can be seen through alignment with the Sustainable Development Goals or the Paris Agreement. Additionally, new technologies for renewable energy generation, storage, and distribution, such as smart grids or green hydrogen, are being adopted. Businesses can also collaborate with other organizations or communities to scale up the transition to renewable energy sources through joint ventures or power purchase agreements. Lastly, there is an opportunity for differentiation and recognition of leadership in renewable energy sources through awards, ratings, or certifications.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?