ESG: Environmental, Social, and Governance as a guide for smarter, more sustainable business operations

If we were to sum up today’s economy in one word, it would be uncertain. From the effects of inflation, to the volatile energy market, to the impacts of climate change, business leaders have more to keep track of than ever before. Our modern economy has many moving parts, each of which can create problems for an organization’s bottom line in their own way - but there is a guideline to follow for smarter, more sustainable, more cost-effective business operations: ESG.

ESG stands for Environmental, Social, and Governance, which is essentially a set of practices businesses can implement to navigate the uncertainties of today’s economy. Doing so can lessen a business’s impact on the environment, improve employee wellbeing, and cut operation costs. As an integrated energy solutions provider, we have a lot of thoughts on what the E in ESG means for businesses

Good News for Businesses 

As the economy moves towards a more environmentally-conscious model, environmental regulations will only become tighter and businesses will be continually held to higher standards. Take for example the new emissions scoping requirements starting in January 2024: Businesses will have to measure and report their Scope 1 and 2 emissions. In order to stay ahead of the curve, businesses must adopt a forward-looking approach, and implement strong environmental practices to avoid costly regulatory fines due to inefficient operations.

Adopting a healthy environmental business model not only reduces indirect costs in the form of regulatory fines, it can also reduce direct operating costs and improve day-to-day cost-effectiveness by as much as 60%. Businesses that implement healthy environmental practices can cut material costs, reduce costs associated with water consumption, and improve their energy efficiency, making for a smaller electricity bill.

Plus, companies with strong ESG practices, especially those with strong environmental practices, can make considerable progress towards sustainability and emissions reduction goals. Greater energy efficiency translates to a smaller carbon footprint, and being conscious of environmental goals related to energy efficiency can help businesses achieve this.

Strong ESG practices can even attract investors, as businesses with higher ESG standards have higher profitability and lower investment risk. Asset management companies associate a business’s ESG score with their investment risk, meaning that businesses with stronger ESG scores are more likely to see interest from investors.

Steps towards strong environmental ESG practices

When it comes to renewable energy resources, businesses have a variety of approaches to sustainable environmental practices. For example, businesses with the rooftop infrastructure to support it can install a solar energy system, which can save them up to 75% on utility bills. By capitalizing on the sun’s energy, businesses can lock in low electricity rates for years to come. Plus, utilizing solar energy is a great way to reduce a business’s consumption of fossil fuels, in turn reducing its carbon footprint.

For the days the sun isn’t shining, a battery energy storage system can supply power to keep demand charges down (which can account for as much as 70% of your electric bill), and improve a business’s energy stability. At a time when heat waves and wildfires are creating volatility in the electric grid, a battery energy storage system can provide the reliability needed to keep business operations running during an outage.

Another resource for businesses looking to improve their building’s energy efficiency and reduce operating costs is combined heat and power, or CHP. CHP systems take advantage of an energy system’s waste heat to generate even more electricity, or contribute to heating and cooling processes. CHP systems can improve the efficiency of an energy system to be as great as 85% efficient, which is nearly twice as much as the average 45% efficiency of a standard system.

Businesses that operate vehicle fleets can even tap into the EV market to reduce overall costs and cut their carbon footprint. Implementing an EV fleet is a powerful way to address the environmental practices of a business as part of its ESG portfolio. Countless studies have found that the month-to-month ownership costs of an EV are less than those of an internal combustion engine vehicle. Plus, CA Senate Bill 1 banned all diesel semi-trucks built before 2010 and weighing over 14,000 pounds from driving on California roads. This makes implementing an EV fleet both a smart economic and environmental choice.

Science-based savings

Are poor ESG practices holding your business back? The team at Promise brings together an integrated, science-based approach to design the optimal energy solution to improve your business’s ESG standings. We have the unique ability to tailor a system based on specific site needs or parameters, compliance requirements, and energy savings and carbon reduction goals. Our integrated approach allows us to target both the complete building envelope, including energy efficiency, power generation, sustainability, and resiliency. Because of this, we can look beyond new energy solutions and address deferred maintenance, asset renewal, and other ongoing improvement opportunities at your facility, taking you from an ESG laggard to an ESG leader! Our process contains five key steps…

Analyze

We conduct a comprehensive audit of your facility, including building data, energy consumption patterns, and operational equipment. We consider your energy savings goals, carbon reduction objectives, overall sustainability plans, and even consider future solutions like deferred maintenance and asset renewal.

Design

Our in-house engineering team designs a portfolio of integrated energy solutions that address complete building envelope needs, from energy efficiency, power generation, sustainability, and energy resiliency.

Finance

Our detailed proposals demonstrate the long-term financial value of each of our solutions, including ROI and payback period. We also offer a range of financing solutions to meet any client’s budget. Our in-depth industry knowledge allows us to help you leverage the full potential of both local and federal incentives.

Build

Our professional operations team brings decades of field experience to every project with an emphasis on safety, quality, and teamwork.

Save

We take care of continued operations and maintenance throughout the life of the system, so you can sit back and enjoy savings from day one.

Our Integrated Approach

Promise Energy understands that every business operation has unique needs, especially when it comes to ESG. Promise’s integrated approach to energy is what differentiates us from the crowd, and you can count on our energy experts to custom-design a system to meet the unique energy needs of your business.

Contact Promise Energy at info@promiseenergy.com for a complimentary energy evaluation of your facility.

At Promise Energy, we don’t believe that one size fits all. We pride ourselves in designing and installing customized energy solutions that provide the greatest long-term value and energy control for our customers.