ENVIRONMENTAL REPORTING
PEOPLE, PROFIT AND PLANET – BUILDING A SUSTAINABLE SUPPLY CHAIN
W
hile sustainability has been a major consideration for the energy industry for many years, COP26 accelerated the green agenda and focused attention on the need to make real, meaningful change in the generation and use of energy, and the necessity of setting and committing to ambitious Net Zero targets. The global goal, according to climate scientists, is the reduction of carbon dioxide emissions by 45% by 2030 if we are to succeed in limiting a rise in temperature to 1.5 degrees. We are alive to the risk posed by the climate crisis like never-before, and as the consequences of inaction has become more visible - fires, flood, heatwaves and storms are taking place more frequently - everyday activism has grown and we understand that each of us has a role to play, however small that may be. However, for energy firms, that role is considerably larger - the industry will play a major part in the fight
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against climate change and whether, ultimately, we succeed or fail.
MEETING SUSTAINABILITY OBLIGATIONS For energy firms and those operating within the industry, the need for action comes hand in hand with a range of other considerations that are vital to safeguard reputation and reassure customers that they are doing their bit to reduce carbon emissions and work towards meeting the UK’s net zero emissions target. Given the level of public scrutiny on the energy industry, it is more important than ever for companies to ensure that their track record on sustainability and their commitment to the green agenda meets accepted standards - both regulatory and morally. Their conduct must be beyond reproach, along with that of the businesses comprising their supply chain, which, in the event of any wrongdoing, poor practice or failure to meet legislator requirements, could well land a company
ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2022
in hot water simply by association.
PROTECTING REPUTATION AND SAFEGUARDING AGAINST FINANCIAL HARM Those companies that fail to observe profit, planet and people as guiding tenets within their sustainability strategy risk not only incurring reputational damage, but will almost certainly feel the bite financially. As the drive for net zero intensifies, and focus on the utility industry continues to grow - accentuated by the energy crisis which continues to drive up prices in the UK - businesses will need to do more to demonstrate an investment in and a focus on meeting sustainability targets in 2022. Environmental and social issues are certain to remain at the apex of the corporate agenda, with 71% of companies committed to investing more time, effort and funds into environmental management.
