ESG management is critical for renewables
Renewable energy and raw material recovery projects are key factors in the sustainable global energy and material supply. As high-yield investment properties, they stand for a robust combination of sustainability and profitability, but are usually also complex and international networks of plants, production, logistics and distribution.
In order to be able to exploit the full profitability and sustainability potential, it is crucial to prove sustainability not only regarding the final product, but also with regard to the value chain process, the accountable corporate and the value chain partners.The prerequisite for this is an effective ESG system right from the start of project planning, which enables holistic sustainability management by the executing organisation from the outset.
As a result, project and supporting organisations are in a position to avoid higher implementation costs, minimise financing and sales risks, while creating competitive advantages for additional market potential. Already in the planning phase, but at the latest in the design and construction phase, the basis of a later ESG score is laid. Correcting early-stage mistakes afterwards comes with high costs. Capital market players are desperately looking for the best sustainability assets for their portfolios, while at the same time the ESG rating is gaining weight in lending and financing. Thus, companies increase their attractiveness towards investors and reduce their financing costs. On the sales side, the situation is similar as ESG criteria are becoming increasingly important for supplier evaluation and qualification. At the same time, attainable prices will depend more on proof of sustainability, just as the marketability of by-products, recycling and ancillary products via alternative markets and sales channels.
Conclusion: A holistic view and establishment of ESG from the outset across product, organisation, value chain and implementation partners increases the sustainability of the projects themselves and their profitability.
