As global renewable energy efforts gain traction, energy companies are “on pace” for their energy shift, according to GlobalData. However, GlobalData observed that power companies will need to adopt a comprehensive approach to sustainability rather than merely focusing on environmental considerations in its ESG Top Trends by Sector-Thematic Research.
According to Energy Transition Analyst at GlobalData, Adrian Li, renewables’ taking an increasing part in the global power mix can be considered as a consequence of many sustainability programmes from power companies to boost investments in creating clean power production projects.
Government subsidies have increased the price competitiveness of green energy, driven down its prices tremendously, and facilitated a faster transition from fossil fuels by businesses, according to a report.
Li pointed out that GlobalData anticipates 2024 to be a turning point when renewable energy sources surpass coal-fired power facilities.
Due to technical breakthroughs and supportive governmental regulations, renewable energy is predicted to supply more than 40% of the world’s energy by 2030.
Consumers are increasingly concerned about climate change, carbon emissions, and, consequently, the impact on society of these businesses. According to Li, as interest in energy becomes more consumer-driven, factors like unfavourable working conditions or corruption would seriously harm the reputation of power providers and reduce investment. Even something as unreliable as cybersecurity, which is unrelated to climate change, might damage a company’s reputation and cause the public to lose faith in it.