Discussing how companies in the energy sector can implement decarbonization to support their environmental, social, and governance (ESG) goals
Submitted by Tetra Tech
Tetra Tech’s Rachel Bigby, Scott Phillips, and Sarah Watts discuss how companies in the energy sector can implement decarbonization to support their environmental, social, and governance (ESG) goals.
What is ESG and how does it apply to the energy sector?
The concept of ESG can be ambiguous and complex in nature—and for myriad reasons. ESG considerations are unique to each organization, therefore there is no standard framework or approach that is a one-size-fits-all solution. ESG refers to three key components in business—environmental, social, and governance—and research now shows a direct link between ESG and financial performance. With increased focus and attention on mitigating the impacts of climate change, our energy sector clients are incorporating ESG best practices throughout their operations and value chain. Tetra Tech offers a full suite of ESG services, including recommending and developing decarbonization strategies for energy sector clients to move the needle forward on the E in ESG.
What is ESG?
The Environmental category encompasses elements such as climate change mitigation, greenhouse gas (GHG) emissions reduction, and natural resource management. The Social pillar includes elements such as poverty alleviation; data privacy and security; employee engagement; and diversity, equity, and inclusion (DEI) best practices. Governance includes the policies, procedures, and structures that are in place to support organizational accountability, such as executive pay, board diversity, and fair tax strategy.
How is decarbonization supporting the E in ESG?
Many energy industry clients are producing their first sustainability reports and making them available publicly. As the energy transformation from fossil fuels to renewables continues to gain momentum, companies are actively evaluating their impact and identifying ways to reduce their carbon footprint.
We have supported clients in their decarbonization journey in numerous ways, such as:
Decarbonization efforts are driven by several factors, including financial stakeholder expectations, tax incentives, and legislation. For example, ambitious climate and energy targets are being set at the state and federal levels, including President Biden’s recently announced solar power vision to provide 45 percent of United States energy by 2050. There is broad market support and development for renewables and global renewable energy investment, including the rise in issuance of green bonds.
How can Tetra Tech assist your organization on your decarbonization journey?
Tetra Tech is helping clients develop robust, flexible ESG programs and ensuring their successful implementation for program governance, operations, and continual improvement. We provide guidance to sustainability staff and transparency to client stakeholders. As companies strive to meet stakeholder and market expectations for decarbonization—and across ESG—Tetra Tech provides technical consulting and implementation services to help our clients leverage the data and systems they currently have, develop solutions to streamline workflows, optimize asset performance, and automate reporting requirements. As ESG practices continue to evolve and mature, Tetra Tech will be there to guide our clients and deliver cutting-edge solutions that are effective now and into the future.
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