Despite the ongoing endemic, inflation and shortage of labour, there has been an unwitnessed demand of Environmental, Social & Governance (ESG) factors among businesses. While many businesses would term the move towards ESG as the PR move for your company's reputation, there are business and financial advantages to it for you to consider.
According to McKinsey & Co, externalities are increasing such as the company’s greenhouse gas emissions (GHG), effects on labour markets and consequences for supplier health and safety. While change comes faster for some companies than others, multinational companies cannot afford to take a wait-and-see approach.
In order to equip your company with all the necessary information about ESG, here’s our take, as a leading clean energy solutionist on the ongoing phenomenon and how your business can drive its ESG journey forward with clean energy.
ESG Unlocks Competitive Value
According to NASDAQ, ESG factors should be a top concern of corporate management and boards. Not to mention, the adoption of ESG can pave the way for more competitive value and tap into new markets, benefitting businesses to stand out from their competitors.
While there may be companies who are just getting started on their ESG journeys, proactive and integrated policies can help the company’s competitiveness. One good example of companies doing so is when Starbucks tried to expand its market share in China. The company stumbled upon a question on whether they provide healthcare to the employees’ parents and managed to have their sales growth skyrocket when they finally did provide the healthcare, leading them to now have 2,000 stores in one of the fastest growing markets on the globe.
ESG Provides More CAPEX Use for Company Activities
As an industry leader in clean energy, we’ve witnessed how our clients who have adopted clean energy have been able to reap financial advantages which include reducing their energy bills by up to 50%, helping to lower their overall operational costs.
Moreover, these reduced bills are made possible by the available tax allowances of up to 48% when businesses invest in clean energy, reducing their corporate tax, which is a plus point considering the amount of taxes businesses would have to pay.
All in all, when businesses invest in solar, they can lower their energy consumption as well as corporate tax, leaving more room for cash flow and funds to be invested for AIoT and start their industrial automation to resolve the ongoing labour shortage and improve efficiency.
ESG creates long-term value for your organisation’s stakeholders, investors and employees
The world continues to change, and this is well reflected in the B2B & B2C consumer realm. According to EY, one of the key ESG factors that play a role in investment decision-making has to do with risks related to governance, supply chain, human rights and climate change.
ESG Helps Your Company Stay in Touch With Today’s Workforce
With the current generation demographic of today’s workforce which makes up a demographic of millennials, gen X respondents and baby boomers, findings from the research suggest that employees were more likely to choose to work at a company with a strong environmental agenda, according to Fast Company.
By having a strong ESG agenda, employers stand to benefit in terms of employee attraction and retention, as employees would be motivated by the company to have a sense of purpose, increasing employee satisfaction and overall productivity.
The Solution: Clean Energy to Drive Your Company Forward
Companies of all sizes, be it SMEs, large corporations or MNCs can showcase ESG commitments to reducing carbon footprint by investing in solar solutions to lower greenhouse gas emissions (GHG), which demonstrate their efforts toward decarbonization and the 12th Malaysia Plan.
We’ve been able to see how solar, as the most viable and scalable resource, has empowered our clients such as Jooi Brothers, a leader to maintain a competitive advantage and gained 8% savings in their energy cost.
After over 10 years of being in the clean energy industry, we’ve had the pleasure of helping companies across 50+ industries all over Malaysia to drive their ESG journeys forward with clean energy.
To lower energy costs without accumulating assets for your business, take advantage of RM0 CAPEX solar PPA where you can elevate your company’s competitive edge. Limited capacity is available!
To get more details about how solar can drive your ESG journey, contact us at [email protected]