How Corporates Can Meet Their Renewable Energy Goals

In the push toward sustainability, companies around the world are seeking credible and scalable pathways to meet their renewable energy targets. For companies with ambitious climate goals, the question isn't whether to act – but how. There are several proven strategies available, each with unique opportunities and challenges.

Direct Renewable Energy Investment

At the top of the commitment scale is direct investment. This involves companies installing solar panels on rooftops or wind turbines on nearby land. This approach is ideal for companies that:

• Own suitable real estate
• Have strong balance sheets
• Can absorb the upfront financial outlay

Direct investment offers control and visibility but is often limited by physical space, grid infrastructure, local climate, and capital availability.

Power Purchase Agreements (PPAs)

Power Purchase Agreements represent a deeper engagement. Here, companies commit to purchasing renewable electricity from a specific project, often enabling that project’s development, over a long-term period, typically 10–20 years.

While PPAs are impactful, they have barriers to entry such as complexity and costs:

• Large annual consumption volumes to match project output
• Legal and financial sophistication is required
• Only creditworthy companies can typically participate
• The commitment is long-term and non-trivial

Still, for companies with stable operations and long-term sustainability goals, PPAs can be a strategic choice for securing clean energy at scale.

Utility Programs

For many businesses, working with utility green energy programs offers a more accessible entry point. These programs may offer:

• Green tariffs
• Bundled renewable products

While not as impactful as direct investment or PPAs, utility programs may provide a manageable and credible way to increase renewable energy consumption with fewer hurdles.

Market-Based Instruments with Energy Attribute Certificates

Energy Attribute Certificates (EACs) are a simple and effective way for companies to meet their renewable energy goals and support clean energy development around the world. They are widely used to comply with the Greenhouse Gas Protocol Scope 2 guidance and to achieve RE100 commitments, a global initiative encouraging companies to use 100% renewable electricity.

Benefits of EACs:

• Comply with Scope 2 reporting standards under the Greenhouse Gas Protocol
• Meet renewable energy targets and support RE100 goals and demonstrate leadership in sustainability

• Provide global reach; being available in most countries

• Provide simplicity and adaptability; uncomplicated contracting, flexibility in consumption volumes, and lower transaction costs
• Enable immediate action while building toward long-term strategies like PPAs or on-site generation if possible

By using EACs, companies can take credible climate action now, while supporting the transition to a cleaner, more sustainable energy future. 

Climate Impact Partners provides EACs across all the available markets with robust tracking systems to ensure credible, country-specific reporting.

For companies targeting 100% renewable energy, action must start immediately. Even if the long-term plan includes PPAs or direct investment, leveraging market-based instruments with EACs and participating in credible tracking systems will be essential in meeting global renewable energy targets, and enables companies to take meaningful steps now.