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E.1.8 Renewable Energy Programmes

 

Last Updated September 2024
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Definition

 

The Renewable Energy Programmes indicator assesses a company's initiatives to increase the use of renewable energy for company-owned operations. The strongest programmes are those that cover most of the company’s operations, have clear targets and related renewable generation projects that are onsite.



 

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What is a Programme Indicator? 

 

Programme indicators are designed to evaluate a company’s operational systems for managing its material ESG risks. These indicators are aligned with and/or informed by recognized management systems, such as the ISO 9001 quality standard or the ISO 14001 environmental management standard. 


Common assessment criteria include: 

  • Executive accountability 
  • Risk/impact assessment 
  • Training or other initiatives to ensure compliance with policies 
  • Objectives/targets 
  • Monitoring, measurement, reporting
  • Incident investigation and corrective action.

 


    Assessment Criteria

    • We consider renewable energy sources including solar, wind, hydropower, ocean and geothermal. 
    • Source: The International Renewable Energy Agency
     

    • We consider bioenergy only when generated from operational by-products.
      • A by-product is a secondary product that was created by a manufacturing or a production process (e.g. sawdust at a sawmill, manure from a feedlot operation).

     

    The assessment criteria are informed by the Greenhouse Gas (GHG) Mitigation Hierarchy (source: prepona.info) listed here in order of priority:

    • Reduce emissions through energy efficiency and conservation. 
    • Switch to renewable energy.
    • Offset GHG emissions.

     

    There are several mechanisms in which companies can utilize renewable energy. 

    The assessment gives particular importance to whether the company has set quantitative targets at the group level with clear timelines to achieve them. We also assess quantitative targets at the group level with a clear deadline for reaching these targets. 

    Offsets include:

    • Power Purchase Agreements (PPAs)
    • Renewable Energy Certificates (RECs)
    • Renewables Obligation Certificates (ROCs) 

    Criteria Defined

     


    Program Scope - Most Weight                                                                            

    Formal Renewable Energy Programme – Majority of Operations

    • A company receives credit for this criterion if it has a formal programme to use renewable energy in the majority of its operation.
    Formal Renewable Energy Program – Minority of Operations
    • A company receives credit for this criterion if it has a formal programme to use renewable energy in less than a majority of its operations.
    Formal Target with Deadline
    • A company receives credit if it has a formal programme with a clear renewable energy target and deadline.
    Examples:
    • 100% Renewable Energy use by 2030 for a manufacturing plant
    • All corporate facilities will use 100% renewable energy by 2025.

    Initiatives to Increase Renewable Energy
    • A company receives credit if its formal programme with a clear target includes specific renewable energy projects.

     

    Examples:

    • 100% Renewable Energy use by 2030 for our manufacturing plant, utilizing on site wind farm and solar roof arrays.
    • All corporate facilities will be 100% renewable by 2025, utilizing renewable energy contracts where possible, and utilizing a new corporate power purchase agreement for direct line renewable energy use, utilizing local wind farms.

     

     


    Type of Renewable Energy Use - Less Weight                                                                           

     

    Best in Class
    • Use of Renewable Energy is only via onsite renewables, or offsite company-funded renewable energy projects.
    Quite Good
    • Use of Renewable Energy is through a combination of onsite and/or offsite projects and market instruments.
    Adequate (Less Good)
    • Use of Renewable Energy only via Virtual Power Purchase Agreements (VPPAs), Renewable Energy Certificates (RECs) and Renewables Obligation Certificates (ROCS).
    • Use of Renewable Energy is via direct wire PPAs, green tariff energy, or a renewable integrated grid. 


     

    Scoring

    100

    The company has a strong programme.

    75

    The company has an adequate programme.

    50

    The company has an adequate programme but utilises renewable energy. 

    10

    The company doesn't have a formal programme but utilises renewables.

    0

    Based on available evidence, the company does not have programmes or targets.

     

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