Why using only renewable energy is a strategic business imperative

Unlock competitive advantage, resilience, and a greener bottom line through a renewable energy transition

The transition to a 100 percent renewable energy model by 2030 for internal company operations and by 2040 for franchise and third-party processes are ambitious goals – and a strategic imperative for forward-thinking businesses. This shift absolutely delivers environmental benefits but it also creates a competitive advantage, bolsters resilience, and drives long-term profitability.

The obvious business advantage is cost savings. The specifics will vary by region but, overall, the costs for renewable energy are declining. Moreover, in some markets, investing in greener options can help companies lock in more stable energy agreements and mitigate exposure to the volatility of electricity prices. Companies interested in self-generation can also take advantage of government subsidies, tax credits, and other incentives, reducing initial investments and shortening payback periods.

There are also benefits that are less quantifiable. Early adopters can gain a competitive edge by getting ahead of regulatory changes and customer preferences, setting industry standards, and influencing market trends. Progressive energy policies can also foster community goodwill and create local jobs.

A commitment to sustainability, including renewable energy adoption, is rapidly becoming a business imperative. Investors, consumers, and employees are increasingly demanding it. A recent Capgemini Research Institute report, A world in balance 2023: Heightened sustainability awareness yet lagging actions, found organizations are increasingly prioritizing social sustainability as defined by the UN Global Compact. Social sustainability programs identify and manage the impact businesses have on employees, customers, and surrounding communities at every stage of the supply chain.

Companies transitioning to renewable energy will encounter a number of options and products, and their selection criteria needs to be influenced by operational costs, environmental quality, organizational characteristics, regional specificities, and product features. This requires a systematic and data-driven approach to determine the optimal mix of options.