Leading Sustainability Executives Discuss 2013 Renewable Energy Strategy at SR Inc’s Q3 Executive Symposia

Sustainability Roundtable Inc held its most recent Sustainable Business & Enterprise Roundtable (SBER) Executive Symposium: Advanced Energy Strategies & Renewables on September 19th at SBER Member-Client NetApp’s offices in Sunnyvale, CA and on September 26th Member-Client Interpublic Group’s office in Manhattan.

The Symposia built upon SR Inc original Executive Guidance, Guidebooks & Tools, and case studies, as well as on-going related work with SBER Member-Clients. Facilitated discussions at both events examined management best practices in Advanced Energy Strategies and Renewable Energy Strategy in 2013 in the U.S. and internationally. The presentation on Renewable Energy in 2013 supported the second of two discussions at both symposia. 

Renewable Energy in 2013
This year an increasing number of leading companies have made commitments to increase their renewable energy procurement, thanks in large part to decreasing installation costs, improved financing models, and a greater focus on corporate resiliency. Leaders from SBER Member Companies MetLife, McKesson, Salesforce, and a leading Global IT Company shared their strategies to prioritize additionality and energy reliability while ensuring long-term savings and environmental performance.

The following highlight the key takeaways from both the West Coast and East Coast discussions:

• Member-Clients in both meetings grapple with optimizing strategy for renewable energy—between on-site installations, wind and solar RECs, PPAs, and structured supply agreements. In 2013 the scale is tipping toward on-site PV installations (directly financed or PPA), though most companies still focus on RECs and green pricing.

• Member-Clients weight the three objectives for renewable energy projects to determine which strategies to pursue: 1)project additionality; 2) financial cost and payback; and 3) marketing and brand value. One Member-Client shared that they focus only on additionality at no cost, due largely to their global brand.

• For one Member-Client with global operations in the UK, India, China, and South Africa, the US is the market with the greatest opportunity for renewable projects thanks to tax incentives in some of the company’s key operating states (e.g. NJ, CA, TX).

• Member-Clients are beginning to take advantage of newer strategies to buy and sell renewable energy both internally and among their suppliers. Larger companies are beginning to see utilities offer targeted tariffs with a renewable energy component, and even smaller companies are gaining traction selling renewables as a risk hedging strategy.

Selected Relevant SBER Executive Guidance:

• SBER-ELC Member Briefing: Market Structures for Conventional and Renewable Energy
• SBER-ELC Member Briefing: International Markets for Renewable Energy Certificates (RECs)
• SBER-ELC Member Briefing: Market Structures for Conventional and Renewable Energy
• SBER-ELC Member Briefing: Solar Power Purchase Agreements (SPPAs)

Is your company exploring advanced energy management or renewable energy strategies? We’d love to hear from you. Tell us about it in the comments section below. Please check out our Digital Library for full reports of related research, or reach out to your SR Inc advisor directly. To find out about SR Inc membership, please contact us.