August 24, 2021
More and more corporate teams are turning to Virtual Power Purchase Agreements, or VPPAs, to reduce their scope 2 emissions. These agreements allow corporate buyers to directly cause new renewable electricity even with geographically scattered, majority leased locations. SR Inc created the Net Zero Consortium for Buyers (NZCB) in 2018 to help Member-Clients access competitive pricing through aggregated VPPA procurements (what SR Inc has styled the “VPPA 2.0”).
SR Inc Member-Clients and other corporate teams who are leading in developing environmentally and socially responsible value chains are now beginning to develop strategies for incorporating their ESG commitments into VPPA procurements. We are happy to announce that we are today publishing a new Member Advisory as part of SR Inc’s ongoing process to define and improve best practice in procurement of “purchaser-caused” RECs through VPPAs. The guidance aligns with SR Inc’s existing work to advance VPPA procurement through innovative requests for proposals (RFPs).
The Member Advisory, available to Member-Clients through SR Inc’s Digital Library (contact info@sustainround.com if you need help accessing), includes five major areas where corporate teams can maximize impact in procurement:
These topics represent emerging areas of interest that SR Inc Member-Clients will pioneer to the extent permitted by the VPPA markets in the U.S. and Europe that increasingly favor developers as buyer competition increases. The innovations explored in this guidance address aspects of environmental justice, material harm, emissions reduction, and community benefit. For example, by siting VPPAs in America’s dirtiest grids, off-takers can maximize avoidance of emissions and pollutants. By paying attention to materials used for the physical infrastructure in solar plants, companies can reduce toxicity in the environment and promote a circular economy. By engaging proactively with the community, developers can ensure positive public opinion, promote local areas, and advance a just transition to a clean energy economy.
For almost a decade SR Inc has advised Member-Clients on developing and improving RFPs for VPPA transactions. As early as 2012, SR Inc’s REPS team advised some of the pioneers in the VPPA market to incorporate ESG considerations into RFP development. The market has unfortunately lagged, leading to rejection of those ESG aspects by developers before 2018. The developer community’s recent realization of the importance of ESG factors is encouraging. SR Inc looks forward to again adding ESG provisions into RFPs that go beyond focusing on the ESG competence of the responding developer to include a focus on the proposed project and planned development. As part of our mission to advance the development and adoption of best practices in more sustainable business, SR Inc will work with pioneering Member-Clients to ensure this field continues to develop over time.
As an Analyst at SR Inc, Julia Rothfield supports Member-Clients with outsourced program assistance and creates original research to help clients drive industry best practice in areas ranging from emissions reduction and ESG reporting to innovative renewable energy procurements.
Before working at SR Inc, Julia worked as a Sustainability Consultant for footwear distributor Weyco Group, creating a GHG inventory aligned with the globally recognized GHG Protocol and working to reduce impact in their supply chain. She has additional experience providing sustainability support services from working with consulting firm Scott Echols Group, LLC and interning at TerraCycle. Julia graduated with a B.S. in Environmental Science from Brown University. There, she worked with the Brown Office of Sustainability for three years, helping Brown reduce waste to landfill, measure Scope 3 emissions, and institute a campus-wide Sustainability Plan. During college, Julia also volunteered with the Food Recovery Network and the organic farming consortium World-Wide Opportunities on Organic Farms (WWOOF).
