Renewable energy procurement
Procuring energy from renewable sources, such as solar, wind, or hydropower, is a key strategy for reducing carbon emissions. Organisations can enter into power purchase agreements (PPAs) or buy renewable energy certificates (RECs) to support the generation of clean energy.
Carbon offsetting
In cases where it's challenging to eliminate all emissions, organisations may invest in carbon offset projects through their energy procurement. This involves funding initiatives that reduce or remove greenhouse gas emissions, such as reforestation projects or methane capture initiatives.
Demand management
Strategic energy procurement can involve efforts to improve energy efficiency within the organisation. This includes implementing technologies and practices that reduce energy consumption and managing demand to optimise energy use during peak and off-peak periods.
Emission reduction targets in contracts
Organisations can embed emission reduction targets in their energy procurement contracts. This may involve setting expectations for suppliers to provide energy with lower carbon intensity or to implement measures to reduce emissions in their own operations.
Transitioning to low-carbon technologies
As technologies evolve, organisations can use their energy procurement strategies to transition to low-carbon or zero-carbon technologies. This might involve adopting electric vehicles, utilising energy storage solutions, or incorporating other technologies that contribute to a cleaner energy system.
Carbon accounting and reporting
Accurate tracking and reporting of carbon emissions associated with energy consumption is crucial. Energy procurement teams play a role in collecting data and ensuring that the organisation can measure progress toward net zero goals.
Integration with overall sustainability strategy
Energy procurement should align with the broader sustainability goals of the organisation. This integration ensures that the entire supply chain, including energy sources, contributes to the organisation's commitment to reducing its carbon footprint.
Engaging suppliers
Energy procurement involves collaboration with suppliers. Organisations can work with suppliers to encourage sustainable practices, energy efficiency improvements and emissions reductions throughout the supply chain.
Policy engagement
Energy procurement teams can engage with policymakers and advocate for supportive regulations and policies that facilitate the transition to clean energy. This may include advocating for incentives for renewable energy adoption and regulatory frameworks that promote sustainability.
