Should Your Business Switch to Renewable Energy?

A recent study conducted by Synergy Business Consulting and YouGov noted that 70% of business owners are already “woke” or conscious about climate change and the need to transition to more sustainable operations. In fact, they also expect other businesses to adopt sustainability for the social good. What used to be a trend in the business industry is now a set path.

With this mindset comes their need for solutions on how to mitigate climate change – top of mind is to switch to renewable energy (RE) to power their energy-intensive operations. Why exactly do businesses switch to RE? What benefits does shifting to RE bring to business operations?

 

Reasons Why your Business Should Switch to Renewable Energy

1. Business Owners and CEOs are forging the path to sustainability.

Business owners or CEOs recognize the impact of climate change on their businesses – their electricity supply and costs, raw materials, and whole supply chain. The long-term survival of the business rests on mitigating climate change or primarily, reducing carbon emissions from their operations. They recognize that electricity is the main contributor to carbon emissions in their operations. Reducing these carbon emissions through switching to renewable energy is a big part of the solution.

This is also an emotional decision. Being aware that the effect of climate change exacerbated by long-term effect of carbon emissions on the planet, business owners and CEOs opt to transition to RE for their family’s future.

2. Consumers are demanding sustainability from businesses and it is a big deciding factor for them to decide on switching.

The majority of Filipino consumers consider themselves to be green-inclined and are one of the most conscious markets within the APAC region. The high awareness stems from experiencing effects of climate change through typhoons that ravage affected areas or waste problems, among others.

• 77% of end users believe RE is the future
• 60% are willing to pay more for RE
• 60% will buy from socially and environmentally responsible companies
• 50% only buy or “as much as I can” buy from socially and environmentally responsible companies* Source: Synergy-YouGov Survey (April 2022; n=3,544)

Additionally, a separate study conducted by Nomura Research Institute (NRI), consultant Jonas Marie Dumdum, also noted that a growing number of Filipino consumers support eco-friendly products and prefer brands that try to reduce harmful impacts on the planet.

Business owners and CEOs recognize this – thus, they put importance on meeting consumer demand to ensure the viability and profitability of their businesses.

3. Even businesses demand sustainability from each other.

More and more businesses, investors, and stakeholders demand compliance with global best practices on sustainability – such as the attainment of Environmental, Social, and Governance (ESG) Standards and supporting the UN Sustainable Development Goals (SDGs), prior to transacting with other businesses.

This is particularly true for Philippine units of foreign-owned companies that have head office mandates on sustainability.

To continue doing business and drive growth, it is thus becoming imperative for businesses to shift to sustainable operations and set their own ESG and SDG targets.

Businesses are each other’s ecosystem of suppliers, and the trend is that they have been partnering with other companies who have the same mindset toward sustainability. If there is a vicious cycle, this trend among business owners is the opposite – it is a virtuous cycle; green-minded companies require that their partners are also green-minded.

With the awareness of consumers and their demand for businesses to become sustainable, putting forward a sustainability agenda creates an improved brand image which is salient in customer acquisition and retention. Rallying for sustainability and taking that step in switching to renewable energy can encourage environmentally conscious customers to do business with businesses over their competitors.

 

How can businesses make the switch to renewable energy?

The easiest way for businesses to transition to renewable energy is via the Department of Energy (DOE)’s Green Energy Option Program (GEOP).

The GEOP is a game-changing mechanism that gives businesses with a peak demand of at least 100 kW for the past 12 months the option to choose renewable energy as their source of electricity and to buy from their preferred renewable energy supplier. The electricity bought from their GEOP supplier replaces the generation charge of distribution utilities for these customers.

ACEN RES, the supply retail electricity unit of the Ayala Group, can help you in joining this renewable energy revolution and make the switch. Contact ACEN RES for a free, no-commitment consultation.

 

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ACEN Renewable Energy Solutions (ACEN RES) is the supply retail electricity unit of the Ayala Group. It is a licensed retail electricity supplier and renewable energy solutions provider powering businesses and industries through the Retail Competition and Open Access (RCOA) and the Green Energy Option Program (GEOP).

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