Meet organizational environmental objectives
Reducing an organization’s environmental impact is one of the
main motivations for buying green power. This may be driven internally by employees and shareholder initiatives,
and externally by a desire to improve brand image and perception of the organization among its stakeholders and
customers. If an organization is interested in creating a third-party certified environmental management system
(e.g., ISO-14001 certification for environmental performance) or is preparing for LEED (Leadership in Energy and
Environmental Design) certification for its building or facilities, purchasing green power could be important for attaining the certification standards.
Increase brand credibility through recognized initiatives
Participating in collaborative programs improves the
environmental credibility of the organization and may help in attracting new investment. Below are a few examples:
- CDP (formerly the Carbon Disclosure Project) works to improve corporate awareness through measurement and disclosure as a way to effectively manage carbon and climate change risk. CDP encourages companies and cities across the world to measure and disclose their environmental information.
- The Global Reporting Initiative (GRI) is an international, independent organization that helps businesses, governments and other organizations understand and communicate the impact of business on critical sustainability issues using the GRI Guidelines, which enable organizations to measure and understand their most critical impacts on the environment, society and the economy.
- The Center for Resource Solutions’ Green-e program for renewable energy certification can help organizations purchase green power with confidence, as the program sets standards for voluntary green power and certifies retail green power products.
Demonstrate civic leadership
Being among the first in a community to purchase green power is a demonstration
of civic leadership. It makes a statement that an organization is willing to act on its stated environmental and social
goals. Committing to green power can also demonstrate a company’s willingness to innovate and reduce long-term
business risk.
Generate positive publicity
Buying green power affords an opportunity for and builds on existing public recognition
and public relations activities. Companies that are in the public eye benefit from being responsive to the concerns of
environmentally conscious customers, shareholders, regulators and other constituents. Programs promoting green
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power, such as EPA’s Green Power Partnership or the Center for Resource Solutions’ Green-e Program provide assistance in reaching broad audiences to convey the benefits of green power purchases
Improve employee recruitment and retention
Leadership on renewable energy may improve employee morale,
productivity, retention and talent acquisition. A Tandberg-Ipsos MORI survey report of employees in 15 countries
showed 80 percent of survey respondents preferred to work for organizations with
an environmentally friendly reputation. A McKinsey survey found that company executives in the sustainability
leaders’ group (companies that are more adept at capturing value through sustainability) more often report that
sustainability is important for attracting and retaining employees than respondents at other companies.
Differentiate products or services
By purchasing green power, a company may be able to differentiate its products
or services by offering them as “made with certified renewable energy.” For example, businesses and consumer
goods recognized by the Center for Resource Solutions’ Green-e program can display the Green-e logo on their
company websites and product packaging to indicate use of 100 percent certified green power in the manufacturing
of the product.8
Some companies also find that producing their products with green power gives them an advantage
in marketing to customers who are trying to “green” their supply chains. For example, Steelcase, a furniture manufacturer, uses a scorecard to grade suppliers’ performance, including a sustainability metric. One of the scorecard’s listed
best practices is purchasing renewable resources. Steelcase has also helped suppliers negotiate volume pricing for
purchasing renewable energy certificates (RECs)
