Sustainability is all the rage these days, and for good reason, considering the myriad negative effects of climate change. To combat the issue, governments around the world have implemented various policies, procedures, and initiatives to reduce emissions on a global scale. Business leaders across industries are thus looking for ways to balance sustainability with profits — by investing company earnings in green initiatives such as renewable energy and carbon offset credits, for starters.
Green initiatives are leading the way towards a more sustainable future, and greater returns for eco-conscious companies. In this way, energy suppliers are at the forefront of the green initiative movement, thanks in large part to consumer pressure on industries and government policies that favor sustainability over emissions-heavy production methods.
As an increased call for climate activism can be felt around the world, the fossil fuel industry must brace for change. Here’s what you need to know about how the energy industry is learning to embrace sustainability, by mindfully managing profits and investing in green initiatives.
Sustainability by the Numbers
Sustainability can help boost a company’s bottom line in the form of increased sales, tax benefits, and government subsidies. While there are numerous financial benefits to adopting a sustainable business model, it’s also a long-term endeavor with tons of initial costs. It may take years for a business to see profits from sustainable initiatives, but that’s a risk that all investors take.
For the greatest chance at success in terms of making money from green initiatives, business leaders should have a keen awareness of what sustainability actually means: A sustainable business model focuses on profits alongside various environmental and social considerations, for the betterment of the planet as a whole. Further, whatever the nature of your business, investing in alternative energy and technology may earn you incentives and help maximize your profits.
One way to help offset carbon emissions, company-wide, is via renewable energy credits. Also called regulatory credits, this type of investment allows a company to avoid hefty fines by purchasing credits from clean energy suppliers and manufacturers. Interestingly, clean energy credits themselves can be a huge moneymaker.
Photo by Paula Prekopova on Unsplash
Industry, Carbon Emissions, and Digital Technology
Around the world, the transportation industry is responsible for an exorbitant amount of pollution. In the United States alone, the burning of fossil fuels for transportation purposes is the largest contributor to total greenhouse gas emissions, beating out the energy industry itself. Numerous states now have regulations in place that require automakers to be more mindful of their emissions, with hefty fines for violators.
As such, it should come as little surprise that the auto industry is working to find solutions of its own, and it’s here where clean energy credits come into play. With governments around the world looking to achieve net zero carbon emissions by 2050, or even earlier, the auto industry is increasingly under scrutiny. Car manufacturers around the world are required to produce a certain amount of zero-emission vehicles (ZEVs) per year to receive renewable energy credits.
Conversely, those companies can offset their carbon emissions by buying credits from clean vehicle manufacturers like Tesla. It’s a profitable business model, with Tesla raking in some $679 million in carbon credit sales in the first quarter of 2022. Fiat Chrysler and General Motors are among Tesla’s biggest customers in terms of carbon credits.
Digital currency is another big moneymaker for the dynamic tech company, as well as a potential green initiative for companies looking to transition to a more sustainable future. In recent years, online shopping has risen from relative obscurity into a juggernaut, and research indicates that eCommerce can positively impact the environment. eCommerce companies are typically less reliant on emissions-heavy transportation than their brick-and-mortar counterparts, for starters.
Scaling and Investing into the Future
What’s more, sustainable eCommerce models help attract customers, and you can use those increased sales to further drive your sustainability efforts and boost profits. In this way, investing in green initiatives (whether in the form of clean energy credits, improved waste management, or something else altogether) allows savvy business owners to scale up. It’s important to note that scaling and growth aren’t always synonymous, at least in the business world.
According to tech experts, “scaling means increasing revenue while keeping costs down,” and it can be done sustainably. For energy industry leaders, that means investing in clean forms of energy, including solar and hydropower, on a larger scale. Scaling your business also involves listening to customer needs and rewarding loyal, hard-working employees. In fact, employee satisfaction is a key component for business growth, and continued profits, within the energy industry and beyond.
Key Takeaways
In a world vastly impacted by carbon emissions and other forms of harmful pollution, sustainability has become a necessary part of life and business. Within the energy industry and beyond, a sustainable business model can also be your key to increased profits and long-term scaling efforts, as you reap the benefits of green incentives and carbon tax credits.
About the Author
Amanda Winstead is a writer focusing on many topics including technology and digital marketing. Along with writing she enjoys traveling, reading, working out, and going to concerts. If you want to follow her writing journey, or even just say hi you can find her on Twitter.