How can CLEANENERGY contribute to the efficacy of CSR budget?
The Companies Bill, 2012 recently passed requires large organizations to dedicate a percentage of their net profit to activities related o Corporate Social Responsibility. Investments in sustainability can be made by organizations using renewable energy. This will bring about a rapid return. Purchase or investment in clean power projects helps to achieve sustainability goals and meet corporate obligations. Investing In Renewable Energy (RE), therefore, is an investment in long-term sustainability.
In August 2013, the President gave his assent to the Lok Sabha-passed Companies Bill. It replaces the 1956 Companies Bill. The new Bill requires large businesses to spend at the minimum two percent of their average net profit for the three preceding financial periods on Corporate Society (CSR). Companies must include this amount in their financial year budgets. The Bill also gives an overview of the activities companies can use their CSR budget.
Sustainability will be one of the investment options in the CSR funds mandated under the Companies Bill. This category targets to reduce the adverse social effects of carbon emissions and energy waste. Many clean energy technologies are now economically viable and affordable. Clean energy sources can produce cost-effective power long-term at predictable rates. Clean energy can also be used to reduce Scope II GHG emissions (GHG/Carbon dioxide equivalent emissions from fossil fuel-based electric consumption). RE is a good investment choice for investors seeking stable, long-term returns. For consumers, it offers a hedge against increasing power prices. RE can be a cost-saving option for companies with CSR budgets.
Energy from Renewable Energy – Economic Returns for Environmental Investments’
Is Renewable Energy Viable?
India is dependent of thermal power as it provides most of its electricity. The availability and costs of thermal power depend on the availability of conventional fuels, such as coal or gas. Short term demand and supply pressures are increasingly dictating the market for these fuels. It is now difficult for thermal power producers to reconcile a volatile input environment with the demand from consumers for low-cost and long-term visibility.
Savings on Power Bills
Win and solar electricity have no material cost. This makes them unaffected by conventional fuels. Companies who source solar power or wind power will see significant savings over the expected 20-25 year lifetime of these power plants. Visibility and Insulation Utility Budgets can be determined by Market Buyers or investors in RE. This will allow them to determine long-term costs for power. They can lock down at fixed prices, thereby hedging against rising power prices supplied by DISCOMS. Financial Benefits – A shorter time frame for project payback investors can benefit from accelerated deduction and a 10-year tax holiday. This significantly reduces the time it takes to pay back. This is often a key criteria for utility managers in justifying investments in such projects.
How Green is Renewable Energy.
RE can help environmental and sustainability managers meet their goals efficiently with limited budgets.
Going Eco – Carbon Emissions Reduction
The consumption of grid electricity accounts for a large part of carbon emissions. Sourcing renewable energy (RE) helps managers to minimize Scope 2 and even Scope 1 emission from their organizations.
Goals of Business Sustainability
Sourcing Renewable Energy addresses environmental targets organizations have established as part of Business Sustainability Programs. SOURCING RE can also diversify input cost risk for industries with high power purchase budgets. It reduces the likelihood of carbon tax being imposed through indirect or direct routes, like Renewable Purchase Obligation (RPO). Image Strengthening. The Carbon Disclosure Project and Global Reporting Initiative allow organizations to publish their GHG- and sustainability performance. CDP ranks the Carbon Disclosure Leadership Index leaders each year. GRI rates disclosure based upon the comprehensiveness of companies’ actions. Platforms for Industrywide Recognition like the CII Sustainability Awards or Business Excellence are designed to reward outstanding performers who have made significant contributions in sustainability and the environment.
