Managing environmental, social, and governance (ESG) issues is critical for power companies. Not only are investors, customers, and other stakeholders demanding lower carbon emissions, but companies that are not taking a holistic approach to sustainability will also fall behind.
Recent events have shown that those power companies without a credible ESG plan will face a backlash in the courts, boardrooms, and the public arena. This trend will intensify in the coming decade. Power companies bear much responsibility for climate change and its resulting social effects. Those that can prove they are doing something about it – not just greenwashing – will emerge as leaders.
Leading ESG consultants in the energy sector
Investment in renewable, low-carbon generation methods has become much easier due to significant reductions in price, especially in offshore wind. Leaders in the power industry are reducing exposure to fossil fuel generation and replacing it with low-carbon sources. At the consumer level, more individuals now want to power their homes and businesses with renewable power. Not only does renewable generation improve sustainability credentials, but it is also beginning to improve revenues.
Leading adopters of ESG in the energy sector include Iberdrola, EDF, Orsted, Vestas, NextEra Energy, Enel, EDF, NRG, NextEra, National Grid, and Iberdrola.
Discover the leading ESG companies in the energy industry
Using its experience in the sector, Energy Monitor has listed some of the leading companies providing products and services related to ESG in the energy and utilities sector.
The information provided in the download document is drafted for power executives and technology leaders involved in power ESG solutions.
The download contains detailed information on suppliers and their product offerings, alongside contact details to aid purchase or hiring decisions.
Amongst the leading providers of environmental services to the power sector are Arup, Mott MacDonald and AECOM.
For full details (including contact details) on the leading companies within this space, download the free Buyer’s Guide below:
Frequently asked questions
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What is ESG, and why is it important for power companies?
ESG (Environmental, Social, and Governance) is a framework that helps companies assess their sustainability and ethical impact. In the power sector, it is crucial as stakeholders demand lower emissions, sustainable energy practices, and responsible governance. Power companies with strong ESG policies are better positioned for long-term success, avoiding legal and reputational risks.
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How can power companies reduce their carbon footprint?
Power companies can reduce their carbon footprint by investing in renewable energy sources, improving energy efficiency, and adopting cleaner technologies such as carbon capture. Shifting away from fossil fuels and embracing innovations like smart grids and electrification also contribute to lower emissions.
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What role does renewable energy play in ESG for the power sector?
Renewable energy is a key pillar of ESG for the power sector, as it directly reduces carbon emissions and reliance on fossil fuels. Solar, wind, and hydroelectric power are among the most common renewable sources. Companies leading in ESG often prioritise renewable energy projects to enhance sustainability and meet regulatory requirements.
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How does ESG influence investment in the power industry?
Investors are increasingly factoring ESG performance into their decisions, favouring companies with transparent, responsible practices. Power companies with strong ESG strategies tend to attract more investment, as they are viewed as lower-risk and more aligned with future energy trends, especially as governments push for decarbonisation.
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What challenges do power companies face in implementing ESG strategies?
Challenges include the high cost of transitioning to renewable energy, regulatory hurdles, and balancing short-term financial pressures with long-term sustainability goals. Companies must also ensure transparency and avoid "greenwashing," where claims of sustainability are made without meaningful action. Successful ESG implementation requires ongoing commitment, innovation, and collaboration across the industry.