As we all know, the overuse of limited fossil fuels harms our environment and also destroys the available fossil fuels for our generation (as these fossil fuels take thousands of years to make). Solar energy is the ultimate solution for this environmental problem as this not only reduces hazardous impacts on climate but is also an energy source that is available in abundance.
Many global organizations are attracted towards solar energy and use it for their operations. Organizations are also producing products that require solar energy and setting an example of a sustainable future for the world. It also works in any’s favour by increasing its recognition in the industry and getting government validation on its products and services. Companies are looking for certifications like ESG, SDG and BRSR, which automatically add value to their long-term goals.
But the big question is how solar energy fits the frameworks of ESG, SDG and BRSR.
Let’s discuss what these three frameworks are and their solar connection.
ESG
ESG ( Environmental, Social and Governance) framework ensures socially responsible business practices that not only cater to their profits but are also credible from a societal perspective.
Solar energy is the way we can protect our environment without depending upon fossil fuels which are hazardous as well as limited in nature. Using solar energy contributes to the activity of social good as it reduces carbon footprints and provides a healthy atmosphere for society.
Due to its social good nature, the government also encourages it via their schemes and benefits them with subsidies or other governmental policies. The government has also announced a 110% increase in the previous year’s solar energy budget allocation and solar projects to assist with industrial activities.
ESG frameworks give the core values that arrange associations in their reporting undertakings, while ESG guidelines hoist these standards into exact and practically identical divulgences.
SDG
SDGs or Sustainable Development Goals consist of goals set for ensuring peace, happiness and prosperity in the world. There are seventeen SDGs set by the United Nations for ensuring reducing poverty, reducing inequality, increasing health efficiency, advancement of economic growth, equality in education and tackling climate change issues.
Solar Energy usage fulfils a few Sustainable Development Goals. Let’s discuss them one by one and also understand how it fulfils the goals.
“Affordable and Clean Energy ” – As we all know, Solar energy is the most abundant and clean energy that we can use to generate electricity and for other activities. Its abundance makes it affordable and clean energy because it does not produce any carbon footprint.
“ Decent Work and Economic Growth ” – Solar Power usage ensures decent work and also contributes to Economic growth as well.
“ Sustainable Cities and Communities ” – Solar panel installation can convert a city into a sustainable city. With the policy announcement of the government, communities were encouraged towards it.
BRSR
Now, after discussing ESG and SDG, let’s deep dive into understanding BRSR i.e., Business Responsibility and Sustainability Reporting. BRSR was introduced by SEBI in the year 2021 to promote responsible and sustainable business practices and it is a mandatory framework requirement to be listed in the top thousand companies.
Gillette Pvt. Ltd. – ( one of the topmost companies in safety razors and grooming products ) comes under BRSR because of its goal of running its operations with sustainability. They have set their goal to reduce carbon footprint while manufacturing their products by 2030.
Solar Powered Panels can generate electricity and fulfil other operations needs through sun rays without using harmful fossil fuels. It can push businesses to use environmentally friendly practices to get their operations done.
A few companies have started taking steps in this area as a popular company – P&G announced its first solar plant in Hyderabad for its functions.