ESG Initiatives: Why They Are Essential for Sustainability in the Utility Sector

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The current definition of ESG took shape in the mid-2000s – the first mainstream mention was in 2004, in a United Nations report entitled Who Cares Wins – but its content, with a strong ideal value, has spanned the centuries.

We might identify an inaugural moment in the tensions for better working conditions that characterized the industrial revolution , but it is certainly during the twentieth century that spontaneous and organized movements and more structured, institutional or “bottom-up” initiatives have followed one another with the aim of pushing companies towards fairer and more sustainable business practices. Efforts to stop the exploitation of workers, the denunciation of the financing of wars or oppressive regimes such as apartheid, the introduction of codes of conduct for joint-stock companies: these are all examples of the growing awareness by governments, investors and consumers of the power exercised by companies in shaping the reality that surrounds us. Control over this power has grown and today all corporate stakeholders (managers, directors, investors, analysts, brokers) are called upon to include ESG criteria in business models and long-term action plans.

At the same time, people's awareness and attention to issues of sustainability, respect india whatsapp resource and diversity in the workplace have increased considerably and, fueled by the urgency of the climate crisis, increasingly stringent environmental laws have been passed around the world.

ESG refers to issues that are not strictly part of the analysis and operations of organizations, but have nevertheless assumed considerable financial relevance. According to Bloomberg , global ESG assets are on track to exceed $53 trillion by 2025, representing more than a third of the projected $140.5 trillion in total assets under management.

Utilities have been engaged in ESG projects aimed at advancing the energy transition for years (emphasis on the letter “E” for Environmental). Few industries have changed as radically in recent years as public utilities : to stabilize the climate and limit risks to the environment, organizations operating in the sector have implemented long-term plans for decarbonization and the reduction of greenhouse gas emissions into the atmosphere . This is the “ net zero carbon ” approach, which seeks to balance the carbon dioxide produced by absorbing or removing or actively preventing the release of the same amount into the atmosphere through sustainable production processes and the exclusive use of renewable energy sources .