As the global climate crisis continues to worsen, the public’s urgent call for sustainable business practices can no longer be adopted by global companies as hypothetical goals. With more than 60% of the world feeling “exposed and vulnerable to a risk linked to climate change or pollution,” taking tangible actions toward sustainability is necessary to not only ensure the livelihood of communities everywhere but to rethink what longevity looks like for businesses. Striking a balance between what’s good for the environment, for the people who inhabit it, and for the businesses who bear the most responsibility in ensuring they respect the two, is no easy feat. And, in fact, is one that inspires at least one symptom of psychological distress in 16% of American adults.

The need for action is desperate and clear, but the development and dissemination of action plans by major businesses can often sound too cloudy to be a trustworthy solution. The promising jargon many companies are adopting in their mission statements can inspire hope from their titles alone. Concepts like “net-zero commitments,” “decarbonization strategies,” and “renewable infrastructure” seem to speak with conviction, alluding to a near future free of excessive carbon emissions and reliant on clean energy sources.

While lessening future environmental harm may be the goal of many big businesses, what shape do these commitments to renewable energy take? How does adopting these serious commitments affect everyday operations? Inputs from Schneider Electric and Siemens elucidate the reality of the companies’ roles in adopting more renewable energy for a future that aims to adjust its production to meet the needs of environmental safety.

Creating and meeting goals regarding renewable energy use must require widespread, enforced guidelines that adhere to the company’s sustainability goals. Schneider Electric, a company that specializes in the electrification, automation, and digitization of smart industries, relies on interconnectedness for its most basic functions and principles as a company.

“Schneider Electric has its own Net-Zero commitments, including renewable energy as part of the mix and energy efficiency, among others,” says Soruch Kheradmand, Global Head of Sustainability at Schneider Electric. “Our commitments are in line with RE100, which requires us to consume 100% of our electricity from renewable sources.”

Programs like RE100, the renewable energy initiative that encourages big businesses to use 100% renewable energy in their operations, can provide important guideposts for those obliged to keep sustainability at the forefront of their values.

When one sustainability goal is in mind, others usually follow suit, and companies can create a baseline analysis to assess what adjustments will have the greatest effect on their environmental impact. “At Schneider, we believe electrification, energy efficiency, and renewables are the best places to start decarbonization,” says Kheradmand. “Being data-driven is the best way to have a clear view of the most relevant and profitable actions to take first. Those are the low-hanging fruits you want to start from to maximize impact.”

Following guidelines laid out by big initiatives can generate inspiration and motivate a company to remain committed to its changes. But, as Kheradmand explained, an inward, thorough analysis of business operations is likely to set up a company with a better, more effective plan of targeting progress.

In taking the initial steps to incorporate renewable energy across a business’s operations, there are several ways to go. The United Nations recognizes solar, wind, geothermal, ocean energy, and more as some of the most common sources of renewable energy. These are all derived from natural, plentiful sources and can be replenished at a higher rate than they can be consumed. 

For Siemens, an industrial technology company focused on automation, transport, health technology, and more, incorporating renewable energy manifests in their physical workplaces as much as their plans on paper. 

“We have solar installed or planned at several of our facilities as part of efforts to incorporate renewable energy while improving the reliability and availability of power,” says Stacy Mahler, Head of Sustainability at Siemens Smart Infrastructure. “Having renewable infrastructure at our facilities provides a visual signal to our employees and anyone visiting those facilities of our commitment to sustainable energy. And because that infrastructure includes quite a bit of Siemens’ own technology, it also serves as a testament to the impact our everyday work has on the energy landscape.”

By including and using actual sources of renewable energy at their facilities, not only does Siemens demonstrate tangible shifts toward solar power, but it also demonstrates its commitment as a company to, as its statement says, serving the energy landscape.

Many of the public’s calls for sustainable business practices easily point out the hypocrisy of big companies that may claim to have environmental values but don’t match their actions. Having their philosophies and actions aligned can create trust among the companies’ employees as well as the public.

Regarding progress in their business operations, both Siemens and Schneider Electric have expressed their focus on reducing their Scope 1 and 2 emissions—a term that falls into the same nebulous category of somewhat unapproachable sustainability jargon. Mahler, though, explains what this means pointedly for Siemens.

“Scope 1 and 2 emissions originate from the energy required to maintain core operations of our buildings, manufacturing, and company-owned transportation,” says Mahler. “Achieving net-zero operations in these areas equates to a reduction in annual emissions of over 650 kTCO2e by 2030 (from 2019 baseline), and represents the meaningful action needed to ensure we do our part in limiting global warming to 1.5 degrees Celsius.”

These figures and deadlines come primarily from the United Nations Net-Zero Coalition guidelines, aiming for a 45% global decrease in carbon emissions by 2030 and to keep global warming to no more than 1.5 degrees Celsius, as called for in the Paris Agreement.

“Operationally, this translates to Siemens’ commitment to net-zero buildings, an all-electric fleet for company-owned vehicles, and 100% renewable energy to power operations, but also includes the investment in improved energy efficiency and digitalization of our operations,” says Mahler.

By working in coordination with these global guidelines and taking visible action toward incorporating renewable energy sources across its facilities, Siemens combats the out-of-reach sustainability plans. With real goals like an all-electric fleet and a total conversion to renewable energy, employees and customers have a better idea of what progress looks like in pressing times.

When looking toward the future, for other big and small companies alike, adopting renewable energy is a vital part of embracing more sustainable measures. With a host of new options growing in popularity and accessibility, from geothermal to wind power, choosing the most effective, economical option can be an intimidating task. For these two companies, though, there seems to be a clear preference.

“Rooftop solar is the fastest growing and most promising technology currently due to its maturity, good performance, and competitiveness,” says Kheradmand. 

Though new sources likely need to be combined with other energy storage technology moderated with demand-side management for the greatest efficiency, solar power continues to provide a scalable and affordable option for businesses—as easy as installing panels at many of its facilities.

“Policy and regulation also continue to play a big part in the potential for renewable growth, and while there is still a long way to go, among renewables, solar has one of the more favorable regulatory environments to support growth in the near term,” says Mahler.

Learn how solar initiatives can align with your business objectives and efficiency goals to create value, while reducing environmental impact. Read more…

By familiarizing themselves with some of the most approachable options for renewable energy and assessing their compatibility with their facilities, companies can start to incorporate renewable energy into their widespread practices. These are not just goals to gain the trust of the public; these are actions that must be taken against a worsening climate crisis to safeguard the lives of those both inside and beyond the buildings of big companies. 

Serpico, a graduate of Rutgers University, is currently working as the assistant editor for Facility Executive and Turf Magazine. 

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