What business leaders should consider to achieve sustainability goals

Freddie Sarhan is the CEO of Sapphire Technologies and has extensive experience in international business development and operations.

I believe leaders need to start implementing sustainable solutions in their business if they are serious about contributing to achieving net zero goals by 2050.

Sustainability is essential, especially for business leaders working in the energy and renewable energy sector. But simply investing in sustainable energy does not yield results zero emissions. The way you as a leader respond to sustainability can impact companies across the board, both positively and negatively. While the US has imposed multiple commitments, constraints and efforts to address global warming, a recent report of the UN found that global emissions are on track to actually increase by 10.6% compared to 2010 levels, highlighting that the world is not on track to reduce greenhouse gas emissions.

It is essential for leaders to take action and make lasting change, even in the midst of socio-economic disruption and ongoing war. Despite these hurdles, there are immediate steps you can take to achieve sustainability goals, reduce your carbon footprint, and increase your return on investment (ROI) at the same time.

Rethinking renewable energy sources

If we step back and look at overall sustainability goals, there is a plethora of technologies leaders can choose from to make their current operations more sustainable. Not sure where to start? Investigate internal operational processes and invest in sustainable practices such as green hydrogen and innovative green technologies. Leaders should also consider how these sustainable practices will affect overall economic goals.

Many leaders think of solar and wind when the term renewable is used. And technically, both are solid sources of renewable energy. However, energy recovery systems such as turbo expandersthat help recover waste pressure and convert it into electricity, or heat recovery ventilators (HRVS), which preheat fresh air from stale exhaust air, are other efficient, economical alternatives or additions to sustainability initiatives.

Technology investment

In the first half of 2022 renewable energy sources met the growth in all global electricity needs, demonstrating that clean energy is a practical future. Once leaders have a solid understanding of what qualifies as renewable and how their organizations can start working on sustainability promises, it’s time to take a closer look at the technologies available in your specific industry. The right technology also gives you a competitive advantage.

For example, it has been reported that companies “an average of nearly 80% energy savings of running business applications in the cloud instead of on-premises infrastructure.” In the gas space, many organizations are working together to make current gas pipelines more efficient, including by improving natural gas power plants and regulating stations.

Sustainable ROI

From a business perspective, sustainability is key to increasing ROI and attracting investors. As more investors turn their attention to green investments and prioritize ESG-related programs, I see an increase in the number of legitimate cleantech companies. Sustainability can increase profitability through improved efficiency, a positive reputation and future resilience to regulations.

Companies around the world are prioritizing sustainability efforts to reduce emissions and meet climate goals. While this is a step in the right direction, it is also a critical step in being accountable and following these goals well. Leaders must first scope of emissions and how contributions are properly recorded. For example, the U.S. Environmental Protection Agency (EPA) defines scope 1 emissions as “direct greenhouse gas (GHG) emissions that occur from sources controlled or owned by an organization.” Understanding the basics of emissions should be a top priority going into the new year.

In addition, it is essential that managers are open and receptive to the triple lower limit. This is a business concept related to measuring social and environmental impact in addition to financial performance rather than just focusing on generating profit or the standard outcome. Investing in sustainable practices and prioritizing the triple bottom line drives higher ROI, overall business efficiency and consumer confidence.

To reach net-zero emissions by 2050, all business leaders must prioritize sustainability and invest in cost-effective green energy technologies to transform the way we use electricity. I see the coming year as a time to make climate commitments count and push other leaders to do the same.

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