The global pandemic momentarily took the world’s attention away from the climate crisis. But the glaring threats of a broken climate have quickly brought back much-needed attention. The fact is, today, ordinary citizens are increasingly concerned about the effects of a critically unbalanced ecosystem on their future and that of their children. And they are demanding action.
This growing movement is making it no longer possible for governments to turn a blind eye to fixing the broken climate. Businesses are equally under pressure to act more responsibly. But they’ve also realized that there are massive opportunities that lie within positive climate action. It’s no longer about “profit vs. planet”. Today, many are driven by the possibilities of a world where “profit + planet” is very much a reality.
As a result, we’re seeing accelerated growth in climate-led action from not just citizens but also governments and corporations. And this alliance is becoming stronger, although slowly in some regions than others. Renewable energy, in particular, will play a crucial role in these efforts. It represents opportunities for both the planet and its citizens. Let’s see what it has in store for us in 2022.
Renewable energy trends that will impact businesses in 2022
Here are 5 trends that will change how companies think and operate in 2022.
1. Increased adoption of clean energy business models.
More businesses are seeing the potential of clean energy for both the planet and their bottom lines. So, the integration of renewables will continue to increase in 2022, from renewable electricity generation to using clean energy to power their operations.
You can already see this in action. For instance, in 2021, KFC set an ambitious plan to power 1000 restaurants with renewable energy by the end of the year. It has already invested in green buildings in Malaysia, South Africa, and the UK, with Malaysia producing 18% energy savings.
Zara is another brand that has set ambitious goals to integrate clean energy. By 2025, it’s planning on switching 80% of the energy used by its stores, factories, and offices to sustainable sources.
2. Greater integration of technology.
Technology innovations, as always, will continue to play a major role in advancing renewable energy adoption among businesses.
In 2020, Amazon pledged $2 billion for innovation to curb its climate impact. It’ll fund a range of initiatives, including renewable energy generation and battery storage. And Google is investing in powering 100% of its data centers with sustainable energy by 2030. This won’t just help minimize its energy footprint. Google understands that, very soon, clean energy data centers would be in high demand by both individuals and businesses that are conscious of their climate impact. Meanwhile, concepts like smart grids will expand further in powering cities all over the world.
Innovative technologies have been crucial to increase renewable energy adoption, bring greater cost efficiencies, and resolve energy challenges with clean solutions. AI and big data, for instance, could be pivotal to achieve better efficiencies and drive down costs.
3. More clean energy supply chains.
Businesses will extend their focus to the supply chains, too, as they aim to scale their clean energy footprint and amplify the benefits their operations could yield. As a result, they’ll hold their suppliers and business partners accountable for their energy footprint. This will also help build more awareness on how renewables could deliver cost advantages for them in the long run.
Apple, for example, has already recognized the importance of integrating supply chain partners to minimize the overall climate impact of its products. It’s planning to support 110 of its manufacturing partners to adopt 100% renewable energy by 2030. Meanwhile, Amazon is already working on putting 10,000 electric delivery vehicles out on the streets by 2022. This is part of its accelerated plans to run 100% on renewable energy by 2030.
4. More investor interest in renewable energy.
Investor interest in renewable energy has been steadily growing during the past decade. In the US, investments reached $303.5 billion in 2020. According to analysts, the sector outpaced the S&P 500 by nearly tenfold during the year. Renewable stocks surged by 57%, excluding the cell maker Plug Power and the solar firm Enphase Energy, which saw their stocks rising by 361% and 292%, respectively, by October. And Tesla’s stock surged at a blistering pace, marking a remarkable 695% growth.
The positive outlook for clean energy will continue to attract more businesses and investors into renewable energy production, distribution, and supporting industries like infrastructure and technology. With the increased interest of individuals, governments, and corporations, the industry is poised to move in only one direction: up. And any business with some form of clean energy integration stands to benefit from these positive investor sentiments.
5. Increased pressure from consumers and governments.
Consumers are more and more concerned about their climate impact. Millennials and Gen Zs are leading the way in demanding greater accountability by businesses, both large and small. They want deliberate action, not 300-page manifestos. Meanwhile, governments are imposing measures, too, to help achieve their climate goals. The UK, for instance, will abandon the sale of new cars and vans that run on petrol and diesel by 2030. China is working on banning energy-intense cryptocurrency mining. Meanwhile, the US has introduced a number of incentives, too, to encourage the use of renewables.
All these will put even more pressure on businesses to speed up the adoption of clean energy. Organizations like Renewable Energy Buyers Alliance will also play an essential role in helping companies scale their clean energy buying processes through greater collaborations.
