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ALLY Energy and the path to ESG

ALLY Energy

Reaching the Net Zero objective is a real thing for companies. ALLY Energy’s team members answered some questions on measuring accountability regarding ESG (Energy, Social, and Governance) and their knowledge of how companies can get there.

Measurement & Accountability

First, the team mentioned that in order for companies and organizations to implement ESG, they all need to understand what it means. Every person in the company should know the meaning of ESG and how energy, social, and governance can be traduced to companies.  

Furthermore, defining what success means for each company is a key element in measuring accountability. This success needs to be reachable and realistic. There needs to be much communication when it comes to defining this success. Also, what the company wants to account for and measure.

Moreover, it is important to know what a company is already measuring and what are the stakeholders and customers asking for from that company. It is crucial to know where you are and where you want to get.

The role that stake regulators play

When asked about the role that stake regulators play, the team answered that narrative is essential. Moreover, some politicians find the word ESG as an obstacle to getting more voters; the idea is to put the narrative in front of them to go and give it in a way that doesn’t alienate their voter base. In addition, they explained that it is vital that the industry shows up and votes.

Rules are changing

The team also explained the Securities and Exchange Commission or SEC’s new rules proposal for climate change disclosure requirements. Thee aim of these rules is towards U.S. public companies and foreign private issuers. The new rules will affect companies, measurements, and accountability.

First, there will be mandatory measurement of many things that energy companies are not measuring right now. This also includes the companies paying attention to their climate-related journey.

Second, the team explained that companies will be forced to measure risks related to climate. They will have to quantify the costs associated with weather events, the costs of managing a risk of a potential weather event, and the possible loss of revenue from these events, among other things. It’s going to take time for companies to achieve them.

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About ALLY Energy

ALLY Energy accelerates connections, careers, and skills for an equitable energy transition. The company works with organizations committed to diversity and inclusion, providing them a framework to become a leader in ESG; attract top talent, build amazing culture and retain high performers.

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