Climate change, air pollution, depletion of natural resources, and ineffective energy governance are all significant environmental, social, and governance challenges for energy companies. To meet ESG criteria, these companies must disclose their carbon footprint, reduce greenhouse gas emissions, and invest in renewable energy sources. They must also prioritize health and safety measures for their employees and contractors and engage with communities nearby to mitigate negative social effects. The idea of ESG for a sustainable future helps energy companies boost shareholder value by, for example, properly managing risk, anticipating regulatory action, or entering new markets while contributing to the long-term development of societies and protecting the environment in which they operate. As such, companies need to have their own framework according to the suitability of the elements of ESG. To achieve a powerful pair of the main three ESG pillars for a sustainable future, SDG Goal17 can be used to assess the performance of energy players such as [2]:
Goal 7 is about ensuring access to clean and affordable energy, which is critical for agricultural, business, communications, education, healthcare, and transportation development. Energy scarcity stifles economic and human development. According to the most recent data, the world is making progress towards sustainable energy goals. However, the current rate of progress is insufficient to meet Goal 7 by 2030. There are still significant disparities in access to modern, sustainable energy. Rising commodity, energy, and shipping prices have increased the cost of manufacturing and transporting solar photovoltaic modules, wind turbines, and biofuels around the world, adding uncertainty to a development trajectory that is already falling far short of Goal 7 ambitions. To meet energy and climate goals, continued policy support and massive mobilization of public and private capital for clean and renewable energy, particularly in developing countries, will be required. Goal 11 calls for cities and human settlements to be inclusive, safe, resilient, and sustainable. Cities now house more than half of the world's population. By 2050, 7 out of 10 people are expected to live in cities. Cities are economic growth engines, accounting for more than 80% of global GDP. They do, however, account for more than 70% of global greenhouse gas emissions. Urban development can be both sustainable and inclusive if well-planned and managed. The COVID-19 pandemic and other cascading crises have highlighted the importance of sustainable urban development. Cities must improve their preparedness and resilience in order to respond to future crises. Goal 17 focuses on reviving the global partnership for sustainable development. The 2030 Agenda is global in scope and calls on all countries, developed and developing, to take action to ensure that no one is left behind. Partnerships between governments, the private sector, and civil society are required. Only a strong commitment to global partnership and cooperation will allow the Sustainable Development Goals to be realised. There are still significant challenges ahead. Official development assistance (ODA) has not reached the targeted level; private investment flows are not well aligned with sustainable development; a significant digital divide persists; and trade tensions persist. To be successful, everyone must mobilise existing and new resources, and developed countries must fulfil their official development assistance commitments.
Reference: [2] https://www.un.org/sustainabledevelopment/energy/
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MSCA 2023 I VOL.5
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