As the need for climate action grows, both utility and corporate buyers are increasingly looking to reduce greenhouse gas (GHG) emissions. There are a variety of motivations for these actions—for many corporate buyers, for instance, there is stakeholder pressure from customers, employees, and investors. This need to reduce emissions is leading to increased demand for renewable energy power purchase agreements (PPAs) and virtual power purchase agreements (VPPAs).
When BlackRock informed clients of the firm’s commitment to help them on their journey of sustainable investing, it confirmed what many sustainability professionals already knew: mainstream investors believe that ESG metrics have a direct impact on risk and return. As such, integrating ESG initiatives into a company’s traditional financial reporting has become increasingly important for enterprises to keep their both retail and institutional investors happy.