The Increasing Importance of ESG Improvement Strategies with Solar Energy

The Increasing Importance of ESG Improvement Strategies with Solar Energy

In today’s business climate, Environmental, Social, and Governance (ESG) factors have become increasingly essential for companies keen on demonstrating their commitment to sustainability. Among various strategies, one that stands out prominently is the adoption of solar energy. 

ESG factors are increasingly used as a benchmark for assessing a company’s performance beyond traditional financial metrics. They reflect how a company responds to climate change, how well it manages relationships with employees and the communities within which it operates, and how it handles its governance practices. As per a 2022 study by the Carbon Disclosure Project (CDP), companies that prioritise ESG performance show superior financial performance and market valuation [1].

In the ‘E’ aspect of ESG, solar energy plays a vital role. Adopting solar energy as part of a business’s ESG strategy can significantly reduce the company’s carbon footprint, helping mitigate climate change. For example, it’s reported by the EcoExperts that solar power produced 6.8% of the UK’s total electricity in 2021 [2], playing a crucial role in the country’s carbon reduction efforts.

Investing in solar energy also holds significant social benefits, aligning with the ‘S’ in ESG. Companies can create local jobs in installation and maintenance, and contribute to energy security within their community. This proactive approach to social responsibility can enhance a company’s reputation, and in turn, its relationship with its stakeholders.

Moreover, utilising solar power reinforces good governance (‘G’), as it demonstrates a company’s commitment to long-term sustainability. It also aligns with regulatory shifts, as the UK government requires all businesses to achieve net-zero carbon emissions by 2050 [3].

In conclusion, the inclusion of solar energy in a company’s ESG improvement strategy has never been more important. It reduces environmental impact, supports social responsibility, and exemplifies excellent governance. Businesses adopting this strategy will not only contribute positively towards a sustainable future but also enhance their own financial performance and stakeholder relations.


[1]: Carbon Disclosure Project (2022). Companies leading on environmental transparency. Retrieved from 

[2]: The Eco Experts. (2023). Solar Statistics. Retrieved from,What%20percentage%20of%20the%20UK’s%20renewable%20energy%20is%20solar%3F,period%20for%20renewables%20throughout%202021.

[3]: UK Gov. (2019). UK becomes first major economy to pass net zero emissions law. Retrieved from