Sustainability Science

About 15 years ago, Finnish energy company Neste decided to change its course. Since 1948, Neste was in the oil business, but the health of the planet and future generations began to weigh on the company’s leadership. 

With much of the world still viewing climate change as an inconvenient truth, Neste’s executive committee and board of directors decided to embark on an ambitious transformation from fossil fuels to renewables. Now, Neste is a global leader in renewable fuels and the third most sustainable company in the world, according to Corporate Knights.

Our research shows that labor rights issues are present in renewable energy supply chains, including in the manufacturing of solar panels and the cultivation of palm oil and sugarcane used in biofuels. Looking further down the value chain, the rights of vulnerable communities can also be put at risk by major renewables projects developed on their land. So, while one side of the green revolution offers critical sustainability benefits, the image and reputation of energy operators, investors and end users can also be highly exposed to human rights issues that could cast a shadow over the sector’s socially responsible credentials.

The companies driving production of the world’s resources — from food to paper to medical supplies — are tasked with creating effective solutions to meet market demand while minimizing energy usage and other environmental impacts. Consumers – and the brands they trust – are looking to suppliers to understand how they are making better use of available energy resources to stay sustainable. For the supply chain, it starts at the source.

When considering a sustainable path forward organizations and decision-makers would be remiss not to consider the role suppliers play driving sustainable production. Ultimately, the supply chain economy is part of one interconnected ecosystem, where end products have longer lifespans and the ability to re-enter the cycle for reuse. With this in mind, sustainable supply chain development requires a holistic circular strategy to achieve results.

Although it is the world’s largest emitter and is heavily dependent on coal, China is shifting towards clean energy and aims to source 20% of its energy in 2030 from low-carbon sources, said EY’s 2018 Renewable energy country attractiveness index (RECAI).