Title: “Sustainable Energy: A Profitable Investment for Responsible Businesses” Introduction: In today’s world, the demand for energy is constantly increasing, and traditional sources of energy are depleting at an alarming rate. This has led to a global shift towards renewable energy sources, not only to meet the growing demand but also to reduce the negative impact on the environment. As responsible businesses, it is crucial to consider the long-term effects of our energy consumption and invest in sustainable solutions. In this business case, we will explore the benefits of responsible renewable energy and why it is a smart investment for businesses. The Need for Responsible Renewable Energy: The use of fossil fuels for energy production has been the primary cause of greenhouse gas emissions, leading to climate change and environmental degradation. As consumers become more environmentally conscious, they are demanding sustainable practices from businesses. This shift in consumer behavior has created a need for responsible renewable energy, which not only reduces the carbon footprint but also enhances a company’s reputation and brand image. Cost-Effective Solution: Contrary to popular belief, investing in renewable energy is a cost-effective solution for businesses. While the initial investment may seem high, the long-term benefits outweigh the costs. Renewable energy sources such as solar, wind, and hydro have no fuel costs, making them more stable and predictable in terms of pricing. Additionally, with advancements in technology, the cost of renewable energy production has significantly decreased, making it a viable option for businesses of all sizes. Tax Incentives and Government Support: Governments around the world are promoting the use of renewable energy by offering tax incentives and subsidies to businesses that invest in sustainable practices. These incentives not only reduce the initial investment but also provide long-term financial benefits. Furthermore, by investing in renewable energy, businesses can reduce their dependence on traditional energy sources, which are subject to price fluctuations and geopolitical risks. Enhanced Corporate Social Responsibility: Investing in responsible renewable energy is not only beneficial for the environment and the bottom line, but it also aligns with a company’s corporate social responsibility (CSR) 

Our energy system in 2050 will look dramatically different from what we have today. Renewable energy (RE) will hold a majority share in the energy mix; our grid will be smarter and more efficient; and electric vehicles (EVs) will outsell internal combustion engine (ICE) vehicles, which are powered by conventional oil-derived fuels such as gasoline or diesel. Clearly, RE is the sector for the future.But what would a future-fit RE system look like?India’s RE landscape is already expanding at a rapid pace, with stakeholders such as investors, developers, and buyers actively aligning with the country’s ambitious goals. As of August 2024, India’s RE sources, including large hydropower, have a combined installed capacity of 199.52 GW. The government has also sanctioned 50 solar parks across 12 states. The RE sector continues to attract significant investment as well. The Union Budget 2024–25 has allocated INR 10,000 crore to a centrally sponsored scheme for solar power grid projects, marking a 110 percent increase from the previous year’s budget. Additionally, the Union Cabinet has approved a viability gap funding (VGF) scheme for offshore wind energy projects. With a total outlay of INR 7,453 crore, the scheme represents a significant step towards implementing the national policy for offshore wind energy.However, as RE expands, it will have social and environmental implications—on land and water, and on local communities and the workforce.A case in point is India’s first utility-scale solar park in Charanka, Gujarat. Reports suggest that in the 12 years since the project’s inception, there has been a reduction in grazing areas, diminished water availability due to extensive groundwater extraction for the park’s cleaning and maintenance, and limited livelihood opportunities for locals. Similarly, residents of Gujarat’s Kachchh district have pointed out that the construction of a wind farm in Jangi village has impacted bird migration patterns, lowered groundwater levels, and decreased land availability. Additionally, the local community has reported health concerns linked to the proximity of the wind turbines.If not dealt with proactively, the unintended impacts of RE might pose an even bigger problem to the pace of capacity addition needed, undermining the long-term sustainability of RE projects and the sector itself. As stakeholders begin to recognise these risks, an important question arises:What is the business case for responsible RE?The following sections aim to address this key question.Environmental, social, and governance (ESG) reporting can be an important first step for any company, investor, or procurer. While there is an increase in ESG-related action across the sector, it shouldn’t be the only step that value-led companies should take. Here are some reasons why.Compliance mindset: Compliance with ESG standards often fosters a checkbox mentality, where businesses focus on meeting minimum requirements rather than pursu