The energy sector has been under scrutiny in recent years in light of the need for sustainable energy practices and a reduction of the sector's environmental impact.
Our 2022 Global Energy Talent Index (GETI) report found that 86% of power employees said that ESG (Environmental, Social and Governance) concerns are a factor in deciding whether to leave or join a company, and power firms received the lowest average rating for environmental performance across the entire energy industry (3.34 out of 5).
What's more, 29% of employees in the power sector claimed that their organisation has not adapted to the clean energy transition.
This, coupled with rising concerns over environmental factors, could indicate a risk for talent retention.
In this blog post, we will discuss what firms can do to improve their environmental image and appeal to the environmentally-conscious workforce.
How does the clean energy transition impact the power sector?
The energy transition is the global shift from fossil fuels to renewable energy. It’s a complex process that involves changes in technology, economic structures, social norms, and environmental regulations. The energy transition is being driven by the need to reduce greenhouse gas emissions and combat climate change.
The energy transition presents a significant challenge for the power sector. This is because the power sector is the largest contributor to greenhouse gas emissions, accounting for about 30% of all energy-related emissions. The power sector is also one of the most carbon-intensive sectors, with coal-fired power plants being a major source of emissions.
Power companies need to find ways to reduce their emissions and adapt their business models to the new energy landscape.
What are some steps that power companies can take to improve their environmental image?
There are a number of steps that power companies can take to improve their environmental image, including:
- Increasing their investment in renewable energy sources: This will demonstrate that the company is committed to transitioning to clean energy and reducing its reliance on fossil fuels. Power firms can do this by investing in wind, solar, and other forms of renewable energy.
- Reducing emissions: This can be done by investing in energy efficiency and cleaner energy technologies. Power companies can also offset their emissions by planting trees or investing in other carbon-reduction projects.
- Communicating their environmental efforts: It is important for power companies to communicate their environmental efforts publicly. This can be done through advertising, social media, and other forms of communication. By doing this, power firms can improve their environmental image and build trust with their current and potential employees.
- Improving energy efficiency: This can be done through a variety of measures, such as upgrading equipment and adopting energy-saving practices like using energy-efficient lighting. Improving energy efficiency not only reduces emissions but also saves money, which is a win-win for companies and the environment.
- Supporting policies that promote clean energy: Power companies can advocate for policies that will help to increase the use of clean energy and reduce reliance on fossil fuels. For example, they can support renewable energy targets or carbon pricing.
By taking these steps, power companies can improve their environmental image and reputation. This is important for attracting new employees in this environmentally-conscious landscape, as well as meeting environmental regulations and standards.
Learn more about this year's recruitment trends in the power sector
The energy transition is just one area of focus for power employees and hiring managers this year. To learn more, and learn top recruitment insights from other specific sectors within the energy industry, download the 2022 GETI report.