Focuses on firms’ use and production of sustainable energy forms, including those that minimize negative externalities (e.g. wind and solar power). It also includes how efficiently firms use all energy inputs.
All firms use some amount of renewable or non-renewable energy, whether it is purchased or produced in-house. Burning fossil fuels such as gasoline, coal, natural gas, jet-fuel, and diesel is a primary contributor to climate change. Managing energy usage is most relevant to companies with energy intensive manufacturing processes such as those producing chemicals, electronics, materials, pharmaceuticals, and industrial goods. Large amounts of energy are also used for transportation, whether it is on site or provided as a service such as shipping. Firms can improve the energy efficiency of their processes, products, and buildings. They may also reduce fossil fuel consumption by switching to renewable fuels on their own facilities or purchasing renewable energy credits to procure renewable energy from the grid. Relevant sources of renewable energy are solar, wind, geothermal, ethanol, biodiesel, biomass, fuel cells and non-fossil methane.