How Can Suppliers Be Convinced to Join the Green Electricity Label?

Extract

[...] VI - Leverage the program to create a competitive edge in the market. In our current moving economy, every company, regardless of its sector of activity, is looking for a way to differentiate itself in the market. The energy sector is not an exception. Moreover, due to the environmental crisis, the questions of renewable and the production of electricity represent a hot topic. Thus, we have seen the emergence of green electricity labels that can be obtained by electricity suppliers. [...]

[...] It is true that suppliers have to be conscient of the economic opportunities of joining the green electricity label. As a matter of fact, numerous suppliers seem to be hesitant to follow the path of switching to renewable energy sources due to the initial cost of setting up and maintaining renewable infrastructure. However, in the long run, renewable energy sources such as wind and solar are way cheaper, have lower maintenance costs, and provide much more certainty in budget planning. [...]

[...] How Can Suppliers Be Convinced to Join the Green Electricity Label? I - Understanding the Motivations and Concerns of Suppliers Before everything, it seems important to understand what are the motivations and concerns of suppliers. Indeed, those suppliers want to show and also promote their commitment to sustainability, while attracting new eco-friendly customers. This willingness can be explained by the fact that suppliers try to improve their brand image. As a matter of fact, a recent study found that companies with a strong sustainability commitment can increase their brand value by up to 15%. [...]

[...] By highlighting these benefits, suppliers may be more likely to invest in renewable infrastructure and join the green electricity label program. III - Encouraging the Transition to Renewable Energy Infrastructure To convince suppliers to join the green electricity label, it is important to provide guidance and support for making the transition to renewable energy sources. Many suppliers may lack the knowledge and expertise necessary to make the transition. Providing guidance and support can include offering technical assistance for renewable infrastructure installation, as well as providing training and resources on best practices for renewable energy management. [...]

[...] By applying and obtaining it, the suppliers show their interest in the issues at stake and their care for the future. Thus, they can leverage the program and use it as a competitive advantage and differentiate themselves in the market. Indeed, applying for certification is a great way for the company to show how involved they are and how they are taking action concretely and therefore avoid accusations of greenwashing. They should also emphasize the characteristics of the certification and how they obtained it to reinforce their legitimacy regarding their possession of the label and why this is an indicator of performance. [...]