What is the green transition?
On a general level, the green transition refers to moving towards a carbon neutral society and energy production, and a more environmentally friendly economy. The objective of the green transition is to achieve a carbon neutral society and stop the deterioration of biodiversity via structural changes in the economy. The green transition encourages us all to act in a more sustainable and environmentally friendly manner. Through the green transition, we can build a more sustainable future for future generations today.
Benefits of the green transition for the environment
The green transition brings major benefits to the environment. By switching to renewable energy, we can decrease greenhouse gas emissions and slow down climate change. Measures to promote the green transition, such as saving energy, recycling materials, decreasing waste and producing sustainable products, protecting and saving natural resources, and decreasing the consumption of wood, minerals and water.
The green transition in companies
Companies have a significant role in the implementation and success of the green transition. What does the green transition mean in practice from a company’s point of view?
Companies can implement their own green transition in various ways, such as by utilising renewable energy instead of fossil energy sources in their operations, and investing in solar and wind energy. Improving energy efficiency by replacing light fittings, devices and systems is one way to promote a company’s green transition. In addition, the energy efficiency of a company’s properties can be improved through energy renovation with different solutions. Streamlining waste management and recycling waste are efficient ways to decrease the amount of waste. By utilising recycled materials, a company can develop new and more environmentally friendly products for the market, and generate new business within the circular economy.
Benefits of the green transition for companies
By utilising the examples mentioned above, companies can decrease their climate and environment impacts, expedite the green transition for their part, and even generate new business. Renewable energy, energy efficiency and the decrease in energy consumption and the amount of waste can generate savings for a company even in the short term.
It’s advisable that companies communicate their green transition journey to customers and other stakeholders in their own channels. Stakeholders and customers expect that companies operate responsibly. Green transition measures and environmentally friendly operations can improve the image of the company, engage customers, and attract new customers and competent employees.
Financing the green transition and investments related to it
Implementing the green transition can involve investment needs for companies. OP also wants to support companies during the green transition by offering sustainable financing solutions for companies’ sustainable and green projects. A company can finance their qualifying green transition project with a green loan. Green loans can be used to finance responsible projects or investments. Examples of investments financed with a green loan include refurbishing and renovation projects that improve energy efficiency, or financing investments in renewable energy. Alternatively, the EIF’s risk sharing guarantee can be utilised in qualifying projects.
