Renewable energy

Definition

Renewable energy is derived from natural processes that are replenished constantly, such as sunlight, wind, and water. It plays a critical role in sustainability reporting by reducing carbon footprints and promoting long-term business viability.

5 Must Know Facts For Your Next Test

1. Renewable energy sources include solar, wind, hydroelectric, geothermal, and biomass.
2. Adopting renewable energy can significantly reduce operational costs over time due to lower utility expenses.
3. Investing in renewable energy can enhance a company's reputation and brand value by demonstrating commitment to sustainability.
4. Government incentives and subsidies are often available for businesses that invest in renewable energy solutions.
5. Using renewable energy contributes to sustainability goals by lowering greenhouse gas emissions and minimizing environmental impact.

Review Questions

• What are the main types of renewable energy sources?
• How can the adoption of renewable energy affect a company's operational costs?
• Why might a company receive government incentives for investing in renewable energy?

Related terms

Sustainability:

The practice of meeting present needs without compromising the ability of future generations to meet their own needs.

Carbon Footprint:

The total amount of greenhouse gases produced directly or indirectly by human activities.

Green Technology: Innovative technologies that promote environment-friendly practices through reduced waste and improved resource efficiency.