This blog provides a practical guide for corporate sustainability teams, energy procurement managers, and compliance officers on how to effectively source EACs that are aligned with SBTi standards.

In this article, we will explore why early hedging is essential, the financial and sustainability benefits it offers your business, and how it aligns with key environmental initiatives to reduce our global carbon footprint. 

EACs overview

Energy Attribute Certificates (EACs) are vital instruments in promoting renewable energy and supporting sustainability goals. They allow organizations to claim the environmental benefits of renewable energy production, even if the electricity they consume physically comes from non-renewable sources. Each EAC certifies that one megawatt-hour (MWh) of electricity was generated from a renewable source such as wind, solar, or hydroelectric power. In the UK and Ireland, Renewable Energy Guarantees of Origin (REGOs) and Guarantees of Origin (GoOs) are commonly used to track and verify renewable energy usage.

Additionally, EACs provide transparency in the energy market, ensuring that renewable energy usage is accurately tracked and reported, thereby preventing double counting.

The SBTi outlines criteria for sourcing renewable energy, which companies can use to make claims about reducing their Scope 2 emissions. The criteria help ensure that EACs represent real and additional renewable energy generation.

EAC Procurement Strategies

When sourcing EACs to align with your SBTi commitments, you must carefully consider your procurement strategy to ensure alignment with both sustainability goals and financial stability. Here’s an overview of different EAC procurement strategies:

Spot procurement: Involves purchasing EACs on the spot market, offering high flexibility and straightforward transactions. This approach requires in-depth market insights and exposes your company to potential market volatility, affecting budgeting and cost predictability.

Forward procurement: This strategy secures commitments or contracts for future EAC deliveries, enabling longer-term planning and budgetary transparency. Although it establishes a consistent procurement pattern, it is still subject to potential market fluctuations.

PPA and single-source long-term contracts: Bundling EACs into long-term contracts provides stable energy costs and ensures alignment with renewable energy goals. While it requires financial commitment, this strategy mitigates market volatility and offers greater stability and predictability.

Choosing the right procurement strategy based on SBTi sourcing criteria depends on your organization’s specific sustainability objectives, risk tolerance, and financial strategy.

The benefits of sourcing EACs with ACT

Unparalleled market expertise: Working with us means gaining access to specialists who possess deep knowledge of renewable energy markets, particularly in the UK and Ireland. Our team understands both regional nuances and global dynamics, ensuring you secure the right EACs that are fully compliant with SBTi standards.  

Tap into a comprehensive global network: With ACT, you have access to an expansive sourcing network that spans across multiple regions. This large pool of renewable energy certificates ensures you can meet your sustainability goals without compromising on cost or availability. 

Stay ahead with policy insights and market trends: Our experts continuously monitor regulatory frameworks and market trends in the UK and Ireland to keep your EAC sourcing strategy aligned with SBTi standards. Staying informed is crucial for maintaining a competitive edge. 

Administration made simple: Efficient EAC administration across multiple regions is crucial. ACT simplifies the process, ensuring accurate cancellation and reporting to avoid compliance issues. Let us handle the details so you can focus on driving your business forward. 

Optimize reporting & ESG integration: Use advanced reporting technologies to generate accurate reports suitable for major ESG disclosure frameworks like CDP, ensuring your reporting aligns with your SBTi targets. 

Customize your procurement strategy: Every organization is unique, and so are its energy needs. At ACT, we offer tailored procurement strategies to help you mitigate market volatility and achieve your goals. Whether it’s spot procurement, forward contracts, or long-term agreements, we work with you to find the best solutions to keep your costs predictable and your sustainability commitments on track. 

By selecting the right procurement strategy and leveraging expert resources, businesses can ensure they meet their SBTi targets while maintaining financial stability. As demand for EACs continues to rise, now is the time to evaluate and optimize your sourcing strategy.

Ready to optimize your EAC sourcing strategy? Get in touch with us today to discover how EACs can help your organization achieve its sustainability goals. Learn more