With the current energy crisis having brought the just, clean energy transition to the fore, proposing energy solidarity measures as ways to practice both energy and climate justice can be appealing for companies.
Increasingly, whether through internal policy or national legislation, large companies are expected to participate in corporate social responsibility (CSR), responsible business conduct (RBC) or environmental, social and governance (ESG) schemes. In the European Union, these refer to voluntary actions that companies undertake to integrate social, environmental or ethical issues into their own business operations or to participate in programmes set up by others. Collectively, these efforts are designed to support the larger, collective goal of sustainable development. The European Commission has established a mix of voluntary and mandatory frameworks and initiatives that provide guidance to Member States on what issues to prioritise and what actions to take. Critically, these frameworks also establish mechanisms for measuring impacts and ensuring transparency.1, 2
As with other funding schemes, ECs must first be fully informed of their legal status, which may determine the legal boundaries and fiscal consequences of receiving large donations from corporations or partnering with them in any way. The potential to receive large and long-term funding through these mechanisms may warrant investigation into the option of establishing a separate legal entity or, again, bringing on other partners that can accept and disburse funds. ECs should also be aware that companies can support energy solidarity through a range of other approaches.
Identify, assess and engage potential donors
Securing donations from large organisations typically requires strategic and targeted communications over many months to build trusting relationships. In keeping with their commitment to act and have positive impacts locally, ECs should prioritise organisations that already have a strong presence in their community. And should take time to investigate the vision and mission of the company, as well as its CSR/ESG priorities to see how well they align with EC aims. A brochure, letter, email, or electronic newsletter can serve as an effective means to introduce the EC or a particular project or programme for which it seeks support.
It is unlikely, however, that a corporation will take the next step in establishing contact. Rather, ECs need to be prepared to make many ‘asks’, with the first focusing on an opportunity to have direct dialogue. To the greatest degree possible, a face-to-face meeting is preferable to an online meeting. ECs should be ready with a pitch deck they could show but equally comfortable speaking in a clear, coherent manner without it.
A few words of caution are warranted. One risk linked to large donations is that the corporation may try to use them to drive its own agenda, thereby distracting the EC from its goals. Another is that while a large donation may seem exciting and appealing, the EC may not have the capacity to deliver at a large scale. Finally, such donations usually come with the expectation that the corporation will gain visibility
through the EC’s website and other promotional material. This can be a win-win, but ECs need to consider how their members and the wider public will perceive the partnership.
The Inspiring Practice of Energy Garden and Patagonia is a good example of win-win!3
1 https://ec.europa.eu/docsroom/documents/34482
3 Patagonia, How Business can scale up community energy for a cleaner and more secure energy future.