In today’s energy-conscious world, environmental, social, and governance (ESG) reporting has become a key expectation for many stakeholders —reflecting a company’s values and commitment to sustainability. Investors, customers, and others are increasingly focused on how businesses manage their environmental impact. And at the heart of many ESG strategies is energy.

At UGI Energy Services, we empower organizations to take actionable steps toward meeting their energy-related ESG goals. Whether switching to renewables or offsetting emissions with carbon credits, energy use and sources have a direct impact on the “E” of your ESG performance. Let’s explore!

What is ESG Reporting?

ESG reporting presents an opportunity for businesses to highlight how they manage their environmental impact, demonstrate social commitment to their communities, and uphold transparent governance. These reports aren’t just internal scorecards, but tools used by regulators, shareholders, and even potential employees to evaluate an organization’s long-term sustainability.

Why Energy Matters in ESG

On the environmental side, energy consumption is one of the most visible and measurable components of ESG. According to the Global Reporting Initiative (GRI), disclosures about total energy use, renewable energy percentage, and emissions reductions are central to ESG performance.

Companies that actively manage their energy sourcing and usage can show stronger environmental metrics, which leads to quantifiable ESG ratings that build trust. Communities and customers are more likely to support brands that take tangible steps toward sustainable practices. Investors look for energy-efficient operations as indicators of long-term profitability and risk reduction.

A 2023 study found that 83% of consumers believe companies should actively shape ESG best practices, and 76% of institutional investors believe ESG performance affects a company’s financial performance. In other words, ESG isn’t only about environmental responsibility; it’s about business sustainability.

 5 Connections Between Energy Decisions and ESG Outcomes

Energy decisions impact ESG performance in several interconnected ways. By working with UGI Energy Services, you not only have access to reliable energy, but you're working with an energy provider who has ESG outcomes in mind.

#1: Lowering Emissions with Renewables

Transitioning even a small portion of your energy portfolio to renewable energy sources helps reduce Scope 2 emissions — the indirect emissions from purchased electricity. These emissions are reflected in ESG reports and are a clear indicator of environmental impact.

Helping companies reduce their Scope 2 emissions is one reason UGI Energy Services is investing in renewable natural gas (RNG). RNG complements America’s abundant geologic natural gas, can be delivered through existing infrastructure, and is a versatile fuel. Our growing RNG portfolio is primed to deliver renewable energy solutions to customers and enhance their ESG performance.

#2: Carbon Offsets for Hard-to-Reduce Emissions

While not a direct replacement for cutting emissions, carbon offsets are a tool to balance the environmental scale. An offset represents the Greenhouse Gas (GHG) emission reduction of one metric ton of CO2 or CO2 equivalent from the atmosphere through supporting verified projects like reforestation, methane capture, or renewable installations. These can help organizations reach carbon-neutral goals while maintaining operational flexibility.

At UGI Energy Services, we can purchase and manage carbon offsets on our customers’ behalf, bringing your organization closer to its ESG goals.

#3: GreenerGas: Combine Carbon Offsets with RNGs

This turnkey product takes advantage of price differentials and market conditions, allowing organizations to maximize their purchasing power while meeting their short- and long-term ESG goals.

GreenerGas allows organizations to purchase a customizable portion of their energy needs in the form of renewable options.

#4: Photovoltaic Solar Facilities and Direct Emission Reductions

By utilizing the sun's power, photovoltaic solar facilities generate zero-emission electricity that can be used onsite or sold back to the power grid. This reduces the amount of electricity purchased from utilities, thereby lowering your Scope 2 emissions reflected in ESG reporting.

Beyond renewable electricity generation, companies can further reduce their Scope 1 emissions—the direct emissions from sources they own or control—by upgrading onsite equipment and processes to be more energy-efficient. Examples include replacing older boilers or furnaces with high-efficiency models, adopting compressed natural gas (CNG) or liquefied natural gas (LNG) vehicles, optimizing industrial processes, or enhancing building systems like HVAC and lighting. 

At UGI Energy Services, we support these comprehensive approaches to energy management. Through solar projects at our own facilities and customers’ sites, coupled with strategies for equipment upgrades and operational efficiency, we help organizations reduce both direct and indirect emissions. Investing on both the client and supplier sides of the energy chain doubles the opportunity to enhance ESG outcomes, demonstrating a firm commitment to sustainability at every level of operations.

#5: Utilizing Renewable Energy Certificates (RECs)

RECs represent proof that energy was generated from a renewable source. When you purchase RECs, your organization is supporting renewable energy development, even if your location doesn’t directly source from it. This is a practical and reportable method to meet clean energy goals without changing your utility provider.

UGI Energy Services is Your ESG Partner

If you’re ready to align your energy choices with your ESG commitments, let UGI Energy Services help. Our team of energy experts works closely with organizations from diverse industries to help integrate energy decisions into your ESG reporting framework.

With access to verified data, vetted renewable projects, and decades of industry insight, we take the guesswork out of ESG reporting and planning. Contact us to see how we can make energy simple, sustainable, and strategic together.