Understanding Impact Business Models: Renewable Energy

What is the intent of the Impact Business Model?

How do I assess my company’s eligibility for this Impact Business Model?

What are some examples of products and services that have this impact?

My company may be eligible for this IBM. How do I open this IBM in the B Impact Assessment? 

My company may be eligible for this IBM. What supporting information do we need to provide?

Concepts in the B Impact Assessment

What is the intent of the Impact Business Model? 

Greenhouse gas (GHG) emissions, primarily carbon dioxide, contribute heavily to poor air quality, climate change, and its associated impacts, such as rising global temperatures, melting ice caps, extreme weather events, and sea-level rise. These effects endanger ecosystems, disrupt agricultural patterns, and threaten human health and well-being. Transitioning to renewable energy sources, such as solar, wind, low-impact hydropower, and geothermal power, is crucial to mitigate the adverse effects of climate change. 

The Renewable or Cleaner-burning Energy Impact Business Model (IBM) is found in the Environment Impact Area in the B Impact Assessment and recognizes companies that provide products/services that reduce GHG emissions through the provision of renewable or cleaner burning energy (e.g., solar panel manufacturers/installers, hybrid vehicles, products self-powered by renewable energy).

How do I assess my company’s eligibility for this Impact Business Model? 

Companies may be eligible for the Renewable/Cleaner-Burning Energy IBM, if their revenue-generating products or services fit one of the following categories:

• Self-powered by fossil fuel-based energy that is cleaner-burning than market alternatives.

• Self-powered by non-fossil fuel renewable energy.

• Product or service that provides or contributes to the provision of cleaner-burning or non-low-impact renewable energy.

• Product or service that provides or contributes to the provision of non-GHG emitting low-impact renewable energy.

What are some examples of products and services that have this impact?

• Solar-powered products, such as solar-powered lights or charging stations. 

• Residential or commercial solar installations.

• Sale or generation of renewable energy.

• Energy-intensive computing or data storage services powered by renewable energy.

• Biofuel-powered equipment.

• Solar infrastructure equipment, e.g., solar panels, cables, etc.

• Renewable energy infrastructure maintenance, installation, and optimization services.

• Liquid petroleum gas-powered car; natural gas burning heater.

• Liquid petroleum gas distribution.

This is an illustrative, non-exhaustive list of products or services whose impact can be captured in this IBM.

My company may be eligible for this IBM. How do I open this IBM in the B Impact Assessment? 

If you are considering opting into this IBM, you will have to answer specific questions about the impact of your product/service that will determine which Impact Business Models you see in your BIA. These questions, called gating questions, ensure that you see the content that is most relevant to your company in your assessment. 

To find the gating questions for the Renewable or Cleaner-burning Energy IBM, navigate to the Environment Impact Area and search for the questions titled “Environmental Business Model”, “Environmental Product or Service Impact”,  “Environmental Product Benefits” “Direct Impact on Renewable or Cleaner Burning Energy”. Please refer to the screenshots and the highlighted answer options for the correct responses that will open the Impact Business Model.  Any deviation from this will prevent the Renewable or Cleaner-burning Energy IBM from becoming visible in your B Impact Assessment.

Please select ONE option per product line in the question ‘Environmental Product Benefits’. You may select an additional option if your product line has two separate environmental attributes.

To ensure that the Renewable or Cleaner-burning Energy Impact Business Model shows up, answer the following gating questions as shown in the images below. Any deviation from this will prevent the Renewable or Cleaner-burning Energy IBM from becoming visible in your BIA. 

My company may be eligible for this IBM. What supporting information do we need to provide? 

These are some examples of evidence that your company can provide during the Verification stage to confirm the applicability of the Renewable Energy IBM. These examples are not exhaustive – depending on your company’s specific business model or context, your Verification analyst may require additional or different documentation.

• Product Specification Sheets: A product specification is a document that outlines the characteristics, features, and functionality of a product. It serves as a blueprint for designing, developing, and testing the product. The aim of a product specification document is to ensure that everyone involved in the product development process understands what is required and that the end product meets the customer’s needs and expectations.

• Company website explaining the types of products and services that the company provides.

• Corporate presentations with information as above.

This documentation confirms the eligibility of your company’s product/service for the Renewable Energy IBM. Lastly, you must also provide information about whether your company measures the impact of the product/service and tracks the outcomes related to product/service to determine if it is achieving the intended positive environmental impact.

Concepts in the B Impact Assessment  

Cleaner-Burning Energy - Fossil fuel-based energy that is cleaner-burning than market alternatives (e.g., LPG-powered car, natural gas burning heater).

Low Impact Renewable Energy-  Energy sources that are from natural processes that are replenished constantly that do not have a material environmental impact. For the purposes of the B Impact Assessment, Green E definitions qualify: http://www.green-e.org/getcert_re_stan.shtml To qualify, please note than hydropower has to meet the following criteria: a) the hydropower facility is certified by the Low Impact Hydropower Institute (LIHI); b) for Canadian hydropower facilities only, the facility is EcoLogo certified; or c) the hydropower facility consists of a turbine in a pipeline or a turbine in an irrigation canal. For facilities falling under a) or b) above, only output generated during the period of LIHI certification or EcoLogo certification is eligible for Green-e Energy certified sale. Please note that Renewables from new impoundments of water are not eligible.

Renewable Energy - Renewable energy is derived from natural processes that are replenished constantly. This includes electricity and heat generated from solar, wind, ocean, hydropower, biomass, geothermal resources, and hydrogen derived from renewable resources.

Near-term outcomes - This refers to the immediate or near-future results or consequences of a particular event, decision, or action. These outcomes typically occur within a relatively short period, ranging from a few days to a few months. Near-term outcomes are often tangible and measurable, and they can influence subsequent actions or decisions. Unlike outputs, which focus on what is produced/delivered, near-term outcomes focus on the impact or changes that occur as a result of the outputs. They are the effects or consequences of utilizing or implementing the outputs.

Long-term outcomes - The results or consequences that occur over an extended period, usually spanning months, years, or even decades. Long-term outcomes often have a broader impact and may be less immediately visible or measurable than near-term outcomes. For instance, long-term outcomes in the context of environmental conservation could include the restoration of an ecosystem, the reduction of carbon emissions over several decades, or the preservation of endangered species.