Plan for Buy-In and Approval from Internal Decision-Makers

You have been gathering critical components to make a compelling case to procure renewable energy instead of traditional energy sources. As you gather critical information to make a compelling case for renewable energy procurement, it is important to consider your project governance strategy and internal capabilities.

Main Points

• Before moving forward with a procurement plan, you must obtain approval from the appropriate stakeholders and decision-makers within and outside your organization on the proposed new procurement method(s).
• It is crucial to identify the relevant stakeholders, take into consideration each of their priorities and assemble key data points to back-up the case for renewables procurement.
• You will need to enlist assistance from other divisions within your company. Therefore, you must ensure buy-in from leadership so that you receive the necessary support throughout the procurement process.

First, Consider This

APEX Clean Energy and GreenBiz Group partnered to study how Fortune 500 companies procure renewable energy, and several highlighted the need for internal alignment.

Read Excerpt: State of Corporate Renewable Energy Procurement by Apex Clean Energy and GreenBiz Group.

And Read This

In order to propose the renewable energy procurement to management, you must build the most compelling case as it relates to your company.

Read Excerpt: Building the Business Case for Renewable Energy by Clean Energy Buyers’ Association.

Now, Read This

In addition to ensuring internal alignment, companies must identify several key decision makers and supporters of the green procurement process.

Read Excerpt: from Chapter 5 of Guide to Purchasing Green Power by the U.S. Environmental Protection Agency.

Next, Understand This

While identifying high-level decision-makers is important, it is also vital to have a robust team contributing directly to the day-to-day procurement process. There are certain skills this team will need. It is important to establish whether your company has access to these skilled professionals, either within your organization or outsourced.

Read: Page 34 from Renewable Energy Procurement by the City of Melbourne and Carbon Neutral Cities Alliance.

Finally, See This

If your internal team does not have experience in renewable energy procurement, it could be beneficial to consider hiring an external consultant that offers power procurement solutions. Alternatively, your team could hire a consultant who might not offer their own procurement solution, but can support throughout the process as an “owner’s agent” or a technical assistance provider.

Read: Case study on page 46 from Accelerating Corporate Procurement of Renewable Energy in India by WBCSD.

Suggested Actions & Next Steps

• Write it down: Make a list of key internal and external stakeholders and their priorities. Discuss this list with a trusted colleague to see if they have any changes or additions to the list.
• Investigate: Talk to your boss and colleagues to understand the process at your corporate to obtain approval for a new procurement approach. Will your company manage the procurement process itself, or will you select a 3rd party to manage it on your behalf?
• Write it down: Make a list of necessary capabilities to execute on corporate procurement and note whether your corporate has access to these capabilities – whether in-house or externally sourced. Consider accounting, human resources, finance, legal, marketing, operations and more divisions. Note which capabilities might have to be outsourced.
• Convene: Setup a dedicated team within the company to execute and oversee this procurement program.
• Draft: With the above priorities in mind, draft a memo detailing the case for procurement of renewable energy. You will iterate on this memo in future steps and eventually deliver or present the memo to the key decision makers.