ESG stands for Environmental, Social, and Governance, a framework used by companies to evaluate their operations and impact on these three areas.
Hitting ESG targets can be achieved when making the switch from coal boilers to biomass wood energy. Using biofuels instead of coal can significantly reduce carbon emissions, promoting sustainability and when sourced responsibly, is considered renewable, leading to a reduced environmental impact compared to coal.
New Zealand has committed to ambitious climate goals and recognises the importance of sustainability. Biomass energy, if managed in line with ESG principles, can contribute to meeting these climate targets by reducing reliance on fossil fuels while fostering a sustainable and environmentally friendly energy sector.
The ESG framework provides a guideline for industries to navigate this transition responsibly, ensuring compliance with environmental regulations, social impact considerations, and transparent governance practices. This aligns with New Zealand's commitment to a greener future and sustainable development.
Download our free guide to learn more about sustainable heating solutions.
Understanding ESG Targets
New Zealand aims to achieve net-zero emissions by 2050 under the Zero Carbon Act. It involves reducing greenhouse gas emissions, protecting biodiversity, ensuring sustainable land use, and transitioning to renewable energy sources.
Adhering to ESG principles fosters long-term sustainability. It ensures that companies operate in a way that doesn't compromise the environment, society, or their own governance structures, thus ensuring their continued success.
For New Zealand businesses, aligning with ESG goals isn't just about compliance; it's about contributing to a more sustainable, equitable, and prosperous society. It allows businesses to be part of the solution to societal and environmental challenges while ensuring their own resilience and longevity in an increasingly conscious market.
Biomass Wood Energy Systems
Biomass wood energy systems utilise organic materials such as residues from the forestry and milling industry as a fuel source to generate heat or electricity.
Biomass materials, often in the form of wood pellets or chips, are burned to produce heat, which can be used directly for heating spaces or for industrial processes.
How can Azwood help you hit your ESG targets
Carbon-neutral: When a tree grows it takes carbon dioxide from the atmosphere and stores it as wood. Burning that tree would only release the same amount of carbon stored while it was growing. When the tree is replanted, the process is repeated in a cycle that is carbon-neutral.
Renewable Resource: Biomass is considered renewable if sourced sustainably, reducing reliance on fossil fuels like coal and is a more sustainable energy source.
Circular economy: Embracing a circular economy model, we harness forestry residues as a valuable resource for producing biomass wood energy. This sustainable approach involves utilizing organic materials that would otherwise go to waste, transforming them into a renewable energy source. When the biomass is burned, the resulting ash is returned to the earth, completing the cycle.
Sustainable forestry practices, coupled with the demand for wood fuel, biomass production supports local economies by creating jobs in forestry, agriculture, transportation, and energy sectors, especially in rural areas where biomass resources are abundant.
Improved Public Health: Biomass produces fewer pollutants than coal, reducing air pollution and associated health risks in communities.
Governance and Transparency:
Regulatory Compliance: Shifting to biomass requires adherence to regulations regarding sustainable sourcing, forest management, and emissions standards. Azwood has been partnering with sustainable forestry owners for many years and complies with sustainable harvesting methods and plantation forests.
Transparent Supply Chains: Responsible biomass sourcing involves traceable supply chains, certifications (such as forest certification programs), and governance frameworks that ensure ethical practices and transparency throughout the biomass production process.
Businesses that have already made the switch to wood energy.
- Case study
University of Otago
With a push on tertiary institutes to remove all coal boilers by 2025, the University of Otago were among the first to switch to biomass.
- Case study
Looking for a sustainable way to fuel their drying process, Mac hops made the switch to wood energy to dry their hops.