SDG Impact Standards | Assignment

Running head: IMPACT OF SDG 7
Social and Economic Impact of SDG 7
Student’s name
University
Author’s note

IMAPCT OF SDG 7
1
Introduction
The former Secretary General of the United Nations, Mr. Ban Ki Moon once remarked
“Energy is the golden thread that connects economic growth, social equity, and environmental
sustainability.” (UN.org). The remark emphasizes the significance of energy in human life, as
well as its instrumentality in the context of economic and technological endeavours. Energy
supply and consumptions account for more than 60% of the greenhouse gas emission across the
world, whereas the lack of access to affordable and clean energy deprives more than 1 million
people around the world of opportunities to join the national as well as global progress
(CDP.net). Therefore, it is evident that access to energy and responsible consumption both are
pressing issues to achieve a sustainable future. Moreover, economic enterprises, irrespective of
their size and strength, are the most prominent consumers of energy resources. Hence, it is rather
crucial for the organizations to invest in the innovation and development pertaining to renewable
energy.
To this end, the current essay hypothesizes that engagement with the sustainable
development goal to ensure affordable and clean energy is crucial for economic enterprises, since
it could enable the organization to achieve competitive advantage in terms of positive economic
and social impacts. To evaluate the hypothesis, the essay will therefore explore pertinent
scholarly resources to identify the positive outcomes of the organisations’ commitment to
renewable energy.

IMAPCT OF SDG 7
2
Discussion
With the continuous growth of global population, requirement for energy will also grow
proportionately. However, with the limited resource of fossil fuel, it is impossible to ensure
uniform access to energy for everyone. Thus, the cost of energy goes beyond the affordability of
a majority population. Besides, the cheap replacement of clean fuel does not provide clean
energy either. Hence, to ensure clean and affordable energy, the world must gradually shift to
renewable energy sources, which will in turn arrest the resource depletion as well.
According to the reports of the US Energy Information Administration, the industrial
sector consumes more than 54% of delivered energy as compared to any other sectors in the
world (eia.gov). And it is likely to increase by 1.2% per year in the projected 2030 timeframe.
Hence, it is essential for the industrial sectors to construct a judicious and effective plan for
energy usage, given the urgency of the issue of resource depletion and greenhouse gas emission.
However, switching to renewable energy resources is not only a responsibility for the corporate
entities, it is also beneficial for them in terms of cost effectiveness and social interaction (Franco,
Power and Whereat 2020).
To begin with, switching to renewable energy can immediately reduce the cost for power
consumption, as solar or wind energy do not have any raw material cost. It also reduces the risk
of carbon tax imposed on energy sensitive industries. The resulting amount of savings from the
cost reduction can in turn facilitate increased employment opportunities, creating a positive
impact on the society as well (Poddar and Narula 2019). Moreover, the organisations with
serious commitment to environment are likely to develop proactive innovations, which in turn
will boost the productivity and profitability of the organisation. (González-Ramos, Donate and
Guadamillas 2018)