How does the energy sector impact and depend on nature?

The energy sector—including generation, conversion, storage, transmission, distribution, and use—has broad and significant dependencies and impacts on nature. These arise from its use of land and water resources, as well as its substantial contribution to greenhouse gas emissions.

While these dependencies and impacts present risks to business continuity and economic performance, the sector has the potential to drive positive changes for nature throughout its value chain and more broadly - given that energy underpins nearly all productive activities and domestic life.

It is important to note that this sector encompasses not only energy in the form of electricity, but also in all its forms, such as fuels used in transportation.

The energy sector's main dependencies on nature include:

Materials

Clean water from natural sources is essential and irreplaceable for processes such as cooling in thermoelectric plants and the operation of hydroelectric facilities.

Energy production depends on the characteristics of its surrounding habitat. Sources like wind, solar (photovoltaic), hydroelectric, and biomass energy rely on climate, sunlight, wind patterns, and other ecosystem conditions.

Raw materials: a clear example is bioenergy products such as ethanol, biodiesel, etc., which require plant-based inputs, such as sugarcane bagasse, for their production.

Regulatory services

The operations of companies in the energy sector depend on ecosystem services that protect against natural hazards, such as erosion, storms, and floods, which help safeguard infrastructure and ensure operational continuity.

They also rely on climate regulation services that provide the predictability needed for renewable energy generation, including wind, hydroelectric, and photovoltaic power.

What are the impacts of the energy sector on nature?

	Contribuition to climate change through air pollution and greenhouse gas emissions—not only from burning fossil fuels, but also from deforestation linked to monoculture plantations for bioenergy, and from reservoirs that submerge forests in the case of hydroelectric plants.
	Energy infrastructure—such as power plants, pipelines, offshore platforms, and wind farms—requires extensive land and sea use, leading to habitat loss and the displacement of populations.
	Use and replenishment of resources, through the consumption and degradation of water beyond its replenishment capacity, especially due to accidents and improper operations such as oil spills and dam breaches, which harm terrestrial and marine ecosystems.
	Water, soil, air, and noise, even from alternative energy sources, can cause environmental pollution, though to a lesser extent. For example, as in the case of lithium extraction for battery production.
	Introduction of invasive species, in the case of monoculture, for example, used for large-scale production of energy derived from plant sources.

What are the opportunities for the energy sector in relation to nature?

Some actions that can help reduce the sector's impact on nature, mitigating operational risks, and creating commercial opportunities include:

Designing and implementing an ambitious decarbonization strategy through investment in renewable energy and energy efficiency technologies to reduce greenhouse gas (GHG) emissions.

Avoiding the conversion of habitats and ecosystems integrating nature considerations from the earliest stages of project design and ensuring that new infrastructure is responsibly located, outside key biodiversity areas and on previously degraded lands, to avoid conversion of natural habitats.

Planning and implementing sustainable water management strategies in compliance with local, national, and international regulations; promoting water efficiency and reuse; exploring alternative sources, such as desalinated marine water, recycled water;  and implementing replenishment programs conservation projects to  restore aquatic species affected by water runoff.

Commitment to circular models, through reducing supply chain impacts, increasing the circularity and sustainability of components and assets from the design and construction phases. It also includes the innovative and responsible use of materials and solutions that replace those with a negative impact on nature; as well as the incorporation of recycled materials whenever possible, especially for raw materials used in large volumes in production.

Create partnerships and influence beyond your value chain, contribute to systemic transformation and the development of ambitious natures and climate policies by collaborating across different value chains and engaging in meaningful dialogue with a broad range of stakeholders—including employees, local communities, Indigenous peoples, and marginalized groups.