As economic pressures increase and recession alerts return to the news, businesses are reevaluating their spending, tracking methods and the priorities that remain significant. ESG has now become a focal point.

For numerous organizations, this presents a challenging realization: how can one defend long-term environmental commitments when immediate profit margins are under pressure?

However, this inquiry reflects a narrow interpretation of ESG based on compliance, communications and quarterly reporting cycles. The companies that will emerge from this period in a stronger position are not those that pause or abandon their ESG initiatives, but the ones that reshape them to deliver operational value.

The role of energy in ESG

One of the most frequently overlooked levers in this process is energy. Unlike other components of ESG that may require new platforms or outside consultants, energy offers a direct and measurable connection between action and outcome. Reducing waste improves financial performance, while lowering consumption reduces emissions.

Each kilowatt-hour saved represents both a cost avoided and a carbon reduction achieved. It is one of the rare areas where sustainability and budget discipline are not only compatible but mutually reinforcing.

In theory, this should elevate energy management to a core ESG priority. In practice, it is often marginalized or still treated as a line item for the finance team or a facilities concern, disconnected from broader strategy, but this separation is a missed opportunity. Energy performance serves as a real-time signal of operational efficiency, asset utilization and alignment across departments.

When companies integrate energy into their governance structures and decision-making, the benefits multiply: cleaner data, faster decisions and greater resilience in the face of market volatility.

First step is having a plan

This kind of integration starts with a plan. The first step to managing energy effectively during a downturn is to establish a sustainable energy strategy that spans multiple disciplines across the organization.

A strong plan should address both purchasing practices and energy efficiency opportunities. A simple spreadsheet, supported by leadership and shared across departments, is enough to create alignment. But the act of planning, combined with internal accountability and a shared goal, can create the conditions necessary for long-term improvement in both ESG performance and operational control.

Emissions reporting requirements are tightening across jurisdictions. In Canada, companies face growing expectations around Scope 1 and 2 tracking, and Scope 3 is rapidly approaching. Globally, the move toward standardized, audit-ready disclosure frameworks is accelerating. Vague sustainability statements are being replaced by demands for detailed, site-specific data that ties environmental performance directly to operations and outcomes.

Organizations that have a clear grasp of their energy data across sites, time periods and contract structures are better equipped to meet both compliance expectations and internal performance goals. More than that, they are in a stronger position to find hidden savings, track progress and link ESG to real cost and risk advantages.

A way forward

Energy is not the only component of a credible ESG program, but it is one of the most financially relevant and operationally grounded. In an environment where every program must prove its worth, energy management offers a clear and measurable way forward.

This doesn’t require guesswork, delivering feedback in real time, and it addresses one of the most material sources of financial and environmental exposure that many companies face today.

The kind of strategy ESG needs now consists of targeted action embedded across the business. Energy may not be the flashiest part of ESG, but in a downturn, it may be the most important starting point. Even a simple but well-supported energy plan be the difference between treating ESG as a reporting task and using it as a tool for long-term resilience.