Skip to content

CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Green Initiatives

Himalaya Textiles Ltd, a listed company, has reduced the electricity drawn per tonne of fabric produced by installing variable frequency drives on its looms, with output unchanged. Under the energy efficiency idea, how is this result best described?

The result is a lower energy intensity. Energy efficiency means using less energy to produce the same output, and Himalaya Textiles now draws less electricity per tonne of fabric. It did not change its energy source, so it is not a renewable shift or an offset.

  1. AIt lowers energy intensity by cutting energy used for the same outputCorrect
  2. BIt is a shift to a renewable energy source
  3. CIt is carbon offsetting through purchased credits
  4. DIt is a reduction in the company's total revenue

Explanation

Energy efficiency means using less energy to deliver the same output or service. Falling electricity per tonne with unchanged output is a lower energy intensity. It is not a source switch, so the renewable option is wrong, and no credits were bought, so offsetting is wrong.

Did you get it right without looking?

One question tells you little. A timed set on Green Initiatives shows your real accuracy, how long you take and where you lose marks.

Practise Green InitiativesFree diagnostic mock

More Green Initiatives questions