In business, the urgency of addressing climate change and its associated risks has made sustainability and ESG (Environmental, Social, and Governance) initiatives essential.
While both frameworks focus on promoting responsible practices, a key distinction lies in the fact that ESG involves a systematic evaluation of sustainability using benchmarks and metrics.
So, let’s learn about ESG vs Sustainability. What are the differences, and why do they matter?
ESG puts significant importance on investing or responsible investing, as it establishes a set of standards by socially conscious investors. Sustainability in business means incorporating sustainable business practices.
It underlines their role in shaping ethical and sustainable business strategies.
In recent years, Australian businesses have increasingly recognised the importance of integrating ESG and sustainable principles into their operations. It helps mitigate risks, enhance long-term resilience, and align with global sustainability goals.
What is Sustainability?
Sustainability means running a business that takes care of our world now without causing problems for the people who will come after us. There are three main parts to sustainability:
Environmental Sustainability: This part is about not hurting the environment. It involves using less energy, creating less pollution, and not wasting natural resources.
Social Sustainability: This part is about treating people fairly. It includes ensuring that everyone in the workplace is safe and treated well. It’s also about being fair to different kinds of people and getting involved in the community.
Economic Sustainability: This part is about ensuring the business can keep making money for a long time. It involves being responsible with money, creating value, and using resources wisely.
Corporate sustainability is when businesses try to be good for the environment, treat people right, and make money.
Businesses can be successful and helpful to everyone in the long run by improving how people are treated at work, respecting human rights, and not wasting resources.
Understanding the Fundamentals of Sustainability
Biodiversity:
- Biodiversity considers the variety of plants and animal species in the environment.
- Safeguarding biodiversity is critical for sustaining ecosystems’ natural balance.
Sustainable Development:
- Sustainable development ensures meeting present needs without compromising the well-being of future generations.
- Striking economic, social, and environmental balance is vital for sustainable business practices.
Supply Chain:
- A supply chain comprises the network of organisations, people, and activities involved in creating and delivering products or services.
- Integrating sustainable practices into supply chains is essential for minimising environmental impact and fostering ethical business conduct.
Corporate Social Responsibility (CSR):
- CSR entails initiatives taken to ensure a company operates ethically and sustainably.
- Examples: CSR efforts include charity work, clean-ups, and community contributions.
Sustainable Investing:
- Sustainable investing involves investors choosing companies with robust ESG performance and sustainable business practices.
- Investors prioritise companies demonstrating a commitment to ethical and sustainable principles.
These key sustainability terms are vital for anyone aiming to implement environmentally and socially responsible practices within their business operations.
It includes things like advanced sensors, computer programs that learn, and real-time monitoring. With these tools, companies can use energy in the best way, cutting down on waste and saving money.
Being more efficient not only helps businesses make more profit but also makes their way of working more sustainable and strong for the future.
What is ESG?
ESG stands for Environmental, Social, and Governance. It’s like a checklist to see how well a company does with the environment and people and profit by taking care of these elements.
ESG aims to help people like investors. Investors use ESG to decide if they want to invest in a company. The three parts of ESG are:
Environmental: This looks at how a company impacts the environment. It checks pollution, energy use, and how they handle waste.
Social: This checks how a company treats its people and the community. It looks at how workers are treated, diversity, and how the company acts in the community.
Governance: This looks at how a company is managed. It checks if the company is fair and ethical in its decisions, like having a diverse board, fair pay, and following the rules.
Doing well in ESG can be suitable for a company in different ways, like making more money, having a better reputation, and avoiding problems with rules.
More and more, companies are being rated on their ESG, and they share this information so that everyone knows how they are doing.
In recent years, people care more about companies that are good for society and the environment, making ESG more crucial than ever.
Key Terms ESG
Comprehending various terms, metrics, and frameworks is crucial to making ESG reports properly. These terms establish a shared language and criteria, enabling you and your investors to assess the impact on the environment, society, and corporate governance.
Here are some significant terms that merit familiarity:
ESG Factors:
- These encompass the environmental, social, and governance elements considered in ESG investing and reporting.
- Examples: Climate change, human rights, and executive compensation.
ESG Metrics:
- Also referred to as ESG data, these are pivotal performance indicators used to evaluate your ESG performance.
- Examples: Greenhouse gas emissions, water usage, waste management, and diversity and inclusion.
Frameworks:
- These offer a standardised approach to assess your ESG performance.
- Examples: Global Reporting Initiative (GRI), Task Force on Climate-related Financial Disclosures (TCFD), and Sustainability Accounting Standards Board (SASB).
ESG Ratings:
- ESG scores evaluate ESG factors and frameworks your investors and stakeholders utilise to assess your company.
ESG Audits:
- These assessments are conducted internally or externally to evaluate your ESG performance and pinpoint areas for improvement.
ESG Risks:
- These refer to potential risks from your ESG performance, encompassing issues like reputational damage, regulatory fines, and reduced investor interest.
ESG Reporting:
- This involves disclosing your environmental, social, and governance performance to stakeholders, including investors, customers, employees, and regulators.
- In your ESG and sustainability report, include information on ESG factors and metrics, such as energy use, diversity and inclusion, and executive compensation, to enable stakeholders to assess your ESG performance effectively.
ESG vs Sustainability, What are the Differences Between ESG and Sustainability
Distinguishing between ESG (Environmental, Social, and Governance) and sustainability reveals their interconnected yet distinct nature.
Both concepts revolve around environmental impact, social responsibility, and governance practices. However, the difference lies in their scopes and applications.
ESG serves as a structured set of criteria to assess a company’s environmental, social, and governance performance.
It functions as a standardised framework, providing investors and stakeholders with a systematic way to gauge a company’s societal and environmental impact and corporate governance practices.
In contrast, sustainability is broader and encompasses principles that advocate for responsible and ethical business practices. It considers the relationship between environmental, social, and economic factors.
The primary distinction emerges in the utilisation of these concepts. ESG is a specific tool for measuring and evaluating a company’s performance. It focuses on carbon emissions, diversity and inclusion, and executive compensation.
On the other hand, sustainability is a comprehensive principle that spans various responsible business practices. It includes supply chain management, stakeholder engagement, and community development.
While ESG provides a targeted assessment tool, sustainability is a holistic framework for promoting responsible and ethical business conduct.
Both play crucial roles in shaping corporate behaviour. ESG offers specific metrics for evaluation and sustainability, guiding a company’s overarching commitment to ethical practices across diverse operations.
Why do Sustainability and ESG Matter for Australian Businesses?
Sustainability and ESG (Environmental, Social, and Governance) considerations are increasingly vital for Australian businesses due to several compelling reasons:
Global Expectations and Trends:
The global business landscape is evolving, emphasising ethical and sustainable practices. International stakeholders, including consumers, investors, and partners, increasingly expect businesses to align with environmental and social responsibility standards.
Australian companies need to meet these expectations to remain competitive on the global stage.
Risk Mitigation:
Sustainability and ESG practices help mitigate risks associated with climate change, social issues, and governance shortcomings.
As climate-related risks become more pronounced, businesses proactively addressing these concerns are better equipped to navigate regulatory changes, supply chain disruptions, and other potential challenges.
Investor Preferences:
Both domestic and international investors are showing a heightened interest in companies with strong sustainability and ESG performance.
Many funds and institutional investors incorporate ESG criteria into their decision-making processes, and businesses that align with these principles are more likely to attract investment.
Social Licence to Operate:
Australian businesses rely on the support of local communities and stakeholders.
Demonstrating a commitment to sustainable and responsible practices enhances a company’s social licence, fostering positive community relationships and reducing the risk of reputational damage.
Regulatory Compliance:
The Australian regulatory landscape is evolving to include stricter environmental and social standards.
Following sustainability and ESG practices ensures that businesses are compliant with existing regulations and better positioned to adapt to future changes in the legal and regulatory environment.
Brand Reputation and Customer Loyalty:
Consumers increasingly make purchasing decisions based on a company’s ethical and sustainability practices.
Businesses prioritising sustainability and ESG considerations build a positive brand reputation, foster customer loyalty, and tap into a growing market of environmentally and socially conscious consumers.
Employee Engagement and Attraction:
Final Thought about ESG and Sustainability
Incorporating sustainability and ESG practices is not just about meeting ethical standards. It is a strategic imperative for Australian businesses to remain competitive, attract investment, mitigate risks, and build a positive and sustainable future.
Get a free solar quote from Cyanergy to keep up with your sustainable goals!
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The post ESG vs Sustainability| Why Do They Matter? appeared first on Cyanergy.
Most Americans, me included, are puzzled as to how the Trump administration can openly thumb its nose to the findings of our courts. Until recently, behavior like this would have wound you up in jail.
Over the decades, many households across Victoria have resided in older suburban homes equipped with traditional ducted gas heating and aging split-system air conditioners.
However, today the scenario has changed significantly. As energy prices rise, families are feeling the pinch, with annual heating and cooling costs often rising $2,000.
But what are the main issues?
Gas systems that waste energy heating unused rooms, old non-inverter aircons that struggle to maintain even temperatures, and confusion among residents about how rebates, such as the Victorian Energy Upgrades (VEU) program, actually work.
That’s where trusted providers like Cyanergy Australia step in!
By replacing outdated systems with efficient reverse-cycle multi-split air-conditioning and applying VEU rebates, we help many households to cut energy bills, reduce emissions, and enjoy year-round comfort, all in one smart upgrade.
This air conditioning upgrade can lead to a smoother transition from gas to clean, efficient electric heating and cooling, building a smarter, more sustainable home.
So, let’s break down how the household saved $1,200 with the VEU & Air-Con upgrade, what the program offers, and how you can take advantage of similar rebates to cut costs and enjoy a more energy-efficient home.
Cyanergy’s Energy Assessment: What We Found!
From the beginning, Cyanergy’s focus was to remove or disconnect the old gas ducted heater, install a modern
reverse-cycle multi-split air conditioning system, claim the VEU discount, and significantly reduce your annual
energy bills.
Simply via the effective air-conditioner upgrade, households can “Save
up to $2,000 a year on your energy bill.
Here are the findings after Cyanergy’s initial home energy visit:
- In many Victorian households, the ducted
gas heater is still in use, with high standing and fuel costs. - The older split system had poor efficiency. Some of them were oversized for the room and lacked zoning
options. -
The electrical switchboard had spare capacity to support a multi-split installation. For example, one
outdoor unit
with multiple indoor units for different zones.
Home Heating & Cooling Upgrade| The Step-by-Step Path
It’s well-known that the upgrade path usually involves replacing old systems with modern, energy-efficient solutions.
So, from gas to an energy-efficient electric system, let’s have a look at the upgrade story:
Choosing the right system
For the households that want to upgrade under the VEU air
conditioner rebate, we proposed a multi-split reverse-cycle system:
- One efficient outdoor inverter unit connected to three indoor units
- One in the main living area, one serving the upstairs bedrooms, and
- One for the downstairs zone, which had very little heating or cooling.
- Going multi-split provides flexibility: you only run the zones you need, resulting in lower energy
consumption.
However, in Victoria, Cyanergy is a renowned company that handles design, quoting, installation, and also guides
families through rebate
eligibility.
Decommissioning the old gas ducted heater
As part of eligibility for the VEU discount, the existing gas heater needed to be decommissioned in most cases.
This involves removing the system or disconnecting the ducted unit from the gas supply, following proper procedures
and obtaining certification, and utilizing expert installers.
Installation Process & Timing Period
- Initially, after checking the eligibility, apply for the quotes.
- The quote needs to be accepted and dated.
- Then the installers will remove the old ducted heater, seal off the vents, and remove or disconnect the gas
appliance. - The outdoor inverter unit should be mounted externally in these households. The indoor units need to be
installed in each zone, minimising the intrusion of ductwork and piping. - The wiring and electrical breaker must be upgraded as needed.
- The system will then be commissioned, and the necessary documentation will be submitted to the accredited provider for the VEU scheme.
Choosing efficiency over just cooling
Rather than improving just cooling, the Victorian households treated the upgrade as a heating & cooling renovation, switching to a system that uses electricity rather than gas.
Modern inverter systems are more efficient, as they modulate their output, offer better zoning, and can both heat and cool, allowing you to enjoy both winter comfort and summer cooling in one system.
At Cyanergy, we emphasise this home upgrade path:
“Efficient and Eco-Friendly Electric Multi-Split Air Conditioner. Take advantage of up to $7,200 in Victorian Government Energy Upgrade incentives, save big this winter on your gas bill.”
Out-of-pocket and rebate
Here is recent data from the average estimation for a household from the aircon rebate case study in Victoria.
In the quotation, the family had an installation cost of approximately $8,000 for the new multi-split system, including the decommissioning.
The VEU discount for gas-ducted to multi-split upgrades in Victoria was approximately $2,500.
So, their net out-of-pocket cost was ($8,000 – $2,500), which is approx $5,500.
How to Apply for the VEU Rebate: Are You Eligible?
The Victorian Energy Upgrades (VEU) program provides rebates for eligible energy-efficient upgrades such as
installing a high-efficiency reverse-cycle air conditioner to replace an older heating or cooling system.
Before we discuss how
the rebate works, here are the eligibility criteria.
So, to qualify under the VEU program:
- The property must be more than two years old.
- The existing heating or cooling system must be removed or replaced.
- The new system must be an eligible high-efficiency reverse-cycle unit installed by an accredited
provider.
How the Rebate Works
In this case, the quote from Cyanergy already included the VEU discount, meaning the price shown was the net cost
after applying the rebate allocated to the installer.
After installation:
- The accredited provider registers the upgrade with the VEU program.
- They create and claim Victorian Energy Efficiency Certificates (VEECs) for the upgrade.
- The value of those certificates is passed on to the customer as an instant discount on the invoice.
The homeowner simply has to:
- Signs off that the old system was removed or decommissioned.
- Provides any required evidence or documentation, like serial numbers or photos.
The Result
The rebate is applied instantly at the point of installation, reducing the upfront cost — no need for the homeowner
to submit a separate claim.
Why is the VEU rebate significant?
Rebates like this make a big difference in the decision-making process. As the website says:
On average, households that upgrade
can save between $120 and $1,100 per year on their energy bills.
Additionally, the government factsheet notes that households can save between $120 and over $1,000 annually,
depending on the type of system and upgrade.
Thus, the rebate reduces the payback period, making the system more widely available.
Energy Bill Before vs After: See the Savings!
Here’s where the real story says: the household’s actual bills before and after the upgrade.
Before Adding Air Conditioning System
- Ducted gas heating and an older split system.
- In Victoria during winter months, the average monthly gas cost is approximately $125, and for electricity,
and other supplementary costs, an additional $30. So roughly $155 per winter month. Therefore, over the
course of four months, the price can reach nearly $620. - In summer cooling months, if their older split system ran for 2 hours per day, for example, from May to
October, it would cost around $50 per month. Over the 6 months, it will be, $300. - Total annual heating and cooling cost is approximately $920
After Adding the Air Conditioning System
- Household that installed a Multi-split reverse-cycle system.
- During the winter months, running the zones efficiently and utilizing the inverter system resulted in a
decrease in heating electricity costs.
Let’s say the average is around $70 per month over four months, totaling approximately $280.
- In the summer months, efficient cooling costs approximately $30 per month over six months, totaling around
$180. - So, the annual heating
and cooling cost is approximately $460.
Net Savings
Annual savings: $920 (before) – $460 (after) = $460 per year.
At that rate, the upgrade pays for itself in net savings and an upfront rebate.
However, as they also removed gas connection fees and standing charges, improving comfort, therefore, the “effective”
savings were perceived to be higher, around $1,200 in the first year with the air conditioning upgrade.
This figure also includes avoided gas standing charges of $150, lower maintenance costs of the old system, and
improved efficiency.
Maximising Your Savings| Key Insights from the VEU Rebate Program
Based on the case study and Cyanergy’s experience, here are some lessons and actionable tips for homeowners
considering an upgrade.
- Don’t wait until your system dies.
Replace outdated or inefficient gas or electric resistance systems immediately. Once the system starts
failing, you
may have fewer options or higher installation disruption.
- Choose a provider who handles the rebates.
Dealing with the rebate or discount component (VEU) on your own adds complexity, like documentation,
compliance, and
installation. So look for an accredited provider.
- Understand the actual savings potential.
It’s not just the rebate amount; consider running costs, efficiency improvements, zoning, and the ability to
heat and
cool.
- Ensure proper sizing and zone control.
As many families discovered, the benefit came from zoning: you only heat and cool rooms you use. Oversized
units or
whole-home heating can reduce savings.
- Factor in non-energy benefits.
Better comfort, for example, quieter systems and more consistent temperatures, as well as the removal of gas
standing
charges, less
maintenance, and improved resale appeal for eco-conscious buyers, all benefit you.
- Check the accreditation and compliance.
With rebate programs, there’s always a risk of non-compliant installations or companies that don’t follow
through.
So, do your homework: check that the installer is accredited for VEU, ask for references, and ensure that the
documentation is completed appropriately.
- Request detailed quotes that include estimates for both “before rebate” and “after rebate”
costs.
This helps you see how much you’re actually paying, the discount you receive, and ensures transparency. The
rebate is
not always the full difference; minimum contribution rules apply.
- Monitor your bills after installation.
Keep track of your energy bills (gas & electricity) before and after for at least 12 months. This will
indicate
whether the savings are as expected and aid in budgeting.
Be realistic about pay-back
Although the rebate helps upfront, large systems still cost thousands of dollars. Don’t expect payback in one
or two
years (unless you have extreme usage).
However, with a well-designed system, rebates, and efficiency gains, a payback of 5-10 years or better is
possible,
depending on usage.
Final Notes
This aircon rebate case study illustrates the VEU saving. By working with Cyanergy Australia, households transformed a traditional, inefficient gas-ducted heating and older split cooling system into a modern, efficient, zone-controlled multi-split reverse-cycle air-conditioning system.
This was made more affordable through the VEU scheme discount.
The result? A net cost of around $5,500, improved comfort, and savings of approximately $1,200 in the first year.
This real-world “VEU saving example” shows that:
- Rebates matter as they make the upgrade financially viable.
- Efficiency matters as modern multi-split reverse-cycle systems deliver lower running costs.
- Removing inefficient gas heating can unlock significant savings.
- A reliable installer who navigates the rebate process effectively is crucial.
So, if you are looking for an accredited provider in Australia, Cyanergy is here to help!
Contact us today to receive a free solar quote. We will handle all your paperwork to ensure a fast and smooth installation process.
Your Solution Is Just a Click Away
The post How Households Saved $1,200 with VEU & Air-Con Upgrade? appeared first on Cyanergy.
About 20 years ago, a friend asked me if I was aware that cars could run on air. I asked, delicately, what she meant, and she explained that cars can run on compressed air.
“Ah,” I replied. “Of course they can. But where does the energy come from that compresses the air?” End of conversation.
Now, it’s back. Now there are enormous swaths of the population who know so little about middle school science that they believe we can put cars on the road, in an ocean of air, and extract energy out of that air to power our automobiles.
If you’re among these morons and want to invest with some heavy-duty fraud/charlatans, here’s your opportunity. They say that it’s “self-sustaining and needs no fuel.” If that makes sense to you, be my guest.
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