At a company whose primary product serves the generation of green energy, the ESG objective might theoretically seem so inherent that the position of ESG manager could be deemed unnecessary. Nonetheless, solar energy provider Enpal, which is expanding its offering of climate-friendly energy technology via the sale or rental of heat pumps, has decided to appoint Julian Meine to this role. The 34-year-old joined the rapidly growing Berlin-based startup in August of last year, coming from the delivery service Flink, where he was also responsible for ESG reporting as Public Affairs Manager. At Enpal, the role gains in significance.

The company has for the first time released its own carbon footprint – for the years 2022 and 2023. This includes all greenhouse gas emissions from „manufacturing, freight and delivery of solar modules and storage, to vehicles for installation, as well as electricity and heating in offices", the company explains. "Naturally, most emissions occur in Scope 3, beyond the CO2 emissions directly caused by Enpal itself“, says Meine in a conversation with Börsen-Zeitung. An Enpal solar system becomes carbon neutral after 1.5 years. The CO2 analysis was conducted in collaboration with the specialist carbon accounting firm Plan A, and will be submitted annually in future.

Meine says that he is particularly motivated by a frontrunner role, which he believes Enpal and other young companies in the industry embody, and wants to shape a future that remains liveable for future generations. He acknowledges that „we are the ones who must make the crucial decisions in the fight against climate change,“ adding that he finds the "pace at which climate change is being fought alarmingly slow.“

The green tech industry in Germany is growing rapidly. Enpal increased its revenue by 117% to 900 million euros in 2023. Hamburg-based rival 1Komma5 Grad also doubled its revenue to around 500 million euros. Enpal is keeping up the pace. However, the business model is based on entirely debt-financed growth, with special purpose vehicles (SPVs) financing the sale of solar systems through asset-backed securities (ABS). Growth at Enpal primarily depends on being able to offer end customers long-term financing at favourable terms.

To be able to refinance its recently launched SPV2 (with a volume of 1.1 billion euros) as cheaply as possible on the capital market, the company's own ESG efforts are now in the spotlight, as financing with a green angle becomes more attractive – driven by regulation. To potentially use a green financing instrument, Enpal must make its own carbon footprint as transparent and persuasive as possible.

Of course, it also comes down to credibility, especially as measurable criteria are increasingly demanded by investors, and regulatory authorities are adding requirements. According to Meine, it is becoming increasingly difficult to evaluate actual sustainability performance of companies or products. „That is why clear rules are needed on when, for example, a product can be called `climate-neutral´“, he says.

Unlike some, he has no fundamental objections to increased regulation. As new technologies and distribution channels develop rapidly in the 21st century, it takes time for the regulatory framework to adapt. "In that sense, increasing regulation means that the regulator understands that action is needed“, he says. And since the legislator might lag behind, voluntary industry commitments could help.