What does the percentage of grid electricity indicate?

The percentage of grid electricity primarily indicates the organization's exposure to risks from grid disruptions. This metric reflects how much of a company's electricity consumption is sourced from the grid as opposed to being generated from alternative energy sources, such as on-site renewable sources. If a company relies heavily on the grid for its electricity, it is more vulnerable to disruptions such as outages, fluctuations in availability, and changes in energy prices, which can impact operations.

Understanding this percentage is crucial for risk assessment and management since companies that are overly dependent on the grid may face operational challenges during times of instability in the energy supply chain. In contrast, investment in renewable energy sources, reliability of the energy supply, and overall energy consumption provide different insights into sustainability and operational efficiency but do not directly correlate with the exposure level to grid-related risks.