Using energy in smarter ways can save companies a lot of money even for large multinational companies, such as UltraTech Cement, Hilton and H&M. Smarter energy use has saved 18 companies over US$$55 million in the last year alone, helping them boost the bottom like and increase competitiveness.
The world’s leading energy-smart companies, 21 members of international non-profit The Climate Group’s smart energy initiative EP100, have already saved over 520 million MTCO2e, which is the carbon equivalent of running 134 US coal-fired power plants for a year.
The ‘Smarter Energy Use: Businesses Doing More With Less’ report brings together a growing group of energy-smart companies committed to increasing their energy productivity. The report found since joining EP100, 18 companies have also generated collective financial savings to the tune of US$131 million – capital that can be reinvested in clean growth, as well as generate wider business benefits such as increased employee productivity and better customer reputation.
On average, members are increasing their energy productivity by 8% per year, with nine members improving their energy productivity by 50% or more since their baseline year.
As the major barriers to improving energy productivity members identified high upfront costs, regulatory and policy uncertainty and competition for capital expenditure. At the same time, the business case for investment stacks up with many members reporting payback periods of 2-4 years on their energy efficiency investments.
The EP100 group has reached 50 members, including the newly joined Airport Authority Hong Kong, that have committed to improving their energy productivity, have a combined revenue of over US$382 billion, covering more than 130 markets worldwide and nine industry sectors.
“Doing more with less energy can unlock faster decarbonization of the global economy – and the private sector holds the key.” Said Helen Clarkson, CEO, The Climate Group.
She added “From the boiler room to the boardroom, smarter energy use benefits a business at every level, helping to meet the growing expectations of shareholders, customers and employees while generating capital that can be reinvested in clean growth. The Climate Group congratulates EP100 members on leading by example – something every major company should be doing.”