Global companies save over £100m through energy efficiency

Energy efficiency has saved a number of major global companies $131 million (£107m), according to new research from The Climate Group.

A total of 21 businesses from the EP100 initiative, including UltraTech Cement, Hilton and H&M, have saved over 520 million MTCO2e, which is the carbon equivalent of running 134 US coal-fired power plants for a year, with those firms saving more than enough energy to power Germany for a year since the initiatives inception.

The report claims that members of the EP100, which aims to commit businesses to energy usage targets and improve consumption levels, are increasing their energy productivity by 8 per cent each year, while also highlighting that its members would be using 146 TWh more energy per year outside of the EP100, which would take an area of forest twice the size of the UK to sequester.

Helen Clarkson, CEO, The Climate Group, believes that doing more with less energy can unlock faster decarbonisation of the global economy, with the private sector key to this.

“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,” she said.

“The Climate Group congratulates EP100 members on leading by example – something every major company should be doing.”

The report indicates that 94 per cent of EP100 members say financial savings were “very significant” or “significant” in improving energy productivity, with 84 per cent citing both reduced greenhouse gas (GHG) emissions and reputational benefits as important factors.

Many members reported payback periods of  2-4 years on their energy efficiency investments, while also recognising high upfront costs, regulatory and policy uncertainty and competition for capital expenditure as the biggest barriers to improving energy productivity, with 68, 63 and 42 per cent of respondents respectively saying these were “very significant” or “significant”.

Jason Hartke, President, the Alliance to Save Energy, which partners The Climate Group in delivering the EP100 initiative, argues that using energy more productively is essential for addressing the climate challenge, but global progress has been far too slow.

“The EP100 companies featured today have stepped up to show what doing more with the energy they use really looks like, and it’s a picture of growth and success. We’ll need more leadership like this – and quickly – as the alternative is too costly to fathom,” he said.

‘Smarter Energy Use: Businesses Doing More With Less’ is the first Progress and Insights Report for EP100, which also reached 50 members alongside the release of the paper after adding Mahindra Group company Swaraj Engines Ltd, Yanbu Cement Company (YCC) and Airport Authority Hong Kong to its roster.

In addition to this, Virgin Media announced recently that it had become a part of the non-profit program.

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