- Smarter energy use has saved 18 companies >US$55 million in the last year alone – boosting the bottom line and increasing competitiveness;
- 21 members of international non-profit The Climate Group’s smart energy initiative EP100 have avoided over 522 million MTCO2e since their respective baseline years, equivalent to the CO2 emissions of running 134 US coal-fired power plants for a year;
- To date, EP 100 member companies have saved enough energy to power almost half of India for a year
- The Climate Group calls on every major business to improve its energy productivity, as EP100 reaches 50 members milestone
New Delhi/ London: The world’s leading energy-smart companies have already saved over 520 million MTCO2e, the carbon equivalent of running 134 US coal-fired power plants* for a year – generating substantial business benefits, a new report reveals today. Among these are Indian corporate giants Mahindra Group and Ultratech Cement.
‘Smarter Energy Use: Businesses Doing More With Less’ is the first Progress and Insights Report for EP100, a global corporate leadership initiative of international non-profit The Climate Group, delivered in partnership with the Alliance to Save Energy. The initiative brings together a growing group of energy-smart companies committed to increasing their energy productivity – achieving higher economic output per unit of energy consumed.
The report finds that on average, 21 reporting member companies** (including multinationals such as UltraTech Cement, Hilton and H&M) are already 67% of the way toward their respective energy productivity goals and are ahead of schedule.
To date, 21 have saved more than enough energy to power almost half of India for a year***. Since joining EP100, 18 have also generated collective financial savings to the tune of US$131 million – capital that can be reinvested in clean growth – as well as wider business benefits such as increased employee productivity and a reputational boost.
Also today, Mahindra Group company Swaraj Engines Ltd, Yanbu Cement Company (YCC) and Airport Authority Hong Kong have joined EP100 to improve their energy productivity – bringing the membership total to a 50 members milestone. Together, these 50 members have a combined revenue of over US$382 billion, covering more than 130 markets worldwide and spanning 9 sectors from retail and real estate to cement and automotive manufacturing.
Jarnail Singh, India Director, The Climate Group, said, “Energy productivity is an emerging paradigm that is recalibrating the focus of business leaders away from energy conservation and towards how energy can best maximize societal, environmental and economic welfare. It resonates with leading Indian companies because they are starting to see the pivotal role they play in decoupling the country’s economic growth from greenhouse gas emissions.”
“To date, eight Indian companies have joined EP100, and this is our largest contingent of members by country. We hope many more Indian companies step up and make the ambitious energy productivity commitments that are necessary for accelerating the country’s transition to a low-carbon economy.”
Jason Hartke, President, the Alliance to Save Energy, said, “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.”
The report findings in more detail
- Mahindra Vehicles Manufacturers Ltd increased its energy productivity by over 40% in three years
- Mahindra Group has saved US$38 million over the last six years
- UltraTech Cement has saved US$4.5 million in the least year alone
- UltraTech Cement has prevented over 30 million metric tons of GHG emissions since 2010
- On average, members are increasing their energy productivity by 8% per year;
- Nine members have improved their energy productivity by 50% or more since their baseline year;
- Without energy efficiency efforts, members would be using 146 TWh more energy per year – which would take an area of forest twice the size of the UK to sequester;
- Members cited financial savings, reduced greenhouse gas (GHG) emissions and reputational benefits as their top drivers for improving energy productivity (95%, 84% and 84% of respondents respectively said these were “very significant” or “significant”);
- Many members reported payback periods of 2-4 years on their energy efficiency investments;
- Members cited high upfront costs, regulatory and policy uncertainty and competition for capital expenditure as the biggest barriers to improving energy productivity (68%, 63% and 42% of respondents respectively said these were “very significant” or “significant”)
Companies joining EP100
Swaraj Engines Ltd
Swaraj Engines Ltd is an Indian manufacturer and supplier of diesel engines and is part of the Mahindra Group conglomerate. As part of EP100, the company is committed to improving its energy productivity (2014-15 baseline year), by doubling the number of engines produced per gigajoule of energy consumed by 2040.
Subhash Mago, CEO & Whole Time Director, Swaraj Engines Ltd, said: “We strongly believe that long-term competitive advantages can be derived from the integration of social responsibility, environmental concern and economic process, in turn fulfilling the expectations of end customers, employees, partners, investors and the public at large. This is why we have joined EP100 to improve our energy productivity and lead by example in our sector.”
Yanbu Cement Company (YCC)
Yanbu Cement Company (YCC) is one of the largest cement manufacturers in Saudi Arabia. As a member of EP100, the company is rolling out an energy management system (EnMS) to ISO 500001 standard by 2020 and targeting a 30% energy productivity improvement by 2025 (against a 2010 baseline). The company’s energy productivity improvement will be measured in terms of tons of clinker produced annually per gigajoule of energy consumed.
Amr Nader, Advisor to CEO for Strategic Planning and Performance Management, Yanbu Cement Company, said, “YCC is proud to join EP100 to work alongside major companies from around the world to accelerate the clean energy transition. Our energy management strategy aims to fulfil our national responsibility to optimize the use of energy resources and our global responsibility to reduce emissions. As well as meeting our sustainable growth objectives, this has a very positive impact on our cost reduction targets consequently improving our margins and adding value for our customers and shareholders.”
Airport Authority Hong Kong
Airport Authority Hong Kong (AAHK) is responsible for the operation and development of Hong Kong International Airport (HKIA), one of the busiest airports in the world. As a member of EP100, AAHK is committed to expanding the scope of its ISO 50001-certified EnMS to cover all terminal buildings by 2020 and increasing its energy productivity (revenue/MWh) 30% by 2030 (against a 2015 baseline).
Today, AAHK is taking an extra leadership step by also joining EV100, The Climate Group’s global corporate leadership initiative aiming to make electric vehicles (EVs) ‘the new normal’ by 2030. AAHK’s commitment is to increase the number of electric powered vehicles operating at HKIA from the existing 720, to over 3,000 by 2030, and to provide over 1,320 charging points to support airport operations. In addition, over 100 chargers will be provided at car parks for the airport community and passengers. HKIA will be the first airport in the world to be covered by both EP100 and EV100 commitments.
Alex Kwan, Executive Director, Engineering and Technology of Airport Authority Hong Kong, said: “HKIA is committed to becoming one of the world’s greenest airports, and it is always our goal to decarbonize our operations and contribute towards a low-carbon aviation industry. We will continue to work closely with our business partners through our ‘airport-wide’ carbon reduction programme to drive energy efficiency and further reduce HKIA’s carbon emissions.”
*The carbon dioxide savings equivalent (134 US coal power stations) was calculated using the United States Environmental Protection Agency (2018) Greenhouse Gas Equivalencies Calculator.
** The report covers data from 23 member companies excluding energy productivity data from two members with less than two years of energy data.