SMARTER ENERGY USE Businesses Doing More with Less
Total Page:16
File Type:pdf, Size:1020Kb
SMARTER ENERGY USE Businesses Doing More with Less EP100 Progress and Insights Report, July 2019 EP100 Annual Report | 1 KEY FINDINGS This report showcases the progress made by EP100 The report covers data from 23 member members signed up to Double Energy Productivity or companies reporting from their chosen baseline Implement an Energy Management System (EnMS) year (see annex).* HELEN CLARKSON – two of three commitment pathways in the EP100 Chief Executive Officer, initiative, with qualitative information provided by *excluding two members with less than two years The Climate Group selected signatories of the Net Zero Carbon Buildings of energy data. (NZCB) Commitment9 ahead of the first reporting cycle Improving energy productivity – using less energy to achieve higher for this pathway in 2020 (See p.5). economic output – can unlock faster decarbonization of the global economy, and the private sector holds the key. The International Energy Agency (IEA) estimates that improvements in energy efficiency can deliver over 40% of the greenhouse gas (GHG) emissions reductions needed to meet global climate goals1. In addition to 67% 8% enabling a faster shift to renewables, energy efficiency improvements add average progress made toward respective EP100 average annual energy productivity enormous value to global GDP and boost companies’ bottom lines. targets to date – ahead of schedule improvement by members The Climate Group2’s global EP1003 initiative, delivered in partnership with the Alliance to Save Energy4, now brings together 50 leading companies with over US$382 billion in combined revenue, all publicly committed to making smarter use of energy. In this first EP100 Progress and Insights Report, we learn how members >US 55 are integrating smarter energy use into their growth strategies and working toward their targets at speed. They are driven by financial opportunity, MILLION 730 environmental impact and reputational advantages. collective financial savings > in the last year. TWh amount of energy To date, members have avoided using over 730 terawatts (TWh) of energy – >US$131 million: collective saved to date – nearly half the annual electricity consumption of India5. I congratulate each financial savings to date since equivalent to more and every one of them and thank them for sharing their stories and inspiring joining the EP100 initiative than Germany’s others to take action. annual electricity consumption10 Since joining EP100, members have collectively saved over US$131 million. With many citing a payback period for efficiency improvements of as little as 2-4 years, and generating savings on top, the business case for saving 522M energy is clear. Energy-smart companies are re-investing in strategic projects, with more and more joining The Climate Group’s RE1006 and MTCO e EV1007 initiatives on renewable power and electric transport 2 KEY DRIVERS: avoided to date 1. Financial savings But the pace of change is crucial. Globally we are falling behind the United equivalent to 2. Reducing GHG emissions Nations’ goal of a 2.7% improvement in energy efficiency per year8. The the annual CO2 3. Reputational benefits immediate years ahead are critical for transforming our economy in time to emissions of 134 limit global warming to 1.5˚C. It is imperative that companies around the US coal-fired world follow the example of EP100 members and accelerate improvements power plants in to their energy productivity. one year11 FOREWORD 2 | EP100 Annual Report EP100 Annual Report | 3 WHAT IS ENERGY PRODUCTIVITY? INTRODUCTION TO EP100 Energy productivity is the ratio of economic output to systems of the future. Global energy demand is Launched in 2016 in partnership with the Alliance to energy consumption – so improving energy productivity growing but through continued improvements in energy Save Energy, The Climate Group’s EP100 initiative HOW TO JOIN EP100 means getting more economic output out of every unit productivity this rise can be offset12. brings together a growing group of leading companies of energy consumed. committed to smarter energy use. The EP100 initiative offers companies a At the country level, energy productivity can support choice of three commitment pathways: ECONOMIC OUTPUT energy access, increase energy security and reduce At the time of publication, EP100 has 50 members ENERGY CONSUMPTION reliance on imports, while ‘decoupling’ GDP from spanning nine sectors, from retail and real estate to 1. Double Energy Productivity energy consumption – critical for reaching sustainable cement and auto manufacturing. They operate in more A company commits to doubling its Focusing on improving energy productivity (rather than development goals13. than 130 markets, and collectively represent over economic output from every unit of reducing energy intensity) provides companies with a US$382 billion in annual revenue. energy it consumes globally within 25 positive goal. It enables them to apply a financial lens Energy productivity is an exciting narrative that years, with a baseline year of 2005 at to their energy use and empowers them to align their resonates across boardrooms, boiler rooms and policy Membership has grown quickly over the last year, with the earliest. The company chooses business growth with their sustainability targets. makers’ desks. companies joining from Europe, North America, South a relevant energy productivity metric Asia, Australia, South Africa, and the Middle East. (e.g. revenue/gigajoules (GJ) of By implementing energy efficient technology, digitalizing energy) to track and report. systems and changing operational behavior, businesses These influential companies are positioning themselves maximize the ‘services’ provided by each unit of energy “IMPROVING ENERGY PRODUCTIVITY as leaders in the clean energy transition. Through 2. Implement an Energy they consume, helping to increase overall productivity. IS THE DOMINANT FORM OF EP100, The Climate Group provides a global platform Management System for them to showcase their leadership and innovation, A company commits to implementing Monitoring energy performance enables companies MITIGATION THAT A CORPORATION share best practice, and demonstrate progress on an energy management system to identify the greatest opportunities to improve their CAN CONTRIBUTE TO… USING energy productivity. (EnMS) in each of its facilities within productivity and increase their economic output. EP100 10 years and commits to an energy members choose a metric that best fits their business MORE ENERGY THAN REQUIRED IS By championing the business benefits they experience, productivity target. Deploying an model, such as ‘units produced per energy consumed’ LITERALLY LIKE BURNING MONEY such as cost savings and long-term competitiveness, EnMS is a foundational step toward or ‘revenue per energy consumed’. members underline the business case for increasing improving energy productivity. AND ENVIRONMENTAL RESOURCES.” energy productivity and inspire their peers to follow. Beyond business benefits, improving energy – Anirban Ghosh, Chief Sustainability Officer, 3. Net Zero Carbon Buildings productivity is a vital step to creating the clean energy Mahindra Group A company commits to owning, occupying and developing buildings “WE SEE EP100 AS A COALITION OF that operate at net zero carbon GAME CHANGERS AND INFLUENCERS emissions by 2030. A net zero carbon building reduces energy demand, TO COMBAT CLIMATE CHANGE.” is highly energy efficient and is fully powered by renewable electricity. This – Ibrahim Al Zu’bi, Chief Sustainability Officer, pathway gives insight to a company’s Majid Al Futtaim emissions, energy demand reductions, and renewable energy solutions from an asset and portfolio level. The NZCB Commitment is led by the World Green Building Council 14; this report does not include data from companies signed up to this commitment pathway. Inside of a boiler room system 4 | EP100 Annual Report EP100 Annual Report | 5 EP100 MEMBERS BY MARKET This map shows the markets covered by member operations and their headquarters 50 EP100 member operations MEMBERS EP100 member company HQs operating in 133 markets Over 9 133 US 382 >1.5 22 companies doubling 8 companies implementing 20 companies owning, sectors markets BILLION MILLION energy productivity an energy management occupying or developing in annual revenue employees system (EnMS) net zero carbon buildings 6 | EP100 Annual Report EP100 Annual Report | 7 DRIVERS CASE STUDY: MAHINDRA GROUP There are many reasons why companies choose to increase energy productivity. In our survey, EP100 members cite financial savings (95%), reducing GHG emissions (84%) and reputational benefits (84%) USING INTERNAL CARBON PRICING TO FINANCE ENERGY-SAVING PROJECTS as the top drivers, considering them to be ‘very significant’ or ‘significant’. AND DELIVER SIGNIFICANT RETURNS The Mahindra Group companies Mahindra & improve airflow, require less maintenance, can be Mahindra Ltd, Mahindra Heavy Engines Ltd, replaced without affecting production levels, and Mahindra Vehicle Manufacturers Ltd, Swaraj Engines have increased safety and reduced noise along KEY Financial savings Ltd, and Mahindra Holidays & Resorts Ltd have all busy assembly lines. Very significant committed to doubling their energy productivity Reducing GHG emissions within 25 years. Mahindra Vehicles Manufacturers Ltd has achieved Somewhat over 40% energy productivity improvement in only significant Reputation Chairman Anand Mahindra has also set a goal to three years. The lessons learned are