A new report from RE100 in consultation with Capgemini Invent shows that members of the global initiative are more profitable than their peers. RE100 members commit publicly to sourcing 100% of their electricity from renewables by a set year.
The global initiative, which was created by The Climate Group in partnership with CDP in 2014, currently includes 152 leading companies from a broad range of sectors representing more than $3.8 trillion in revenue. Last year the initiative passed the 100-member milestone. Global apparel company PVH Corp. with brands that include Tommy Hilfiger, Calvin Klein, and Speedo, is among the most recent companies to join.
Capgemini Invent and The Climate Group say that the report released today draws on 2016 – 2017 data from a sample of 3,500 companies. RE100 businesses that have committed to 100% renewable electricity consistently performed better than nonmembers on two key financial indicators: net profit margin and earnings before interests and taxes (EBIT) margin.
“The difference is significant — up to 7.7 percentage points — and is true across all sectors, most prominently for IT, telecommunications, construction, and real estate,” according to The Climate Group, which is currently convening business and government leaders for the 10th annual Climate Week NYC.
In addition to the RE100, The Climate Group has the EP100 initiative in partnership with the Alliance to Save Energy that invites businesses to commit to doubling their energy productivity by 2030.
Hilton recently joined the EP100 with plans to expand the company’s smart energy management system to achieve a 40% energy productivity improvement by 2030 compared to a 2008 baseline, according to The Climate Group. Since 2008, Hilton’s portfolio of hotels has already achieved over $1 billion in cumulative utility cost savings.
Taiwanese skincare products company TRIDL, which operates in Asia and North America, joined both the RE100 and EP100. The company aims to achieve 100% renewable electricity globally by 2048 and plans to install solar panels next year. A previous switch to LED lighting for TRIDL already led to a 60% electricity savings. Currently the company is installing a smart energy management system to improve its energy productivity by 30% by 2048 compared to a 2018 baseline, The Climate Group notes.
“Improving energy productivity not only helps to manage energy demand and greenhouse gas emissions, it can ensure that prosperity and development needs are met — boosting company margin and saving money for consumers,” said TRIDL vice president Sany Lai.
