RE100 members outperforming peers on key financial indicators
Companies committed to sourcing 100% renewable electricity through the RE100 initiative are outperforming their peers in relation to net profit margins and earnings before tax, a new report from The Climate Group has found.
Sampling data from 3,500 companies, the report found that RE100 members are performing better than non-members across the two key financial indicators. The difference in performance ranges from 0.3% to 7.7% across both net profit margins and earnings before interests and taxes (EBIT).
According to the report, produced in partnership with Capgemini Invent, RE100 members are “re-writing the rulebook of renewable electricity sourcing”. The difference in performance is most prominent across the IT, telecoms, construction and real estate sectors.
Speaking at Climate Week in New York, The Climate Group’s chief executive Helen Clarkson said: “Being energy-smart and being business-smart goes hand in hand and this has to be the norm, sooner rather than later to keep warming well below 2 degrees Celsius. We congratulate those going further and faster on climate action and we urge others to do the same – a win-win for emissions and the bottom line.”
The RE100 now consists of 152 companies, after PVH Corp – which owns brands such as Tommy Hilfiger and Calvin Klein - bakery company Grupo Bimbo, sportswear firm Decathlon and Turkish menswear retailer and manufacturer Gürmen Group all pledged to the initiative.
The group now represents more than $3.8trn in revenue and is creating demand for more than 184TWh of renewable energy annually – more than the energy demand of New York State and Connecticut combined.
RE100 member, Bank of America, has also announced its membership to The Climate Group’s EV100 – a commitment to increase use of electric vehicles (EVs) and installation of charging stations. Bank of America has installed 100 workplace charging points in the UK and US, with a pipeline of new deployments extending to 2019 and beyond.
Hilton joins EP100
In related news, hospitality firm Hilton as joined The Climate Group’s energy efficiency initiative, the EP100. Hilton will target a 40% energy productivity improvement by 2030 against a 2008 baseline. Since the baseline date, Hilton has reduced energy use intensity by 20% and its carbon footprint by 30%, as it pushes towards a science-based emissions reduction target of 61%.
Hilton’s senior director of corporate responsibility, Daniella Foster, said: “We are proud to be the first major hotel brand to join EP100, an initiative that directly aligns with our Travel with Purpose commitment to cut our environmental footprint in half by 2030.
“With energy typically being a hotel’s second highest operating cost after labour, smart energy management is critical to the hospitality industry. Smart energy management reduces costs for Hilton’s owners, and drives value for the business – we call on other hotels to set science-based targets and pursue smart energy management.”