LONDON: EP100, The Climate Group’s corporate leadership initiative on energy productivity, has been championed to the G20 as a crucial action for driving businesses to make smarter use of energy, while helping to address climate change.
Nicholas Howarth, Research Fellow, King Abdullah Petroleum Studies and Research Center (KAPSARC), was speaking to the first G20 Energy Efficiency and Renewable Energy high level Forum, in Buenos Aires, Argentina. The forum is designed to encourage greater collaboration to help countries to pursue successful cleaner energy policies.
The remarks come as KAPSARC and the Energy Research Institute (ERI) release a new report highlighting the importance of energy productivity in G20 policy – both in terms of driving emissions cuts and in stimulating economic growth.
The report estimates that in 2016, around US$5 trillion or around 23% was added to China’s GDP as a direct result of increased energy productivity, compared to 2010. It shows efficiency standards, energy productivity targets and policy reforms played a key role, helping China achieve one of the highest rates of energy intensity reduction in the world at approximately 5% per year.
BUSINESS LEADERSHIP
Forward-thinking companies have a vital role to play in making this change by ‘doing more with less’ energy across their own operations. EP100 members are taking the highest level of action by doubling their energy productivity within 25 years – and they are experiencing tangible business benefits in doing so.
“By doubling their energy productivity, companies have an immediate opportunity to make substantial savings on their energy bills through increased efficiency and investment in clean tech,” said Jenny Chu, Head of EP100, The Climate Group. “It’s good for the climate and good for the global economy.”
SUPPLY CHAINS
Leading multinationals are also working to engage their global supply chains – something the new report deems “critical”.
EP100 member H&M, for example, which has manufacturing, processing and fabric and yarn factories in China, is working towards a goal to become “climate positive” through its entire value chain by 2040. The retailer envisions a climate neutral supply chain for its first- and second-tier suppliers by 2030, with 100% of its suppliers enrolled in a energy efficiency program by 2025.
Partnering with the International Finance Corporation, H&M will also guide its suppliers in China, India, and Bangladesh in adopting renewable energy solutions, in line with the company’s RE100 commitment to use 100% renewable power in its tier 1 operations.
Another EP100 member, Johnson Controls, has been engaging its suppliers in China through its Building Efficiency Group Supplier Excellence Award, recognizing suppliers for their outstanding achievements in sustainable development.
Jenny Chu added, “Energy productivity recalibrates the focus of major business leaders towards how energy can best be utilized to maximize societal, environmental and economic prosperity. Suppliers can be adapting the same mindset.”
by Grace Gosling
- Find out more about EP100 here.