Energy productivity is most simply described as the amount of economic output per unit of energy input. Improving energy productivity offers companies significant potential as a low cost way to decarbonise, reduce risk, and increase economic resilience and returns for investors.
A new guide developed by ClimateWorks Australia analyses the energy productivity of industrial companies across six key sectors. It measures the potential benefits of improving energy efficiency and energy productivity.
Who could benefit?
of companies could benefit
Improving energy productivity is a measurable and profitable way to reduce energy use and emissions, delivering significant savings in energy costs, often with little to no capital investment. Despite these opportunities, many companies still have room for improvement.
As an example, the most energy productive paper company generates four times more revenue per gigajoule used than the least energy productive paper company.
Investors can use this analysis to improve understanding of energy issues, constructively engage with portfolio companies, decarbonise portfolios and boost investment options, savings and profitability.
How much growth could this offer?
This guide reveals that a third of companies analysed could increase profits by over 5% per year, if they matched the performance of leaders in their sector. Even accounting for capital costs, underperformers could achieve a 2-10% growth in profits for each year of implementation.
For example, improved energy efficiency has already led to USD $1.2 billion in annual savings for the 70 companies analysed across six sectors: airlines, automobiles, chemicals, steel, paper and construction.
What opportunities can you find?
What you can do
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