Energy productivity and efficiency have traditionally been low visibility issues for investors, marked by a lack of established methodologies to measure, report on and monetise the benefits of improvement.
To address this, ClimateWorks Australia worked with the ClimateWorks Foundation in the US and project partners including Ceres, the Institutional Investors Group on Climate Change (IIGCC), the Investor Group on Climate Change (IGCC) and Principles for Responsible Investment (PRI) to develop the world’s first energy productivity benchmarking tool and a guide for investors. The California State Teachers' Retirement System (CalSTRs) - the world’s largest educator-only pension fund - was the project’s lead investor.
Project scope and limitations
Analysis undertaken was limited by the availability and quality of company data. Energy data used in the analysis was primarily sourced from CDP, complemented with other voluntary company reporting where required. This leads to the following potential limitations: Some companies do not report on all metrics; it is also likely that some reporting is incomplete; energy costs reported as a range, which could lead to high margins of error in estimating energy cost from low energy cost ranges; Variable quality of responses, both over time and between companies in the same year; Emissions reduction opportunities reported by companies were classified as energy efficiency based on descriptions and categories reported by each company - this qualitative data may have lead to inaccurate classifications of energy efficiency opportunities. Please refer to Technical Report for further details on methodology.