9-in-10 companies have no energy efficiency targets
New data shows organisations are failing to acknowledge the urgent need to use and waste less electricity.
Research conducted by CDP shows that almost half of companies across the world currently use no renewable energy whatsoever. Meanwhile, nine in every 10 still have no energy efficiency targets in place, backing up separate research from True, powered by Open Energy Market, shown a British businesses and organisations are still not reaping commercial benefits from decarbonisation.
Scope three emissions in particular are causing widespread headaches, with just 23% confident in their understanding of and knowledge of how to manage this issue. Conversely, though, 85% of business leaders said they do have confidence in their sustainability strategy.
The report, which is based on almost 10,000 corporate responses, also shows a small group – 682 – super user companies. While only representing 7% of the firms in the study, this cohort buy more than three quarters of all disclosed electricity purchases worldwide, highlighting how major businesses can drive widespread change.
These operations use more than one terawatt hour of electricity per year — equivalent to the annual consumption of 95,000 US households. 80% of these do claim some renewable use, with Deutsche Telekom, Microsoft, and Robert Bosch getting more than 90% of their power from clean sources. However, on average these super users are actually lagging behind smaller firms on renewable energy use, using just 33% from clean sources compared with 47% for all companies. There were also discrepancies between claims and proof, with just one-in-four companies reporting third party verification was in place on energy related scope 2 emissions.
‘Most companies are still moving far too slowly on renewable electricity, despite it being in their business interest to do so,’ said Amir Sokolowski, Director of Climate Change at CDP. ‘As COP29 calls for urgent and accelerated climate action, our data highlights an immense, untapped potential in corporate renewable energy use. The path forward demands companies of all sizes prioritise verifiable renewable energy use and purchase targets alongside energy efficiency targets. Without this, the global energy transition risks stalling. Major electricity super users must lead by example to stimulate market transformation, and transparency is foundational to this goal.’
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Image: Adolfo Félix via Unsplash