Companies that source 100% renewable energy are consistently more profitable than those that don’t, according to analysis of 3,500 firms by The Climate Group.
In a report released today, the group reveals how RE100 members outperform non-members by 0.3% to 7.7% for net profit margin and earnings before interests and taxes (EBIT) across all sectors.
These members have all committed to sourcing 100% renewable energy, with the latest findings thought to demonstrate a “direct correlation” with above-average financial performance.
This comes as government ministers, investors, governors, CEOs and mayors descend on New York City for the Climate Week NYC 2018 event to discuss future environmental policy.
Speaking at the event today, The Climate Group CEO, Helen Clarkson, said: “Being energy-smart and business-smart goes hand in hand, and this has to be the norm sooner rather than later to keep warming well below 2˚C.
“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 is a global initiative uniting influential businesses committed to 100% renewable electricity, and working to massively increase demand and delivery of renewables.
It was also announced today that seven firms from seven different countries have become new RE100 members, including Latin America’s Grupo Bimbo and Turkey’s Gürmen Group – the first companies to join from these two nations.
Other new joiners include France’s Decathlon, India’s Club Mahindra Holidays, Japan’s Fuyo General Lease Co., Ltd., The US’ Lyft, and Taiwanese skincare company TRIDL.
These new additions bring total membership of the RE100 to 152 companies, representing $3.8trn (£2.9trn) in revenue, and creating demand for over 184 TWh of renewable energy per year.
Gürmen Group chairman, Remzi Gür, said: “Gurmen Group aims to become one of the industry leaders on environmental issues and the commitment of using 100% renewable electricity is the proof of this purpose.
“We are pleased to join the RE100 initiative and be the pioneer for our country – we hope these first steps will influence new firms in Turkey.”
Image credit: iStock
