The Paris Agreement saw many of the world’s economies agree to limit global warming to well below two degrees Celsius (aiming for below 1.5 degrees). This had an immediate impact on business and investment.
As the world moves towards net zero emissions economies and amidst rising expectations from society and professional peers, many business and investors are now making the shift to recognising climate mitigation offers a significant opportunity, including an ability to showcase their leadership.
ClimateWorks consults with business and investors, providing the knowledge and tools needed to reduce emissions and mitigate climate-related risk, as well as maximise profits through strategies such as improved energy efficiency.
Our research continues to uncover significant opportunities where business can substantially reduce emissions - often at low cost or with short payback periods. For instance our recent Energy Productivity Index for Companies - Guide for Investors report found:
In an analysis of 70 companies across multiple sectors including construction, aviation, paper and steel, 70 percent of companies had significant room for energy use improvement;
One third of companies analysed could increase profits by five percent per year if they were to match the performance of sector leaders;
Discounting capital costs, savings in energy costs could lead to between two and 10 percent growth in annual profits for each year of implementation.
ClimateWorks also identifies common barriers to reducing emissions. In the case of improving energy productivity for example, this has included poor visibility around energy productivity due to a lack of established methodologies to measure, report on and monetise energy use improvements.