Many American companies are taking strides to integrate clean energy and energy efficiency into their operations, according to a new report from Calvert Investments, Ceres, David Gardiner & Associates, and the World Wildlife Fund (WWF).
Released on Thursday, the analysis shows that 43 percent of Fortune 500 companies have set targets for greenhouse gas reduction commitments, renewable energy, or energy efficiency.
Among the top one hundred of these companies, even more are taking action against climate change. As of last year, 60 percent of Fortune 100 companies had set goals for either renewable energy or greenhouse gas reductions.
For many companies, adopting renewable sources and reducing energy waste has cut costs. Walmart, for example, uses more solar power than any other company in the United States and aspires to be supplied entirely by renewable power.
Mike Duke, President and CEO of Walmart said:
More than ever, we know that our goal to be supplied 100 percent by renewable energy is the right goal and that marrying up renewables with energy efficiency is especially powerful. The math adds up pretty quickly—when we use less energy that’s less energy we have to buy.
By 2020, the company aims to reduce the energy intensity of its buildings by 20 percent and drive the production or procurement of 7 billion kilowatt hours of renewable energy. These two commitments are projected to save the company $1 billion annually once they are fully implemented.
Other companies that have seen significant savings from energy and climate goals include UPS ($200 million annually), Cisco Systems ($151 million), and PepsiCo ($120 million).
Some companies that have instituted emissions reductions or renewable energy targets also have done so to demonstrate corporate leadership. Apple has recently taken this approach by making data related to the company’s impact on climate change publicly available while also working to improve the energy mix that powers its data centers and storefronts.
Apple CEO Tim Cook made headlines in March for defending the company’s environmental policies and telling climate change skeptics to ditch Apple stocks.
Leading on climate, however, is becoming less of a hard sell in the boardroom as it becomes increasingly clear that the impacts of global warming are hitting business hard—and will continue to do so until emissions see a sharp drop-off.
A report from the Carbon Disclosure Project (CDP) released last month found that 63 of America’s S&P 500 companies have already spent money to counter the effects of climate change. Tom Carnac, President of CDP in North America, said:
Dealing with climate change is now a cost of doing business. Making investments in climate change-related resilience planning both in their own operations and in the supply chain has become crucial for all corporations to manage this increasing risk.
The extreme weather events tied to climate change—like the devastating hurricanes in the Philippines and along the US East Coast—can halt shipping operations and disrupt critical supply chains the world over, causing businesses to lose money.
While the report lauds the climate action that some companies have taken, it also shows that many others have substantial room for improvement. 70 percent of companies in the Fortune 250 to Fortune 500, for example, lack a greenhouse gas, renewable energy, or en energy efficiency target of any kind.
The report also says that companies could make their environmental policies more ambitious by committing to time-bound agreements for greenhouse gas reductions, ideally involving targets that align with reductions necessary to hold global warming to 2 degrees Celsius over pre-industrial levels.