The Energy Productivity Index for Companies, a new project that will establish the first global energy productivity benchmark for listed industrial companies, has been officially launched in New York, USA.
A partnership between ClimateWorks Australia and the US-based ClimateWorks Foundation, the world’s thirteenth largest public pension fund, the California State Teachers’ Retirement System (CalSTRS), is participating in the project as lead investor.
According to Amandine Denis, ClimateWorks Australia’s Head of Research, the Energy Productivity Index for Companies project would quantify energy risks and the financial value of improving energy productivity for companies involved in the analysis. ‘The project will provide investment funds with a greater understanding of energy-related issues in their portfolios and drive companies to improve their energy performance,’ she said.
Denis added: ‘A company’s energy performance will be assessed in terms of their revenue or production levels per unit of energy used. Other factors such as exposure to energy risks and potential financial uplift will be considered as part of the benchmark. The project will also demonstrate the financial savings available from improving energy productivity performance. Preliminary results show that improved energy efficiency performance could deliver between 2% and 10% annual increase on a company’s profit.’