Companies control majority of US energy use, but most lack efficiency goals

(ACEEE blog, 21 Nov 2019) As companies and even the US Chamber of Commerce embrace efforts to address climate change, new ACEEE research finds that companies directly control about three-fourths of US energy use and the associated emissions and do some reporting on efficiency. But most do not set energy-saving targets or have comprehensive efficiency plans.

In a striking but quiet reversal, the US Chamber of Commerce changed its position on climate change earlier this month to support US participation in the Paris Accords. That followed a reversal by the Business Roundtable in August, when the group of 181 of the nation’s leading corporate CEOs changed its statement of a corporation’s purpose to put serving customers, employees, suppliers, and communities—including the environment—on par with serving shareholders.

Despite these reversals, the two major associations still lag behind many of their members on corporate sustainability and climate change. Companies are setting sustainability goals, taking steps to reduce emissions, and reporting progress in corporate sustainability reports and financial disclosures.

Companies are key

They have plenty of opportunities. In our issue brief released today, we find that companies directly control about three-fourths of US energy use and the associated carbon dioxide emissions. They own office buildings, manufacturing plants, power plants, and trucks. We know that significant cost-effective energy and carbon savings are available throughout their value chains from lighting retrofits, building energy management systems, smart manufacturing, multi-modal freight systems, and many more efficiency measures (our recent report found half of projected energy use and carbon emissions could be saved by 2050).

Companies can also reduce indirect or “scope 3” emissions by making their products more efficient, giving their employees cleaner commuting options, and helping their suppliers reduce waste in their operations.

Given its large and cost-effective potential, energy efficiency should be the foundation for achieving corporate climate and sustainability goals. For example, last year, FedEx achieved almost 2 million tons of carbon emissions reductions (the equivalent of taking 400,000 cars and SUVs off the road) from more-efficient aircraft and flight operations, while also saving $394 million.

External link

ACEEE blog, 21 Nov 2019: Companies control majority of US energy use, but most lack efficiency goals