A global report on companies that have committed to powering their operations with clean electricity has found that they consistently outperform their peers on net profit.
The report compared the financial performance of members of RE100 - a group of more than 150 leading companies that have committed to using 100 per cent electricity - against the performance of non-members.
Buying renewable power is considered one of the quickest and cheapest ways for a business to cut its carbon footprint.
Researchers found that RE100 members performed significantly better than non-members on net profit margin and earning before interests and taxes. The findings were true across all sectors, but were particularly pronounced for IT, telecommunications, construction and property.
‘Energy-smart and business-smart’
Helen Clarkson, chief executive of The Climate Group, the organisation behind the RE100 initiative, said: “Being energy-smart and being business-smart goes hand-in-hand and this has to be norm, sooner rather than later.
“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.”
UK members of RE100 include pharmaceuticals firm AstraZeneca, drinks manufacturer Diageo and household names such as M&S, Tesco, Sky, Burberry and RBS Bank.