Major global companies get aggressive on minimizing future energy risks

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By: SGN Staff

The world's biggest companies are developing concrete strategies for confronting the potential for higher energy costs in the future. In fact, 70% of the world's billion dollar businesses are planning to put more time and money into generating their own power, growing their renewables portfolios and ramping up energy efficiency efforts, according to a new survey report from Ernst & Young.

 

The survey was conducted with 100 global company executives working in sectors that use a lot of electricity. Here are some of the interesting numbers set out in the survey report:

·         38% of those surveyed see energy costs rising by 15% in the next five years

·         Half said energy spending accounted for 5% or more of operating costs, and 22% of the respondents said 20% or more of their operating costs are for energy

·         Those percentages indicate annual energy spending of at least $55 million for 42% of the respondents and more than $100 million for 27%

 

And to illustrate the importance of the issue, the survey found that for 36% of the companies the CEO now makes the final decisions.