Members of Climate Group’s Smart Energy Coalition, including Siemens, Danfoss and AstraZeneca, have collectively saved around $183m in energy costs due to improved energy efficiencies. According to Climate Group, these savings surpass Japan and Korea’s yearly energy usage.
In its annual report on the initiative, Climate Group announced that members of the Coalition achieved an average improvement of 8.6% in energy efficiencies at their sites year-on-year, far surpassing the global average of between 1% and 2% per year.
In 2025 alone, members of the Coalition cut 60 million metric tonnes of CO2e.
Helen Clarkson, CEO, Climate Group, stated: “Energy security is now front of mind for governments and businesses around the world. Those investing in energy efficiency are cutting costs and protecting themselves against volatile price spikes.
“To drive further progress, policymakers must work with ambitious companies, like those in the Smart Energy Coalition, to incentivise deep energy efficiency improvements.”
The Group’s senior manager for energy, Nicola Cullen, added: “In uncertain times, our members prove that energy strategy is business strategy. If all businesses prioritise energy efficiency to the same degree as the leading companies in our Smart Energy Coalition, billions of dollars’ worth of energy could be saved each year. It can also improve security by reducing reliance on fossil fuel imports and help to shape the energy future we want.”
Energy efficiency comes first
This news comes alongside the launch of the updated Greenhouse Gas Management Hierarchy (GHGMH), set to deliver a clear and practical framework to assist organisations in the steps they should prioritise to reduce emissions.
The updated GHGMH provides businesses with a structured approach to reduce emissions and reduce reliance on fossil fuels, alongside being better able to withstand external and geopolitical pressures. The updates reflect increasing urgency around climate action and the need for credible strategies.
It encourages businesses to use energy efficiency as the first step towards decarbonisation, as a quicker and easier alternative to energy switching or offsetting. In particular, it prioritises cost control and long-term sustainability.
Developed by the Institute of Sustainability and Environmental Professionals (ISEP) and introduced in 2009, the GHGMH has been adopted by both the UNFCCC and ISO as a best-practice framework for tackling emissions.
Sarah Mukherjee, CEO of ISEP, stated: “Rising energy prices linked to geopolitical instability highlight the urgent need for organisations to reduce their risk and increase their resilience to global shocks by taking control of their own energy use and emissions – and interrogating their supply chains.
“The updated GHG Management Hierarchy provides a clear pathway to do just that – reducing exposure to volatile fossil fuel markets while accelerating progress towards net zero.”
Sara Roberts, head of ESG at KAEFER UK & Ireland – a technical services provider which has utilised GHGMH to reduce emissions – added: “KAEFER is committed to reducing its environmental impact and managing greenhouse gas emissions with structured science-based pathways, aligned with our SBTi-approved targets.
“Using the ISEP Greenhouse Gas Management Hierarchy, we first prioritise eliminating emissions at source through early project design. This includes minimising waste, reducing rework, and avoiding unnecessary transport and site mobilisation.
“We then focus on reducing emissions through operational improvements, including optimising heating systems, improving equipment efficiency, and delivering behavioural change programmes such as reducing vehicle idling by 47%.
“Alongside this, we’ve substituted fossil fuel energy, transitioning to renewable electricity across our facilities and introducing hybrid and electric vehicles into our fleet. In a period of energy price volatility, these actions are not only reducing emissions but also strengthening our resilience to external pressures.
“Finally, KAEFER have taken a deliberate decision not to rely on carbon offsets. Instead, we focus on delivering real, measurable reductions within our operations, including a 14.5% reduction in Scope 1 emissions and a 68.5% reduction in Scope 2 emissions. This demonstrates the value of applying the hierarchy in practice to drive meaningful change.”
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