Energy Transparency 2012Facts & figures | What is it all about?

Bloomberg New Energy Finance and Vestas Wind Systems, the world leader in wind energy, have launched the ambitious Energy Transparency 2012 campaign with the aim of shedding light on: consumers’ perception of products and companies using renewable energies, corporate electricity consumption patterns and adoption of renewable energies.

The relevance of the Energy Transparency Campaign The campaign builds on two pillars: 1) the Global Consumer Wind Study (GCWS), which every year surveys the consumers’ preferences regarding renewable energy, and 2) the Global Corporate Renewable Energy Index Report (CREX), which provides insights into companies’ voluntary renewable energy procurement.

The Energy Transparency Campaign aims at highlighting carbon conscious companies’ successful stories in a consistent and transparent manner. This will foster the discussion on how corporations can use renewable energy to increase brand equity, hedge energy cost, build a more sustainable company image and last, but not least, make the planet greener. In addition, the GCWS will help companies recognize the value that consumers place on companies utilising renewable energies.

Facts about the CREX The Corporate Renewable Energy Index ranks companies according to their voluntary renewable energy procurement. Produced by Bloomberg New Energy Finance. CREX‘ main goal is to clearly identify the level of renewable energy used by corporations around the world and provide much-needed transparency to companies, investors, policy makers, NGOs and last but not least consumers. In 2012, the CREX includes more than 300 companies from 26 countries.

Facts about the GCWSThe Global Consumer Wind Study (GCWS) is a global study focusing on consumers’ preferences regarding energy, their demand for products made with renewable energy, as well as how energy decisions by some the of the world’s largest companies affect consumer choices. In 2012, the study was conducted among ~24,000 consumers in 20 countries.

Key highlights on how carbon conscious companies are utilising renewable energy

BMW – premium brand builds a reputation for sustainability BMW Group, the German-based car manufacturer, considers sustainability throughout its value chain a key component of its corporate image and a driver of its recent success.

The procurement of renewable energy is one of the company’s stated sustainability objectives. In 2011, BMW used 329GWh of renewable energy, which represents 19% of its total electricity consumption. This commitment placed BMW among the top German companies in the CREX rankings for total renewable electricity use.

Most of this renewable energy was obtained through the purchase of green energy contracts, which the company chose based on the origin of the green energy and economic considerations. BMW has also invested directly in wind assets at its Leipzig factory, which will be powered by four wind turbines. Started in 2012, the project costs are about EUR 400 million and will power the production of the BMW i3 by 2013 . BMW is able to use onsite renewable energy to promote its sustainability credentials as wind turbines are a particularly visible sign to customers of a company’s commitment to renewable energy.

BMW’s renewable energy strategy is clearly having an impact: last year, the company achieved top rankings in its class for both the Carbon Disclosure Project and the Dow Jones Sustainability Index.

Topping the Charts While Continuously Innovating  Intel, the US semiconductor chip manufacturer, ranks near the top of renewable energy procurement rankings; for the past five years, it has been the largest voluntary purchaser of green power in the US. The company is an innovator, both in the breadth of its sustainability efforts and the environmental orientation of its technology products.

Intel increased its renewable usage by 75% in 2011, from 1.4TWh to more than 2.5TWh, representing 58% of the company’s electricity consumption. In 2012, the company announced that it will increase its annual purchase of renewable energy to cover nearly 2.8TWh, or nearly 90% of its US electricity use. This procurement, mostly RECs, all of which are certified by Green-E, draws on a portfolio of wind, solar, small hydro, geothermal, and biomass sources. Beyond the alignment between renewable energy and corporate responsibility, the company states that its efforts are “intended to provide leadership and help spur the market and make renewable cheaper and more accessible over the long term.”

In addition, the company has installed 15 solar electric systems across nine Intel campuses in the US (including a 1MW system on a California campus), Israel and Vietnam. (Note thatthe solar assets are generally not directly owned but rather procured under capital leasesbetween Intel and a third party.) Intel further supports adoption by offering employees avendor purchase discount for home solar installations.

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energytransparency.com

Global take-aways from CREX 2012The decision to invest in renewable energy comes from the executive level to ensure energy supply and create marketing opportunities

Key reasons for procuring renewable energy

Energy supply security and grid connectivity issues are the main reasons for selecting direct investment, and there is also the potential to generate revenue.

Wind is favored by companies looking for a cost-effective addition to a renewable energy portfolio where hydro power may not be available, or where the company is concerned about additionality.

Wind turbines are a particularly visible sign to customers of a company’s commitment to renewable energy.

Renewable energy is increasingly seen as a business opportunity for companies in a range of sectors.

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Global Data CREX 2012Global Energy in TWh/yr

Conventional

Renewable

2009 2010 2011

Global procurement regimes

Direct investments

PPA/IPP

RECs

Green pricing

Globally, companies obtain their renewable electricity in a number of different ways.

Direct investment is the most popular at 40% of renewable electricity purchases, while RECs with 38% are second by a slight margin.

Global CREX rankings

% of RE 2011 RE in GWh Main source(s) of RE

Biomass

N/A

N/A

Wind

Wind

N/A

Wind

N/A

N/A

Wind

1. Associated British Foods (UK)

Kohls (US)

Whole Foods Market (US)

Toronto Dominion Bank

Washington Real Est. Inv. Trust

77. IKEA (SE)

114. McDonald’s (US)

167. Nestle (CH)

190. Apple Inc. (US)

213. Google (US)

100%

100%

100%

100%

100%

51%

30%

12%

9%

5%

1,575

1,367

745

262

146

646

306

4,480

54

103

So

urc

e: C

RE

X 2

01

2

Mexican take-aways from GCWS 2012Mexican consumers demand more renewable energy, creating a business opportunity for corporations using it

How can renewable energy help increase the profitability of companies?

Would you be willing to pay for electricity from renewable sources, and if yes, how much?

Would you be willing to pay extra for an average product labelled WindMade, and if yes, how much?

Mexican consumers are more willing to promote climate-friendly brands.

However, 63% of the Mexican consumers feel inadequately informed about the energy consumption of the surveyed brands. Increasing transparency is the first step towards capturing value from these consumers

What Mexican consumers think Mexican consumers’ willingness to pay a premium for products produced using renewable energy, by class

97% prefer to have renewable energy over conventional. This might be connected to the fact that 92% believed that it is a good solution to climate change and similar 92% are concerned about the country’s dependency on imported fossil fuels

80% of the Mexican consumers asked think that wind energy has a good reputation and

90% would get a more positive perception of a brand if its primary source of energy came from wind

Source: Global Consumer Wind Study 2012

The average premium indicated was ~10%

Yes

Yes

No

No

33%

16%

2%

3%

Don’t know

Don’t know

Consumers are more likely to recomend a brand that they perceive as environmentallyfriendly

Do you perceive selected brand as climate-friendly?

Ho

w li

kely

is it

th

at y

ou

wo

uld

re

com

men

d s

elec

ted

bra

nd

?

Source: Global Consumer Wind Study 2012

What other preferences do consumers have? Read more at energytransparency.com

65%

81%

Car

Clothes

Cell Phone

Software

Coffee

Chocolate

Soft drinks

Cell phone subscriptions

Wine

59%

54%

51%

51%

47%

43%

40%

39%

39%

14%

40%

9%

38%

13%

86%

15%

85%

16%

84%

The average premium indicated was ~8%

High

HighLow

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