Tennessee Fortune 100 and 500 companies setting renewable energy, sustainability targets

Earlier this month a new report, 2016 Corporate Advanced Energy Commitments, explained renewable energy demand is “significant and growing quickly” within Fortune 100 and Fortune 500 companies.

fortune-500-logoIts findings reveal that 71 of Fortune 100 companies and 215 of Fortune 500 companies have set renewable energy or sustainability targets.

TAEBC decided to take a closer look at which companies in Tennessee not only made the list but also have set energy goals within their corporations.

It’s important to mention 22 companies in the Fortune 500 list have committed to 100% renewable energy including General Motors and Nike.

General Motors has a plant located in Spring Hill, Tennessee and recently announced plans to add 650 jobs there. Meanwhile, Nike’s largest distribution center is located in Memphis, Tennessee.

fedexlogoComing in at the highest ranked Tennessee headquartered company on the list is FedEx Corp. FedEx’s corporate office is located in Memphis. It’s been on the list for more than 20 years and employs more than 323,000 people nationwide.

As for energy commitments, FedEx Corp. has set ambitious goals to reduce its footprint by:

  • Increasing FedEx Express vehicle efficiency by 30 percent by 2020 (It surpassed its original 20 percent by 2020 goal years ahead of schedule.)
  • Getting 30 percent of its jet fuel from alternative fuels by 2030
  • Expanding on-site renewable energy generation and procurement of renewable energy credits

The company has made impressive gains in meeting and exceeding these goals.

  • In FY12, FedEx achieved a 22% fuel efficiency improvement in the FedEx Express vehicle fleet since FY05. It also happily announced that FedEx Express increased its previously stated vehicle fuel efficiency goal by 50% to a 30% improvement by 2020, still using FY05 as the baseline year.
  • By the end of FY12, FedEx Express had increased its global electric vehicle and hybrid-electric vehicle fleet to 482 vehicles, an increase of nearly 18%. As of December 2012, these vehicles had logged 14.8 million miles and saved 480,000 gallons of fuel since being introduced to its fleet in 2005.

hcaholdings-inc-logoThe other Tennessee company making it to the Fortune 100 list is HCA Holdings, Inc. HCA Holdings’s corporate office is in Nashville. It’s the nation’s largest hospital chain and its revenues rose 8.7% over the past year. The magazine credits this to the passing of the Affordable Care Act, increasing its number of insured patients seeking healthcare.

HCA Holdings, Inc. has been on Fortune’s list for at least 22 years. The company employs more than 200,000 workers.

HCA has created a 2016 Sustainability Plan that mentions the collective impact all hospitals made in 2015 along with plans for the future in new construction projects including:

  • Pursuit of LEED Status – Several of HCA’s hospitals have received LEED Certified status or are in the final stages of such including it’s Nashville Data Center.
  • Alternative Energy Sources – Solar, wind, and combined heat and power energy systems can be incorporated into new construction. HCA’s Sustainability Plan says “an evaluation of the feasibility of these systems will occur for all future projects.

America’s largest companies save $1.1 billion annually through advanced energy initiatives

Now we’re talking. A new report released last week found that 53 Fortune 100 companies reporting on climate and energy targets are collectively saving $1.1 billion annually through their emission reduction and renewable energy initiatives – which certainly qualify as advanced energy.

Fortune 100 and Fortune 500 companies are increasing the demand for cleaner, more efficient sources of energy. The states that provide not only the energy source, but also the technologies and the workforce will win. Why not Tennessee?

215 companies in the Fortune 500 have set targets in one of three categories and will be looking for ways to meet them: 1) greenhouse gas reduction commitments, 2) improving energy efficiency and 3) procuring more renewable energy. Many of these companies have Tennessee ties (including FedEx and General Motors) or would be welcome additions to our state.

The latest report adds to our evidence that Tennessee’s advanced energy sector is poised for a period of sustained growth. The Tennessee Advanced Energy Business Council (TAEBC) was created to help facilitate this growth by championing the use and manufacture of advanced energy technologies as an economic development strategy.

The Advanced Energy Now 2014 Market Report, published by Advanced Energy Economy, indicated strong growth globally and nationwide in the advanced energy market. Globally, advanced energy represents a $1.1 trillion-dollar market. With estimated revenues in 2013 of $169 billion, the U.S. now represents 15 percent of the world market, up from 11 percent in 2011.

TAEBC sees in these national trends an enormous opportunity for Tennessee. The opportunity includes, through the adoption of affordable technologies, a chance to grow Tennessee’s economy.

The University of Tennessee, the Tennessee Valley Authority (TVA), Oak Ridge National Laboratory (ORNL) and the state’s expanding automobile sector (as well as other key clusters) provide Tennessee with unique assets that together offer an unparalleled platform for collaboration, innovation, testing and implementation of advanced energy technologies.

Our goal is to help business and government view Tennessee’s advanced energy assets and challenges as an emerging sector that will play an increasing role in the state’s economic development.