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ScottishPower – tackling climate change through green energy product marketing

BT Cause Related Business Award 2006 - Big Tick winner

ScottishPower launched its first Green Energy option in 1998. Since then, as a result of a focused marketing approach, over 100 businesses and thousands of domestic customers across the UK have signed up, showing their support for the environment. Using the power of its brand, creative communications and access to millions of customers, ScottishPower has helped raise awareness of how its customers can help tackle the issue of Global climate change, and, through demonstrating its commitment, has improved the company's reputation.

Processes

ScottishPower, is an international energy company, made up of four businesses: Energy Retail, Energy Wholesale and Energy Networks in the UK and PPM Energy in the US.

ScottishPower’s Green Energy options aim to raise awareness of climate change, reduce the carbon impact of electricity and promote education in the community on renewable energy. The options also aim to position ScottishPower as an environmentally conscious energy supplier while helping acquire and retain customers through offering a diverse product range.

By choosing ‘Green Energy Fund’, customers contribute a small premium on their bills (equivalent to about £10.50 per annum), which goes directly to The ScottishPower Green Energy Trust. The Trust is governed by a board of Trustees, including members from Energy Action Scotland and the Borders Forest Trust awards grants of up to 50% of the cost of small-scale renewable energy projects at community level. This helps to reduce CO2 emissions and to raise awareness of renewable energy amongst local communities across the UK.

A second domestic green energy product option, ‘Green Energy H2O’ is also offered. This is a no extra cost option linked to the company’s hydropower generation activities. ScottishPower also offers 3 green energy options to business customers, which allows them to choose to have the electricity supplied from new renewable and greener energy sources and which gains them exemption for the Climate Change Levy.

ScottishPower’s green energy products are promoted widely through targeted advertising, promotion and sponsorship, participation in “green” events, such as exhibitions, bill messaging and a dedicated green energy website (www.warminside.co.uk).

Impact

  • Enhanced ScottishPower’s reputation as the UK’s leading renewables developer and supplier, in 2005 they were listed in the FTSE 4 Good Index and were ranked 14th in Business in the Community’s CR Index.
  • Improved customer acquisition and retention rates whilst increasing customer value
  • ScottishPower’s domestic green customer base equates to more than 30,000, approximately 10% of the UK market.
  • Helped displace CO2 emissions, with ScottishPower’s two largest all-green contracts saving 650,000 tonnes of CO2 annually
  • To date, The ScottishPower Green Energy Trust has committed well over £600,000 to more than 70 projects throughout the UK (valued in excess of £1.5 million)
  • Projects funded in Scotland, Northern Ireland, Wales and England include small-scale wind turbines, solar panel systems, geothermal and biomass schemes, with significant CO2 reduction

See also

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