Client – PayPal
Project – Global Strategic Energy Sourcing Programme
About the Client – PayPal operates a worldwide online payments system and is one of the world’s largest internet payment companies, enabling buyers and sellers to transact payments across the world. PayPal has more than 184 million active customer accounts in 203 markets around the world. PayPal employs c.15,800 staff at over 40 locations in 22 countries around the world. PayPal global revenues stood at $9.24 billion in 2015.
PayPal’s Needs – PayPal were using an unstructured decentralised approach to sourcing and managing their energy contracts globally. This approach presented a number of significant challenges in terms of management and administration of the portfolio and PayPal were keen to be in a better position to manage and mitigate the business risks associated with volatility in energy markets and the evolving regulatory and market environment while protecting budgets. This also presented an opportunity for PayPal to maximise the value extracted from their energy supply contracts.
What Energy Services Did – Energy Services developed and implemented a global energy sourcing strategy for PayPal’s operations. The key areas addressed by the strategy included;
- Centralised and streamlined processes and system to manage energy contracts focused on budget protection.
- Competitive procurement in relevant markets.
- Tailored risk management strategy to manage commodities, FX and carbon.
- Enhancing sustainability and reducing environmental impact through increased utilisation of renewable energy – greening the supply chain.
- Centralised reporting dashboard systems to monitor ongoing performance of the portfolio.
- Ongoing market intelligence.
The Results –
- 10%+ reduction in energy costs.
- Business process efficiencies delivered through centralised approach.
- Increased utilisation of renewable electricity by 15%.
- Reduced carbon emissions by 4,600t/year, equivalent to removing c.980 cars from the road.
- PayPal are much better equipped to navigate and manage the evolving risks presented by volatility in energy prices.