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WEG, a global leader in industrial electric equipment and energy solutions, is setting new standards for sustainability and innovation by focusing on energy efficiency and renewable solutions that deliver cutting-edge technologies to align with the needs of a rapidly changing world.
Innovation for Growth
Energy efficiency and renewable solutions are at the heart of WEG’s operations. The company designs high-efficiency motors, drives, and energy systems, helping industries reduce energy consumption and operational costs. WEG’s renewable energy portfolio includes generators for solar, wind, and hydropower systems, along with solutions for integrating these technologies into industrial applications.
Energy and sustainability are two commonly linked themes. According to the International Energy Agency, electric motors account for approximately half of the global electricity consumption.1
Increases in both domestic and industrial demand for electricity can negatively impact the environment. We believe customers seeking to lower operational costs and/or reduce their carbon footprint should adopt highly efficient electric motors.
Additionally, power generation through renewable energy sources can begin to address the need for a greater balance of social, economic, and environmental demands. WEG envisions providing complete and efficient solutions for the entire electrification value chain, from efficient electric motors for industrial applications to renewable energy generators such as wind, solar and hydroelectric.
The Brazil-based company is working to achieve this vision through investments in research and development and exchanges with universities and research centers to find the most advanced technologies for clean energy generation through solar energy projects and wind, biomass, and hydroelectric power.
WEG’s approach to innovation is rooted in its ability to stay ahead of industry trends. Historically, half of its revenue derived from products introduced in the previous five years. WEG continuously develops technologies that meet evolving customer demands. From advanced industrial equipment to renewable energy solutions, the company’s offerings drive efficiency, reliability, and growth across multiple sectors. Given its range of products and operations across geographies, we believe WEG is well positioned to benefit from the growing demand for energy efficiency, electric mobility, and industry automation.
Aiming for Net Zero
In 2022, WEG created the WEG Carbon Neutral Program, setting medium- and long-term goals to reduce 52 percent of its operational emissions by 2030 and reach net zero in 2050.
In addition, the program sets out guidelines, actions and responsibilities, making clear to its stakeholders its commitment to working to overcome the challenges of fighting global warming and climate change, an important goal for the company.
WEG has emissions-reduction projects completed and in progress and plans to continue more renewable energy in Brazil and abroad. In fact, as an example of WEG’s commitment to sustainability, the company developed a wind farm project in the north of Brazil for the self-production of energy used in its Brazil operations.
Spreading the Knowledge
WEG’s founders began their journey in 1961 with the idea of creating electric motors. Seven years later, they founded CentroWEG to train employees because the region lacked technical educations. The school introduces high school-aged kids to the world of technology and encourages their talent. More than 3700 people have been trained in the school, which annually receives more than 1600 applicants for 144 spots.
In 2010, WEG expanded its education efforts to the community through a production apprentice program that focuses on providing technical knowledge for production and the operation of machinery.
Programs such as CentroWEG have trained thousands of apprentices, equipping young people with the skills necessary to pursue careers in engineering and manufacturing. Additionally, WEG has made strides in promoting diversity and inclusion, increasing representation in leadership roles and creating opportunities for underrepresented groups.
Sustainable Development Goals
The Sands Capital six investment criteria tend to lead us to businesses that are innovators or vital facilitators of change in industries undergoing significant transformation. Many of these businesses operate in high-impact spaces such as technology and life sciences.
WEG is one of many portfolio businesses that create impact by addressing at least one major social and environmental challenge identified by the United Nations Sustainable Development Goals (SDGs). WEG addresses SDG 4: Quality Education SDG 7: Affordable and Clean Energy; SDG 8: Decent Work and Economic Growth; and SDG 9: Industry, Innovation, and Infrastructure.
1 https://www.iea.org/reports/energy-efficiency-policy-opportunities-for-electric-motor-driven-systems
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The business profiled was selected based on its reported alignment with one or more U.N. Sustainable Development Goals.
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