Energy security and competitiveness are key factors aligning corporate decisions with climate concerns
Globally, there’s a consensus among business leaders that the shift to renewable energy from fossil fuels is necessary. A poll conducted by the London-based consultancy firm Savanta of business executives across 15 countries shows that there’s overwhelming support for the rapid transition to renewable-based electricity.
Commissioned by E3G, Beyond Fossil Fuels and We Mean Business Coalition, the poll’s data makes up a larger study titled ‘Powering up: Business perspectives on shifting to renewable electricity’. It shows that a global tipping point is coming in the corporate sector as well, with 97% of business leaders wanting to not use fossil fuels like coal anymore. Also, 78% of the surveyed executives are looking to shift to a completely renewables-based electricity system by 2035 or sooner.
Savanta surveyed a total of 1,477 business leaders from Australia, Brazil, Canada, Germany, India, Indonesia, Italy, Japan, Mexico, Poland, South Africa, South Korea, Türkiye, UK and US.
Gaining corporate support is key to pressurising governments to act fast on national and global climate goals, especially at the time when countries are finalising their next round of national climate plans (NDCs).
Energy security concerns
Conventional energy supply chains like coal, oil and gas are vulnerable to shocks, and volatility of imports as evidenced due to the Ukraine-Russia conflict. But renewable energy frees countries from the churn of global trade. According to the report, around 75% of the executives believe that renewable energy leads to stronger energy security.
78% of 103 Germans surveyed are of the opinion that Germany’s exposure to volatile energy imports will be reduced with more renewable energy.
“A rapid shift from fossil fuels to renewable power and electrification makes strong business sense and ensures energy security and resilience. Enabling policy environments for investments in clean energy, grids and storage; market mechanisms and long-term contracts to provide price stability; and an acceleration of permitting for projects will be paramount to this aim,” said Gonzalo Sáenz de Miera, Director of Climate Change and Alliances at Iberdrola.
Moreover, business leaders find economic sense in shifting their power procurements to renewables. Around half of the executives plan to relocate their operations and supply chains to markets with better access to renewables-based power systems within five years, according to the report. Also, 77% of executives believe that more renewables will lead to more economic growth, while 75% see the renewable sector increasing employment through job creation.
Pressure on governments
As per the report, these businesses will relocate to regions where there’s more renewable-based electricity offered. As for fossil fuels, business leaders aren’t warming up to them anymore.
According to the report, around 87% of the business executives wish to stop using coal-fired electricity within the next decade, while 43% of mid-sized and large businesses plan to transition away from using coal within their own operations by 2030.
They also don’t want gas to replace coal — even gas-reliant countries like Mexico, Italy, and Japan. Around 67% of the executives want renewables, storage and grids to replace coal. The report found that even in the US — which has the highest proven gas reserves and where the administration is doing everything possible to hinder the climate movement — around 65% of the surveyed business leaders wish to transition to renewables directly, bypassing gas.
“As part of Schneider Electric Sustainability Business, we are dedicated to empowering our clients to invest in renewable energy, energy efficiency, electrification and digitalisation. Companies embracing renewable energy today are positioning themselves to succeed tomorrow – driving greater competitiveness, accelerating innovation and unlocking long-term cost savings. Renewable energy isn’t merely good sustainability practice; it’s an essential strategy for businesses committed to growth, resilience and long-term success,” said Stuart Lemmon, Global Head of Practices, Sustainability, Schneider Electric.
The study concluded that this signals an important shift — renewable energy is the best path to economic growth, energy security, and long-term competitiveness.
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