Over 100 global companies, including Nestle and Ikea, are pressing governments to prioritize electrification in economic strategies. They argue this shift will reduce reliance on volatile fossil fuel markets, enhance energy security, and bolster competitiveness. The group, with revenues totaling $1.5 trillion, cites price shocks and supply chain disruptions as key risks of continued fossil fuel dependence.
Business leaders from 112 major corporations have issued a joint statement urging governments worldwide to embed electrification at the core of their economic policies. The call, coordinated by the We Mean Business Coalition and the Global Renewables Alliance, highlights the significant risks associated with continued exposure to volatile fossil fuel markets, which they claim undermine national competitiveness and destabilize supply chains.
The signatories, whose combined annual revenues approach $1.5 trillion, represent diverse sectors such as industrials, consumer goods, healthcare, automotive, and technology. Notable participants include Ikea, Nestle, Iberdrola, Volvo Cars, Uber, Mahindra Group, Nikon Corporation, and Levi Strauss. They argue that unpredictable price swings in fossil fuels lead to disruptions, higher operating costs, and persistent uncertainty, thereby delaying crucial investment.
Policy Reforms Key to Electrification Shift
While the benefits of electrification are clear, the businesses emphasize that the transition's success hinges on decisive and consistent government action. This includes implementing reforms to electricity market design, making substantial investments in grid infrastructure, and streamlining permitting processes to accelerate project development. The statement coincides with London Climate Action Week, a major international forum for discussing climate policy and business solutions.
Global Targets and Available Technologies
The intervention also aligns with international efforts, such as Turkey's push for COP31, to establish a global target for electricity to meet 35% of the world's energy demand by 2035. The companies noted that the necessary technologies for electrifying key sectors like transport, buildings, and industry are largely commercially available. They believe these technologies can also contribute to reducing overall energy demand.
Kim Hellström, Senior Sustainability Climate Manager at H&M, commented, "To reach the required scale, the transition to electrification notably needs to be accelerated through predictable and enabling policy frameworks." A recent poll indicated that 90% of business leaders anticipate their operations will be electrified within the next decade, signaling strong corporate buy-in for the transition.