RE100 – A pathway to Sustainable Future

March 2, 2021 By Sadanand Tewari
Environment Management System a new normal for climate resilient economies and companies

RE100 is the global corporate renewable energy initiative by Climate Group and CDP bringing together hundreds of large and ambitious businesses committed to 100% renewable electricity. RE100 companies make a public commitment to secure 100% of their electricity from renewable sources. For the purpose of the RE100 campaign, if a company wants to be considered as ‘100% renewable’, it must procure or self-produce 100% of its electricity from renewable sources.


RE100 is working to massively increase demand for – and delivery of – renewable energy. Almost 300 multinational businesses with a combined revenue of US$6.6 trillion is now driving climate action on renewable power, electric transport, and smarter energy use in more than 140 markets worldwide. RE100 members are collectively creating demand for 281 Tera Watt hours per year in renewable electricity – enough to power a G20 country (e.g. Australia (247.6 TWh/yr).

 

Companies joining RE100 set a public goal to source 100% of their electricity from renewables within a specific time frame. From telecommunications technology and pharmaceuticals, to automobile and cement manufacturing, companies joining RE100 globally recognize that switching to renewable power is a smart business decision.

 

Renewable power helps businesses to meet emission reduction goals, lower business risk, stabilize energy bills, drive competitiveness, and boost reputation. To achieve 100% renewable electricity, a company may choose from the following options:

  1. Self-generated electricity

    1. Generation from installations owned by the company

  2. Purchased electricity

    1. Purchase from on-site installations owned by a supplier

    2. Direct line to an off-site generator with no grid transfers

    3. Direct procurement from offsite grid-connected generators

    4. Contract with suppliers (green electricity products)

    5. Unbundled energy attribute certificate purchase/ I-Recs

    6. Other options

 

RE100 shares best practice, and showcases the leadership of companies making progress on renewable power – encouraging others to do the same. In the last year market has witnessed a geographic expansion, RE100 membership has grown by over a third, with over 40% of new joiners from the Asia Pacific.

 

Many RE100 members are also encouraging their suppliers to transition to renewables, so that we may shape the energy system away from fossil fuels more rapidly. To become part of this initiative or to know further technical details of it, connect with us at business@enkingint.org.

 

Businesses must collaborate with supply chains and build back better from COVID-19 – otherwise they will be left behind.

Buyers face substantial costs due to environmental risks in supply chains, which are expected to increase as the planet, society and economy changes.

 

Suppliers reported financial impacts of US$1.26 trillion from environmental risks in the next 5 years. Many environmental risk highlighted by suppliers will result in cost increases – if passed on, corporate buyers could face a cost hike of US$120 billion.

Business as usual means laggard companies will become less competitive and less resilient – suppliers must be engaged on environmental action to face lower costs, better reputations and, ultimately, secure their survival.

   

The scale of impact in the supply chain is increasingly being recognized by suppliers

Supply chain emissions are on average 11.4 times higher than operational emissions, more than double previous estimates, due to suppliers improving their emissions accounting.

Setting targets to reduce emissions throughout the value chain (Scope 3) is becoming a new business norm. This is only achievable with strong supply chain engagement.

   

With CDP, we can measure and influence how our suppliers integrate climate change into their operations. In 2020, 96% of our surveyed suppliers reported their carbon footprint, and 75% shared their targets to reduce it. This visibility allows us to better select, support, and partner with our suppliers on their climate-related targets.

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