RE100: Global corporates leadership sustainability initiative
The purpose and vision of RE100 are that participatory businesses must procure 100% of all their operations’ electricity requirements through renewable energy or purchase Renewable Energy Certificates (RECs) matching their electricity requirement by 2050.
Published: 04:11 PM,Nov 30,2024 | EDITED : 08:11 PM,Nov 30,2024
The International Energy Agency states that electricity and heat generation remain responsible for over 40% of global CO2 emissions. Electricity and heat generation are multifaceted, resulting in resistive, inductive, and geothermal heating. As significant electricity consumers, businesses are vital in accelerating the clean energy transition.
In 2014, Renewable Energy (RE100) was launched as a global corporate leadership initiative in New York. The Climate Change Group developed RE100 in partnership with the Carbon Disclosure Project (CDP) to amplify progress towards zero-carbon grids on a global scale. To tackle climate emergency and reduce greenhouse gas emissions, it is necessary to transition from fossil fuels to renewable sources of electricity.
The purpose and vision of RE100 are that participatory businesses must procure 100% of all their operations’ electricity requirements through renewable energy or purchase Renewable Energy Certificates (RECs) matching their electricity requirement by 2050. The initiative started with founding partners like IKEA Group and Swiss Re and quickly expanded to include major companies from various sectors.
As of February 2023, RE100 had grown to over 3,980 member companies across 175 markets worldwide, collectively driving over 420 terawatt-hours TWh of renewable electricity demand annually.
The RE100 membership eligibility is subject to companies with annual electricity consumption exceeding 0.1 terawatt-hours (TWh). However, exceptions can be granted for firms with lesser consumption if they are a big player in their industry, a Fortune 1000 corporation, or a crucial player in a RE100 priority area or sector. The membership also requires that companies publicly commit to sourcing 100% renewable electricity by 2050, with interim targets of at least 60% by 2030 and at least 90% by 2040.
Participatory companies also require that their suppliers follow the same commitment of RE100. The RE100 renewable energy sources include wind, solar, geothermal, biomass, biogas, and sustainable hydrogen. The members can reach the 100% renewable energy goal by purchasing Renewable Energy Certificates (REC) or Power Purchase Agreements with renewable energy providers. This will support achieving the goal of zero-carbon emissions by increasing demand for renewable energy.
RE100 is accelerating the power demand from hundreds of companies to the clean energy transition. We Mean Business Coalition is helping them grow faster. The We Mean Business Coalition aims to halve emissions by 2030 and transition to a net-zero economy by 2050. RE100 momentum has grown to include members across Asia, Europe, North America, Australia, Japan, China, and India.
The RE100 initiative holds members accountable, celebrates milestones, communicates business cases, highlights barriers and benefits of renewable electricity, and works to address policy issues and tackle market barriers to corporate sourcing of renewable electricity. RE100 accounts for 10-15% of global CO2 emissions saved. If RE100 were a country, it would be the world’s 10th most significant electricity consumption. RE100 consumes enough renewable electricity to power France.
RE100 involves influential companies and excludes smaller businesses. Climate change is an urgent emergency that the world faces; a target of 100%renewable electricity by 2050 might be a distant target. RE100 relies heavily on attribute certificates, which may yield less renewable capacity. Despite these challenges, it works to accelerate the transition to clean energy grids worldwide with collaborations across 175 markets.
Climate change is one of the biggest global challenges that will alter and redefine the contours of the worldwide business landscape today and in the coming decades. The initiative will create demand for renewable power and influence renewable energy supply. RE100 is one step forward in that direction to tackle the grand challenge of climate change by taking corporate leadership on renewable electricity.
Dr Mythili Kolluru
The author is an assistant professor at the marketing and management department of the College of Banking and Financial Studies in Muscat.
In 2014, Renewable Energy (RE100) was launched as a global corporate leadership initiative in New York. The Climate Change Group developed RE100 in partnership with the Carbon Disclosure Project (CDP) to amplify progress towards zero-carbon grids on a global scale. To tackle climate emergency and reduce greenhouse gas emissions, it is necessary to transition from fossil fuels to renewable sources of electricity.
The purpose and vision of RE100 are that participatory businesses must procure 100% of all their operations’ electricity requirements through renewable energy or purchase Renewable Energy Certificates (RECs) matching their electricity requirement by 2050. The initiative started with founding partners like IKEA Group and Swiss Re and quickly expanded to include major companies from various sectors.
As of February 2023, RE100 had grown to over 3,980 member companies across 175 markets worldwide, collectively driving over 420 terawatt-hours TWh of renewable electricity demand annually.
The RE100 membership eligibility is subject to companies with annual electricity consumption exceeding 0.1 terawatt-hours (TWh). However, exceptions can be granted for firms with lesser consumption if they are a big player in their industry, a Fortune 1000 corporation, or a crucial player in a RE100 priority area or sector. The membership also requires that companies publicly commit to sourcing 100% renewable electricity by 2050, with interim targets of at least 60% by 2030 and at least 90% by 2040.
Participatory companies also require that their suppliers follow the same commitment of RE100. The RE100 renewable energy sources include wind, solar, geothermal, biomass, biogas, and sustainable hydrogen. The members can reach the 100% renewable energy goal by purchasing Renewable Energy Certificates (REC) or Power Purchase Agreements with renewable energy providers. This will support achieving the goal of zero-carbon emissions by increasing demand for renewable energy.
RE100 is accelerating the power demand from hundreds of companies to the clean energy transition. We Mean Business Coalition is helping them grow faster. The We Mean Business Coalition aims to halve emissions by 2030 and transition to a net-zero economy by 2050. RE100 momentum has grown to include members across Asia, Europe, North America, Australia, Japan, China, and India.
The RE100 initiative holds members accountable, celebrates milestones, communicates business cases, highlights barriers and benefits of renewable electricity, and works to address policy issues and tackle market barriers to corporate sourcing of renewable electricity. RE100 accounts for 10-15% of global CO2 emissions saved. If RE100 were a country, it would be the world’s 10th most significant electricity consumption. RE100 consumes enough renewable electricity to power France.
RE100 involves influential companies and excludes smaller businesses. Climate change is an urgent emergency that the world faces; a target of 100%renewable electricity by 2050 might be a distant target. RE100 relies heavily on attribute certificates, which may yield less renewable capacity. Despite these challenges, it works to accelerate the transition to clean energy grids worldwide with collaborations across 175 markets.
Climate change is one of the biggest global challenges that will alter and redefine the contours of the worldwide business landscape today and in the coming decades. The initiative will create demand for renewable power and influence renewable energy supply. RE100 is one step forward in that direction to tackle the grand challenge of climate change by taking corporate leadership on renewable electricity.
Dr Mythili Kolluru
The author is an assistant professor at the marketing and management department of the College of Banking and Financial Studies in Muscat.