22 January 2018: A report released by The Climate Group and CDP shows that multilateral corporations are making progress towards their 100% renewable energy pledges, as part of the RE100 initiative.
The report titled, ‘Approaching A Tipping Point: how corporate users are redefining global electricity markets,’ tracks progress achieved between 2016 and 2017 by companies that pledged to attain 100% renewable power as part of the RE100 pledge. The publication announces that by the end of 2016, 25 RE100 member corporations reached their 100% renewable energy targets, including Autodesk, Elopak, Interface, Marks and Spencers, and Sky. The report also indicates that the biggest 2016 achievers, including Bank of America, Astra Zeneca, and Coca Cola Enterprises Inc., tripled their share of renewable energy.
Close to 90% of the companies claimed that economics provided a major driver for their transition towards renewable energy.
The publication also presents emerging trends in global corporate sourcing of renewables. According to the report, more members are opting to grow direct renewable energy capacity as companies increasingly favor direct contracts (power purchase agreements or PPAs) with suppliers, onsite generation, and offsite grid-connected generators , over renewable energy attribute certificates. Additionally, 88% of the companies claimed that economics provided a major driver for their transition towards renewable energy; and 30 out of 74 reported that renewable energy was either cost competitive or provided cost savings.
The report also provides key regional trends. Renewable energy was the primary source of energy for European RE100 members for the second year in a row. While the European PPA market remained untapped, there was a major increase in the use of PPAs by US RE100 members. Renewable energy consumption by members in India tripled as a result of falling costs, while the diversity of ways renewables were sourced also increased. In line with these trends, the most common challenges cited by RE100 companies were policy barriers, as certain countries do not have developed markets that can guarantee renewable electricity sources.
In 2016, RE100 membership increased by 40% to 122 companies, representing a combined energy consumption of 159 Terra watt-hours (TWh) surpassing that of Malaysia with 141.2 TWh. New members included Danone SA, Reckitt Benckiser Group plc., and Hatsun Agro Products Ltd.
RE100 is a collaborative initiative led by the Climate Group in partnership with CDP, a not-for-profit charity that runs the global disclosure system. It unites transnational corporations representing US$2.75 trillion of revenue in a pledge to achieve 100% renewable energy consumption. [RE100 Press Release] [Climate Group Report Landing Page] [Publication: Approaching A Tipping Point: how corporate users are redefining global electricity markets]
References: International Institute for Sustainable Development. (2018). Retrieved from http://sdg.iisd.org/news/re100-report-shows-corporate-progress-towards-100-renewable-energy/?utm_medium=email&utm_campaign=2018-01-25%20-%20SDG%20Update%20AE&utm_content=2018-01-25%20-%20SDG%20Update%20AE+CID_c7aaf68249879e1290bf73cb9ba22b86&utm_source=cm&utm_term=RE100%20Report%20Shows%20Corporate%20Progress%20Towards%20100%20Renewable%20Energy