Keeping up the business momentum from London to New York
María Mendiluce, CEO, We Mean Business Coalition
After a summer of heatwaves, drought and wildfires in the northern hemisphere, a growing number of companies are flagging the impact of extreme weather on their business in earnings calls. They are finding ways to adapt to a world increasingly affected by climate change and looking to an accelerated energy transition.
This isn’t just about cutting planet-heating emissions to stave off worsening impacts. It’s about creating more resilient operations, technologies and supply chains.
Many businesses are choosing electrification as a competitive and cost-efficient route forward and seizing the benefits of emerging electrified economies, as captured in our Electric Advantage in Action stories. This series showcases over a dozen companies electrifying industry, buildings and transport — gaining reduced costs, increased energy security and improved productivity.
We saw this story writ large in our polling of business leaders, which showed that 90% of businesses expect to be largely electrified by 2035. We also saw it in our business statement, signed by over 100 companies, urging governments to establish clean electrification as a central pillar of economic and industrial strategy.
Electrification has also taken its place on the international stage. At London Climate Action Week, the Coalition and partners convened business, NGO and government leaders at the Global Energy Transition and Electrification Summit (GETES). It was there that the UN Secretary-General and other leaders laid out actions and commitments for strengthened cooperation and implementation.
Among the highlights was the launch of Electrify Now, a major multi-year global platform to accelerate the clean electrification of the global economy.
Recognizing the need to generate momentum for electrification, We Mean Business Coalition, along with the Global Renewables Alliance, the Energy Efficiency Council and the Pooled fund on International Energy, is a founding partner of this multi-stakeholder movement. WMBC helps bring the business voice to shape and drive the movement.
The message from companies is clear: Many are seizing the electric advantage. But they need government support to fully capitalize on all its benefits.
Real progress happens when governments and business move in the same direction. That shared understanding galvanizes action and unlocks economic benefits across electrification value chains.
As decision-makers return to their desks, the momentum continues. We’re building on the 10 policy principles published earlier this year with targeted advocacy for government policy to support businesses as they electrify and pursue a more affordable, competitive and secure future.
We welcomed the European Commission’s Electrification Action Plan, released in mid July, which includes an indicative electrification target of 46% by 2040. This will be moving through the institutions along with the proposal to revise the Emissions Trading System — both of which can create a stable investment environment for businesses.
Business will have the opportunity to weigh in on these files and advocate responsibly for the stable, predictable policy frameworks they need.
All this is made even more urgent by the UN’s new Limiting Overshoot report, which examines the implications of entering an era where global temperatures cross 1.5°C. The choices governments and businesses make now will determine how high temperatures peak, how long the world remains above 1.5°C and how severe the resulting impacts become.
On the global stage, Climate Week NYC is the next big opportunity to bring together business, policy and civil society leaders to connect, collaborate and learn from one another to meet this moment. We hope to see you there.