Nestlé, Ikea and 112 firms urge governments to prioritize faster electrification

Companies including Nestle (NESN.S) ‌and Ikea (IKEA.UL) on Monday urged governments to make electrification central to their economic strategies, to help reduce exposure to volatile fossil fuel costs and bolster energy security. In an open statement seen by Reuters and ​backed by 112 businesses from sectors including industrials, consumer goods and healthcare, they ​said exposure […]

Major global companies such as Nestle and Mahindra & Mahindra have called on governments worldwide to place electrification at the core of their economic strategies, arguing that it is essential for reducing dependence on volatile fossil fuel markets and improving long-term energy security.According to a report by Reuters, these companies have issued a statement which is backed by 112 other firms spanning sectors such as industrial goods, consumer products, healthcare, transport and retail. The group warned that continued reliance on fossil fuels exposes economies to sharp price fluctuations. These price shocks, they said, undermine industrial competitiveness and disrupt supply chains.The signatories, which together represent around $1.5 trillion in annual revenue, include major multinational firms such as Iberdrola, Volvo Cars, Uber, Ikea, Nikon Corporation and Levi Strauss. The statement was coordinated by the We Mean Business Coalition along with the Global Renewables Alliance.According to the report, the companies have argued that dependence on fossil fuels leads to persistent uncertainty in energy costs, especially during periods of geopolitical instability such as the recent Iran-related tensions. This volatility, they said, can result in higher operating expenses, delayed investments and weaker overall economic performance.However, the group emphasised that a shift toward electrification will require strong government intervention. Key measures include predictable policy frameworks, improved electricity market design, faster permitting processes and significant investment in grid infrastructure.Maharashtra CM Devendra Fadnavis Directs Expedited E-Bus Charging Stations, Targets 100% ST Fleet Electrification By 2047 The statement comes at the beginning of London Climate Action Week, which is expected to draw more than 75,000 participants across over 1,000 events involving policymakers, investors and corporate leaders.It also aligns with international discussions ahead of COP31, to be hosted by Turkey in November, where proposals include setting a global target for electricity to account for 35% of total global energy demand by 2035.According to the statement, many technologies required for electrifying sectors such as transport, buildings and heavy industry are already commercially viable. Widespread adoption could also help reduce overall energy consumption and improve efficiency.Kim Hellstrom, Senior Sustainability Climate Manager at H&M, said that achieving large-scale electrification requires enabling policy frameworks that provide clarity and predictability for businesses.A recent survey further indicated that around 90% of business leaders expect their operations to be largely electrified within the next decade, highlighting growing corporate momentum toward the transition.

LONDON: Companies including Nestle and Ikea on Monday urged governments to make electrification central to their economic strategies, to help reduce ‌exposure to ⁠volatile fossil fuel ⁠costs and bolster energy security.In an open statement seen by Reuters and backed by 112 businesses ​from sectors including industrials, consumer goods and healthcare, they said exposure to fossil fuel-driven price shocks undermined ​competitiveness.The group, with combined annual revenues of about $1.5 trillion, also included Iberdrola, Volvo Cars and Uber, Mahindra Group, Nikon Corporation, and Levi Strauss.Also read: China hits back at US sanctions on tech giants, restricts exports to 10 American defense firms"Continued reliance on volatile fuel markets ​exposes economies to disruptions that drive price spikes, destabilise supply chains ⁠and delay ‌investment," said the statement, coordinated by the We Mean Business ​Coalition and ​the Global Renewables Alliance.However, making the shift would depend heavily on ⁠clear and predictable government policy and reforms, including improving electricity market ​design, investing in grids and speeding up permitting, it added. As many ​governments and companies reassess their energy strategies in response to price spikes, most recently those linked to the Iran conflict, the statement said volatility can translate into "persistent uncertainty", higher operating costs and weaker competitiveness.The intervention comes at the start of London Climate Action Week, with more than 75,000 people expected to attend 1,000-plus events, including leading ‌policymakers, investors and company executives.It also aligns with a push by Turkey, the hosts of the COP31 climate talks in November, for countries ​to agree ​a global target for electricity ⁠to supply 35% of the world's energy demand by 2035.Many of the technologies required to electrify key sectors such as transport, buildings and industry are already commercially available, and ​would help to lower overall energy demand, the statement said."To reach the required scale, the transition to electrification notably needs to be accelerated through predictable and enabling policy frameworks," said Kim Hellstrom, Senior Sustainability Climate Manager at retailer H&M. A poll released last week said 90% of business leaders expected their operations to be electrified within a decade.