New report reveals lagging corporate renewable purchasing, undermining global clean energy goals
15 November 2024 (London) – Major global companies are falling short in their use of renewables, with nearly half using no renewable electricity at all, according to a new report from non-profit CDP released today as COP29’s ‘Energy Day’ kicks off.
The report also reveals that just 1 in 10 studied companies (936) have now committed to sourcing 100% renewable electricity, a key starting point for driving action. Companies with targets already claim to have a 53% share of renewables in their electricity mix.
Last year’s COP28 set ambitious targets to triple renewable capacity and double the rate of energy efficiency improvements, and CDP’s data suggests that achieving these aims will require a much greater shift in market behaviour – and fast.
Despite offering opportunities for both cost savings and emissions reductions, energy efficiency is still an untapped lever for progress, with less than 5% of companies setting any efficiency targets.
The report comes from CDP, which runs the world’s environmental disclosure system, based on nearly 10,000 companies representing a quarter of commercial electricity use, comparable to the electricity consumption of India.[1]
The report also identified a small group of 682 (7%) "super user" companies that buy over three quarters of all disclosed electricity purchases, showing the power of large corporations in driving market change. Over 80% of these companies claim some renewable use, and the report identifies Deutsche Telekom, Microsoft, and Robert Bosch as leading examples of businesses exceeding 90% renewable electricity use.
Yet on average these large consumers are using less renewable energy (33%) on average than smaller companies (47%), presenting a lost opportunity for key players to use their buying power to scale renewable development. Each super user company uses at least one terawatt hour of electricity, equivalent to the annual electricity consumption of 95,000 US households.
"Most companies are still moving far too slowly on renewable electricity, despite it being in their business interest to do so”, said Amir Sokolowski, Director of Climate Change at CDP. “As COP29 calls for urgent and accelerated climate action, our data highlights an immense, untapped potential in corporate renewable energy use. The path forward demands companies of all sizes prioritise verifiable renewable energy use and purchase targets alongside energy efficiency targets. Without this, the global energy transition risks stalling. Major electricity super users must lead by example to stimulate market transformation, and transparency is foundational to this goal.”
The report also reveals clear transparency challenges in corporate renewables data, progress on which is essential for growing ambition, designing effective markets, and kickstarting new renewable projects. Despite total claims of 29% renewable electricity sourcing, only 16% of these claims could be independently recognized by CDP, while 1 in 4 companies reported having third-party verification in place for their energy-related (scope 2) emissions.
To download the full report, visit CDP’s website.
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About CDP
CDP is a global non-profit that runs the world’s environmental disclosure system for companies, cities, states and regions. Founded in 2000 and working with more than 700 financial institutions with over $142 trillion in assets, CDP pioneered using capital markets and corporate procurement to motivate companies to disclose their environmental impacts, and to reduce greenhouse gas emissions, safeguard water resources and protect forests. Over 24,800 companies around the world disclosed data through CDP in 2024, including listed companies worth over two thirds of global market capitalization. Aligned with the ISSB’s climate standard, IFRS S2, as its foundational baseline, CDP holds the largest environmental database in the world, and CDP scores are widely used to drive investment and procurement decisions towards a zero carbon, sustainable and resilient economy. CDP is a founding member of the Science Based Targets initiative, We Mean Business Coalition, The Investor Agenda and the Net Zero Asset Managers initiative. Visit cdp.net or follow us @CDP to find out more.
Press contacts
- Elvis Moyo, [email protected] / [email protected]
[1] This analysis covers a set of 9,551 of companies reporting on both their location-based scope 2 emissions and their electricity purchasing (minimum disclosures used to qualify their data for use in this report). These companies represent 3,571 TWh of electricity purchasing.