Businesses across 75 countries have been actively sourcing renewable energy as they seek to reduce their power bills, hedge against future price spikes and address sustainability concerns.
That’s according to a new report, which found private sector companies sourced 465TWh of green energy last year – an amount close to the overall power demand of France.
The International Renewable Energy Agency (IRENA) states environmental and sustainability concerns, social responsibility and reputation management and economic and financial objectives are the three primary drivers of corporate green sourcing.
This could play a key role in the global sustainable energy transformation in line with the objectives of the Paris climate agreement, it adds.
The report also found the highest share of green power use was found in the financial (24%) and information technology (12%) sectors.
Countries in Europe and North America continue to account for the bulk of corporate sourcing.
However, out of the more than the 2,400 companies analysed in the report, only 17% have a renewable electricity target in place and three quarters of those goals will expire before 2020.
IRENA Director-General Adnan Z. Amin said: “Renewable energy sourcing has become a mainstream pillar of business strategy in recent years. While environmental concerns initiated this growing trend, the strengthening business case and price stability offered by renewables can deliver a competitive advantage to corporations and support sustainable growth.”