Technology and healthcare companies are leading the corporate transition to renewable energy, a new survey by Deloitte LLP said.
Deloitte in August surveyed 308 executives in the U.S. across eight industries: industrials, manufacturing, healthcare and medical, banking and financial services, technology and telecommunications, consumer products and services, education and government, and other services. The organizations had annual revenues ranging from $1 million to more than $1 billion, and more than half of respondents were C-level executives.
Of the organizations surveyed, 45% have a target year to increase renewable energy sources in their electricity consumption. Of those, 36% of organizations cited cost-cutting, and 35% cited reducing environmental and carbon footprints as motivations for making the transition. Six companies said their organizations are aiming for 100% renewable energy, and one said it already achieved the target in 2015.
"Even though most organizations are not targeting 100 percent, a rising share aims to increase the percentage of renewables in their energy mix to 25 percent, 50 percent, or more over time," the authors wrote. "Others have set goals to reduce carbon emissions, making renewable deployment a vital prong in their strategies too."
The study was released Oct. 2 following climate talks in New York. During the talks, several corporations announced new emission-reduction targets, and some of the world's largest pension funds and insurers announced carbon-neutrality goals for their investment portfolios.
The healthcare and medical industry had the highest concentration of near-term targets, from 2020 to 2025, to increase renewable energy use, according to the survey. From the industry, 61% of respondents said they have set renewable energy goals, the highest among industries surveyed, while 81% said they plan to electrify space and or water heating. Healthcare contributes about 10% of U.S. carbon emissions and 9% of non-greenhouse gas air pollutants.
The technology and telecommunications industry was the most active in terms of renewable procurement, the study said. More than 70% of industry respondents said their renewable purchases came from active sourcing — directly purchasing renewable power or using on-site renewable resources.
Challenges to the transition to renewables include a lack of resources, lack of backup power for wind and solar, the complexity of procurement, and lack of shareholder interest, according to the study. Electric utilities are key to overcoming those hurdles.
"These challenges create opportunities for electric utilities, which can play multiple roles to ease the transition for organizations by using their expertise, data, reputation, and access to low-cost capital," the authors concluded. "Actors in the wider ecosystem can also play a role. Those with the resources and expertise can bundle and scale energy services to help organizations across many industries. By doing so, they can ease the transition and help organizations turn 100 percent renewables from an aspiration to a destination."
