Energy firms ‘on track’ to meet energy transition target: report

More than 40% of companies are expected to be powered by renewables by 2030. 

Energy firms are “on track” for their energy transition as renewable energy initiatives gain traction globally, GlobalData reported. 

In its ESG Top Trends by Sector – Thematic Research, GlobalData however noted that power companies will need to maintain a holistic approach to sustainability rather than just focusing on environmental factors. 

“Renewables taking an increasing share in the global power mix can be seen as a consequence of multiple environmental efforts from power companies to increase investments in developing clean power generation projects,” Adrian Li, Energy Transition Analyst at GlobalData, said. 

“This increasing share in the global power mix is also supported by government subsidies which have made green energy more price competitive, decreasing its costs exponentially and allowing companies a faster shift from fossil fuels.”

Read more: Asia to account 63% of renewable capacity additions until 2031

Li noted GlobalData expects 2024 will likely be the watershed as renewables overtake coal-fired power plants. 

By 2030, renewable energy is projected to account for more than 40% of global power, driven by technological advancements and favourable government policies. 

“Consumers have become very conscientious about carbon emissions and climate change, and, by extension, the social impact of these companies. Factors such as poor workplace conditions or corruption will severely damage the reputation of power companies and decrease investment, as interest in energy becomes increasingly consumer driven,” Li said. 

“Even something such as poor cybersecurity—although not directly related to climate change—could sour the public’s impression of a company and make them lose confidence.”