Global business leaders back faster shift to electric

LONDON - More than 100 companies, including Nestlé and Uber, are urging governments to place electrification at the center of their economic strategies, saying it is essential for reducing exposure to volatile fossil fuel prices and strengthening energy security.

In an open statement seen by Reuters and backed by 112 businesses across industries such as industrials, consumer goods and healthcare, the companies said reliance on fossil fuel-driven price swings is undermining global competitiveness.

The group, which collectively generates about $1.5 trillion in annual revenue, includes major firms such as Iberdrola, Volvo Cars, Uber, Mahindra Group, Nikon Corporation and Levi Strauss, along with Nestlé and Ikea.

“Continued reliance on volatile fuel markets exposes economies to disruptions that drive price spikes, destabilize supply chains and delay investment,” the statement said. It was coordinated by the We Mean Business Coalition and the Global Renewables Alliance.

The companies said the shift toward electrification would require clear and predictable government policies, including reforms to electricity market design, investment in power grids and faster permitting processes.

As governments and businesses reassess energy strategies amid recent price spikes, including those linked to the Iran conflict, the statement warned that ongoing volatility is creating persistent uncertainty, raising operating costs and weakening competitiveness.

The appeal comes as London Climate Action Week begins, with more than 75,000 participants expected to attend over 1,000 events involving policymakers, investors and business leaders.

It also aligns with efforts by COP31 host Turkey to push for a global target for electricity to meet 35% of global energy demand by 2035.

The statement noted that many technologies needed to electrify key sectors such as transport, buildings and industry are already commercially available and could help reduce overall energy demand.

“To reach the required scale, the transition to electrification notably needs to be accelerated through predictable and enabling policy frameworks,” said Kim Hellström, senior sustainability climate manager at retailer H&M.

A separate poll released last week found that 90% of business leaders expect their operations to be electrified within the next decade.

-Reporting by Simon Jessop; Editing by Kirsten Donovan, Reuters