More than 62 percent of total renewable power generation added last year had lower costs than the cheapest new fossil fuel option according to a 2021 report by International Renewable Energy Agency (IRENA).* That is a doubling in 2020 of the share of renewable energy that achieved lower costs than the most competitive fossil fuel option.

With companies continually under pressure to cut costs, contribute to national net zero goals in many countries and with ever cheaper battery storage support, the decision to purchase renewable energy or install on-site becomes much easier. Companies in your portfolio that are doing this are strategic, pragmatic and resilient. Moreover, this will eventually lower your overall portfolio carbon footprint as companies are able to reduce their emissions over time as they increase the percent of renewables in the total energy mix.

The data from this comes from Refinitiv and the level of reporting is still low. Feel free to use the Engagement Portal to contact your holding companies about this and encourage them to disclose how much renewable energy as a percent of total energy use they have. Track that over time in the portal and hopefully, your companies will gradually improve.


https://www.irena.org/newsroom/pressreleases/2021/Jun/Majority-of-New-Renewables-Undercut-Cheapest-Fossil-Fuel-on-Cost

Did this answer your question?