• 112 global companies with combined annual revenues of about $1.5 trillion are backing faster electrification.
• The business group says fossil fuel price volatility is weakening competitiveness and delaying investment.
• The statement calls for stronger policy frameworks, grid investment, market reform and faster permitting.

Global Companies Push for Faster Electrification

More than 100 global companies have urged governments to make electrification central to national economic strategy, arguing that dependence on fossil fuels now carries a direct cost to competitiveness, supply chains and investment planning.

The open statement, backed by 112 businesses, includes companies across industrials, consumer goods, transport and healthcare. Signatories include Nestlé, Ikea, Iberdrola, Volvo Cars, Uber, Mahindra Group, Nikon Corporation and Levi Strauss.

Together, the companies represent combined annual revenues of about $1.5 trillion. Their message is aimed at policymakers, investors and executives meeting at the start of London Climate Action Week.

The statement was coordinated by the We Mean Business Coalition and the Global Renewables Alliance. It frames electrification not only as a climate priority, but as an economic resilience measure.

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

Fossil Fuel Volatility Moves Up the Board Agenda

The intervention comes as governments and companies reassess energy security after repeated price shocks. The latest concerns have been linked to the Iran conflict, which has renewed focus on exposure to fossil fuel markets.

For corporate leaders, the issue is no longer limited to emissions accounting. Energy volatility now affects procurement, logistics, manufacturing costs and capital allocation. It also complicates long-term planning for companies operating across several jurisdictions.

According to the statement, fossil fuel-driven volatility can create “persistent uncertainty”, higher operating costs and weaker competitiveness.

That message lands at a sensitive moment for business. Many companies have set climate targets, but they still depend on grids, permitting systems and market rules that move too slowly. In several markets, electricity demand is rising faster than grid capacity. This creates a gap between corporate ambition and infrastructure reality.

The companies said the shift will depend heavily on clear and predictable government policy. They called for reforms to electricity market design, greater grid investment and faster permitting for clean power and electrification infrastructure.

Policy Certainty Becomes the Critical Enabler

The business group said many technologies needed to electrify transport, buildings and industry already exist. Wider deployment could reduce overall energy demand, lower exposure to fossil fuel imports and strengthen energy security.

However, companies said deployment at scale requires policy certainty. That includes rules that support investment in clean electricity, modern transmission systems and flexible demand. It also includes faster approvals for projects that connect renewable power to industrial and commercial users.

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“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.

For C-suite leaders, the call reflects a broader shift in climate strategy. Electrification is moving from sustainability teams into finance, procurement, operations and risk committees. The business case now includes lower volatility, improved energy efficiency and stronger long-term cost visibility.

A poll released last week said 90% of business leaders expected their operations to be electrified within a decade. That expectation raises pressure on governments to align infrastructure planning with corporate demand.

COP31 Target Adds Global Pressure

The statement also aligns with a push by Turkey, host of the COP31 climate talks in November, for countries to agree a global target. The proposal would see electricity supply 35% of the world’s energy demand by 2035.

Such a target would place electrification at the center of climate diplomacy. It would also raise the stakes for national energy plans, especially in fast-growing economies where demand is still expanding.

London Climate Action Week gives the statement a high-profile platform. More than 75,000 people are expected to attend more than 1,000 events, including policymakers, investors and corporate executives.

For investors, the policy message is clear. Electrification plans will require capital across grids, storage, renewable generation, heat pumps, electric vehicles and industrial equipment. At the same time, weak policy design could delay investment and raise execution risk.

For governments, the political stakes are also sharpening. Energy security, industrial competitiveness and climate policy are becoming harder to separate. Companies are now asking for electrification to move from climate pledges into economic strategy.

The global significance is clear. If governments act, electrification could cut fossil fuel exposure while supporting climate targets. If they delay, companies face higher costs, slower investment and a weaker position in the next phase of the clean energy economy.

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