Major global companies such as Nestle and Mahindra & Mahindra have called on governments worldwide to place electrification at the core of their economic strategies, arguing that it is essential for reducing dependence on volatile fossil fuel markets and improving long-term energy security.
Reuters reports that these companies have released a statement supported by 112 additional firms across industries including industrial goods, consumer products, healthcare, transportation, and retail.
The group warned that continued reliance on fossil fuels exposes economies to sharp price fluctuations. These price shocks, they said, undermine industrial competitiveness and disrupt supply chains. The signatories collectively generating about $1.5 trillion in yearly revenue—include major multinational companies such as Iberdrola, Volvo Cars, Uber, Ikea, Nikon Corporation and Levi Strauss. The declaration was organized by the We Mean Business Coalition in partnership with the Global Renewables Alliance.
According to the report, the companies have argued that dependence on fossil fuels leads to persistent uncertainty in energy costs, especially during periods of geopolitical instability such as the recent Iran-related tensions. This volatility, they said, can result in higher operating expenses, delayed investments and weaker overall economic performance.
However, the group stressed that moving toward electrification will demand robust government action. Essential steps include stable and predictable policy frameworks, better electricity market design, accelerated permitting procedures, and substantial investment in grid infrastructure.
The announcement coincides with the start of London Climate Action Week, which is projected to attract over 75,000 attendees to more than 1,000 events featuring policymakers, investors, and corporate leaders..
It is also in step with international talks leading up to COP31, which Turkey will host in November, where proposals include establishing a global goal for electricity to supply 35% of total worldwide energy demand by 2035. The statement notes that numerous technologies needed to electrify sectors like transportation, buildings, and heavy industry are already commercially feasible. Broad deployment of these solutions could also lower total energy use and enhance efficiency.
Kim Hellstrom, Senior Sustainability Climate Manager at H&M, stated that broad electrification can only be achieved if supportive policy frameworks are in place that offer businesses clear guidance and long-term certainty..
A recent survey also revealed that nearly 90% of business leaders anticipate their operations will be predominantly electrified over the next ten years, underscoring the increasing corporate drive toward this transition.