Energy security alarm rings! 112 global giants collectively appeal: prioritize electrification in economic strategic core.

Multiple companies, including Nestle (NSRGY.US) and IKEA, jointly called on governments on Monday to put electrification at the core of their economic strategies to reduce dependency on volatile fossil fuel costs and enhance energy security. According to a public statement obtained by the media, the initiative has received support from 112 companies in industries such as industry, consumer goods, and healthcare. These companies stated that excessive reliance on fluctuating fossil fuel prices has harmed their competitiveness. The group of companies has a combined annual revenue of approximately $1.5 trillion, and members include Spanish electrical company Iberdrola (IBDRY.US), Volvo Cars, Uber Technologies, Inc. (UBER.US), Indian Mahindra Group, Nikon (NINOY.US) from Japan, and Levi Strauss & Co. Class A (LEVI.US) from the United States. The statement says, "Continued reliance on unstable fuel markets makes economies vulnerable to disruption, leading to price spikes, supply chain instability, and investment delays." The statement was coordinated by the We Mean Business Coalition and Global Renewables Alliance. However, the statement also emphasizes that achieving electrification transformation will largely depend on governments implementing clear, predictable policies and advancing related reforms, including improving electricity market design, increasing investment in the grid, and expediting project approval processes. Currently, governments and companies in multiple countries are reevaluating energy strategies in response to price fluctuations, especially market volatility triggered by recent Iran conflicts. The statement notes that such fluctuations could evolve into "sustained uncertainty," raising operating costs and weakening competitiveness. This action coincides with the opening of "London Climate Action Week," expected to draw over 75,000 participants to more than a thousand events, including key policymakers, investment institutions, and business executives. The initiative also aligns with Turkey as the host country for the 31st United Nations Climate Change Conference (COP31) in November this year, calling on countries to achieve the global goal of having electricity account for 35% of global energy demand by 2035. The statement points out that electrification technologies needed in key sectors such as transport, buildings, and industry are currently commercially available, and their widespread adoption will help reduce overall energy demand. Kim Hellstrm, Senior Manager of Sustainable Development Climate at retail company H&M (HNNMY.US), stated, "To achieve scalable transformation, the electrification process especially needs to be accelerated through a predictable and supportive policy framework." A survey released last week showed that 90% of business executives expect their operations to be electrified in the next ten years.