Nestle, Mahindra And 112 Firms Urge Govts To Prioritise Electrification Over Fossil Fuels

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.

According to a report by Reuters, these companies have issued a statement which is backed by 112 other firms spanning sectors such as industrial goods, consumer products, healthcare, transport 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, which together represent around $1.5 trillion in annual revenue, include major multinational firms such as Iberdrola, Volvo Cars, Uber, Ikea, Nikon Corporation and Levi Strauss. The statement was coordinated by the We Mean Business Coalition along 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 emphasised that a shift toward electrification will require strong government intervention. Key measures include predictable policy frameworks, improved electricity market design, faster permitting processes and significant investment in grid infrastructure.

The statement comes at the beginning of London Climate Action Week, which is expected to draw more than 75,000 participants across over 1,000 events involving policymakers, investors and corporate leaders.

It also aligns with international discussions ahead of COP31, to be hosted by Turkey in November, where proposals include setting a global target for electricity to account for 35% of total global energy demand by 2035.

According to the statement, many technologies required for electrifying sectors such as transport, buildings and heavy industry are already commercially viable. Widespread adoption could also help reduce overall energy consumption and improve efficiency.

Kim Hellstrom, Senior Sustainability Climate Manager at H&M, said that achieving large-scale electrification requires enabling policy frameworks that provide clarity and predictability for businesses.

A recent survey further indicated that around 90% of business leaders expect their operations to be largely electrified within the next decade, highlighting growing corporate momentum toward the transition.