Interest in environmental issues and sustainable energy is rising globally. Among these, we will explore RE100, why it's important, and what impact it has.

The Concept and Origin of RE100

RE100 (Renewable Energy 100%)is a campaign where companies pledge to source 100% of their electricity from renewable sources. It was launched in September 2014 by "The Climate Group", a multinational non-profit organization based in London, UK. This campaign was initially started by organizations like The Climate Group, CDP (Carbon Disclosure Project), The Climate Group's Regen Hub, etc. and currently has over 300 companies participating.

Companies joining RE100 are increasing their renewable energy usage through REC (Renewable Energy Certificate) purchases, green premium schemes, third-party PPAs (Power Purchase Agreements), equity investments, and self-generation as demand for renewable energy electricity increases.

These sustainable energy policies are recognized as essential in the era of carbon neutrality, with many companies worldwide joining the effort.

Goals and Significance of RE100

RE100 ultimately aims to transition all electricity used by companies worldwide to 100% renewable sources by 2050. This goal is being pursued as part of efforts to address climate change, which has accelerated following the Paris Agreement.

RE100 is not merely a campaign for improving corporate image, but it is being utilized as a tool for real carbon emissions reduction. In other words, companies that join RE100 are expanding their use of renewable energy to reduce carbon emissions generated during the production of their products or services, actively responding to climate change.

Through this, international awareness of environmentally friendly companies is growing, and investors are also showing greater interest in companies practicing sustainable management. Ultimately, RE100 plays a significant role in emphasizing corporate social responsibility and encouraging efforts towards a sustainable future.

RE100 Participation Status of Companies Worldwide

As of April 2024, over 400 companies are participating in RE100, with 36 Korean companies among them. This makes Korea the fourth-largest participant after the US (98), Europe (85), and China (43), with the number of participating companies increasing annually.

In particular, leading global companies like Apple, Google, Microsoft, and Amazon are mostly participating, and major domestic companies such as SK Hynix, LG Energy Solution, and Samsung Electronics are also participating.

RE100 Membership Procedures and Requirements

To join RE100, the following procedures and requirements must be met.

• Application Submission: Complete and submit an application form through the official website. This requires providing details like the company's annual electricity consumption and renewable energy usage goals.
• Review and Approval: Upon submission, the CDP (Carbon Disclosure Project) committee will conduct a review. The review period takes approximately 4-6 weeks, and approval status will be communicated via email.
• Renewable Energy Usage Plan Development: Following approval, a renewable energy usage plan must be developed. This includes setting targets like 60% in 2030, 90% in 2040, and 100% in 2050, and outlining specific strategies for achieving these goals.
• Annual Performance Report Submission: An annual performance report containing the previous year's renewable energy usage performance and future plans must be submitted by the end of March every year.
• Membership Fee Payment: Membership fees vary based on annual revenue, ranging from a minimum of $1,500 to a maximum of $40,000.

By adhering to these procedures and requirements, companies can join RE100, which can contribute to improving their image and enhancing their competitiveness.

Corporate Practices for Sustainable Energy Usage

Companies can consider the following approaches to implement sustainable energy usage.

• Renewable Energy Purchase: The most direct approach is to purchase electricity from renewable energy generators. This allows companies to replace their entire electricity consumption with renewable energy.
• Self-Generation: It's also possible to generate electricity independently using renewable energy sources like solar, wind, and hydropower. This helps companies reduce electricity purchase costs and carbon emissions.
• Energy Efficiency Improvement: Improving existing energy usage methods to enhance efficiency is also a crucial practice. Replacing LED lighting, reinforcing insulation, and implementing smart metering can reduce energy consumption.
• Carbon Emission Credits Purchase: If using renewable energy is challenging, carbon emission credits can be purchased to offset carbon emissions. However, this incurs additional costs, necessitating active efforts to utilize renewable energy.
• Encouraging Partner Participation: Encouraging partners to participate helps reduce carbon emissions throughout the supply chain. It's advisable to set renewable energy usage goals with partners and work together to achieve them.

Economic Impact and Social Value of RE100 Participation

RE100 participation offers companies various economic benefits and social value.

Economic Benefits

• Cost Reduction: As renewable energy prices continue to decline, the cost of purchasing renewable energy through RE100 participation is becoming cheaper than traditional fossil fuel-based electricity purchases.
• Enhanced Competitiveness: With increasing awareness of climate change, consumers are tending to favor environmentally friendly products and services. RE100 participation allows companies to provide products and services that meet these consumer demands, thereby enhancing their competitiveness.
• Investment Attraction: Investors consider climate change response as a crucial investment criterion. By participating in RE100, companies gain higher creditworthiness and stability, making them more attractive for investment.

Social Value

• Environmental Protection: By participating in RE100, companies can reduce carbon emissions, contributing to curbing global warming and protecting the environment.
• Job Creation: The renewable energy industry is one of the rapidly growing sectors, and RE100 participation allows companies to contribute to job creation within the industry.
• Community Development: Collaboration with local communities enables the construction of renewable energy infrastructure, contributing to their development. This strengthens the company's relationships with local communities and enhances brand image.

Future Prospects and Challenges of RE100

RE100 has become an international movement for addressing climate change and is expected to expand further. However, several challenges exist for RE100's successful implementation.

Firstly, High Renewable Energy Generation Costs.

Currently, renewable energy generation costs are relatively higher than conventional fossil fuel generation costs. This can be a burden for companies and is a factor hindering the widespread adoption of renewable energy. Technological advancements and economies of scale are required to address these cost issues.

Secondly, Instability of Renewable Energy Supply.

Renewable energy generation fluctuates depending on factors like weather and seasons, making stable electricity supply challenging. Alternative technologies like battery storage or hydrogen need to be utilized to overcome these challenges.

Thirdly, Government Support and Regulation Play a Significant Role.

Governments need to strengthen support for renewable energy generation and implement stricter regulations on fossil fuels. Expanding the renewable energy market through international collaboration and establishing international standards are also necessary.

Finally, Corporate Awareness and Participation Are Paramount.

Companies must acknowledge their responsibility towards climate change and actively participate in RE100. Beyond individual efforts, they should also encourage partners and customers to use renewable energy and collaborate on efforts to reduce carbon emissions.

Concluding Remarks

We hope that more companies will participate in the RE100 campaign, leading the way in environmental protection while strengthening their global competitiveness.