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Exploring the motivations behind corporate participation in the RE100 initiative and its impact on financial performance

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  • Jalalov, Mashkhurbek
  • Bae, Jeong Hwan

Abstract

The Renewable Energy 100 (RE100) initiative, which encourages companies to commit to 100% renewable energy usage, plays a crucial role in advancing the global transition to sustainable energy. This study analyzes data from 677 companies between 2014 and 2022, employing a two-stage approach. In the first stage, we apply hierarchical linear modeling (HLM) within the framework of the conditional mixed-process model (CMP) to examine factors influencing firms' decisions to join RE100 and the subsequent impact on their financial performance. The findings reveal that firm size, financial performance, peer pressure, institutional quality, GDP and the renewable energy share in the host country significantly increase the likelihood of participation. Additionally, the study demonstrates that joining RE100 positively impacts profit margins, both directly and indirectly through improvements in operational efficiency. The results provide key insights for policy recommendations, emphasizing the need for incentives for small and midsize enterprises, industry collaboration, enhanced access to renewable energy, and supportive regulatory frameworks to foster broader adoption of renewable energy initiatives.

Suggested Citation

  • Jalalov, Mashkhurbek & Bae, Jeong Hwan, 2025. "Exploring the motivations behind corporate participation in the RE100 initiative and its impact on financial performance," Energy Policy, Elsevier, vol. 198(C).
    • Handle: RePEc:eee:enepol:v:198:y:2025:i:c:s0301421525000102
    DOI: 10.1016/j.enpol.2025.114503
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