IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i8p3646-d1637065.html
   My bibliography  Save this article

Renewable Energy, Sustainable Business Models, and Decarbonization in the European Union: Comparative Analysis of Corporate Sustainability Reports

Author

Listed:
  • Ningshan Hao

    (Doctoral School of Accounting, Bucharest University of Economic Studies, 010374 Bucharest, Romania)

  • Voicu D. Dragomir

    (Department of Accounting and Audit, Bucharest University of Economic Studies, 010374 Bucharest, Romania)

Abstract

The purpose of this article is to investigate the development of sustainable business models (SBMs) of renewable energy companies. To assess the degree of alignment with the European Union Taxonomy for sustainable activities (Regulation 2020/852), the European Green Deal, and the Sustainable Development Goals of five renewable energy companies—Ørsted, Engie, Vattenfall, Iberdrola, and Enel—we have used their sustainability reports from 2023. We have analyzed how each company contributes to the EU climate targets and strategy to achieve a 55% reduction in greenhouse gas emissions by 2030 and net zero by 2050. The results showed the challenges faced by each company in switching from traditional fossil fuel models to renewable models. Due to regulatory constraints and different organizational structures, each company has adopted a specific SBM with respect to power generation and the green transition. The advantages and disadvantages of these SBMs were identified and described comparatively to help regulators, policymakers, and industry associations improve sustainability reporting for the energy sector.

Suggested Citation

  • Ningshan Hao & Voicu D. Dragomir, 2025. "Renewable Energy, Sustainable Business Models, and Decarbonization in the European Union: Comparative Analysis of Corporate Sustainability Reports," Sustainability, MDPI, vol. 17(8), pages 1-26, April.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:8:p:3646-:d:1637065
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/8/3646/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/8/3646/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Katrin Hummel & Karina Bauernhofer, 2024. "Consequences of sustainability reporting mandates: evidence from the EU taxonomy regulation," Accounting Forum, Taylor & Francis Journals, vol. 48(3), pages 374-400, July.
    2. Federica Tonnarello & Carlo Vermiglio & Carlo Migliardo & Valeria Naciti, 2025. "The Impact of EU Taxonomy for Sustainable Activities on European Utilities' Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 34(3), pages 2848-2862, March.
    3. Jerry L. Holechek & Hatim M. E. Geli & Mohammed N. Sawalhah & Raul Valdez, 2022. "A Global Assessment: Can Renewable Energy Replace Fossil Fuels by 2050?," Sustainability, MDPI, vol. 14(8), pages 1-22, April.
    4. Seán O’Reilly & Louise Gorman & Ciarán Mac An Bhaird & Niamh M. Brennan, 2024. "Implementing the European Union Green Taxonomy: implications for small- and medium-sized enterprises," Accounting Forum, Taylor & Francis Journals, vol. 48(3), pages 401-426, July.
    5. Nicolas Garcia-Torea & Mercedes Luque-Vílchez & Pablo Rodríguez-Gutiérrez, 2024. "The EU Taxonomy, sustainability reporting and financial institutions: understanding the elements driving regulatory uncertainty," Accounting Forum, Taylor & Francis Journals, vol. 48(3), pages 427-454, July.
    6. Moritz Ehrtmann & Lars Holstenkamp & Timon Becker, 2021. "Regional Electricity Models for Community Energy in Germany: The Role of Governance Structures," Sustainability, MDPI, vol. 13(4), pages 1-24, February.
    7. Ahmed Elkhatat & Shaheen Al-Muhtaseb, 2024. "Climate Change and Energy Security: A Comparative Analysis of the Role of Energy Policies in Advancing Environmental Sustainability," Energies, MDPI, vol. 17(13), pages 1-31, June.
    8. Lucia Alessi & Theodor Cojoianu & Andreas G. F. Hoepner & Giovanna Michelon, 2024. "Accounting for the EU Green Taxonomy: exploring its concept, data and analytics," Accounting Forum, Taylor & Francis Journals, vol. 48(3), pages 365-373, July.
    9. Steve Evans & Doroteya Vladimirova & Maria Holgado & Kirsten Van Fossen & Miying Yang & Elisabete A. Silva & Claire Y. Barlow, 2017. "Business Model Innovation for Sustainability: Towards a Unified Perspective for Creation of Sustainable Business Models," Business Strategy and the Environment, Wiley Blackwell, vol. 26(5), pages 597-608, July.
    10. Alexandra Danila & Maria-Gabriela Horga & Oana Oprisan & Tanase Stamule, 2022. "Good Practices on ESG Reporting in the Context of the European Green Deal," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 24(61), pages 847-847, August.
    11. Patrick Velte, 2024. "Sustainable board governance and environmental performance: European evidence," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3397-3421, May.
    12. Lazar Gitelman & Mikhail Kozhevnikov, 2023. "New Business Models in the Energy Sector in the Context of Revolutionary Transformations," Sustainability, MDPI, vol. 15(4), pages 1-21, February.
    13. Maria Federica Cordova & Andrea Celone, 2019. "SDGs and Innovation in the Business Context Literature Review," Sustainability, MDPI, vol. 11(24), pages 1-14, December.
    14. Chirumalla, Koteshwar & Kulkov, Ignat & Parida, Vinit & Dahlquist, Erik & Johansson, Glenn & Stefan, Ioana, 2024. "Enabling battery circularity: Unlocking circular business model archetypes and collaboration forms in the electric vehicle battery ecosystem," Technological Forecasting and Social Change, Elsevier, vol. 199(C).
    15. Hassan, Qusay & Nassar, Ahmed K. & Al-Jiboory, Ali Khudhair & Viktor, Patrik & Telba, Ahmad A. & Awwad, Emad Mahrous & Amjad, Ayesha & Fakhruldeen, Hassan Falah & Algburi, Sameer & Mashkoor, Saoud Cha, 2024. "Mapping Europe renewable energy landscape: Insights into solar, wind, hydro, and green hydrogen production," Technology in Society, Elsevier, vol. 77(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Davide Perina & Riccardo Stacchezzini, 2024. "Dialogue with standard setters The adoption of the ?EU Taxonomy?: Critical reporting and auditing challenges," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2024(2), pages 193-203.
    2. David Rehak & Martin Hromada & Simona Jemelkova & Lenka Brumarova & Ivo Haring, 2025. "Strengthening the Sustainability of Energy Critical Entities Through a Business Continuity Management System," Sustainability, MDPI, vol. 17(6), pages 1-19, March.
    3. Jason Kobina Arku & Yunfei Shao & Shadrach Twumasi Ankrah, 2024. "Building a Hierarchical Enablers Framework for Service Business Model Innovation for Sustainable Performance: Evidence from Ghana’s Electricity Sector," Sustainability, MDPI, vol. 16(8), pages 1-23, April.
    4. Harutyunyan, Artur & Badyda, Krzysztof & Wołowicz, Marcin, 2025. "Analyzing of different repowering methods on the example of 300 MW existing steam cycle power plant using gatecycle™ software," Energy, Elsevier, vol. 314(C).
    5. Cinzia Battistella & Maria Rosita Cagnina & Lucia Cicero & Nadia Preghenella, 2018. "Sustainable Business Models of SMEs: Challenges in Yacht Tourism Sector," Sustainability, MDPI, vol. 10(10), pages 1-20, September.
    6. Abbate, Stefano & Centobelli, Piera & Cerchione, Roberto, 2023. "From Fast to Slow: An Exploratory Analysis of Circular Business Models in the Italian Apparel Industry," International Journal of Production Economics, Elsevier, vol. 260(C).
    7. Federica Murmura & Laura Bravi & Gilberto Santos, 2021. "Sustainable Process and Product Innovation in the Eyewear Sector: The Role of Industry 4.0 Enabling Technologies," Sustainability, MDPI, vol. 13(1), pages 1-16, January.
    8. Wei Wang & Leonid Melnyk & Oleksandra Kubatko & Bohdan Kovalov & Luc Hens, 2023. "Economic and Technological Efficiency of Renewable Energy Technologies Implementation," Sustainability, MDPI, vol. 15(11), pages 1-19, May.
    9. Wiebke Reim & David Sjödin & Vinit Parida, 2021. "Circular business model implementation: A capability development case study from the manufacturing industry," Business Strategy and the Environment, Wiley Blackwell, vol. 30(6), pages 2745-2757, September.
    10. Maurizio Massaro & Francesca Dal Mas & Charbel Jose Chiappetta Jabbour & Carlo Bagnoli, 2020. "Crypto‐economy and new sustainable business models: Reflections and projections using a case study analysis," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(5), pages 2150-2160, September.
    11. Sebastian Schroedel, 2023. "The Sustainable Business Model Database: 92 Patterns That Enable Sustainability in Business Model Innovation," Sustainability, MDPI, vol. 15(10), pages 1-27, May.
    12. María E. Aguilar-Fernández & José Ramon Otegi-Olaso, 2018. "Firm Size and the Business Model for Sustainable Innovation," Sustainability, MDPI, vol. 10(12), pages 1-27, December.
    13. Hugo Gaspar Hernandez-Palma & Dairo J. Novoa & Jorge Enrique Taboada à lvarez, 2024. "New Trends in Green Projects Aimed at Clean Energy: An Analysis of the Scientific Literature," International Journal of Energy Economics and Policy, Econjournals, vol. 14(6), pages 278-286, November.
    14. Zhang, Chao & Zhao, Yangsheng & Feng, Zijun & Meng, Qiaorong & Wang, Lei & Lu, Yang, 2023. "Thermal maturity and chemical structure evolution of lump long-flame coal during superheated water vapor–based in situ pyrolysis," Energy, Elsevier, vol. 263(PC).
    15. Hossein Basereh Taramsari & Steven Hoffenson & Roshanak Nilchiani, 2025. "Holistic Sustainable Design: Incorporating Change Propagation and Triple Bottom Line Sustainability," Sustainability, MDPI, vol. 17(5), pages 1-27, March.
    16. Maria Rosa De Giacomo & Raimund Bleischwitz, 2020. "Business models for environmental sustainability: Contemporary shortcomings and some perspectives," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3352-3369, December.
    17. Ringsberg, Henrik, 2023. "Sustainable FLM transport based on IPF transport by ferry in coastal rural areas: A case from Sweden," Transportation Research Part A: Policy and Practice, Elsevier, vol. 178(C).
    18. Ahmed Hussain Elmetwaly & Ramy Adel Younis & Abdelazeem Abdallah Abdelsalam & Ahmed Ibrahim Omar & Mohamed Metwally Mahmoud & Faisal Alsaif & Adel El-Shahat & Mohamed Attya Saad, 2023. "Modeling, Simulation, and Experimental Validation of a Novel MPPT for Hybrid Renewable Sources Integrated with UPQC: An Application of Jellyfish Search Optimizer," Sustainability, MDPI, vol. 15(6), pages 1-30, March.
    19. Elfarra, Barakat & Yasmeen, Rizwana & Shah, Wasi Ul Hassan, 2024. "The impact of energy security, energy mix, technological advancement, trade openness, and political stability on energy efficiency: Evidence from Arab countries," Energy, Elsevier, vol. 295(C).
    20. Hiam Serhan & Gwenola Yannou-Le Bris, 2021. "The engineering of food with sustainable development goals:policies, curriculums, business models, and practices," Post-Print hal-02919820, HAL.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:8:p:3646-:d:1637065. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.