Hello, this is GLEC, a specialized company in measuring carbon emissions for the logistics and transportation industry.
Are you a logistics company wondering how to start your renewable energy transition? With global corporations increasingly demanding RE100 compliance from their supply chain partners, understanding and implementing renewable energy strategies has become crucial for survival. In this comprehensive guide, I'll walk you through everything you need to know about RE100 and how to begin your journey toward 100% renewable energy.
What Exactly is RE100 and Why Should You Care?
RE100, which stands for Renewable Energy 100%, is a global initiative launched in 2014 by The Climate Group and CDP (Carbon Disclosure Project). It represents a commitment by companies to power their operations with 100% renewable electricity by 2050.
But here's what makes it critical for logistics companies: As of 2025, over 430 global corporations have joined RE100, and they're increasingly requiring their logistics partners to follow suit. This isn't just an environmental trend – it's becoming a business imperative.
The 5 Key Reasons Logistics Companies Must Act Now
Let me share some eye-opening statistics that highlight the urgency of this transition.
1. Customer Demands Are Real and Growing
According to a 2024 survey by the Korea International Trade Association, 16.7% of Korean manufacturers have already received RE100 compliance requests from their clients. Even more striking, 41.7% of these companies are being asked to implement renewable energy immediately.
Major corporations like Volvo, BMW, and Apple are making RE100 compliance mandatory for their supply chain partners. Volvo recently canceled a contract with a Korean parts supplier who couldn't commit to renewable energy by 2025.
2. International Trade Regulations Are Tightening
The regulatory landscape is changing rapidly:
- EU Carbon Border Adjustment Mechanism (CBAM): Full implementation by 2027
- US Clean Competition Act: Starting in 2025
- UK and Australia: Similar mechanisms by 2027
These regulations will impose additional costs on carbon-intensive logistics services, making RE100 compliance a competitive necessity.
3. Financial Benefits Are Substantial
While the initial investment might seem daunting, the long-term financial benefits are compelling:
- Access to green finance with interest rates 0.5-1.5% lower
- Eligibility for ESG-linked loans and green bonds
- Government subsidies covering 30-50% of renewable infrastructure costs
4. Talent Attraction and Retention
A recent study shows that 89% of job seekers consider a company's ESG activities when making career decisions. For logistics companies struggling to attract young talent, RE100 commitment can be a game-changer.
5. Long-term Cost Savings
Despite higher upfront costs, renewable energy provides:
- Predictable energy costs over 20-25 years
- Protection from fossil fuel price volatility
- Potential revenue from selling excess renewable energy
5 Practical Ways to Procure Renewable Energy
Now, let's explore the specific options available for logistics companies to source renewable energy.
1. Green Premium Programs
This is the simplest way to start. You purchase renewable electricity from your utility provider at a premium price. While it costs about 10 won/kWh extra in Korea, it requires zero infrastructure investment and can be implemented immediately.
Best for: Small to medium logistics companies taking their first steps in renewable energy.
2. Renewable Energy Certificates (RECs)
RECs allow you to purchase certificates representing renewable energy generation. In 2024, Korean REC prices hover around 70,000-80,000 won per certificate.
Best for: Companies needing flexibility in their renewable energy procurement.
3. Third-party Power Purchase Agreements (PPAs)
Through third-party PPAs, your utility company acts as an intermediary between you and renewable energy generators. This provides long-term price stability and guaranteed renewable energy supply.
Best for: Medium to large companies with stable, predictable energy demand.
4. Direct PPAs
Cut out the middleman and contract directly with renewable energy generators. This offers the best economics but requires more sophisticated energy management capabilities.
Best for: Large logistics companies with dedicated energy management teams.
5. On-site Generation
Install solar panels on warehouse roofs or unused land. With installation costs now at 1-1.5 million won per kW, payback periods have shortened to 5-7 years.
Best for: Companies with suitable roof space or land, planning long-term operations.
Understanding K-RE100: Korea's Approach to Renewable Energy
Korea has introduced its own RE100 program, called K-RE100, which offers some advantages over the global initiative.
Key Differences:
- No minimum energy consumption requirement (Global RE100 requires 100GWh annual consumption)
- Open to all companies regardless of size
- Government support including consulting and financial incentives
- K-RE100 certification mark for marketing purposes
This makes it much more accessible for small and medium logistics companies to participate.
Current State of Logistics Companies and RE100
Let's look at where the industry stands today.
Global Leaders:
- DHL: Operating 35,000 electric vehicles, targeting net-zero by 2050
- FedEx: Committed to carbon neutrality by 2040
- UPS: 13,000 alternative fuel vehicles in operation
Korean Market: As of 2025, 36 Korean companies have joined RE100, though pure logistics companies remain underrepresented. However, major players are taking action:
- Hyundai Glovis: Targeting carbon neutrality by 2045
- CJ Logistics: Set 2040 RE100 goal
- Hanjin: Expanding eco-friendly logistics centers
Your 5-Step Action Plan to Start Today
Ready to begin your RE100 journey? Here's a practical roadmap to get started.
Step 1: Measure Your Current Status (1-2 months)
- Calculate your annual electricity consumption
- Identify major energy-consuming facilities
- Establish your carbon emission baseline
Step 2: Set Achievable Goals (2-3 months)
- Start with 10% renewable energy by 2025
- Plan for 25% by 2027
- Aim for 60% by 2030 (RE100 requirement)
- Full transition by 2050
Step 3: Choose Your Strategy (3-6 months)
- Evaluate which renewable energy procurement method suits your company
- Consider a mixed approach for optimal results
- Develop a detailed investment plan
Step 4: Implement Quick Wins
- Replace all lighting with LEDs (20-30% energy savings)
- Install energy management systems
- Start with green premium for a portion of your energy
Step 5: Build for the Long Term
- Develop partnerships with renewable energy providers
- Invest in employee training and awareness
- Create a governance structure for ongoing management
Key Success Factors from My Experience
Having worked with numerous logistics companies on their RE100 journey, I've identified these critical success factors:
1. CEO commitment is non-negotiable – Without top-level support, initiatives lose momentum
2. Start small but start now – Perfect is the enemy of good
3. Make it everyone's responsibility – Create a culture of sustainability
4. Measure and communicate progress – Transparency builds trust and momentum
5. Learn from others but customize for your needs – What works for DHL might not work for you
Final Thoughts: The Time is Now
RE100 isn't just about compliance or corporate responsibility. It's about securing your company's future in a rapidly changing business landscape. The logistics companies that act now will become the preferred partners of global corporations, attract the best talent, and achieve long-term cost advantages.
Yes, the journey seems daunting. Yes, it requires significant investment. But the alternative – being left behind as the world transitions to renewable energy – is far more costly.
Remember, every global leader in RE100 started with a single solar panel, a single electric vehicle, or a simple green premium contract. The key is to start.
Your customers are watching. Your competitors are moving. The question isn't whether you should join the RE100 movement, but how quickly you can begin.
Take the first step today. Your future self will thank you.
#RE100 #LogisticsCompanies #RenewableEnergy #CarbonNeutral #K-RE100 #GreenPremium #PPA #REC #SustainableLogistics #ESGManagement
For carbon emission consultations and inquiries, please visit the GLEC website.
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