Delta Electronics is a Business Reporter client
Electronics company Delta aims to achieve its RE100 target of 100% renewable energy across EMEA by 2025 – here’s how.
As companies around the world set carbon reduction targets and milestones, they are under no illusions about the challenges involved in sourcing green energy and achieving net-zero emissions goals.
Delta, a global leader in energy management and provider of smart IoT-based green solutions, has embarked on that journey as a member of RE100an initiative that brings together companies looking to use renewable sources to meet their energy needs. Naturally, achieving RE100 goals requires rigorous processes, tracking and reporting that ensure all energy use can be verified and traced back to a renewable source.
When Delta joined RE100 in 2021, it did so to reach a goal of using 100 percent renewable energy across its global operations by 2030, and in the EMEA region by 2025. Even with these ambitious goals, Delta’s global operations, including offices, R&D centers and production facilities, were 76 percent powered by renewable energy by 2023. Within EMEA, that number rises to 93 percent, and Delta aims to reach its RE100 goal there within two years.
Dalip Sharma, President and General Manager EMEA at Delta Electronics, discusses the company’s journey over the past few years and the lessons learned that can be applied across the business landscape.
What challenges have the RE100 objectives posed in EMEA and what have you learned from them?
“Delta has 37 plants spread across 19 countries in EMEA. This is a large and diverse area. Not only does each country have different options when it comes to sourcing renewable energy, but they also have different sets of climate targets and regulations.
“Renewable energy certificates are a good example of how this complexity plays out. RE100 has clear guidelines and strict technical criteria that define what counts as renewable energy in the context of our RE100 membership. These certificates must contain detailed information to trace the source of renewable energy generation back to a specific solar park, wind turbine or hydroelectric facility.
“And a renewable energy certificate issued in one EU country does not necessarily cover energy consumption in another. This is because, in order to apply cross-border certificates, RE100 has two key requirements in addition to EU membership: countries’ grids must be interconnected and they must be EU members. Association of Issuing Entities (AIB). For example, a certificate issued in Germany can be used in the Netherlands, but not in Poland or Malta. Poland is not a member of the AIB and Malta has no connection to the Dutch electricity grid.”
How to source renewable energy in EMEA?
“We have adopted a combination of sourcing strategies, including self-generation of solar PV at our buildings and purchasing green electricity products from our utility providers. However, this is not possible in all markets and in some cases we have to purchase the certificates separately from the electricity supply.
“In the future, we want to increase the share of on-site solar PV generation in the mix to further contribute to the expansion of renewable energy generation.
“In addition, we are working to continuously improve the energy efficiency of our operations and reduce our overall consumption. Globally, we have 36 certified green buildings, including two green data centers, underlining our commitment to energy efficiency.”
What role has Delta's internal carbon pricing system played in increasing renewable energy use?
In 2021, we initiated an internal carbon pricing (ICP) plan to reduce the use of “grey” electricity from fossil fuels in our daily operations.
For every euro spent on grey energy, our offices pay two euros more to discourage the use of non-renewable electricity. The fees we collect globally are deposited into a virtual green fund. All of our offices around the world can draw on this fund to invest in projects that reduce Delta’s carbon footprint, for example by installing renewable infrastructure, improving energy efficiency or minimising waste volume.
ICP Fund investments in 2023 totaled approximately $70 million and add to the numerous green projects underway at Delta's global facilities. A portion of that fund was earmarked for investments in renewable energy technology development, energy resource management, and low-carbon technologies such as electric vehicle charging stations and a battery storage system in our EMEA region.
What advice would you give to RE100 members to help them achieve that goal?
“My first piece of advice is to be persistent in reaching 100% renewable energy. There will be challenges along the way, but let’s not let them discourage us. Being a little stubborn in reaching RE100 before the official target has been a great help to Delta’s sustainability efforts.”
Secondly, we need to continue working on reduction, as it is always possible to achieve greater energy efficiency. We continue to look for new ways to save energy, even in places that already have energy efficiency and green building certifications from programs such as BREEAM and LEED.
“Lastly, if you are in a position to do so, I cannot stress enough the value of on-site renewable energy production as it will reduce costs and help you achieve RE100. Any investment you make in on-site green energy generation will only contribute to and benefit the growth of renewable energy worldwide.”
Where does Delta's net-zero journey go from here, both in Europe and globally?
“Achieving RE100 is part of Delta’s goal to become Carbon neutrality across all our global operations by 2030As the first hardware and technology equipment company in Asia to pass the Science-Based Target Review, we plan to achieve a 90 percent reduction in all Scope (1-3) emissions by 2050. A global effort will be needed to achieve both goals, reducing carbon intensity not only within Delta but also across our supply chains.
“We have also been working closely with our suppliers, implementing tailored training sessions to help them reduce their carbon footprint.
“This collective global effort will help us and all the companies we work with to achieve the environmental goals we have set for ourselves in the coming years.”
For more information, please visit esg.deltaww.com/en/index.
