Procuring Renewable Energy for the Supply Chain
A Comparative Cost Analysis of Corporate-Led Procurement Models
Procuring renewable energy for the Supply Chain
A Comparative Cost Analysis of Corporate-Led Procurement Models
As organizations work to build resiliency and reduce emissions across their value chains, Scope 3 decarbonization has emerged as one of the most complex and consequential climate challenges. Renewable electricity procurement offers a powerful opportunity to reduce supplier emissions, but not all approaches are equally effective.
This report, developed in partnership with Mars Inc, examines three leading supplier renewable energy procurement models currently used in the market today: Supplier Engagement, Joint Procurement, and the Renewables Acceleration (RAcc) program pioneered by Mars. Drawing on proprietary survey data from 25 corporate buyers, the analysis reveals a significant gap between the approaches most commonly used today and those best positioned to drive scalable, cost-effective emissions reductions.
Key Findings
While Supplier Engagement remains the most widely adopted approach, used by more than half of surveyed organizations, it is also the least efficient. Companies report high levels of effort, administrative complexity, and cost, often with limited ability to deliver meaningful emissions reductions at scale.
Joint Procurement can provide greater cost predictability, but its effectiveness is constrained by substantial coordination requirements, lengthy implementation timelines, and a limited ability to address emissions across an organization’s full supplier base.
In contrast, the Renewables Acceleration (RAcc) model emerged as the most effective solution across all major evaluation criteria.
Why the RAcc Model Stands Out
The RAcc approach centralizes renewable energy procurement and risk management with the corporate buyer, enabling organizations to achieve:
By aggregating demand and spreading fixed administrative costs across larger energy volumes, RAcc delivers the lowest cost per megawatt-hour among the models analyzed.
Unlike traditional approaches that rely on extensive supplier participation and coordination, RAcc enables streamlined implementation and provides a practical pathway to end-to-end value chain decarbonization.
Because suppliers are not required to enter complex procurement arrangements, companies can advance climate goals without creating contractual burdens, disrupting supplier relationships, or limiting future sourcing decisions.
A Strategic Path Forward
The findings point to a clear conclusion: companies seeking to accelerate Scope 3 electricity decarbonization should consider the Renewables Acceleration (RAcc) model as the cornerstone of their strategy. While Supplier Engagement and Joint Procurement may play complementary roles in specific circumstances, RAcc delivers the strongest combination of cost efficiency, scalability, speed, and measurable impact, making it a compelling pathway for organizations pursuing ambitious Net Zero commitments.
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Procuring renewable energy for the Supply Chain
A Comparative Cost Analysis of Corporate-Led Procurement Models
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