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

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.