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Implementing a successful renewable energy procurement program across your supply chain—especially in complex regions like APAC—requires more than just ambition. It requires a thoughtful, flexible, and culturally aware approach. From selecting the right suppliers to tailoring strategies based on country-specific market feasibility, a well-structured program increases the likelihood of adoption and long-term success.Ren Energy’s 15-step supplier engagement blueprint shows brands how to turn supplier decarbonization into signed renewable energy deals. The secret sauce? Start with a high-potential cohort, tailor tactics to each country, keep contracts and communication simple, and motivate factories with clear business cases and recognition. The result? Faster, lower-risk progress toward your net zero supply chain—helping your company achieve its climate goals while maintaining strong supplier relationships and energy resilience in crucial, emerging markets.
Utilize a Thoughtful Program Structure
1. Pick a small group of your most ambitious suppliers to focus on
Identifying your top suppliers based on size, operations, creditworthiness and revenue is important. Ren Energy can help you map and assess your highest-emitting suppliers to put together a “Focused Factory List” for optimal supplier targeting. Since there will naturally be attrition, we recommend putting together a sizable yet strategic supplier list at the outset. Given that Ren Energy utilizes the economies of scale associated with aggregated projects, the larger the project size, the lower the energy cost for everyone.
2. Approach country-specific programs differently
It's crucial to tailor strategies to each country's unique circumstances to achieve successful renewable energy initiatives.
For example, Vietnam has a more complex regulatory environment and a less developed renewable energy market than China. In turn, this will make it more difficult to navigate the permitting and approval process for renewable energy projects in Vietnam. Additionally, Vietnam's electricity grid is less reliable than China's, which could pose challenges for integrating renewable energy into the grid. Vietnam also presents higher financial risks for project financing than projects in China. Locally-owned factories usually have very tight margins and small amounts of cash on-hand, but there may be factories with foreign ownership, which could be more robust than locally-owned factories.
Thus, the criteria for selecting the right suppliers to participate in RFP might be different in Vietnam versus China, and RFP documentation might have significantly different information.
3. Keep contracts short, simple and easily understood
For a contract to be successful, it must be practical. Most suppliers in APAC generally will not sign a PPA or similar contract that is lengthy. Additionally, renewable energy developers in APAC will generally not participate in an RFP if it runs more than 5-10 pages. For this reason, Ren Energy tries to simplify its procurement opportunities as much as possible without losing the integrity of the contract. This approach aims to encourage higher participation from both suppliers and developers by avoiding excessively technical and lengthy documentation.
Practice Clear and Consistent Communication
4. Clearly communicate your company's supplier engagement policies
Instead of just emphasizing decarbonization and "do good for the world" philosophies, your company should provide a clear and concise set of expectations for its suppliers. This should include the minimum percentage of renewable energy they need to achieve by a specific year and other relevant KPIs. By doing so, suppliers will have a better understanding of what is required of them and how it will affect their chances of securing contracts with your company in the future.
An appropriate messaging that communicates your expectations could be:
“Our company has ambitious climate commitments, and to reach those commitments we can only work with suppliers that are aligned with our goals. One of the most impactful ways to make progress on decarbonization is to switch to renewable energy. Our company is offering you assistance with this process through Ren Energy, a third-party company who will help you understand your unique opportunity and the next steps towards purchasing renewable energy. In the coming year, our company will have to reevaluate its supplier base to ensure its manufacturing is aligned with its own decarbonization targets. If you choose to pursue renewables, you will be more likely to continue to receive business from our company.”
This message will ensure you’re being clear and direct about your company’s position. It will also potentially get suppliers on board with your project and make them more likely to work with you to make it a success.
5. Create established points of contact
Various stakeholders must sign off in order for a factory to move forward with installing renewable energy. These stakeholders must be understood and mapped, but within each supplier or facility, there must be at least 1-2 established points of contact that Ren Energy can connect with regarding the project throughout the process. These points of contact should be engaged on a regular cadence to ensure the project stays top-of-mind for individuals who undoubtedly have many initiatives on their plate.
6. Don't depend on email
Email is not always the most reliable way to communicate with suppliers. For example, in China, WeChat is the preferred messaging app, and in Vietnam, WhatsApp is more popular. To enhance communication efficiency and ensure timely actions, Ren Energy representatives should be added to the existing group chats established by your company’s sustainability groups across various apps. This inclusion will allow us to send timely reminders to suppliers regarding approaching deadlines, fostering more prompt and effective communication between all parties involved.
Demonstrate the Opportunity
7. Show suppliers the business case for making the switch
Suppliers are responsible, first and foremost, for staying in business. Switching to renewable energy will need to make business sense for them to invest in the process of renewable energy procurement. Upon receiving energy data and pertinent information from suppliers, Ren Energy offers assistance in developing customized business cases for each factory. These cases present various renewable energy procurement scenarios, detailing the potential impacts on the suppliers' operations and financial well-being.
8. Highlight that participating in this project will enhance suppliers' reputation and standing with your company’s executives
Emphasize that switching to renewables is a great way to build goodwill with your company longterm, as well as other brands that the suppliers assuredly work with. Make it clear that the results of this project will be communicated to your company’s leadership. This can help in building long-term relationships with suppliers.
9. Offer Renewable Energy Awards
Ren Energy can establish Renewable Energy Awards to help boost the esteem and confidence of suppliers. Awards can be given out for a number of different metrics (First supplier to generate 10 GWh of electricity, Largest Rooftop Installation, Most Helpful Supplier during the process, etc.). The suppliers who are given the awards will be highlighted in the final report that Ren Energy delivers to your company’s leadership, and these awards can act as extra motivation for suppliers to be more proactive in the process.
Respect where the Suppliers are Coming From
10. Don’t expect the Suppliers to share how much they’re saving
Suppliers do not want the brands they work with to know if they are saving money by switching to renewables. Suppliers fear that if the brands knew about any savings, they would require that the savings be passed on to them. Ren Energy takes great care to ensure that final savings information is not passed along to the brands, and this point should be made clear with suppliers. Ren Energy can provide generally indicative business cases to the Brands, but will not provide final pricing information unless permitted by individual suppliers.
11. Realize that if too much data is requested, Suppliers may never respond
It is critical that key data is received from Suppliers. However, it is also critical that excessive data is not requested. If too much data is requested, Suppliers will never respond—either because they are busy, or because they simply don’t have some of the information requested. For this reason, Ren Energy requests only information that is essential to moving the project forward, and then makes sure to demonstrate how the data has been used so that the suppliers feel as though their time was well spent and respected.
12. Inspire Suppliers with their peers’ success
The process of procuring renewables can be challenging and intimidating. If there is a supplier among the cohort or present in the region who has already successfully installed solar, it is worth highlighting this to others in the group (even if it was not accomplished through Ren Energy or your company’s efforts). Suppliers who see that their peers have succeeded in this work will be more likely to put the required effort into the project.
13. Incorporate Suppliers’ preferred renewable energy development partners
It’s not uncommon for some Suppliers to have already established relationships with some of the local renewable energy developers. Ren Energy respects those existing connections. While Ren Energy generally takes a developer-agnostic approach (in order to optimize for the best pricing), we encourage any previous relationships to be brought into the process for consideration in the RFP. Participating in Ren Energy’s program does not obligate a Supplier to work with any specific developer, but it can expose them to a greater range of developer options and pricing.
Have a Sense of What’s Next
14. Be prepared to discuss the next steps of this project, at any moment
Initial interest can be fleeting. If a Supplier expresses interest in participating and asks for next steps, those steps should be quickly, clearly and simply articulated. If the next steps to participation feel too difficult, the Supplier may quickly change their mind. For this reason, Ren Energy will always be prepared to discuss the next 3-5 steps of participation, the actions associated with each step, and the cumulative benefit and necessity of each additional step.
15. Be ready to discuss what comes after Rooftop Solar (e.g. Green Tariffs)
Once a Supplier begins to understand the implications of installing rooftop solar, they may realize that it won’t get them to 100% renewable energy. At that point they may ask “what’s next?” The next phase of engagement / procurement can take many forms, but there are a few that are most likely. For example, in China there are short-term engagements through the local power markets that allow for purchasing of renewables through the market. These short-term contracts act as Green Tariffs but are sometimes referred to as GPPAs or China PPAs. Given the right circumstances, it may be possible to pursue longer-term offsite PPAs as well in China. In Vietnam, steps beyond rooftop solar could include EAC purchasing, which is readily available and well practiced, or could include an Offsite PPA which was recently enabled through new legislation in 2024.
Transitioning your suppliers to renewable energy is not a one-size-fits-all effort—it’s a journey that requires clear communication, cultural sensitivity, and ongoing support. By thoughtfully structuring your program, demonstrating the business case for renewables, and respecting where suppliers are coming from, your brand can build a resilient and scalable pathway toward supply chain decarbonization. With the right tools, partners, and mindset, you can help your suppliers take confident steps toward a cleaner energy future.
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