Berkshire Hathaway, the conglomerate chaired by Warren Buffett, is looking to expand its presence in renewable energy generation. In a speech given by Buffett and Vice Chairman Greg Abel at the company's 2023 annual shareholders' meeting in Omaha on Saturday, they discussed the energy transition and how Berkshire Hathaway Energy is working to reduce its carbon footprint by 50% in 2030 relative to 2005 levels.
“There's no question there's an energy transition going on,” said Abel. He added that the company is investing in windmills and other clean energy generation while extending transmission lines to more renewable energy sources, which are more distributed than traditional power plants. “It's a very, very good business opportunity for us,” Abel continued.
Buffett agreed and emphasized the need for greater coordination in the United States in transitioning to renewable energy. He pointed out that the current approach is fragmented, with different rules and regulations state by state and no society-wide organized effort. He compared the situation to the World War II-era coordination between the federal government and American businesses to reorient the nation's industrial economy to support the war effort.
“The capital is there, the people are there, the objective is obvious, we just don't seem to be able to do it in peacetime,” Buffett said.
The conversation at the shareholders' meeting highlighted the growing interest in renewable energy, not just from environmental and ethical standpoints, but also from a business perspective. As governments worldwide continue to prioritize sustainability and renewable energy, companies like Berkshire Hathaway are recognizing the opportunity to invest in these industries and reap long-term benefits.
As Abel noted, “It's a very, very good business opportunity for us.” And with Buffett's emphasis on the need for greater coordination, it seems that Berkshire Hathaway is not just looking to profit from renewable energy, but also to help lead the way in transitioning to a more sustainable future.
