Business Leaders See Electrification as Route to Energy Security and Competitiveness

Business leaders across major global markets increasingly view electrification as a strategic response to energy insecurity, fossil fuel volatility, and rising operating costs, according to new polling commissioned by E3G, the We Mean Business Coalition, and the Global Renewables Alliance.

The survey, conducted by Public First, questioned 1,994 executives and senior managers from medium-sized and large businesses across 18 markets. Respondents came from organizations with annual revenues of at least US$1 million or the local equivalent, covering countries including Australia, Brazil, China, Colombia, France, Germany, India, Indonesia, Japan, Kenya, Nigeria, the Philippines, Poland, South Africa, South Korea, Türkiye, the United Kingdom, and the United States.

The headline finding is clear: 91% of business leaders surveyed said that replacing fossil fuel-powered systems with electric alternatives would improve energy security. A further 79% said geopolitical instability has made electrification more urgent for their own business, while 90% expect their operations to be largely electrified by 2035.

For companies exposed to volatile fuel markets, electrification is increasingly seen not only as a climate measure, but as a way to reduce operational risk. This includes switching from petrol and diesel vehicles to electric fleets, replacing gas heating with electric heat pumps, electrifying industrial equipment, and sourcing more power from renewable electricity. The survey suggests that businesses now see these changes as part of a broader resilience strategy, particularly after several years of disruption in global energy markets.

Energy Security Becomes a Business Issue

The survey comes at a time when energy security remains high on the agenda for governments and companies. Russia’s invasion of Ukraine, tensions affecting major shipping routes, and concerns over oil and gas supply have reinforced the vulnerability of businesses that depend heavily on imported fossil fuels. For many firms, energy costs have become harder to forecast, while exposure to price shocks has complicated investment planning.

The polling found that 87% of business leaders reported energy costs increasing as a share of revenue over the past five years. For companies in energy-intensive sectors, this can affect competitiveness, margins, and the ability to commit capital to long-term projects.

Electrification can help reduce some of this exposure, particularly when paired with renewable power, storage, demand management, and more efficient equipment. Electric systems are often more efficient than fossil fuel alternatives, especially in transport, heating, and some industrial applications. When powered by domestic renewable energy, they can also reduce reliance on imported fuels and provide more predictable long-term costs.

This is why the findings are relevant beyond corporate sustainability teams. For finance directors, operations managers, procurement teams, industrial planners, and policymakers, electrification is becoming a practical business issue linked to cost stability, infrastructure planning, energy procurement, and supply chain resilience.

Competitiveness and Growth Expectations

The survey also shows that companies associate electrification with commercial opportunity. Some 88% of respondents said electrifying operations would make their business more competitive, while 90% said moving to a renewables-based electricity system is likely to boost economic growth.

This reflects a broader shift in how businesses frame the energy transition. Electrification is no longer viewed only as a compliance response to climate regulation. It is increasingly linked to industrial strategy, productivity, customer expectations, and access to future markets.

For manufacturers, electrification can support lower process emissions and help meet customer requirements for low-carbon products. For logistics and retail businesses, electric fleets can reduce fuel exposure and help meet urban air quality rules. For real estate and construction, electric heating, cooling, and building systems are increasingly tied to energy performance standards and investor expectations. For technology and data-centre operators, access to clean and reliable electricity is becoming a core competitiveness factor.

However, the benefits are not automatic. Companies need reliable grids, adequate connection capacity, access to affordable clean electricity, and clear policy signals. Without those conditions, electrification projects can be delayed or become more expensive.

Policy and Grid Capacity Remain Key Barriers

Despite strong business support, the survey highlights significant concerns over whether governments and power systems are moving fast enough. Across the full sample, 72% of business leaders said government policies are lagging. E3G’s release also noted that 75% believe the power system is not keeping pace with the need to electrify, while 91% support further investment in grid upgrades.

These concerns are especially important for industries considering major capital investments. Electrifying a factory, warehouse, fleet, or heating system often requires more than buying new equipment. Companies may need grid connection upgrades, on-site renewable generation, battery storage, new energy management software, revised maintenance processes, and workforce training.

For some businesses, the upfront cost of electric equipment remains a barrier, even when long-term operating costs may fall. Others face uncertainty over future electricity prices, permitting delays, and unclear incentives. The survey found that many executives want governments to provide stable long-term policy planning, grid investment, faster permitting, and financial support to help offset capital costs.

The risk for policymakers is that slow infrastructure development may affect investment decisions. The Sustainability Online article noted that more than three-fifths of surveyed businesses said they may consider moving operations if governments do not offer sufficient support for electrification. While such responses do not necessarily mean relocation is imminent, they show that clean energy infrastructure is becoming part of the competitiveness equation for industrial policy.

Emerging Markets See Strong Potential

The findings also show strong support for electrification across emerging markets. According to E3G, 96% of surveyed business leaders in emerging markets said electrification would improve energy security, while 91% said it would reduce reliance on imported energy. Businesses in countries such as India, Brazil, South Africa, Indonesia, Kenya, and Nigeria also connected electrification with growth, affordability, and resilience.

In many emerging economies, unreliable power supply, dependence on diesel generators, and exposure to imported fuel prices remain major business constraints. Electrification based on renewable power and stronger grids could help reduce these risks, but infrastructure gaps are often more severe. That makes grid expansion, digitalisation, storage, and distributed clean energy particularly important.

The survey also suggests that business demand for electrification may move faster than public infrastructure planning. For governments, this creates both a challenge and an opportunity. Countries that can provide reliable, affordable, low-carbon electricity may be better positioned to attract investment in manufacturing, logistics, digital infrastructure, and clean technology supply chains.

Implications for Net-Zero Strategies

For companies working toward net-zero targets, electrification is one of the most important decarbonisation levers. It can cut direct emissions from buildings, vehicles, and equipment, while also reducing exposure to fossil fuel price volatility. However, its climate impact depends on the carbon intensity of the electricity used. Electrification delivers the greatest emissions benefit when power comes from renewable or low-carbon sources.

This means businesses should approach electrification as part of an integrated energy strategy. Key steps include mapping fossil fuel use across operations, identifying equipment replacement cycles, assessing grid connection needs, evaluating on-site renewable options, and aligning procurement with clean electricity goals. Companies also need to consider resilience, including backup power, storage, demand response, and exposure to electricity price peaks.

The survey points to a major shift in private-sector expectations. Businesses are not waiting for electrification to become a distant regulatory requirement. Many now see it as central to energy security, competitiveness, and long-term operating performance.

For policymakers, the message is equally clear. Corporate demand for electrification is growing, but investment will depend on reliable grids, affordable clean power, stable incentives, and faster permitting. The countries that address those bottlenecks fastest may gain an advantage in attracting and retaining industrial activity as the global economy becomes more electricity-based.

Source: sustainabilityonline.net