New surveys show that global industry is accelerating investment in energy efficiency

The global survey commissioned by ABB highlights the company's current and future plans to invest in energy efficiency to achieve net-zero emissions

90% will increase spending over the next five years, while 52% plan to reach net zero in the same period

The increasing impact of energy costs on profitability means that energy efficiency is being given a higher priority, but cost and downtime are major barriers to investment

A new survey finds that global industry will accelerate investment in energy efficiency over the next five years as the critical race to net zero intensifies. The 2022 Energy Efficiency Investment Survey comes after a recent United Nations report called on countries to take concerted action to reduce greenhouse gas emissions at a faster rate.

The global survey conducted by Sapio Research looked at 2,294 companies in 13 countries, ranging in size from 500 to 5,000 or more employees. It provides an up-to-date snapshot of how industries around the world plan to invest in energy efficiency measures to achieve net-zero emissions. An important finding is that more than half (54%) of companies are already investing, while 40% plan to improve energy efficiency this year.

"If governments and industry do not step up their efforts, significant population and economic growth will accelerate climate change to a tipping point. Tarak Mehta, President of ABB Motion, said: "Increasing urbanization and rising geopolitical tensions will also make energy security and sustainability even more important. "Improving energy efficiency is an important strategy to address these potential crises. Therefore, the acceleration of investment highlighted in this survey is good news. ”

Industrial motor drive systems, in particular, have great potential in terms of energy efficiency measures. Nearly two-thirds of respondents are upgrading their equipment to best-in-class efficiency levels, such as high-efficiency electric motors controlled by variable speed drives.

The report also highlights areas of concern. Half of respondents cited cost as the biggest barrier to improving energy efficiency, and 37% cited downtime as an obstacle. Equally worrying is the fact that only 41% of respondents believe they have all the information they need about energy efficiency measures.

"It's critical to help stakeholders across the industry understand that net zero doesn't have to mean net costs. Both suppliers and governments have a role to play in promoting the adoption of energy-efficient technologies that can lead to a quick return on investment while reducing CO2 emissions. Most importantly, energy efficiency is good for both the business and the environment," Mehta said.

More key takeaways from the survey:

Respondents reported that an average of 23% of annual operating costs can be attributed to energy use

Nine out of 10 respondents said rising energy costs pose at least a slight threat to profitability, while more than half (53%) consider it a moderate or significant threat

While cost is a significant barrier to investing in energy efficiency, cost savings are the most important reason for investment (59%)

Energy efficiency movement

The survey is part of ABB's multi-stakeholder initiative #energyefficiencymovement, launched in 2021. The campaign is in line with the company's Sustainability 2030 strategy, which aims to support ABB's customers to collectively reduce their CO2 footprint by 100 megatonnes per year by 2030, equivalent to taking 30 million internal combustion engine vehicles off the road each year. Therefore, the goal of the energy efficiency campaign is to raise awareness and take action to reduce energy consumption and carbon emissions in the fight against climate change.

New surveys show that global industry is accelerating investment in energy efficiency

New surveys show that global industry is accelerating investment in energy efficiency

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