Foreword

Geopolitical instability is reshaping the old world order, with two energy shocks in four years laying bare the risks of fossil fuel dependence. Against this backdrop, energy security has emerged as a major business priority, and clean electrification is viewed as the most effective route to reduce exposure to fossil fuels. New polling across 18 diverse national markets shows business leaders clearly linking clean electrification with energy security. While companies are ready to invest and expect to electrify within the decade, a significant gap remains between business ambition and the pace of government delivery. Grid capacity constraints, slow permitting, and inconsistent policy signals are already delaying projects and distorting investment decisions.

Executive summary

Business executives across 18 countries overwhelmingly support a rapid transition to electrified economies run predominantly on renewables-based electricity. Geopolitical instability is accelerating this shift, with 91% of businesses expecting electrification to improve their energy security. Approximately 79% of corporate leaders say instability has made electrification more urgent, and 88% expect that switching to a renewables-based electricity system would stabilise energy prices during times of instability.

Businesses intend to electrify fast, with 90% expecting to have largely electrified their operations by 2035, including 73% by 2030. Electrification is increasingly seen as a competitiveness strategy; 88% of executives believe it will make their business more competitive and help it grow. Furthermore, 80% expect electrification to create new jobs within their business, and 84% anticipate lower long-term operating costs.

Global findings

Successive shocks to energy prices and supply chains have demonstrated the extent of business exposure to fossil fuel volatility. Among corporate leaders surveyed, 87% report energy costs have increased as a share of their revenue over the last five years, and 79% experienced increases in just the three months preceding the survey. Business leaders attribute this vulnerability to a national-level over-reliance on fossil fuels, with 58% expressing concern about their country’s usage of these fuels.

Geopolitical instability is accelerating clean electrification

A majority of executives (61%) expect geopolitical instability to increase their energy costs. In response, 78% believe their country would be better protected from shortages and price shocks if it used more electric systems. Support for electrification as a response to instability is particularly high in emerging markets, where 96% of leaders in Brazil, South Africa, and India agree it would improve energy security.

Electrification is seen as the route to energy security and business resilience

Energy security ranked as the leading perceived benefit of electrifying business operations, followed by lowering energy bills, reducing environmental damage, and future-proofing assets. With 72% of business leaders stating their country is too reliant on fossil fuel imports, a renewables-based electricity system is viewed as critical for a secure supply. Approximately 88% of respondents expect that switching to such a supply would stabilise energy prices from price shocks.

How quickly businesses expect to electrify their operations and economies

Business leaders are ambitious about their own progress, with 77% stating their business should prioritise replacing fossil-fuel-powered equipment with electric alternatives over the next decade. Businesses in emerging markets are notably more ambitious, with 80% expecting to electrify by 2030 compared to 64% in advanced economies. On a national level, 68% believe their country should have largely electrified its economy within a decade, rising to 93% by 2050.

Business strongly support investment across electrification infrastructure

To enable transition, business leaders strongly support national investment in infrastructure. Overall, 89% of executives support electricity grid upgrades, and 88% support digital infrastructure to help manage grids. Support for grid upgrades was consistently strong in both emerging (93%) and advanced (85%) markets. Additionally, 86% want investment in electric vehicle charging networks and 82% want investment in electric heating options like heat pumps.

Electrification is seen as a competitiveness strategy

The demand for electrification is grounded in economic rationale. Businesses see switching as a way to remain competitive (88%) and as a route to growth (88%). This sentiment is particularly salient in emerging markets, where 95% of executives felt electrification would boost competitiveness. Beyond cost reductions, 80% of executives believe electrifying operations will create new jobs, a finding that remains consistent regardless of company size.

Why businesses want electrification to be powered by renewables, not fossil fuels

Crucially, 82% of business leaders chose a renewables-based energy system over one based on fossil fuels. This commitment has remained solid despite the ongoing energy crisis. Polling found 89% of executives support country-level investment in solar farms, and 81% support both offshore and onshore wind farms. Many companies are already securing renewable supply directly, with 40% having invested in on-site renewable generation.

The infrastructure and policy barriers businesses say are slowing electrification

A gap is emerging between business ambition and government delivery. Approximately 72% of business leaders say government policy is moving too slowly, and 69% claim they are electrifying faster than governments are preparing the system. Infrastructure constraints are a major hurdle: 63% say power systems are not keeping pace, and 54% point specifically to insufficient grid capacity. These barriers have caused 50% of executives to delay or cancel electrification projects.

Businesses are looking for practical policy support

The most desired policy actions include expanding, digitalising, and future-proofing electricity grids (43%), followed by grants for upfront costs (41%) and clarity on long-term policy planning (41%). If government support fails to improve, 62% of business leaders would consider moving their operations to another country, rising to 72% among businesses that already operate internationally.