90% of Global Businesses Expect to Electrify Operations by 2035

New Survey Reveals Geopolitical Instability is Driving Businesses Toward Electrification to Ensure Energy Security and Enhance Competitiveness

A new survey published on Monday reveals that 90% of global businesses expect to electrify their operations by 2035, driven by geopolitical instability causing fluctuations in fossil fuel supply and prices. The survey, conducted by consulting firm Public First across major economies and emerging markets, was commissioned by E3G, We Mean Business Coalition, and Global Renewables Alliance.

Survey Context and Methodology

Conducted in late August, the survey questioned 1,994 CEOs, vice presidents, directors, or senior managers of medium and large organizations across 18 markets about their perspectives on electrification in the context of oil and gas supply disruptions at the Strait of Hormuz. The participating countries included: Australia, Brazil, China, Colombia, France, Germany, India, Indonesia, Japan, Kenya, Nigeria, Philippines, Poland, South Africa, South Korea, Turkey, United Kingdom, and United States.

The survey comes at a critical time when global energy markets face unprecedented challenges due to geopolitical tensions, supply chain disruptions, and the urgent need to transition toward sustainable energy sources. The Strait of Hormuz, a vital chokepoint for global oil supplies, has become a focal point of concern for energy security worldwide.

Key Survey Findings

The survey revealed remarkable insights into the electrification trends within the business community:

• 90% of respondents expect their operations to be electrified by 2035
• 91% of business leaders believe electrification will improve energy security
• 79% think instability has made business electrification more urgent
• 72% feel government policies are moving too slowly to support the pace of electrification businesses need
• 62% would relocate operations if governments don't provide adequate support to electrify their operations

Summary of Survey Results

Regional Variations and Industry Implications

The survey also highlighted interesting regional variations in the approach to electrification. Businesses in countries heavily dependent on energy imports showed greater urgency in transitioning to electrification. Meanwhile, nations with more established renewable energy infrastructure reported higher confidence in achieving electrification targets.

Across industries, the transportation and manufacturing sectors demonstrated the highest levels of commitment to electrification, with many companies already implementing pilot projects and long-term transition plans. The technology and services sectors followed closely, recognizing the operational efficiencies and sustainability benefits of electrification.

Analysis and Future Outlook

The overwhelming majority of business leaders also believe that transitioning to renewable energy-based electricity systems in their countries will likely drive economic growth and make their businesses more competitive. However, a significant 72% of survey participants noted that government policies are moving too slowly regarding electrification to support the pace that businesses require.

This sentiment suggests a growing disconnect between business ambitions and regulatory frameworks. Companies are ready to invest in electrification but require supportive policies, incentives, and infrastructure development to accelerate their transition.

Furthermore, 62% of business leaders indicated they would relocate their operations if governments fail to provide sufficient support to electrify their operations. This finding underscores the critical role of policy in determining the geographic distribution of future business investments and economic growth.

Expert Perspectives

"This is not the first fossil fuel crisis, and it will not be the last," commented José Manuel Entrecanales, Chairman and CEO of ACCIONA Spain, when discussing the survey results. "The lesson is becoming increasingly clear: dependence on imported fossil fuels is a strategic vulnerability and an unnecessary burden on the balance of payments of non-fuel-producing nations."

Industry experts emphasize that the business community's strong commitment to electrification represents a significant opportunity for governments to align climate action with economic development. By creating favorable conditions for electrification, policymakers can simultaneously enhance energy security, reduce carbon emissions, and stimulate economic growth.

Policy Recommendations

Based on the survey findings, several policy recommendations emerge:

• Accelerate the development of renewable energy infrastructure to meet growing business demand
• Implement supportive policies and incentives for businesses transitioning to electrification
• Streamline regulatory processes for electrification projects to reduce implementation barriers
• Invest in grid modernization to accommodate increased electricity demand
• Develop workforce training programs to support the growing electrification economy

Conclusion

The survey reveals a clear trend in the business community toward electrification as a solution to energy and geopolitical challenges. With the vast majority of businesses expecting to complete their electrification processes by 2035, pressure is mounting on governments to create appropriate supportive policies. This transition promises not only benefits in terms of energy security but may also drive economic growth and enhance competitiveness for businesses that embrace it.

As businesses worldwide recognize the strategic importance of electrification, the survey results signal a pivotal moment in the global energy transition. The convergence of business interests and sustainability objectives presents a unique opportunity to accelerate the shift toward a cleaner, more secure energy future.