Two-thirds of industrial businesses say they have increased their energy efficiency budgets in recent years, yet insufficient funding remains a key barrier to further improvements

A new survey has found that most industrial businesses (68%) have increased their energy efficiency budgets over the past few years. However more than 8 in 10 professionals claim that their organisations are failing to allocate enough resources to implement energy efficiency projects.
Published
May 27, 2025

Majority of industrial businesses have increased their energy efficiency budgets

A new study from Energy Efficiency Movement (EEM) in partnership with Accenture has revealed both the progress made in improving energy efficiency at companies within the industrial sector, as well as the barriers hindering further advances.

Surveying 294 decision-makers at organisations within the industrial sector, the research found that more than two-thirds of companies have increased their energy efficiency budgets in recent years[i]. However, the overwhelming majority (84%) state that their organisations are failing to allocate enough resources to implement energy efficiency projects[ii].

A range of motivators exist according to the report, these include the more obvious such as tackling the recent high energy costs, meeting regulatory requirements, and response to political or financial incentives. Other less overt reasons include gaining public approval and being a company which drives change and is at the forefront of meeting global challenges.  

Nearly all of those surveyed (99%) said that their organisation is working on energy efficiency and over half have been tackling the issue for more than six years. Looking to the year ahead, 84% of the respondents expect their employer to either maintain levels of funding and resourcing or to enact an increase.

Further, almost two-thirds of businesses are investing in two or more energy efficiency measures, these may include the following:

·         70% of respondents said that they have installed energy efficiency equipment and infrastructure.

·         65% of respondents have key performance indicators (KPIs) to track energy efficiency progress. 

·         58% have an operational model focused on energy efficiency.

·         49% have relevant certifications (e.g., ISO 50001).

Key barriers to energy efficiency

When asked to set out the main barriers preventing energy efficiency improvements within their organisations, financial concerns were identified as the most significant challenge, with just under half of survey respondents (43%) citing this as their primary barrier. The researchers found that companies (especially small and medium enterprises) struggle with volatile energy prices, limited access to external funding, and the high upfront cost of efficient technologies. In addition, 51% said that they believe that the uncertainty about the return on investment for energy efficiency projects hinders their decision-making. ​

To overcome these barriers, companies are advised to create dedicated energy efficiency budgets, explore alternative financing models like “Equipment-as-a Service,” and develop specific business cases with clear calculations of the return on investment (ROI), prioritizing quick wins to build internal support. Other barriers experienced according to the survey include adapting infrastructure (19%), insufficient skills (15%), strategic shortcomings (12%), and data & control challenges (11%).

“Enhancing efficiency in energy use is an essential strategy for sustainable and competitive development,” noted Mike Umiker, Executive Director, Energy Efficiency Movement. “Energy efficiency relies on optimizing existing systems, making it a pragmatic and immediate solution to improve a business’ bottom line and tackle environmental challenges. It plays a pivotal role in mitigating climate change, strengthening the security of energy supply and reducing economic burdens associated with excessive energy consumption.”[iii]

Erich Labuda, Member of the Executive Committee Energy Efficiency Movement, President, Motion Services Division, ABB, added: “Energy efficiency is not an optional upgrade — it’s a critical one. In the face of rising energy demand, intensifying climate urgency, and tightening regulation, optimizing the way we use energy is the fastest, cleanest, and most cost-effective solution available. Companies can immediately lower energy demand, enhance energy security and affordability, and drive industrial competitiveness.”[iv]

References

[i] 2025_EfficiencyNOW_press-release.pdf

[ii] akzente Standard-Vorlage

[iii] 2025_EfficiencyNOW_press-release.pdf

[iv] Ibid

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Lauren Foye
Head of Reports

Lauren has extensive experience as an analyst and market researcher in the digital technology and travel sectors. She has a background in researching and forecasting emerging technologies, with a particular passion for the Videogames and eSports industries. She joined the Critical Information Group as Head of Reports and Market Research at GRC World Forums, and leads the content and data research team at the Zero Carbon Academy. “What drew me to the academy is the opportunity to add content and commentary around sustainability across a wealth of industries and sectors.”

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