Rising energy costs spur efficiency push as firms target quick payback

Most firms require sub-five-year payback as incentives and financing shape decisions.

Rising energy costs, which account for an average 23% of operating expenses across industries, are accelerating investment in energy efficiency, according to the Energy Efficiency Movement (EEM) Global Survey on Energy Efficiency Investment 2026 conducted with Sapio Research.

The report found that 54% of organisations view rising energy costs as a moderate to major threat to profitability, with exposure higher in energy-intensive sectors.

Nearly all organisations surveyed are either already investing in energy efficiency or planning to do so, with only 2% not intending to invest.

Cost remains the most cited barrier to implementation, identified by 43% of respondents, followed by operational disruption at 32% and lack of specialist resources at 31%

However, financial pressure also acts as the strongest driver of investment decisions.

A large majority of organisations require energy efficiency projects to deliver a return within five years, whilst 40% expect payback within one to two years.

More than four in five organisations also say access to financing or government incentives would increase their investment.

Despite this, 84% of respondents said they do not currently allocate sufficient internal funding to energy efficiency initiatives.

Over half of organisations reported needing external support across multiple areas, with 37% citing a need for clearer information on incentives, and around one in three highlighting requirements for regulatory guidance, implementation best practices, and technical data on energy technologies.

In terms of implementation, 69% of organisations have already conducted energy efficiency audits and 72% have moved data to cloud-based systems. 

Other common measures include energy monitoring systems and upgrades to core infrastructure.

Facilities management remains the leading focus area for energy efficiency investment at 75%, followed by production and operations at 71%, whilst transportation has risen to 49% from 37% in 2024.

Regional differences remain, with 51% of organisations in Asia-Pacific reporting sufficient access to guidance, compared with 37% in Latin America.