Electrification has climbed the corporate agenda as geopolitical instability, energy price shocks, and supply uncertainty push companies to treat power strategy as part of operational resilience and cost control.
A global survey of almost 2,000 executives across 18 countries found that 80% see electrification as more urgent because of energy market volatility, while 91% believe switching from fossil fuel powered equipment to electric alternatives would improve energy security. The polling was carried out by Public First for E3G, We Mean Business Coalition, and the Global Renewables Alliance.
The findings show a sharper commercial framing around energy transition. Electrification was once often discussed through emissions targets and sustainability reporting. The boardroom conversation now also covers cost predictability, continuity of operations, exposure to imported fossil fuels, and the ability to control energy procurement over longer periods.
Industrial companies sit near the centre of that shift. Electric furnaces, heat pumps, electric vehicle fleets, clean power procurement, battery storage, and process redesign all fall within the electrification agenda. The business case varies by sector, site, and energy intensity, but the strategic direction is increasingly shaped by exposure to fuel markets that companies cannot control.
Several large European companies have already built electrification into operating plans. DSM-Firmenich has linked renewable energy and electrified operations with energy security and cost predictability. Roche has said it is targeting a 70% reduction in absolute operational emissions by 2029 from 2022 levels, including a major reduction in fleet-related emissions, after reaching full use of sustainable electricity at its sites. Wacker Chemie has said more than 60% of the energy used in its processes is already electricity-based.
The International Energy Agency expects global electricity demand to grow at an average annual rate of 3.6% between 2026 and 2030, supported by industry, electric vehicles, air conditioning, and data centres. More electrification means more demand on grids, greater pressure on connection queues, and heavier investment requirements across power generation, storage, flexibility, and transmission.
The transition remains uneven. Electrification can reduce exposure to fossil fuel price volatility, but the benefits depend on access to clean, reliable, and affordable electricity. Where grid capacity is constrained, power prices are high, or renewable supply is difficult to contract, the investment case becomes more complicated. Energy-intensive industries face a particularly difficult calculation because power costs directly affect competitiveness.
Energy procurement, site selection, capital expenditure, fleet management, production processes, and sustainability targets are becoming more closely connected. A factory expansion or data centre project can no longer be assessed only on labour, land, tax, and customer access. Power availability, grid connection time, and long-term electricity price assumptions can determine whether a project is viable.
The survey also points to frustration with policy support. Executives may be more convinced of the value of electrification, but many still see government frameworks, infrastructure, and incentives lagging behind commercial need. That gap is likely to become more visible if companies face pressure to decarbonise operations while dealing with slow grid connections, uncertain electricity pricing, and inconsistent support for industrial conversion.
In the UK, the electrification debate runs alongside clean power targets, grid constraints, heat decarbonisation, EV charging rollout, industrial competitiveness, and energy bills. Companies with large estates, fleets, factories, warehouses, or data-heavy operations are already making decisions that require multi-year planning. Delaying can preserve cash in the short term, but early commitments can also expose companies to infrastructure risk if connections, pricing, or supply agreements do not develop as expected.
The strongest commercial argument is increasingly resilience. Fossil fuel dependence leaves companies exposed to geopolitical shocks and commodity price swings. Electricity is not automatically cheap or secure, but it can be supplied through domestic renewables, corporate power purchase agreements, storage, and flexible demand in ways that give organisations more control over long-term energy strategy.
Boards and finance teams are therefore becoming more involved. Electrification affects capital allocation, operational continuity, cost control, investor expectations, carbon exposure, and competitive positioning. Companies that understand their energy demand, model future power needs, and secure credible electricity routes will have more options as energy markets become more volatile.
The next phase of electrification will not be won through targets alone. It will depend on whether companies can connect power strategy with operations, finance, infrastructure, procurement, and risk management.
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