Rising energy costs threaten profitability

The Energy Efficiency Movement (EEM) recently published its third global report on energy efficiency investment in industry. The findings confirm that the case for energy efficiency has never been more widely accepted, and that the gap between commitment and delivery has never been more costly to ignore. The EEM is a non-profit association which serves over 600 organisations in over 40 countries.

“Energy now accounts for 23% of operating costs for businesses surveyed. More than half (54%) say rising energy prices pose a moderate or major threat to profitability, a figure that has grown with each successive EEM survey since they began in 2022. In sectors with the highest energy intensity, the exposure is considerably more acute. For these businesses, coping with a permanent energy crisis, managing energy use and managing financial performance have become the same task,” said the EEM.

“The response across industry has been decisive in intent. Nearly all organisations surveyed (98%) are already investing or actively planning to invest — up from 93% in 2024. Half are targeting Net Zero within five years. But financial discipline is shaping what gets funded and what is deferred: 83% require a return on energy efficiency investment within five years, and 40% within two years. Nearly a third (31%) lack the specialist resource to implement projects. A further 29% report a digital skills gap, and almost a quarter (23%) say they do not have sufficient data to justify investment internally. The infrastructure for action is being built; the capacity to act on it is [falling] behind,” it continued.

To read the rest of this news item in the July/August 2026 issue of ISMR, see https://joom.ag/BqUd/p6