Market Insight: Commercial Energy & Electrification Attitudes And Trends

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Executive Summary

Improving energy efficiency and electrifying core assets together represent a critical decarbonization pathway for commercial industries. To illuminate organizational trends relating to energy and electrification at businesses with typical commercial energy use (offices, hotels, retail sites, warehouses and multi-purpose buildings) – including priority investment areas, expected levels of progress, and key opportunities and challenges – Verdantix interviewed 78 decision-makers representing the healthcare, hospitality and entertainment, and retail industries. This report should be used by technology and service providers to understand critical commercial trends relating to the energy transition.

Table of contents

For commercial organizations, easy energy efficiency wins are the name of the game
Successful decarbonization business cases focus on cutting energy costs
Commercial electrification is a long-term target, not a near-term priority
Over the next five years, commercial power demand will rise significantly
Electrification of commercial assets will proceed at a slow pace over the next five years
Organizations will prioritize high-ROI electrification projects until 2030
Methodology for the Verdantix global corporate survey on energy transition in commercial firms

Table of figures

Figure 1. The gap between energy transition strategy ambition and reality
Figure 2. Commercial organizations are prioritizing energy efficiency interventions to decarbonize facilities
Figure 3. Commercial respondents predict widespread electrification by 2050
Figure 4. Priority assets for electrification across commercial industries
Figure 5. Respondents are split across energy, sustainability and operations functions
Figure 6. Respondents come from three key commercial industries

Organisations mentioned

Adventist Health, Amazon, E.ON, JLL, Matalan, Royal Mail, Tesco

About the authors

Connor Taylor

Senior Analyst
Connor is a Senior Analyst in the Verdantix Net Zero & Climate Risk practice. His current research agenda focuses on carbon management software, climate change consulting services, and the voluntary carbon markets. Connor joined Verdantix in 2021, with prior experience in EHS technology sales and development. He holds a BA from the University of Cambridge in Anglo-Saxon, Norse and Celtic.

Ryan Skinner

Research Director, Net Zero & Climate Risk
Ryan is the Research Director for the Verdantix Net Zero & Climate Risk practice. He guides the research team to develop compelling research at the intersection of net zero strategies, carbon management, climate risk and technology. Prior to joining Verdantix, Ryan was a principal analyst at Forrester Research, where he initiated the research into ESG data and analytics offerings. He also has extensive experience of helping software companies with their messaging, positioning, market and technology strategies. Ryan studied at Duke University, the University of Manchester and the University of Oslo, and speaks Norwegian fluently.

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