Execution, not intent, drives industrial energy efficiency gains

11 March 2026

A new report from ABB highlights that energy efficiency is now a board‑level issue, with execution, not intent, defining competitive advantage.

The study surveyed 2,700 senior decision-makers across 15 countries and industries. It finds that 63% of industrial leaders have invested in energy efficiency, and another 29% plan to within 12 months. Yet progress remains uneven, with execution gaps limiting results.

Energy still accounts for about a quarter of operating costs, and nearly 60% of companies say rising energy prices threaten profitability, despite relatively stable wholesale markets. Challenges have shifted from cost alone to managing volatility, data gaps, skills shortages and organisational silos.

The study shows that digital readiness has gone mainstream, with two thirds (67%) of respondents already using or ready to deploy digital energy‑management tools. However, readiness alone does not guarantee results. Only 37 percent consistently apply total cost of ownership (TCO) when making investment decisions – despite eight in ten (81%) agreeing it should guide purchasing.

At the same time, responsibility for energy efficiency remains fragmented across executive management, operations, sustainability, maintenance and finance, with no single function clearly accountable.

“Energy efficiency is now essential for business continuity and long-term value,” said Erich Labuda, president, motion services division, ABB. “Leaders understand the importance of optimisation, but deployment at scale remains the main challenge.”

The research also points to a growing risk of ‘post‑renewables complacency’. Among organisations that have switched to renewable energy sources (39% of respondents), more than one third report a reduced focus on energy efficiency.

While renewables lower the carbon intensity of energy, they do not reduce the volume consumed, meaning significant efficiency gains remain untapped, even for companies that have already secured green power. As a result, opportunities to strengthen resilience, control long‑term costs and reduce exposure to volatility are being left on the table.

The next phase of the industrial energy transition will be defined by delivery capability. While activity levels are high across businesses, efforts remain shallow, lacking coordination and long‑term structure.

“To close the execution gap, ABB combines diagnostics with targeted modernisation of motor‑driven systems, software‑based optimisation tools, outcome‑based financing and lifecycle services,” concludes Labuda. “End-to-end energy intelligence is another way we help industries outrun, leaner and cleaner – turning isolated initiatives into sustained performance gains.”

Access ABB’s report here.