Global companies accelerate shift from fossil fuels as energy security concerns intensify following Middle East crisis
The recent conflict involving the United States, Israel and Iran may have eased following a ceasefire agreement reached on June 14, but its economic consequences continue to influence corporate decision-making worldwide.
The temporary disruption of the Strait of Hormuz, a critical artery for global energy supplies, highlighted the vulnerability of international markets to geopolitical tensions. With nearly one-fifth of global oil and gas flows affected during the crisis, businesses and consumers faced higher energy costs and renewed concerns over supply security.
Industry leaders now argue that the latest shock should serve as a turning point in the global transition away from fossil fuels. Many companies are increasingly viewing electrification not only as an environmental solution but also as a strategic safeguard against future energy disruptions.
A new survey conducted by Public First found that 80% of businesses believe the Middle East crisis has increased the urgency of replacing fossil-fuel-powered equipment with electric alternatives. The research, commissioned by environmental organizations E3G, the We Mean Business Coalition and the Global Renewables Alliance, gathered responses from nearly 2,000 executives across 18 countries.
Energy Security Drives Corporate Decisions
The findings suggest a significant shift in how businesses view electrification. While sustainability has traditionally been the primary motivation for adopting electric technologies, executives are now emphasizing resilience, affordability and energy security.
According to the survey, 91% of respondents said moving from fossil fuel-dependent equipment to electric solutions would improve their energy security.
Dimitri de Vreeze, Chief Executive of Swiss-Dutch chemicals group DSM-Firmenich, said companies are operating in an increasingly unstable energy environment where dependence on fossil fuels exposes businesses to repeated economic shocks.
He noted that DSM-Firmenich has already expanded electrification efforts across its operations and is experiencing greater predictability in energy costs as a result.
Similar views were expressed by pharmaceutical giant Roche, which aims to electrify 85% of its vehicle fleet by 2029. Chief Executive Thomas Schinecker said the company’s experience demonstrates that electrification can strengthen operational resilience while supporting long-term business continuity.
Businesses Outpace Government Policy
Despite growing corporate commitment, many executives believe public policy is failing to keep pace with private-sector ambitions.
Three-quarters of survey participants expect to replace most fossil-fuel-powered equipment by 2030. However, 72% said government policies and infrastructure development remain insufficient to support that transition.
José Manuel Entrecanales, Executive Chairman of Spanish infrastructure company ACCIONA, warned that reliance on imported fossil fuels remains a major economic vulnerability.
He argued that businesses require stronger electricity grids, more effective market structures and supportive policy frameworks to fully unlock the benefits of electrification and accelerate investment.
Massive Grid Investment Required
Achieving widespread electrification will require substantial upgrades to energy infrastructure.
The International Energy Agency estimates that annual investment in electricity grids must double through 2030 to accommodate the growth needed for global net-zero targets.
IEA forecasts also indicate that electricity demand will expand at least 2.5 times faster than overall energy consumption during the next five years. Growth is expected to be driven by industrial activity, electric vehicles, air-conditioning systems and rapidly expanding data centres.
Christian Hartel, President and CEO of German chemicals manufacturer Wacker Chemie, said more than 60% of the company’s energy consumption already comes from electricity, placing it ahead of many industry peers in the transition process.
Emerging Markets Lead Ambitious Targets
The survey revealed that some of the most aggressive electrification goals are emerging from developing economies, including Nigeria, Indonesia, India, the Philippines, Colombia and South Africa.
The findings challenge the perception that electrification is primarily a concern for Western economies. Instead, businesses across emerging markets are increasingly embracing electric technologies as a pathway to greater energy independence and economic stability.
As corporate demand for electrification accelerates worldwide, questions remain over whether governments and international institutions can deliver the infrastructure and policy support needed to match the pace of private-sector ambition.
