According to new research, industrial organizations are showing renewed momentum in decarbonizing their operations, with power grid investment, demand-side mechanisms, and digitalization emerging as the strongest levers for progress.
The Siemens Infrastructure Transition Monitor, which surveyed 1,400 senior executives, finds that almost two-thirds of industrial leaders (65 percent) see electrification as the most effective lever to achieve net zero targets, with additional progress already accelerating onsite renewable usage, and decarbonizing core operations. The proportion of organizations that are mature or advanced in onsite renewable energy production has risen to 42 percent, and in decarbonization of core operations to 38 percent – both up from 27 percent in 2023.
At the same time, demand-side flexibility is gaining traction as a practical way to cut emissions and energy costs by shifting consumption according to market conditions. Nearly six in ten (59 percent) industrial organizations plan to use their energy assets to benefit from flexibility mechanisms, and 45 percent say their efforts are already mature or advanced.
Digitalization is underpinning these advances, with 63 percent of industrial leaders viewing it as a critical enabler of decarbonization, particularly through smarter energy management and AI-driven optimization. More than half believe better data sharing between energy producers and consumers would improve both efficiency (56 percent) and resilience (58 percent) of the overall system.
Yet to maintain this momentum, companies need a clearer policy environment. Almost two thirds (63 percent) say policy uncertainty is now a growing threat to the energy transition, 60 percent report that regulatory uncertainty discourages private sector investment in renewables, and 57 percent say uncertainty about the future energy system is delaying clean energy investment.
Matthias Rebellius, Managing Board Member of Siemens AG and CEO of Smart Infrastructure, said: “Industrial companies are proving that sustainability and competitiveness can advance together. They are investing in electrification, flexibility and digital technologies that deliver results today. What they need now is long-term policy clarity and supportive regulations to plan ahead with confidence and accelerate the transition to cleaner, more efficient operations.”
About the Siemens Infrastructure Transition Monitor:
The Siemens Infrastructure Transition Monitor is a biennial study commissioned by Siemens, surveying 1,400 senior executives and government representatives in 19 countries across energy, buildings and industries.
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