Increasing Interest In Energy Efficiency To Bode Well For Johnson Controls

In the latest Energy Efficiency Indicator survey conducted by Johnson Controls (NYSE: JCI), the company found that the interest and investment in energy efficiency continues to increase. The survey of over 1,500 facility and energy management executives in the United States, Canada, Brazil, China, India and 7 other countries showed that 70% of the respondents are paying more attention to energy efficiency as compared to last year, and 58% expect to increase their investment in energy efficiency over the next year. While in the US and Canada, the main factors driving this growth is the increased need for greenhouse gas reduction (92%) and energy security (91%), globally, cost reduction (77%) has been cited to be the main influencer.

Another key finding of the survey was that heating, ventilation, and air conditioning (HVAC) was the “most popular improvement made last year,” with 75% of the organizations conducting HVAC improvements. Moreover, 54% of organizations plan to achieve nearly zero, net zero, or positive energy status for at least one of their facilities. This means that 54% of companies expect to have at least one building that offsets all of its carbon emissions, implying massive investments by companies for energy efficiency in the future.

Role Of Johnson Controls

Energy efficiency is at the core of Johnson Controls, and the company has 125 years of experience in developing and providing energy efficient solutions, which are innovative, cost-effective, and scalable. In the past, Bill Jackson, vice president and president, Global Products, Building Technologies & Solutions, has stated that “energy efficiency is the center of a major transformation of our buildings, energy systems, and urban infrastructure.” Much of their work focuses on driving down energy costs, which is the main driver for the adoption of such solutions by organizations in the commercial, industrial, and government sectors. Since, in many sectors, heating, ventilation, and air conditioning represent a significant proportion of the running costs, most are keen to boost the efficiency of such systems. While reducing business costs is the main reason for energy investments, companies are increasingly factoring in customer and employee attraction, greenhouse gas reduction, enhanced reputation, government policy, and investor expectations when making such investment decisions.

As noted by the International Energy Agency (IEA), 12% more energy would have been used globally in 2016 had it not been for energy efficiency improvements since 2000. Moreover, gains made in this field helped households in major economies avoid close to $300 billion in additional energy spending in 2016. The agency, in the past, has also stated that the uptake of economically viable, energy efficiency investments have the potential to boost the cumulative economic output by $18 trillion through 2035. Hence, the potential for Johnson Controls in this field is massive, as the need for energy efficiency to support economic growth, enhance social development, and advance environmental sustainability will likely continue into the future.

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