April 15, 2008 - Nearly three-quarters (72%) of businesses say they are paying more attention to building energy efficiency than they were just a year ago, according to Johnson Controls' second-annual Energy Efficiency Indicator survey. But the percentage of companies expecting to add energy-efficiency upgrades to planned capital investments over the next year has remained flat.

"It's one thing to be aware of a problem, and another to take steps to solve it," says Clay Nesler, vice president of global energy and sustainability for Johnson Controls. "But as energy prices continue to rise, our research indicates that the combination of economic pressure and environmental awareness will motivate people to make smart investments that have a big payoff in the long term."

Some report highlights:

• More than half of respondents (53%, up 5%) cite environmental responsibility as an "equal or greater motivator" for investing in energy efficiency than cost reduction. Seventeen percent cite environmental responsibility as the stronger motivator, up from 13% in 2007. Thirty-six percent - about the same percentage as last year - say they are equally motivated by environmental responsibility and cost savings. (Interestingly, 59% of respondents feel climate change is at least a "somewhat significant" influence on their energy-efficiency investment decisions.)
  


• The most significant growth in energy efficiency measures include replacing inefficient equipment before the end of its useful life (41%, up 13% from 2007) and switching to energy-efficient lighting (78%, up 11%). In addition, 88% of respondents claim that energy efficiency is a design priority in construction and retrofit projects, up 11% from just a year ago.


• As in 2007, executives responsible for larger facilities appear more likely to invest in energy efficiency measures in the coming year (84% vs. 56% for all respondents), and they are also willing to tolerate a longer payback period for those investments. The ROI tolerance compared to five years ago for the group as a whole was essentially flat, but for executives with large facilities a large percent (29% vs. 21%) will tolerate a longer payback period than five years ago.

"It appears as though companies are feeling the pressure of increasing energy costs and environmental responsibility," says C. David Myers, president of building efficiency for Johnson Controls. "According to our research, they definitely understand that's it's important to be proactive when coping with economic and environmental challenges."

Johnson Controls has much to gain in the event that companies up their annual investment in building energy efficiency; its fourth-quarter earnings last year were up 29%, due in large part to higher demand for energy-efficiency services for commercial buildings. In October the company unveiled a corporate rebranding effort that places greater emphasis on sustainability.

View Johnson Controls' recently released 2007 sustainability report here.