Leading Utilities Engage Their Customers About the Energy Transition

LIVONIA, Mich., April 18, 2023 (GLOBE NEWSWIRE) -- Although the urgency for environmental action has become clearer, the utility industry’s Environmental Dedication Index has dropped 17 points to 669 (on a 1,000-point maximum scale) over the past year. Escalent’s Environmental Dedication Index comprises customer ratings of utility actions to build strong environmental stewardship, and new findings show customers have declining perceptions that their utility is committed to using environmentally friendly energy and encouraging green initiatives for buildings and vehicles. Contrary to this trend, 30 utilities score high enough on this index to be recognized, in honor of Earth Day, as Environmental Champions for their dedication to the environment. These and other findings are from the Cogent Syndicated 2023 Utility Trusted Brand & Customer Engagement™: Residential study by Escalent, a top data analytics and advisory firm.

According to the study, customers continue to strongly support electric utilities using solar and wind energy to generate electricity, with 71% and 59% of customers respectively preferring these sources. Although support for local government bans on natural gas use has dropped over the last year, customers are showing a significantly lower preference for natural gas as a fuel for home appliances such as stoves, clothes dryers and space heaters.

Over the past year, more than half (59%) of utility customers have made energy-related upgrades to their home. Despite this, customers report lower awareness of utility programs that promote energy-efficient homes, such as energy audits and rebates on energy-efficient equipment and lighting. As a result, customers increasingly prefer buying energy-related technology from a contractor or home-improvement store, progressively leaving utilities out of the picture.

The 30 utilities recognized as Environmental Champions are talking more with their customers about environmental topics, such as renewable energy, carbon neutrality commitments and energy-efficiency/alternative power programs, than the rest of the industry. As a result, these Environmental Champions have significantly higher customer awareness of their programs, higher customer support for investments that reduce the utility’s climate impact, and customers who are significantly more likely to consider their utility using renewable energy sources as a benefit.

“From the recent Intergovernmental Panel on Climate Change report highlighting the urgency of climate action, through the war in Ukraine, to recent extreme weather events, the need for utilities to be leaders on the energy transition has never been clearer,” said K.C. Boyce, vice president at Escalent. “Environmental Champion utilities have discovered that talking with customers about utility actions and programs that accelerate the transition is key to improving brand perceptions and encouraging customer behavior that makes the transition easier for the utilities themselves.”

Escalent’s Environmental Dedication Index provides critical insights into the utility industry’s progress on environmental initiatives and helps utilities better understand customer preferences and behavior. As the industry faces increasing pressure to reduce its carbon footprint, this report is a vital resource for utilities looking to meet customers’ expectations through the energy transition.

Escalent congratulates the Cogent Syndicated 2023 Environmental Champion utilities. The 30 utilities below stand out among the 141 utilities surveyed for winning high marks on their environmental commitment, support of environmental causes and aiding customers to become more environmentally friendly.

About Utility Trusted Brand & Customer Engagement™: Residential

Escalent conducted surveys among 76,100 residential electric, natural gas and combination utility customers of the 141 largest US utility companies (based on residential customer counts). The sample design uses a combination of quotas and weighting based on US census data to ensure a demographically balanced sample of each evaluated utility’s customers based on age, gender, income, race and ethnicity. Utilities within the same region and of the same type (e.g., electric-only providers) are given equal weight to balance the influence of each utility’s customers on survey results. The Environmental Dedication Index is a composite based upon consumer ratings across four attributes. Escalent will supply the exact wording of any survey question upon request. All scores are based upon a 1,000-point maximum scale.

For more information on the full report, click here.

About Escalent

Escalent is an award-winning data analytics and advisory firm that helps clients understand human and market behaviors to navigate disruption and business transformation. As catalysts of progress for more than 40 years, our strategies guide the world’s leading brands. We accelerate growth by creating a seamless flow between primary, secondary, syndicated, and internal business data, providing consulting and advisory services from insights through implementation. Based on a profound understanding of what drives human beings and markets, we identify actions that build brands, enhance customer experiences, inspire product innovation and boost business productivity. Visit escalent.co to see how we are helping shape the brands that are reshaping the world.