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Interest in sustainability on the rise, says EY

KUALA LUMPUR: Consumers are increasingly interested in sustainability and envisioning a future fueled by clean energy.

However, many are reluctant to invest additional resources to bolster their sustainability endeavors in energy consumption, according to the EY report, "Energy Transition Consumer Insights."

The report revealed that 81 per cent of energy consumers in Malaysia believe they are already making the most of their efforts to be sustainable.

About 85 per cent of Malaysians said that the responsibility of managing sustainable energy use lies with the energy providers. 

While 31 per cent of Malaysians expressed that they were not willing to pay more for more sustainable products,. 

Among those who are willing, the majority are Gen Z and millennials.

EY Asia-Pacific Energy and Resources customer experience transformation leader Mark Bennett said consumers are grappling with uncertainty as we enter a new phase of the energy transition, amid higher energy prices, geopolitical volatility, and growing concerns around energy equity. 

He added that efforts on the supply side are gaining momentum, and we need a fundamental shift in how we encourage sustainable consumer behavior. 

"Consumers want a clean energy future but need a broad range of support to make personal energy choices. 

"To close the gap between consumers' intentions and actions, everyone in the broader energy ecosystem, including the energy providers and the government, must work together to pull every lever," he said in a statement. 

The EY survey covered 100,000 residential energy consumers in 21 markets around the world over three years, with close to 6,900 respondents across Malaysia, Indonesia, and Singapore.

Additionally, the survey findings were also collated into the EY Energy Consumer Confidence Index, where it found that energy consumers from Southeast Asia were more confident about their energy future than global respondents. 

Indonesia ranks second on the index with a score of 72.2, Malaysia ranks third with a score of 69.4, and Singapore takes the sixth position with a score of 61.7. In comparison, the global average score is 58.7.  

Bennett noted that the findings reveal a correlation between the progress of countries in the energy transition and energy consumer confidence. 

He said as a market progresses through the energy transition, consumer confidence first rises, reflecting positive sentiment around the future, before falling sharply. 

He said this could be because, as the energy transition shifts from concept to implementation, the magnitude, intricacy, and extent of disruption inherent in this journey become increasingly apparent to consumers. 

"Given that Southeast Asia is still relatively in the early stages of its energy transition, consumers in the region remain more confident about their energy future than global respondents. 

"Building and maintaining consumer confidence throughout the energy transition journey is an important determinant of a country's ability to achieve its decarbonisation goals. 

"Southeast Asia is in a unique position to learn from the experience of countries that are further along in their energy transition journey and choose to do some things differently in achieving its net-zero commitments," he added. 

Meanwhile, the survey also revealed that despite having confidence in their energy future, many said the energy system just is not delivering on the three fundamental aspects of the energy experience, namely, affordability, access, and appeal. 

About half, or 49 per cent of Malaysian respondents are confident about the affordability of their energy costs, and 51 per cent are confident they have access to clean and new energy options.

While 23 per cent of Malaysians said they would adopt new energy products and services if it were easier to purchase and install them,.

Furthermore, 85 per cent of Malaysians expect their energy providers to offer low-cost and high-quality products. 

About 28 per cent of Malaysians are fully satisfied with the products and services from their energy providers, and about 44 per cent would like to see increased sustainable products and services from them.

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