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The year 2022 represents a critical inflection point in the way we think about energy and the global systems needed to find, produce, deliver and decarbonise it. Significant, era-defining events are happening all around us, all around the world, and all at a breakneck pace – shaping both short- and long-term structural considerations around energy and sustainability, according to a new report from FTI Consulting, Inc. 

This report (https://bit.ly/3Gdv2yk) captures what some of the largest leading energy firms in the world are thinking about and planning for as they look at the energy transition. As countries look to shore up domestic energy supply chains and meet increasing demand, the decisions companies make today will reverberate for years – even decades – into the future.

Forty-five percent of energy companies surveyed believe they will face increased pressure to improve on environmental, social, and governance (ESG) and sustainability metrics, as compared to 36% of companies from other sectors.

FTI Consulting’s Resilience Barometer® data shows that more energy companies struggled to secure finance in the past 12 months compared with other sectors. This could reflect the increasing pressures that companies in the energy sector are facing around financing.

The entire supply chain will become a source of opportunity and risk. In fact, results from our annual global survey highlight that 49% of energy companies surveyed plan to conduct reviews of their supply chain and suppliers in the next 12 months in response to anticipated consumer activism.

This report (https://bit.ly/3POE5tZ) highlights the significant and mounting environmental pressures facing the industry, including the threat of regulatory action and assets becoming stranded before the end of their operational life; pressure from investors and reduced access to capital; and activists leveraging every available tool, from the courts through to the corporate governance system, to influence companies.

“The pressure to improve ESG now outstrips concerns about improving operating performance and increasing market share for energy companies,” said Christo Roux, a Senior Managing Director and Head of Business Transformation at FTI Consulting in South Africa. “To address ESG scrutiny, businesses need to review their supply chains and suppliers, especially as attention to ESG gains momentum.”

Methodology

The FTI Consulting Resilience Barometer® incorporates views from 4,100 decision-makers in large companies. Large companies are defined as an annual global turnover of >$50m and/or headcount of >250 and/or a balance sheet of >$43 million globally across 11 industries. The research was conducted via an online survey from 26 October to 10 November 2021. Results are weighted so that each country represents a similar proportion of the results.

Eighty percent of respondents are from G20 countries. For G20 respondents, the average global turnover of companies is USD$12.7billion and the average global headcount of companies is approximately 18,400.