10 Takes on the Energy
and Resource Transition
The shift to a greener future is underway, but our survey shows it’s tough out there.
Here’s what more than 1,000 energy and resource executives had to say.
Partnerships and acquisitions
Talent, culture, and policy
The shift to a greener future is underway, but our survey shows it’s tough out there. Here’s what more than 1,000 energy and resource executives had to say.
say reducing Scope
1 and 2 emissions is a
key priority for their company
say that a net-zero
commitment is critical
expect their company
to change significantly
in the next 10 years
(up from 36% in 2020)
expect their industry
to make progress
toward net zero
Executives overwhelmingly believe that reducing carbon emissions and reaching net zero are top priorities.
Executives overwhelmingly believe that reducing carbon emissions and reaching
net zero are top priorities.
10 Takes on the Energy and Resource Transition
10 Takes on the Energy
and Resource Transition
Innovation, impact, and economics
give meaningful weight (at least 10%)
to each imperative
On average, executives assigned these weightings to each of the three factors in their decisions:
Executives believe all three are important.
42% expect the world to achieve
net zero by
On average, executives think the world will reach net zero by
One in four think the world won’t reach net zero until after
Executives have very different ideas about when the world will reach net zero.
believe they will
is the average reduction in carbon
emissions that executives think their companies will make by 2030
expect to decarbonize
faster than the world
as a whole
Most expect to reduce emissions significantly by 2030, faster than the world as a whole.
Most expect to reduce emissions significantly
by 2030, faster than the world as a whole.
expect their core
business to grow rapidly
over the next decade due
to more electrification
see their core business
declining over the next decade, despite recent spikes in demand and price
are developing greener
and more circular versions
of their products
Others are exploring new growth markets including materials for electric vehicles and low-carbon hydrogen
Growth is expected from feeding and supplying the growing
population, as well as from shifts in consumer preferences
like bio products, supply transparency, and veganism
Portfolios are shifting as companies ramp up on commodities
for the energy transition, electrification, and infrastructure
while running down thermal coal
Oil and gas
Mining and minerals
Electrification will boost some sectors, but the energy and resource transition will prove more disruptive to others.
expect significant progress from
their investments in low-carbon
assets or solutions by 2030
expect real progress from their
expect to see real progress in decarbonization by 2030. Many are expanding into new
markets related to the energy transition
Many are divesting from coal, focusing on minerals
for the energy transition, decarbonizing operations
Most are focused on
Some have had to move quickly and substantially, while others facing different challenges will take longer.
Some have had to move quickly and substantially, while others facing different challenges will
Three out of four chemicals executives expect circularity
to become more important
expect AI and other digital technologies to have
a big impact
of oil and gas executives see carbon capture, use, and
storage as critical
Three out of four utilities and renewables executives expect energy storage to have a significant effect
About two-thirds of executives in chemicals, food, and agribusiness expect bio-based products to become more important
of executives across sectors
expect renewables to have
a big impact
Executives expect these seven technologies and practices to have a big impact on their business by 2030.
of food and agribusiness executives think
that organic and regenerative agricultural practices will significantly affect their industries
Three out of four chemicals executives expect circularity to become more important
expect AI and other
to have a big impact
of oil and gas executives see carbon capture, use, and storage as critical
of executives across sectors expect renewables to have
a big impact
of food and agribusiness executives think that
organic and regenerative agricultural practices
will significantly affect their industries
Executives are bullish on their prospects for developing new growth businesses.
Across sectors, executives are increasing
capital allocations to new growth areas
expect their new growth businesses to scale by 2030, and account for more than 10% of their companies’ profits or valuation
North American companies are investing less in new growth businesses than their peers in Europe and Asia. They're expecting less too
Share of capex
for Engine 2
Share expecting significant contribution from Engine 2
Executives are bullish on their prospects
for developing new growth businesses.
Partnerships are emerging as the preferred way to manage transition risks, in part because there aren’t enough scale acquisition targets.
see partnerships as important to develop their new growth businesses
Most see partnerships as more viable and a better way
to share risk than M&A, particularly since there are so
few good candidates for acquisition
are pursuing large
are pursuing smaller acquisitions
Partnerships and acquisition
Partnerships are emerging as the preferred
way to manage transition risks, in part because there aren’t enough scale acquisition targets.
Executives see the need for new expertise, but a skill shortage hampers their efforts, and too many companies are drawing from the same well of talent.
As companies scale up new ventures, competition will become more intense, making retention even more important.
say they don’t have enough people
with the right capabilities for their
new growth businesses
among executives who expect their companies to see transformational
change by 2030
About one-third of companies in mining and oil
and gas say they’re having difficulty attracting
and retaining talent for their core businesses, compared with 16% to 21% in the other sectors
are already adapting
their talent strategy
see diversity, equity, and inclusion as important for improving outcomes
That rises to
Across most sectors, executives see culture as the most pressing barrier after talent. Drilling down on specifics, executives said the biggest roadblocks
for creating a successful Engine 2 business include:
Lack of entrepreneurship culture
Difficulties in creating a lean
organization, updating old business
processes and procedures
Inability to develop an innovative and agile culture within the current business
Challenges adapting company culture to new business dynamics and processes
culture to change
Government policy is less certain in some places than others. But across regions, executives tell us that the speed of processing approvals, rather than uncertainty, is the first barrier to progress.
Executives expecting the most transformational
change by 2030 are outperforming peers by:
in shaping policies
Delaying investment in new business areas due to policy uncertainty
North American oil and gas companies are almost
twice as likely to be delaying investment in new
business areas as those in Europe, perhaps due
to greater clarity on regulations in Europe
Executives see these three issues as the biggest impediments to success and returns.