NEW YORK, May 27, 2020 /PRNewswire/ --
Why this matters
In the wake of the COVID-19 pandemic, oil price collapse, and increasingly challenged economy, many have questioned if the pace of the global energy transition has been disrupted and whether energy and industrial companies will remain committed to their decarbonization goals. Deloitte's "Navigating the energy transition from disruption to growth," report examines progress to date in the energy transition, the decisions management teams in the energy and industrial sectors are facing, and how the current economic environment could affect the transition's future trajectory. As part of this study, Deloitte surveyed 600 C-suite executives and other senior corporate leaders globally for their perspectives around low-carbon trends and strategies.
Energy transition remains a priority for energy and industrials
Despite the current economic challenges, the survey study findings suggest that energy and industrial leaders are expected to remain committed to an energy transition that they believe can help reduce costs, increase customer loyalty and make their companies more competitive.
Decarbonization a strategic imperative for oil and gas
The energy transition is having a mixed impact on the oil and gas sector, as decarbonization is expected to slow long-term oil demand growth. Most company leaders in this sector however appear to recognize this reality and are rethinking where and how they do business in a decarbonizing world. Many are making the energy transition a strategic priority, as evidenced from the survey results detailing the scale of plans and commitments in place.
"This year has turned out to be a decisive one for the energy transition. While 2020 brought tremendous headwinds for companies on multiple fronts, leaders across the energy and industrial sectors haven't lost sight of the climate crisis. Decarbonization priorities have become deeply embedded into business strategies and created a momentum for action that will not easily be compromised by present circumstances."
- Stanley Porter, vice chairman, Deloitte LLP and U.S. energy, resources and industrials leader
"The COVID-19 crisis has highlighted many of the attributes that could accelerate the energy transition as companies re-evaluate supply chains, collaborate within and across sectors and pioneer capex-light scalable solutions with digital technologies and analytics at the core. The coming months will likely show how enduring these innovations may prove."
- Kate Hardin, executive director for the Deloitte Research Center for Energy & Industrials
Technologies play key role in business climate goals
Survey respondents overwhelmingly cited technology as a key enabler of progress in the energy transition. While a near-term pause in spending on new technologies is expected, they are unlikely to be canceled completely as these investments help increase operational efficiency, reduce carbon emissions, and benefit companies in the long run.
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