How can energy and chemicals companies protect their core business as they transition to a new model in a net zero and decarbonized future? How do they incorporate environmental, social and governance (ESG) principles across their organizations to meet the expectations of employees, customers, shareholders and regulators?
Management teams are looking to their boards for guidance at this pivotal time when the right decisions can open up significant opportunities and minimize risks. Helping companies envision a future business model and providing strategic guidance on global energy transition factors should be front and center for boards.
Top issues boards should consider in 2022 and beyond:
Create significant value by incorporating ESG principles across the organization
- Tell your company’s ESG journey story
- Offer guidance on impending reporting requirements
- Clarify ESG oversight responsibilities
Manage crises and build resilience in the event of evolving global risks
- Plan for protection and recovery after severe weather events
- Oversee cyber security and prepare for escalating attacks
- Ask management about combatting growing activism
- Understand strategies to respond to commodity price volatility
Navigate the effects of shifting political dynamics on supply chain infrastructure
- Track and pursue opportunities from new and pending legislation
- Plan for present and future supply chain challenges
Discuss how to adjust corporate talent processes and strategies to current dynamics
- Recruit new employees by explaining commitment to ESG and net zero goals
- Closely monitor the culture of the organization to support employee retention
- Press management to proactively expand diversity in meaningful ways
of energy CEOs say that crafting their ESG narrative in a compelling fashion is their single greatest challenge.
Source: KPMG, "KPMG 2021 CEO Outlook" (2021)
Nearly 50% of energy and chemical boards have a director with climate change expertise.
Source: KPMG, "Climate change and the people factor" (2021)
of energy executives plan to increase headcount over the next three years.
Read the paper below to see how boards can help energy and chemicals companies build corporate sustainability and practices that balance profitability with ESG commitments.
Learn more about key issues for boards in 2022, as well as how to help companies build critical clean energy solutions, balance profitability with ESG commitments and decarbonize operations.
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About the authors
National Sector Leader – Energy, Natural Resources and Chemicals, KPMG in the US
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