De-risking the global energy transition - A UK perspective

With the UK economy’s sluggish growth, both the current government and the Labour Party have deprioritised green investments. This shift is alarming because the UK aims to achieve net-zero emissions by 2050.

The Climate Change Committee has labelled Britain’s progress as “worryingly slow”, raising alarms over the nation’s capacity to meet future targets and facilitate a transition to a low-carbon energy future.

Despite the political shift, our commitment remains the same. Many private companies emphasise the critical importance of completing the energy transition. Our latest SHOCKED report, one of the most extensive studies conducted among energy leaders, reveals that nine in 10 energy-sector leaders (91 per cent) say their organisation has a net-zero strategy, with 4 per cent already achieving net zero.

Yet a significant question these companies face is how to tackle and mitigate energy-transition risks. Concrete actions and measurable outcomes must support commitments to climate targets, but achieving these is more complex than it appears.

The energy-transition challenge is multifaceted, from navigating market volatility and political uncertainties, as seen in the UK, to the slow roll-out of renewable energy sources and technologies.

Three in four energy leaders (75 per cent) believe their industry is under more pressure than any other to decarbonise. Our latest research identified three shocks — security shock, societal shock, and climate shock — affecting energy companies.

The drive towards net zero relies on the energy sector following a rapid decarbonisation path and unprecedented infrastructure development, placing considerable pressure on the industry. So how can we de-risk the global energy transition and navigate disruption?