- While it might not seem like the obvious choice,
energy suppliers and consumers such as utilities
and industrial companies need to double down
on decarbonization in today's uncertain economy.
Ultimately, this move will create a more stable, predictable,
and competitive cost base for them.
Getting there, of course,
requires a lot of investment in renewable energy
in new talent and capabilities and in technology.
At the same time, competition for materials,
components, and labor will heat up
as more companies push to decarbonize.
This will lead
to supply shortages and create execution challenges.
A major recession could create further headwinds.
These same utilities
and major energy consumers could see demand growth slow.
That would squeeze earnings at the precise moment
when these companies need
to significantly increase investment.
This reality demands we push hard
on full business transformation while investing
in capabilities to accelerate decarbonization.
Companies that move with speed
and conviction will capture the advantage.