Insights on how the mining / oil & gas industry are responding to the challenge of energy transition
12 August 2021
Energy Transition Report - Mining/Oil&Gas
Based on results from BDO's Energy Transition Diagnostic Tool
Energy management and sustainability are fast becoming Boardroom and business critical issues. Reporting on
carbon, GHG emissions and climate-related risks are becoming increasingly mandatory. Pressures from investors, capital markets and consumers around climate related risks are requiring organisations to rethink their operations.
Transparency around an organisations impact on the ecological and social environment is becoming a growing
concern, especially among companies in the energy intensive sectors. Many key industry leaders have already taken a step forward in their journey to low carbon, but we have a long way to go in order to meet the Paris Agreement.
Climate-related risks are materializing today, and governments and regulatory bodies are now scrambling to play catch up, making up for years of inaction. This will likely see the transition hit some industries and organisations faster and harder than others.
With the recent release of the sixth Intergovernmental Panel on Climate Change , the results are sobering. We have run out of time, and the costs of transitioning will become all the more acute.
The shift away from fossil fuels to alternative energy is an important step in reducing emissions quickly. As estimated by industry experts, renewables can cut energy-related CO2 emissions by about 70%. In addition, the International Renewable Energy Agency predicts that renewables and energy efficiencies have the potential to boost global GDP by 2.5% to 5% with the increased emissions mitigation.
The transition speed is currently being spurred on by massive drops in the cost of renewable energy, namely solar and wind, a surge in clean energy policies and investments, a rising number of countries targeting Net-Zero and in part by the global pandemic. We suspect that this may find more impetus with the IPCC report and COP26 in Novemeber.
DOWNLOAD THE ENERGY TRANSITION - MINING / O&G REPORT HERE
To learn more about your own energy transition journey - take the BDO Energy Transition Diagnostic Tool, which will provide you with a Personalised Benchmark Report, giving you insights into what your peers are assessing and deploying in their business to reduce emissions.
Sample 'Personalised Benchmark Report'.