How to transform O&G companies into a sustainable business ecosystem in 3 steps
The oil and gas industry is facing a rapid change in the way it does business, as the COVID crisis acted as a catalyst for a faster energy transition. In this new scenario, even though there is a consensus that hydrocarbons will continue to play a fundamental role in the economy, there is a clear demand from governments, investors, and society for low-carbon products and a more transparent and stronger approach from O&G companies regarding their environmental, social and governance (ESG) commitments.
We describe the 3-step approach that will help O&G companies build a future-proof new business. This approach will need to be sustained by a set of values that we believe will channel the right level of commitment and results from the oil and gas sector. Numerous skills and values already present in the industry can also be the catalyst of a new sustainable business ecosystem that drives innovation, influences markets and attracts new talents.
There are key factors that companies must embrace and integrate tangibly into their strategy to reflect net-zero ambitions. O&G companies have a crucial role to play in the energy transition. Starting with developing clearer strategies of their vision, current GHG emissions, and portfolio rationalisations to harnessing the added value from the interplay between new and traditional energies. They can remain big influencers of regional and global economies by broadening their sustainable energy vision, becoming hybrid, and engaging with a different energy at their core.