2024 Global Energy CEO Outlook

ENRC CEOs are optimistic about the future and display confidence over their business prospects. In fact, 82 percent of them are confident about their organisations’ growth prospects, which is higher than the all-sector average of 78 percent.

Renewables are viewed very optimistically while the outlook for fossil fuels (although still secure in the short to medium term) may be more challenged over a longer horizon. Similarly, conditions are good in the mining and minerals industry but less positive in some areas of the chemicals sector.

The biggest operational risk factor in ENRC CEOs’ minds is trade regulation (73 percent). This relates to their heightened geopolitical concerns, which are resulting in increasingly restrictive trade regulations between jurisdictions, particularly in the sphere of critical minerals.

ENRC CEOs are doubling down on Gen AI and technological advancements, signalling a decisive pivot away from workforce skills toward a future driven by digital innovation and growth.

Nearly six in ten CEOs (59 percent) say they are investing more in technology while 41 percent say they are investing more in workforce skills and capabilities — a swing from last year when the balance was almost equal, at 52 percent versus 48 percent. Upskilling people to use, monitor and control that technology will be key

While today’s AI use-cases generate plenty of buzz in the public discourse, CEOs recognize the need to seize the challenges that lie ahead, considering AI’s potential to transform every aspect of our everyday life.

A sound model based on trust, ethics and governance is essential, as set out in KPMG Trusted AI framework.

Talent and workforce issues remain critically important. CEOs understand that their people are key to the organisation’s future success.

Despite the younger generation’s embracing of remote and hybrid working, ENRC CEOs are increasingly in favour of an in-office approach over the coming three years, with 93 percent backing it as the dominant model.

The diversity and inclusion agenda remains a central feature of ENRC CEOs’ workforce approaches, with two-thirds agreeing that scrutiny of organisations’ diversity performance will continue to increase.

ESG has become a key strategic item for almost any business — and for the ENRC sector, it has several critically important dimensions.

The environmental and sustainability agenda — including the climate emergency and energy transition — is directly applicable to, and dependent on, the energy sector.

It’s clear that energy firms should find ways to rapidly accelerate and scale renewable energy projects

The benefits of a strong ESG approach are also widely appreciated, with the greatest proportion of ENRC CEOs (29 percent) highlighting its potential to play a crucial role in the shaping of capital allocation, partnerships, alliances and M&A strategy. Up from 17 percent in 2023, it’s a sign that the commercial importance of a compelling ESG strategy is becoming clearer.

Navigating Global Shifts in the Boardroom

ENRC CEOs remain cautiously optimistic despite mounting geopolitical and economic risks. Geopolitical tensions pose the greatest risk, but leaders are focusing on agility and strategic foresight to navigate the future.

Strategies for Growth

With energy prices strong and demand high, ENRC CEOs are adjusting strategies to keep pace with market demands, showing a strong commitment to growth despite a complex risk environment.

Economic Outlook and Business Confidence

Confidence among ENRC CEOs remains high, with many planning strategic acquisitions and partnerships to fuel future growth.

Accelerating Innovation and Navigating Generative AI

Generative AI is firmly on the CEO agenda, but leaders are taking a cautious and structured approach to avoid risks, while planning significant investment in AI-driven transformation.

As cyber risks evolve with the rise of AI, ENRC CEOs are prioritising investment in security measures to safeguard operations.

Future Landscape of ESG Strategies

ESG remains a crucial agenda item, with ENRC CEOs taking proactive steps toward net zero and sustainability. The growing focus on ESG as a driver for capital allocation and partnerships marks a significant shift in business strategy.

Evolving Workforce Dynamics

Workforce dynamics are shifting, with CEOs balancing the integration of new technologies like AI with efforts to foster an in-office working culture.

About the KPMG CEO Outlook The 10th edition of the KPMG CEO Outlook, conducted with 1,325 CEOs between 25 July and 29 August 2024, provides unique insight into the mindset, strategies and planning tactics of CEOs.

All respondents have annual revenues over US$500M and a third of the companies surveyed have more than US$10B in annual revenue. The survey included CEOs from 11 key markets (Australia, Canada, China, France, Germany, India, Italy, Japan, Spain, the U.K. and the U.S.) and 11 key industry sectors (asset management, automotive, banking, consumer and retail, energy, infrastructure, insurance, life sciences, manufacturing, technology and telecommunications).

NOTE: Some figures may not add up to 100 percent due to rounding.