Natural resources at a tipping point
The International Energy Agency (IEA) estimates that $4 trillion of clean energy investment will be needed every year from now until 2050 in order to reach net zero targets.[1] This means organizations exploring and investing, working out what technologies and systems work best for them, and plotting the trajectory of their own clean energy transition while keeping a firm grip on immediate commercial priorities.
The pressures impacting the natural resources industry are not binary. They are diverse, complex and interconnected:
Maintaining stable energy supplies and healthy revenue flows are commercial priorities, but the need to participate in the clean energy transition is unavoidable. The question is, how can companies get that balance right? In navigating these challenges, making the right decisions at the right time could be the difference between success and failure.
If companies aren’t properly prepared with an informed view of their risks, any of these pressures could tip the balance. At this pivotal moment, our Global Clean Energy Survey aims to take the pulse on how companies of all sizes, in all locations and sectors, are preparing for and advancing their clean energy strategy.
01
34% is the average expected increase in spend on clean energy technologies and infrastructure in the next financial year, rising from an average $185 million in 2024-25 to $249 million.
02
51% rated solar as a top priority in the near and medium term. In the medium to long term, 61% prioritize battery storage solutions and carbon capture and storage. Geothermal and hydrogen emerged as high priorities over a 10-year horizon.
03
79% named supply chain disruption and 78% geopolitical issues among the greatest risks to their clean energy strategy, reflecting concerns over trade tensions and changes to subsidies and regulations at a time of increasing global volatility.
04
53% said blanket exclusions (53%) were an obstacle to transferring their risks, followed by limited duration of insurance (48%), and lack of suitable products (47%), indicating a need for insurance markets to develop new and better solutions for clean energy risks.
05
100% of natural resources companies in our survey have a clean energy strategy, but with different levels of maturity. As we would expect, 71% of renewables companies are at the implementing or fully implemented stage, compared to 36% for oil and gas, 63% for power and 43% for mining and metals.
In building a sustainable future, it all starts with reassessing the critical issues specific to your business. Review where you need to focus. What are your short- and long-term goals? Which risks – both established and emerging – pose the biggest threats? Which solutions and capabilities can help you make decisions with confidence? Where might you need more support?
Navigate conflicting and competing priorities in a transforming industry with a clean energy risk strategy that gets the balance right.
Make smart clean energy investments to position your company for success
All technologies – both existing and emerging – carry risk. But inaction is not an option. As pressures to decarbonize escalate, don’t get derailed by analysis paralysis. Renewable technologies are becoming more modular, adaptable, reliable and efficient. It’s hoped that with good operations and maintenance, companies can take advantage of potential evolutionary efficiencies in technology whilst reducing inherent risks of technology obsolescence.
Meanwhile, creative insurance solutions are evolving to help companies protect and grow their operations in a clean energy future. Partnering with a sector-specialist risk advisor and broker can deliver the data-driven insights to help you make decisions with confidence.
Build resilience into clean energy projects from the get-go
Risk engineers can help project sponsors select technology that’s best aligned to their organization’s clean energy goals and make sure it’s built and installed safely, while also acting as a bridge to underwriters, providing the data insurers need in order to feel comfortable with the risk.
Engaging with risk engineers early can help businesses save money in the long run by increasing both project and future operational resilience, prevent losses, reducing the cost of insurance, and enabling projects to move through all its phases in a confident and secure way.
Optimize your risk strategy and spend where it matters
As natural resources companies diversify into clean energy, analytics can help them assess the impact of a wide range of external risk factors on clean energy investments. For example, for capital-intensive renewables, if the cost of capital goes up, what level of production time do you need to break even? And can that be achieved if there are long term shifts in weather patterns, supply chain disruption or geopolitical headwinds?
Risk analytics can help you identify, quantify, and prioritize major risks, and connect risk management decisions to corporate financial performance. By looking at all of your risks across different scenarios, decision-makers can prioritize risk mitigations efforts to get the best results from your risk management spend.
Willis, a WTW business, partnered with Coleman Parkes Research to conduct a survey between November 2024 and January 2025, using a mixture of phone interviews and web-based survey forms.
We received 450 responses from senior decision makers in leading energy and natural resources companies based in Europe, North America, Asia Pacific and Latin America.
