Can climate change transform how you do business?
Considerations for Canadian energy companies and their board of directors
Market forces like technological development, competition, policy shifts and changing customer needs are shaking up all industries. The energy market is not immune to these disruptors, which are also the impetus for innovation. As the momentum to transition to a low carbon, climate-resilient economy rapidly accelerates, it is creating both long-term risks and opportunities requiring careful attention.
From a board governance perspective, prudent oversight of climate change risk, as well as compliance and disclosure requirements, is increasingly more complex and important. Boards will also have to ensure the organization is taking a long-term view on innovating business models through disruption and managing shareholder expectations about how these may affect investment holdings. Balancing near-term results with long-term growth in enterprise value has never been more challenging.
Companies will need to adapt their business models, processes and corporate disclosures to comply with the government’s climate change framework in a manner that reduces their risk exposure and capitalizes on new opportunities, including those through technological innovation.
- US policy changes and impact on the Canadian energy market
- Climate finance and risk disclosure
- Ten questions boards should be asking management
EY can help
Although there are clear risks to many organizations, the movement to a low-carbon economy also presents opportunities that should be explored and capitalized on. From technological developments to sustainability initiatives, companies in the energy sector can position themselves for success in a changing regulatory environment. Our EY climate change professionals can help you navigate these changes and prepare for the future.