96% of business leaders in the energy sector In eight South American countries, including Peru, Argentina, Chile and Brazil, he feels confident or very confident about the growth prospects of his industry for the next three years, according to a study by consulting firm KPMG.
This result stands in stark contrast to the opinion of industry CEOs in a group of eight countries called ‘core’ by the survey, including powers like the United States, Australia, Canada and China.
As for these powers, the percentage of leaders who see good prospects for their sector reaches 77%, almost 20 points less than the case of South Americans.
In line with these findings, the KPMG study also revealed that three out of four CEOs of the regional energy sector (73%) expect to achieve an increase in the income of their companies of not less than 2.5% per year for the next three years while only 43% of industry leaders in core countries foresee similar results.
Energy sector: climate change
Asked about which they consider the main threat to the growth of their businesses, the majority of the leaders of the regional energy sector (36%) pointed to climate change as the greatest risk, in keeping with the increasing relevance that they attribute to the aspects environmental, social and corporate governance (ESG).
In this sense, 91% of these CEOs agreed with preserving the achievements made in sustainability during the health crisis, while 77% indicated that they will seek to focus their ESG programs on the social component.
Likewise, 82% reported that most of the pressure from investors and regulators is aimed at increasing the information available and transparency on ESG issues, 19 points lower than the proportion of CEOs in central countries (63%).
“In our region, the social conflict and the relationship with the communities to achieve the social license to operate is driving the development of ‘zero carbon’ energy projects, not only for the own operation of companies in extractive industries such as mining and hydrocarbons, but also to help reduce the gap in access to energy and needs that today cannot be managed by the central, regional or local government, ”said Beatriz De la Vega, KPMG executive in Peru.
Energy sector: labor projections
On the other hand, according to the KPMG study, for the energy industry, 73% of South American leaders will focus on policies that improve the work-life balance of their employees.
As the study refers, this may respond to the fact that CEOs are taking into account the current talent crisis and the effects of the pandemic on possible new demands on their workforce.
And, although 64% of these CEOs indicated that they will seek that a large part of the executive meetings of their companies be remote, only 32% consider hiring talent to telecommute.
This figure is slightly lower than that of leaders in the sector in central countries (42%), where, in addition, 32% believe that most of their workforce will be working remotely, while only 14% of South Americans think the same.
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Kingston is an accomplished author and journalist, known for his in-depth and engaging writing on sports. He currently works as a writer at 247 News Agency, where he has established himself as a respected voice in the sports industry.
