Anyone who cares about energy is endlessly confronted with the stark tension between two realities: the need, on one hand, for more of every available kind of energy – to keep our lights on, our cars running, our pantries full, our hospitals supplied and, on the other hand, the urgent need to reduce the global greenhouse gas emissions causing our climate to change.
The ability of businesses, governments, societies, households, and future generations to function – let alone to thrive – depends on bridging this tension. The challenge will play out on a major stage at the upcoming CERAWeek in Houston from March 10-16, when over ten thousand industry leaders, policymakers and journalists will debate energy outlooks, showcase new technologies, and dissect implications. Oil and gas companies will be there. So will the biggest names in renewable energy, alongside utilities, critical minerals, private equity and mobility, tech, and infrastructure firms.
How companies talk about energy at CERAWeek and beyond can have a significant impact on their business, brand, and reputation. The subject is polarizing. Corporations and their leaders can provoke controversy, shareholder activism, regulatory scrutiny, and even lawsuits. And they will need to react thoughtfully to policy U-turns under the new U.S. administration.
Despite such turbulence – or more accurately because of it – the voice of businesses needs to be heard. Here are five considerations for ensuring that corporates safely and effectively master the energy conversation in 2025 - at CERAWeek and beyond.
Embrace the complex and competing realities of the energy challenge, even those that challenge your core business or point of view. For example, oil companies that simply dismiss climate issues will never win the benefit of the doubt from thought leaders focused on the dangers of a warming planet. At the same time, energy transition advocates who minimize the realities of today’s modern, energy-intensive lives, ongoing fossil fuel use, and difficult-to-decarbonize sectors will slow long-term progress. In his confirmation hearing on January 15, President Trump’s incoming Secretary of Energy Chris Wright offered a message that corporate leaders can use to navigate this divide: "The solution to climate change is to evolve our energy system... Energy and climate is a global problem, but America should be the leader."
Appreciate that the perspectives of people in many energy debates – even yours – are often deeply rooted less in facts than in competing ideologies, intuitions, priorities and belief systems. A purely rational, “fact-based” conversation rarely carries the day. Expressions of empathy and respect for the other side’s economic, cultural, and political point of view is a surer route to finding common ground.
If you are drawn into a heated public energy debate, stay focused on the outcome you want; avoid the temptation to score purely rhetorical points. Protecting your license to operate, influencing constructive policy, and enhancing the confidence of investors (as just a few examples) are goals more important than trying to prove your critics wrong. To that point, keep your messaging true to the realities of your business and its objectives. You can acknowledge and respect the perspectives of critics while at the same time advocating for the role your company plays and the legitimate ends it seeks. Efforts to hide your realities behind a smokescreen of empty rhetoric or greenwash invite more cynical opposition.
Look for opportunities to build diverse and unexpected relationships with stakeholders who might normally be seen as adversaries. Cultivated over time with dialogue and trust, these relationships can become the kind of “strange bedfellow” alliances that win over skeptics and create common ground.
Don’t forget to underscore your commitment to controlling the controllables of your business. Some stakeholders may never be won over to your point of view on the energy challenge or even accept your right to exist, but they should not be able to point to lapses in the way you operate – your standards of safety, environmental stewardship, community support, and corporate governance.
Navigating the energy conversation isn’t easy. Some of the challenges may even seem intractable. But constructive dialogue, transparency and patience define the path to lasting solutions.
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Building upon decades of advising clients on their energy, environmental, and corporate governance strategies around the world, FGS Global also helps clients maximize their presence at the annual CERAWeek conference and stand out in a crowded field. Learn how we can help you make the most of your presence in Houston by contacting us.