Energy and utilities (EU&R) companies have been making progress in incorporating climate risk into strategic decisions. The movement, however, is still partial and concentrated in specific processes, according to the 29th edition of the Global CEO Survey, released this Wednesday (25) by PwC.
The survey polled 4.400 executives in 95 countries, including Brazil, and shows that 37% of companies in the sector have already structured formal processes to consider climate risks and opportunities in business decisions.
The percentage exceeds the Brazilian average (25%) and the global average (24%), signaling that the climate agenda is beginning to directly influence choices related to energy portfolios, technologies, and solutions.
According to Daniel Martins, partner and leader of the energy and utilities sector at PwC Brazil, the electricity industry is at the center of the climate debate, and CEOs are demonstrating greater maturity in discussing the impacts on their operations. Even so, he believes the sector is only at the beginning of its journey to prepare for this new context.
According to the executive, the 37% figure reflects more of an increase in awareness than a necessary structural transformation. "When we look at more developed countries, we are about ten years behind," he stated during a press conference.
Climate still poorly integrated with capital and operations.
When the analysis shifts to capital allocation, the integration of climate risk loses momentum. Only 29% of global EU&R companies report adopting structured processes in this area.
In Brazil, although the rate exceeds the national average (18%) and the global average (20%), it is still considered limited given the potential impact of climate changes Regarding the return on long-term investments – especially in capital-intensive assets.
In the supply and procurement chain, the pattern repeats itself: 27% of Brazilian CEOs in the sector claim to incorporate climate factors in a structured way. This percentage is higher than the national average (18%), but lower than that recorded globally in the EU&R (31%).
According to PwC, this indicates that most operational decisions still do not systematically internalize climate risk.
Short-term pressure dominates the agenda.
The research also reveals an imbalance in executives' agendas. In the energy sector, 56% of CEOs' time is consumed by short-term issues (less than 12 months), while only 11% is dedicated to long-term strategies.
In Brazil, the scenario is influenced by regulatory and political uncertainties that directly affect expansion planning, energy contracting, and investment decisions.
Among the main threats for the next 12 months, macroeconomic instability leads (33%), followed by technological disruption (27%) and talent shortage (23%). Climate change appears with 23%, above the Brazilian average (18%) and the global average (13%), reinforcing the perception that the topic already occupies a relevant space in the sector's risk matrix.
On the other hand, geopolitical conflicts (17%) and trade tariffs (13%) remain in the background. Only 17% of CEOs report stakeholder concerns about security and responsible use of artificial intelligence – a percentage well below the national average (48%).
Innovation is still far from the core business.
Although 47% of Brazilian energy and utilities companies classify innovation as a critical element of their strategy, only 20% have formal innovation centers and only 3% test new ideas in an agile way with customers and end users.
According to Martins' assessment, the sector still operates under a procedural logic similar to that of two decades ago. Innovations are mostly incremental – automation, process digitization, operational efficiency – while structural disruptions are progressing slowly.
For him, the consolidation of smart grids could represent a true game-changer, transforming asset management, consumer relations, and the integration of distributed energy resources. “I see many movements to create ecosystems and innovation hubs, but they are still far from the core business. There are R&D resources available, but the projects often remain academic and poorly connected to operations,” he observed.
More diffuse sectoral boundaries
The research also indicates that 50% of CEOs in the sector have started competing in new markets in the last five years. Technological advancements and the energy transition have reduced traditional barriers between industries.
Biofuel companies are transitioning between agriculture and energy; oil and gas companies are expanding their presence in renewables; banks and retailers are entering the energy trading market; and utilities are exploring digital solutions and integrated energy services.
"The barriers between industries are decreasing. Today there are many opportunities to create value by combining skills and specialties," said Martins.
The scenario indicates a sector in transition: more attentive to climate risks, pressured by short-term agendas, and still challenged to integrate innovation and sustainability at the heart of its strategy.
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