Dow Jones hosted the webinar ‘Energy Risk Insights for an Uncertain Future.’ Christine Stevenson, of Global Head of Compliance & ESG at Hartree Partners was the panelist. Dr. Ali Imran, representing the Saint Pierre Center for International Security (SPCIS), also participated in the webinar.
Christine Stevenson began by identifying key risks that dominate the industry, emphasizing that climate change remains the top concern, particularly for integrated energy companies. Alongside this, supply chain challenges continue to disrupt operations, and cybersecurity, though ranked fourth, is becoming increasingly significant. Notably, the fight for skilled talent is another critical issue. Energy companies are competing with tech giants to secure a robust talent pipeline essential for both traditional operations and the energy transition. This challenge is exacerbated by demographic shifts and impending retirements, creating additional pressure on workforce sustainability.
Physical risks, driven by extreme weather events, are escalating. Hurricanes, a familiar threat in places like Houston, are now joined by less predictable phenomena such as derechos, which have emerged as unexpected hazards. These events underline the urgent need for more resilient infrastructure and robust business continuity planning. The impact of these risks is not confined to physical damage but extends to operational disruptions, as supply chain delays hinder timely repairs and recovery efforts.
The regulatory landscape also remains a complex arena for energy companies. Stevenson highlighted the challenges of navigating diverse international, national, and regional requirements. In addition, companies are increasingly adopting self-imposed standards to align with stakeholder expectations and maintain contractual relationships. She noted that deregulation trends, carbon-related policies, and stakeholder-driven compliance initiatives are creating layers of administrative complexity, demanding careful management.
Cybersecurity risks, while not new, are growing in both frequency and sophistication. Stevenson stressed the importance of robust IT infrastructure, proactive threat anticipation, and comprehensive response plans to counteract this evolving threat. Despite these efforts, cybersecurity remains one of the most difficult areas to predict and manage effectively, posing a constant challenge for energy companies.
Compliance teams, according to Stevenson, play a pivotal role in addressing these interconnected risks. By aligning corporate policies with core values and stakeholder expectations, they facilitate a multidisciplinary approach to risk management. She cited the 2022 Russia sanctions as an example, where compliance teams balanced regulatory requirements with ethical considerations, demonstrating their strategic importance in navigating overlapping challenges.
On the topic of sanctions management, Stevenson highlighted the advanced systems employed by global energy companies to address these issues. The use of technology has improved efficiency in monitoring regulatory changes, yet agility and resource allocation remain critical. Companies are refining their processes to adapt quickly to evolving sanctions, ensuring operational continuity.
In conclusion, Christine Stevenson underscored the interconnected and evolving nature of risks in the energy sector. From climate change and cybersecurity to regulatory complexities and workforce challenges, addressing these issues requires comprehensive, forward-looking strategies. Energy companies must prioritize resilience and adaptability to navigate this uncertain landscape effectively.