· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:
🗞️ Driving the news: Nearly half (44%) of energy and natural resources executives believe the world will not reach net-zero emissions until 2070 or later, up from 32% last year, according to Bain & Company’s survey
• The decline in optimism is attributed to rising capital costs, financial constraints, and a shifting focus toward return on investment rather than ESG commitments
• Only 32% now expect net zero by 2050, down from up to 50% in previous years
🔭 The context: Many companies in oil and gas, utilities, chemicals, mining, and agribusiness are facing increased costs, with 31% reporting capital project costs rising over 10% year-over-year
• Some major corporations, including BP and Wells Fargo, have recently postponed or softened their net-zero commitments
• Political uncertainty, including opposition from President Trump to certain climate policies, is further complicating the transition
🌍 Why it matters for the planet: Delays in net-zero timelines could mean prolonged reliance on fossil fuels, slowing the adoption of renewable energy and increasing long-term climate risks
• However, the demand for clean energy remains strong, especially as AI-driven data centers are expected to consume 2.6% of global power by 2027
• Bain estimates that meeting these energy needs could require over $2 trillion in new generation capacity, presenting both a challenge and an opportunity for clean energy investment.
⏭️ What's next: Despite concerns over capital costs and ESG investments, executives remain optimistic about emerging technologies like AI, energy storage, and carbon capture
• The business case for renewables is strengthening, but infrastructure demands remain high
• The future of net-zero commitments will likely depend on policy decisions, technological advancements, and shifts in investor sentiment
💬 One quote: “Executives are saying this [the transition to net zero] is going to be really hard.” — Grant Dougans, Partner at Bain & Company (See sustainability performance)
📈 One stat: 31% of companies reported capital project cost increases of more than 10% compared to the previous year
See here detailed sustainability performance of companies like Bain & Company, BP and Wells Fargo
Click for more news covering the latest on net zero
