Companies in the energy and natural resources industry are expected to spend over a third more on clean energy technologies in the next financial year, according to analysis by broker and risk advisory Willis.

Against the backdrop of increased fossil fuel investment, the risk outlook is complex and interconnected, as companies balance conflicting priorities.

Rupert Mackenzie, global head of natural resources, Willis, said that maintaining stable energy supplies and healthy revenue flows are commercial priorities, but that the need to participate in the clean energy transition is "unavoidable".

“The risk outlook is more complex and interconnected than ever before," he said. "Navigating the clean energy transition is challenging for natural resources companies, [which] must balance competing regulatory, financial and operational pressures. From supply chain issues to technical and performance failures, to difficulties getting affordable project financing and right-sizing insurance cover."


In depth: Energy and natural resources trends and strategies (Source: Willis)


• 100% of natural resources companies surveyed have a clean energy strategy, but with different levels of maturity. 71% of renewables companies are at the stage of implementing or have fully implemented, compared with 36% for oil and gas, 63% for power and 43% for mining and metals.

• 63% view clean energy as a growth opportunity: The result is similar across all sectors, indicating a widespread commitment to the energy transition. This includes oil and gas businesses, with many companies investing in clean energy alongside the recent uptick in fossil fuel activity.

• Investment could increase by over a third in 2025: The average expected increase in spend on clean energy technologies and infrastructure in the next financial year is 34%, rising from an average £143m in 2024-25 to £192m.

• Technology priorities are shifting: 51% rated solar as a top priority in the near and medium term. In the medium to long term, 61% prioritise battery storage solutions and carbon capture and storage. Geothermal and hydrogen emerged as high priorities over a 10-year horizon.

• Supply chain and geopolitics are top risks: 79% cited supply chain disruption and 78% geopolitical issues among the greatest risks to their clean energy strategy, reflecting concerns over trade tensions and changes to subsidies and regulations amid persistent global volatility.

• Companies face challenges getting the right insurance: 53% said blanket exclusions were an obstacle to transferring their risks, followed by limited duration / inflexibility of insurance (48%) and lack of suitable products (47%), indicating a need for markets to develop new and better solutions for clean energy risks.

Willis’ survey is based on input from 450 senior decision makers in energy and natural resources companies in Europe, North America, Asia-Pacific and Latin America.

---