The 2023 landscape was shaped by a new reality and uncertainty. Globally, a dual challenge emerged as geopolitical conflicts highlighted the world's reliance on oil and gas, while policymakers sought alternative energy sources to enhance resilience. This move had ramifications at the corporate level, where increased M&A activity was driven by the pursuit of carbon capture and clean energy technologies. In addition, we observed a narrative shift in ESG regulations. The regulatory and reporting landscape becomes even more onerous for corporates globally, emphasizing the need for transparency and compliance.
This year unfolded with pivotal changes to regulations proposed moving into 2024 and energy companies having a renewed focus on sustainability guided by these evolving regulations. PEP’s ESG retrospective of 2023 reviews the challenges presented throughout the year and provides insight into trends that will shape the trajectory going into 2024.