“You’re all CEOs, and I’m sure you’re sitting around and saying, well now we’ve been reminded of what we learned in 1973, which is, you need energy independence,” John Kerry, the former U.S. Secretary of State and climate envoy turned investor, told the summit’s crowd. “You’re not safe. There’s no security if you are dependent on the Strait of Hormuz or the Red Sea or somewhere else… it’s part of the whole supply chain discussion.”
In the past, geopolitical conflagrations have been framed as a matter primarily for nation states to address. And, despite the obvious advantages, renewable energy hasn’t always won out in challenging moments, as governments have often relied on easier short-term subsidies for existing energy sources to quell consumers and voters.
This time around, the volatility is a wake up call for corporate leaders who are newly empowered to do something about it. “Many companies are facing what’s in effect a COVID moment—a fundamental breakage in supply chains,” said Ron O’Hanley, the CEO of U.S. financial services giant State Street, in a different SMI session. “When we get to the other end of this, nobody is going to leave themselves to be exposed like that.”
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