EUR directors say their boards are doubling down on industry expertise while expressing concerns about a lack of necessary capital
In 2025, companies in energy, utilities and resources (EUR) found themselves navigating daily news developments. Leaders are accustomed to laying out long-term strategies based on distant time horizons, involving materials extraction, intrastate infrastructure, and heavy equipment, all at massive scale. But sudden trade and regulatory pressures are accelerating radical shifts in strategy—from responding to skyrocketing electricity demand to rapidly scaling rare earth production—heightening urgency and elevating the stakes for both boards and management.
And neither the pressures nor the pace look likely to lessen in the coming year:
- Chemicals companies face rising costs, higher demand, shifting regulations, and stakeholder pressure to adopt circular business models.
- The oil and gas industry is struggling to reconcile long-term planning with day-to-day shifting political, regulatory, and market forces.
- The power and utilities industry is confronting growing demand to power new data centers and more via aging grid infrastructure.
- Mining and metals companies have been compelled by governments, customers, and investors to focus—perhaps disproportionately—on rare earth metals, even as rising demand for a wide range of metals strains supply chains.
With more regulatory and demand disruption on the horizon, along with an ongoing digital transformation effort across the industry, EUR boards are being called to lead transformation, not just oversee it. This heightened level of engagement demands sharper governance, agility, and vision in the next year and beyond.
EUR directors say their boards are doubling down on industry expertise while expressing concerns about a lack of necessary capital
Directors in our 2025 Annual Corporate Directors Survey are more concerned than ever about their board colleagues underperforming, as external pressures mount and governance demands intensify. More directors than ever before now say someone on their board should be replaced. EUR directors share this sentiment, but they continue to focus on seeking traditional skill sets. Additionally, many EUR directors expressed concern about a lack of necessary capital to execute on their companies’ strategies, and they reported fewer boardroom discussions on climate change.
In 2025, 85 directors serving on boards of public EUR companies participated in our survey, accounting for 13% of all respondents. Here’s what we learned:
EUR directors continue to rely on traditional expertise
Directors in our survey on EUR companies are most likely to say they expect to add industry and operational expertise to their boards over the next year when compared to directors overall. They are also the least likely to be adding technology or AI skills to their boards.
When boards continue to prioritize the same industry and operational skill sets, the director talent pool narrows—potentially limiting access to fresh perspectives and the capabilities needed to oversee emerging risks and transformation.
Lack of capital limiting growth for EUR companies
In 2025, we asked a survey question to better understand the greatest internal barriers to companies’ future growth. Responses from all directors were varied—from not allocating enough resources to growth areas to lacking the right talent. But EUR directors stood out: they were by far the most likely industry to cite lacking the necessary capital to fund growth initiatives. One-third of EUR directors say this is their company’s greatest barrier—more than double the share of directors overall who say the same.
Companies may be trying to address these needs through M&A. Across energy and utilities, dealmaking is being shaped by heightened capital discipline and a sharper focus on capital efficiency—driving consolidation and portfolio actions aimed at strengthening balance sheets and funding priority investments.
EUR directors are talking to shareholders—but changing the least
EUR directors report engaging with shareholders more frequently than directors overall. Yet they are the least likely to say those interactions have led to any concrete action, such as increasing board discussion of key topics, enhancing public disclosures, revising governance policies or succession plans, or making changes to executive compensation or strategy.
Companies that listen but remain largely unresponsive to shareholder input may limit their access to additional capital—and may even invite potential activists. Investors still place significant weight on sustainability, climate transition, and broader ESG performance in their allocation decisions. As an example, 84% of investors globally believe companies should maintain their investment in climate adaptation, or increase it.
Climate change discussions happening less frequently
EUR companies, by the nature of their businesses, typically pay more attention to climate-related issues than companies in most other sectors. They run carbon-intensive, capital-heavy operations that sit squarely in the sights of regulators and carbon-pricing systems, and many of their assets—power plants, grids, pipelines, and mines—are exposed to storms, heatwaves, and other physical risks.
Even so, there was a significant decrease this year in those who say their boards discussed climate change more than once in the past year.
Conclusion
Board refreshment is top of mind for many EUR directors who know they need the right mix of skills to move their companies into the future. Shifting trade policies and where investors choose to deploy capital also pose real challenges for EUR companies, but the road ahead will likely present opportunities to gain a competitive advantage by enhancing governance practices. Where does your board stand?
