The progression of the energy sector from fossil fuels to renewable energy produced from naturally replenishing sources including wind, solar, geothermal, hydropower, tidal, and biomass.

The energy transition has gained momentum in recent years as climate change has become more apparent and stakeholders, notably shareholders, investors, and lenders, are demanding that oil and gas companies address it. Many of the major international oil companies have adopted energy transition strategies to position themselves for a cleaner energy future. These strategies include adopting environmental, social, and governance (ESG) standards and committing to lower greenhouse gas emissions, diversification to renewable energy, such as wind and solar, and carbon capture and storage projects. Multiple international, intergovernmental, and non-governmental organizations are also engaged in supporting the energy transition, notably the International Renewable Energy Agency.

For information on ESG, see Practice Notes, Key Developments in ESG and Climate Disclosure Tracker and ESG Disclosure & Sustainability Reporting Frameworks. For information on renewable energy see, Practice Note, Renewable Energy: Overview.