It’s clear that the Energy and Heavy Industries (EHI) sector is undergoing a complicated transition to more responsible and sustainable systems, not a quick switch. Fossil fuels will remain a part of the global energy mix for the foreseeable future. Not because ambition is lacking but because energy systems must stay secure, and affordable, while the shift to renewables scales.
This creates a tough reality for companies managing short-term shocks (geopolitics, regulation, technology and public expectations) while trying to deliver long-term transition goals. The challenge is not choosing between “old” and “new” energy systems but managing both simultaneously while ensuring people are protected across increasingly complex value chains.
In this article, David Rousseau, Principal Consultant and Sector Lead for EHI, shares his key observations from H1, and how Impactt will support EHI clients during this turbulent period as we move into H2.
Energy security: More than resources
Energy security is the primary driver of decision-making. But energy security is no longer just about having access to oil, gas, or renewable resources. Increasingly, it is about whether infrastructure, suppliers, and critical components are available when needed.
This has led many companies to prioritise resilience and flexibility in their supply chains. As projects move faster and supply chains become more global, companies often rely on a wider network of contractors and suppliers to respond quickly to changing market conditions.
The result is greater complexity and reduced visibility beyond Tier 1 suppliers. This makes it harder to identify issues such as recruitment fees, excessive overtime, or poor living conditions further down the supply chain, particularly when suppliers are onboarded rapidly.
Human Rights Due Diligence (HRDD) must adapt to fragmented, infrastructure-heavy systems, moving beyond box-ticking towards genuinely understanding where risks lie.
The energy transition: Creating new risks
The energy transition is creating new dependencies on critical minerals, batteries, solar panels, and other renewable technologies. Many of these supply chains originate in regions where labour and community risks remain significant.
At the same time, many renewable developers are relatively young organisations with lean sustainability teams. They are increasingly being asked by investors and buyers to demonstrate robust HRDD, often without the systems or internal capacity to respond effectively.
Impactt’s work in EHI has highlighted forced labour and community risks in renewable supply chains, exploring responsible procurement of solar panels to the impacts of wind farms and agri-feedstock. We help clients build approaches to HRDD that are fit for renewables, grounded in sector reality, and focused on what good looks like at project and supplier level.
Affordability: The foundation of political sustainability
It is also true that affordability underpins political and public consensus. When energy costs rise sharply, support for long-term climate ambition can diminish overnight. In a crisis, governments will prioritise keeping energy affordable and reliable.
This is mirrored in our ongoing conversations with clients. Sustainability teams are under increasing pressure to justify HRDD spend by demonstrating tangible business impact and risk reduction.
In short, if sustainability doesn’t demonstrate value, it risks being deprioritised.
Regional divergence is accelerating
The transition to renewable energy isn’t happening in the same way everywhere. Instead, we’re seeing a patchwork of region-specific strategies, shaped by differences in infrastructure, resources and geopolitical exposure.
This is precisely why a one-size-fits-all approach to HRDD doesn’t work. The risks facing a wind developer in Sweden are very different from those facing a solar developer in Brazil or a shipyard in China.
Practical solutions for companies
There’s a palpable sense of audit fatigue and pushback on costly, repetitive assessments. Clients are increasingly asking for faster, more practical ways to assess risk, without duplicating efforts.
At Impactt, we’re exploring more streamlined, light-touch assessment approaches to meet this need, focused on identifying root causes and driving action. This is an area we’re developing with our technical teams.
Collaboration over duplication
Despite the interconnectedness of the industry, collaboration remains limited. Companies are often duplicating assessments at the same sites, missing opportunities to share information and develop joint corrective actions. This causes inconsistent findings and missed opportunities to address root causes.
Impactt’s point of difference is that we help clients share insights and coordinate responses, reducing duplication and accelerating change.
Conclusion: Building energy systems that deliver for people
The energy transition is not a future challenge, it’s happening now and under real-world constraints. The companies that succeed will be those that can manage complexity without losing sight of people, building systems that are not just resilient and efficient, but fair.
This is where Impactt can help organisations turn insight into practical action, at speed.
Interested in continuing the conversation?
Get in touch with David, to explore how your EHI organisation can adapt its approach to HRDD in today’s landscape.
