BUILDING TRUST IN THE ENERGY INDUSTRY

Transcription

1 BUILDING TRUST IN THE ENERGY #EDELTRUST STAVANGER, MARCH 24, 2015

2 EDELMAN S 15TH ANNUAL TRUST BAROMETER METHODOLOGY Online Survey in 27 Countries 33,000 respondents 7 years in 20+ markets 10 years in 10+ markets General Online Population 1,000 respondents per country surveyed Ages years in 25+ markets Informed Public 500 respondents in U.S. and China, and 200 in other countries Ages College-educated In top 25% of household income per age group in each country Report significant media consumption and engagement in business news and public policy 15 years of data 2

3 THE STATE OF TRUST

4 2015 TRUST IS ESSENTIAL TO INNOVATION 2014 BUSINESS TO LEAD THE DEBATE FOR CHANGE 2013 CRISIS OF LEADERSHIP 2012 FALL OF GOVERNMENT 2011 RISE OF AUTHORITY FIGURES 2010 TRUST IS NOW AN ESSENTIAL LINE OF BUSINESS 2009 BUSINESS MUST PARTNER WITH GOVERNMENT TO REGAIN TRUST 2008 YOUNG INFLUENCERS HAVE MORE TRUST IN BUSINESS 2007 BUSINESS MORE TRUSTED THAN GOVERNMENT AND MEDIA 2006 A PERSON LIKE ME EMERGES AS CREDIBLE SPOKESPERSON 2005 TRUST SHIFTS FROM AUTHORITIES TO PEERS 2004 U.S. COMPANIES IN EUROPE SUFFER TRUST DISCOUNT 2003 EARNED MEDIA MORE CREDIBLE THAN ADVERTISING 2002 FALL OF THE CELEBRITY CEO 2001 RISING INFLUENCE OF NGOS TRUST IN RETROSPECT 4

5 THE EVAPORATION OF TRUST: NGOS, BUSINESS, MEDIA ALL DECLINE TRUST IN THE FOUR INSTITUTIONS OF GOVERNMENT, BUSINESS, MEDIA AND NGOS, 2014 VS Informed Public 66% 63% # 1 59% # 2 57% NGOS BUSINESS MEDIA 53% 51% # % 48% # 4 GOVERNMENT Q [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale, where one means that you do not trust them at all and nine means that you trust them a great deal. (Top 4 Box, Trust) Informed Publics in 27-country global total.

6 AND THE DEBATE IS INTENSIFYING FOUR KEY FACTORS AFFECT TRUST IN BUSINESS INDUSTRY SECTOR ENTERPRISE TYPE BUSINESS COUNTRY OF ORIGIN LEADERSHIP All are showing similar patterns of a post-recovery increase in trust, followed by new declines in the last months 5

7 DISTRUSTERS NEUTRAL TRUSTERS ENERGY INDUSTRY MORE TRUSTED BY INFORMED PUBLIC IN MOST COUNTRIES TRUST IN THE ENERGY SECTOR, INFORMED PUBLIC VS. GENERAL ONLINE POPULATION Informed Public 2015 GLOBAL 60 India 86 UAE 85 China 84 Indonesia 80 Singapore 75 Malaysia 73 Brazil 69 Russia 68 Hong Kong 66 Mexico 65 S. Korea 63 Italy 60 U.S. 59 France 57 Netherlands 56 S. Africa 50 Canada 49 Japan 49 Australia 49 Poland 48 Turkey 47 Spain 46 Ireland 46 Sweden 44 Argentina 42 U.K. 38 Germany GLOBAL 55 India 80 UAE 75 Indonesia 75 China 74 Singapore 69 Malaysia 69 Brazil 65 Mexico 64 Hong Kong 62 U.S. 59 S. Korea 58 Italy 56 Russia 56 France 54 Canada 53 Netherlands 51 S. Africa 51 Poland 48 Argentina 47 Ireland 47 Japan 44 Turkey 43 Australia 43 Germany 40 Sweden 39 U.K. 37 Spain 34 General Population General Online Population has equal or greater Trust in Mexico (-1) U.S. Canada (+4) S. Africa (+1) Poland Argentina (+5) Ireland (+1) U.K. (-1) 7 Q [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you do not trust them at all and nine means that you trust them a great deal. (Top 4 Box, Trust) Informed Publics, 27-country global total and General Population, 27-country global total.

8 INDUSTRY SECTORS: TECHNOLOGY-BASED INDUSTRIES DECLINE TRUST IN INDUSTRIES 2014 VS 2015, DECLINES COMPARED TO 2014 Informed Public More Trust Less Trust % Trust *% of countries in which trust decreased % 8 Q [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again please use the same nine-point scale where one means that you do not trust them at all and nine means that you trust them a great deal. (Top 4 Box, Trust) Informed Publics, 27-country global total.

9 TRUST IN ENERGY: DECLINING IN 60% OF COUNTRIES SURVEYED TRUST IN ENERGY INDUSTRY, 2014 VS 2015 General Population Increased Trust in 11 Countries Lower/Equal Trust in 16 Countries % Trust; emphasis on changes of 5 points or more % Q [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you do not trust them at all and nine means that you trust them a great deal. (Top 4 Box, Trust) General Population, 27-country global total.

10 INDUSTRY SUB-SECTORS: NUCLEAR IS LEAST TRUSTED TRUST IN VARIOUS INDUSTRY SUB-SECTORS, 2014 VS General Population % 68% 57% 57% 54% 50% 49% 50% 49% 50 % 41% Renewables/ Cleantech* Natural Gas Utilities Oil Mining Pipelines Nuclear 10 Q61C-65C. [TRACKING] Now thinking about specific sectors within the energy industry, please indicate how much you trust businesses in each of the following sectors to do what is right. Again, please use the same 9-point scale where one means that you do not trust them at all and nine means that you trust them a great deal. General Population, 27-country global total. *2014: Renewables (wind, solar, biofuels, geothermal, etc.), 2015: Cleantech (electric vehicles, smart grid, wind and solar power)

11 TRUST IN CLEANTECH (RENEWABLES IN 2014): SHARP DECLINES IN SOME KEY MARKETS TRUST IN CLEANTECH/RENEWABLES, 2014 VS 2015 % Trust General Population Increased Trust in 11 Countries Lower/Equal Trust in 16 Countries 50 % Q61C-67C. [TRACKING] Now thinking about specific sectors within the energy industry, please indicate how much you trust businesses in each of the following sectors to do what is right. Again, please use the same 9-point scale where one means that you do not trust them at all and nine means that you trust them a great deal. (Top 4 Box, Trust) General Population, 27-country global total.

12 TRUST IN NUCLEAR: DISTRUSTED BY 80% OF COUNTRIES SURVEYED TRUST IN NUCLEAR, 2015 General Population 2015 More Trust Less Trust % Trust % Q61C-67C. [TRACKING] Now thinking about specific sectors within the energy industry, please indicate how much you trust businesses in each of the following sectors to do what is right. Again, please use the same 9-point scale where one means that you do not trust them at all and nine means that you trust them a great deal. (Top 4 Box, Trust) General Population, 27-country global total.

13 TRUST IN OIL: DECLINE IN 60% OF COUNTRIES TRUST IN OIL, 2014 VS 2015 General Population Increased Trust in 11 Countries Lower/Equal Trust in 16 Countries % Trust % Q61C-67C. [TRACKING] Now thinking about specific sectors within the energy industry, please indicate how much you trust businesses in each of the following sectors to do what is right. Again, please use the same 9-point scale where one means that you do not trust them at all and nine means that you trust them a great deal. (Top 4 Box, Trust) General Population, 27-country global total.

14 TRUST IN NATURAL GAS: SHARP DECLINES IN SOME KEY MARKETS TRUST IN NATURAL GAS, 2014 VS 2015 General Population % Trust Increased Trust in 11 Countries Lower/Equal Trust in 16 Countries % Q61C-67C. [TRACKING] Now thinking about specific sectors within the energy industry, please indicate how much you trust businesses in each of the following sectors to do what is right. Again, please use the same 9-point scale where one means that you do not trust them at all and nine means that you trust them a great deal. (Top 4 Box, Trust) General Population, 27-country global total.

15 TRUST AND INNOVATION

16 TRUST IN BUSINESS INNOVATION: PACE IS TOO FAST BY A 2-TO-1 MARGIN THE PACE OF DEVELOPMENT AND CHANGE IN BUSINESS AND INDUSTRY TODAY IS Informed Public 28% Too Slow 19% Just Right 51% Too Fast 19 Q Below are a number of statements. For each, please think about the pace of development and change in business and industry today and select the response that most accurately represents your opinion. (Not Enough, Too Much) Informed Publics, 27-country global total.

17 INNOVATIONS PERCEIVED AS DRIVEN BY TECHNOLOGY, BUSINESS TARGETS AND GREED/MONEY DRIVERS OF CHANGE IN BUSINESS AND INDUSTRY TODAY ARE PERCEIVED TO BE: Informed Public Technology 70% Business Growth Targets 66% Greed/Money 54% Personal Ambition 35% Improve People's Lives 30% Make the World a Better Place 24% 17 Q353. From the list below, what do you believe are the top three drivers of change in business and industry today? Informed Publics, 27-country global total.

18 BUSINESS INNOVATION: HYDRAULIC FRACTURING IS SIGNIFICANTLY DISTRUSTED TRUST IN RECENT DEVELOPMENTS IN BUSINESS AND INDUSTRY, INFORMED PUBLIC VS. GENERAL ONLINE POPULATION 61% 69% 49% 59% 44% 55% 39% 47% General Population 25% 32% Informed Public 50% Electronic and Mobile Payments Electronic and Personal Health Trackers Cloud Computing Hydraulic Fracturing Genetically Modified Foods 18 Q Below are a number of recent developments in business and industry. To what degree do you trust each of these recent developments? Informed Publics, 27-country global total.

19 HYDRAULIC FRACTURING: DISTRUSTED IN 19 OF 27 COUNTRIES SURVEYED TRUST IN HYDRAULIC FRACTURING General Population More Trust Less Trust % Trust in Hydraulic Fracturing % Q Below are a number of recent developments in business and industry. To what degree do you trust each of these recent developments? HYDRAULIC FRACTURING [A PROCESS IN WHICH NATURAL GAS IS EXTRACTED FROM ROCK BENEATH THE EARTH'S SURFACE] General Population, 27-country global total and across 27 countries.

20 TRUST IN INSTITUTIONS (TRUST INDEX) TRUST AND BUSINESS INNOVATION: HIGHER TRUST CREATES THE OPPORTUNITY FOR FASTER INNOVATION RELATIONSHIP OF TRUST IN INSTITUTIONS (TRUST INDEX) AND AVERAGE TRUST IN RECENT BUSINESS DEVELOPMENTS 95 Data from Table 574 Informed Public 85 IND UAE 75 INDO CHI 65 NETH SING GER AUS CAN FRA SWE RUS TUR GLOBAL MEX S.AF US ITA HK S.KO U.K. SPA ARG POL MAL BRA 35 JAP IRE 25 25% 35% 45% 55% 65% 75% 85% TRUST IN RECENT BUSINESS INNOVATIONS (AVERAGE) 20 Q Below are a number of recent developments in business and industry. To what degree do you trust each of these recent developments? Informed Publics, 27-country global total. Q Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale, where one means that you do not trust them at all and nine means that you trust them a great deal. Informed Publics, 27-country global total.

21 TRUST AND REGULATION

22 BUSINESS INNOVATION: NOT ENOUGH GOVERNMENT REGULATION GOVERNMENT REGULATION OF BUSINESS AND ACROSS INDUSTRY SECTORS IS PERCEIVED TO BE: 2014 TRUST BAROMETER: 51% say the most important role for government in business is to protect consumers and regulate business Informed Public NOT ENOUGH REGULATION TOO MUCH REGULATION 54% 54% 53% 52% 46% 40% 24% 15% 16% 20% 17% 14% Business Financial Services Industry Health Industry Technology Industry Energy Industry Food and Beverage Industry 23 Q148. [TRACKING] When it comes to government regulation of business, do you think that your government regulates business too much, not enough or the right amount? (Not Enough, Too much) Informed Publics, 27-country global total. Q262/Q263/Q264/Q381/Q382. When it comes to government regulation of the [financial services industry / energy industry / food and beverage industry / health industry / technology industry], do you think that your government regulates it too much, not enough or the right amount? (Not Enough, Too much) Informed Publics, 27-country global total.

23 EVEN WITH LOW GOVERNMENT TRUST, MAJORITY AGREE, ENERGY INDUSTRY SHOULD BE MORE REGULATED GOVERNMENT REGULATION OF THE ENERGY INDUSTRY: TOO MUCH, NOT ENOUGH, OR DON T KNOW General Population More Trust More Agreement : Not Enough Regulation Not Enough Regulation Too Much Regulation Don t Know % who agree % Q263. When it comes to government regulation of the energy industry, do you think that your government regulates it too much, not enough or the right amount? General Population, 27-country global total and across 27 countries.

24 ENERGY REGULATIONS: INDUSTRY HAS THE LICENSE TO ENGAGE PERCENT OF RESPONDENTS WHO AGREE General Population We Need More Regulation But Don t Trust Policy Makers Alone 52% Not enough government regulation of the energy industry 43% Trust policy makers to implement appropriate regulations on the energy industry The Energy Industry Needs To Engage 69% When policymakers are developing new regulations, they should consult with multiple stakeholders (i.e. NGOs, academics, the affected businesses/industries, etc.) 69% The energy industry should be a more active participant in the broader debate over energy policy 24 Q263. When it comes to government regulation of the energy industry, do you think that your government regulates it too much, not enough or the right amount? General Population, 27-country global total and across 27 countries. Q [TRACKING] [SPLIT SAMPLE] Please indicate how much you agree or disagree with the following statements? General Population, 27-country global total and across 27 countries. I trust policymakers to develop and implement appropriate regulations on the energy industry. Q [TRACKING] [SPLIT SAMPLE] Please indicate how much you agree or disagree with the following statements? General Population, 27-country global total and across 27 countries. When policymakers are developing new regulations on businesses and industries, they should consult with multiple stakeholders (i.e. NGOs, academics, the affected businesses/industries, etc.) before making final decisions. Q [TRACKING] [SPLIT SAMPLE] Please indicate how much you agree or disagree with the following statements? General Population, 27-country global total and across 27 countries. The energy industry should be a more active participant in the broader debate over [INSERT COUNTRY] energy policy.

25 BUILDING TRUST

26 16 KEY ATTRIBUTES TO BUILDING TRUST Edelman Trust Barometer research reveals 16 specific attributes that build trust. These can be grouped into five performance clusters listed here in rank order of importance. INTEGRITY Has ethical business practices Takes responsible actions to address an issue or crisis Has transparent and open business practices ENGAGEMENT Listens to customer needs and feedback Treats employees well Places customers ahead of profits Communicates frequently and honestly on the state of its business PRODUCTS & SERVICES Offers high-quality products or services Is an innovator of new products, services or ideas PURPOSE Works to protect and improve the environment Addresses society s needs in its everyday business Creates programs that positively impact the local community Partners with NGOs, government and 3 rd parties to address societal needs OPERATIONS Has highly-regarded and widely-admired top leadership Ranks on a global list of top companies Delivers consistent financial returns to investors 26 Q80-Q95. [TRACKING] How important is each of the following actions to building your trust in a company? Use a nine-point scale where one means that action is not at all important to building your trust and nine means it is extremely important to building your trust in a company. (Top 2 Box, Very/Extremely Important) Informed Public, 27-country global total.

27 ENERGY INDUSTRY FALLING SHORT IN KEY TRUST-BUILDING BEHAVIORS IMPORTANCE OF BEHAVIORS IN BUILDING TRUST VS. PERCENT WHO AGREE THE ENERGY INDUSTRY IS PERFORMING WELL AGAINST THESE BEHAVIORS Importance of Behavior in Building Trust in a Company Energy Industry Performing Well Gap Importance of Behavior vs. Energy Industry Performance General Population Ensures quality control Protects customer data Keeps me and my family safe Makes my life easier Embraces sustainable business practices Is transparent in reporting progress on company's social responsibilities Supports local charities and good causes Develops intellectual property Makes me feel connected to something bigger 60% 84% 58% 84% 58% 80% 65% 79% 54% 78% 51% 78% 51% 74% 54% 72% 48% 67% Q How important is each of the following factors to building your TRUST in a company? Use a 9-point scale where one means that action is not at all important to building your trust and nine means it is extremely important to building your trust in a company. (Top 4 Box, Trust) General Population, 27-country global total. Q How well do you think the [INSERT SECTOR BEING RATED] industry is performing on the behaviors listed below. Use a 9-point scale where one means they are performing extremely poorly and nine means they are performing extremely well. General Population, 27-country global total and across 27 countries.

28 TRUST MATTERS BEHAVIOR BASED ON TRUST Informed Public Distrusted Companies Trusted Companies -63% 80% Refused to buy products/services Chose to buy products/services -58% 68% Criticized them to a friend/colleague Shared negative opinions online Recommended them to a friend/colleague Paid more for products/services 54% -37% 48% Sold shares Shared positive opinions online Defended company 40% -18% 28% Bought shares #1 most trusted content creators: FRIENDS AND FAMILY #1 most trusted media source: ONLINE SEARCH ENGINES 28 Q Thinking back over the past 12 months, have you taken any of the following actions in relation to companies that you trust? Please answer yes or no to each action. Informed Publics, 27-country global total. Q Still thinking about the past 12 months, have you taken any of the following actions in relation to companies that you do not trust? Please answer yes or no to each action. Informed Publics, 27-country global total.

29 BUILDING TRUST IN THE ENERGY #EDELTRUST STAVANGER, MARCH 24, 2015