InfoSAWIT, KARACHI – In 2024 many industries in the globe would face big challenges that significantly have something to do with their performance. Five factors would be the main focuses to assess the potential impacts to the industries.
Chairman in Foreign Affairs Indonesian Palm Oil Association (IPOA), Fadhil Hasan said the first factor is climate changes particularly, El Nino. This is a concern because it would massively deliver impacts to agricultural production, water distribution, and other infrastructures.
“The stakeholders should intensify adaptation and mitigation to face the consequences of the climate changes which get real,” he said in his presentation in Pakistan Edible Oil Conference (PEOC), 12 January 2024 in Pakistan.
The second is the economy in the globe. The Fed’s interest rate which gets increasing, becomes the main focus to consider the impacts of economic progress. But critical questions raised, would higher interest rate continue and how would China recover its economy and influence commodity price? Every industry should smartly see the progress to anticipate the potential impacts.
In geopolitics, the conflict between Egypt and Palestine, the tension in Black Sea raised as the main risks that could escalate commodity price. Not only make politic uncertainty but also could mislead trade paths and supplies in the globe. Every industry should develop adaptive and responsive strategies to unstable geopolitics dynamic.
Energy transition is the fourth. How energy and commodity industries solve decarbonization and energy transition would be the key to success. The increasing use of plant material as the fuel would be the main focus heading to clean energy but it needs to notice the impacts for export and natural resource sustainability.
The implementation of European Union Due Diligence Regulation (EUDR) and forced labor would be the fifth. This would influence industrial performance. Every company is hoped to confirm its obedience to every regulation and reinforce their action to stop forced labor practice. This would qualify not only ethic and sustainable standards but also avoid legal and reputation (of a company) that would be a loss for doing business.
To face the complex challenges, the industries are hoped to escalate flexibility and response. The collaboration among stakeholders, innovation in technology, and adaptive business strategies would be the successful keys to face the complex dynamic that would influence industrial performance in 2024. (T2)
