Sustainability, Energy Transition, ESG | Weekly Thematic

ESG Investing Stinks! We need something different to drive change
July 20, 2022
Companies Mentioned:
OMV, Repsol, BP, Shell, TotalEnergies, ENI, Tullow Oil, Gevo, Freeport McMoRan, Consumers, Hexion, Lummus, ExxonMobil, Yara, VW, Redwood
Commodities Mentioned:
Subjects Covered:
Recycling, Renewables, Carbon Capture, Emissions, New Energy, The Hydrogen Economy, ESG Investing, Climate Litigation, Clean Fuels

C-MACC Weekly “CRETER” (Climate etc.)

ESG Investing Stinks! We need something different to drive change

  • We argue ESG investing is doing very little to support environmental initiatives, penalizing energy companies with transition plans rather than helping them.
  • ESG and green money is unavailable for most projects that do not exhibit “safe” returns – in the current setting, almost everything does not fit this requirement.
  • Public companies with well-articulated transitions strategies are hamstrung by public valuations, limiting degrees of freedom, and take private options look good.
  • Start-ups are equally hampered by shrinking risk appetite on both inflation and higher borrowing costs – we want energy transition but won’t pay for it.
  • Otherwise, we look at metals’ prices, the cost of chemical recycling, methane emissions, renewable natural gas, and renewable power costs.

See PDF below for all charts, tables and diagrams

Client Login

Learn About Our Subscriptions and Request a Trial

Contact us to gain full access and experience our services!

Request a Free Trial