Sustainability, Energy Transition, ESG

The Role of The ESG Investor in 2024 – Very Unclear, But Likely Not Helpful
March 1, 2024
Companies Mentioned:
ExxonMobil, LyondellBasell, BP, Shell, Neste, 245Recycle
Commodities Mentioned:
Low Carbon Fuels, SAF, Wood, Waste, CO2, Hydrogen, Plastics
Subjects Covered:
Recycling, Renewables, Carbon Capture, Emissions, New Energy, Hydrogen, ESG Investing, Climate Litigation, Clean Fuels

C-MACC Weekly Sustainability and Energy Transition Report

The Role of The ESG Investor in 2024 – Very Unclear, But Likely Not Helpful

  • 1st Topic of the Week: ESG Investing Still Has Limited Value – The performance of many ESG funds is being driven by their tech overweight, not because of moves made to drive corporate behavior. In fact, it is hard to see how ESG investing is doing anything to further any of the underlying goals. More fallout is likely in 2024 – we expect outflows.
  • 2nd Topic of the Week: Carbon vs Renewable – The game is up for the renewable/recycling industries, as successive COP meetings and other energy transition initiatives have turned the focus squarely onto carbon footprint. Renewable does not always mean low carbon, which is now a focus and a challenging one.
  • Otherwise – We look at overcrowding in Houston recycling, more on the weaker European carbon price and its implications for investment, another plug for hydro, why lenders are not aligned with climate goals, and CBAM.

Exhibit 1: The global momentum has slowed but remained positive in 2023

Source: LSEG Lipper

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