High Risk For Oil & Gas Companies; Investors Demand Paris Alignment

BERKELEY, CALIFORNIA—SEPT. 09, 2019—Think-tank Carbon Tracker released its latest report Sept. 5 analyzing the degree to which oil and gas companies are continuing to invest in climate-threatening projects. The report finds that $50 billion worth of approved projects in the last year are incompatible with global climate goals. This report follows a week in which ExxonMobil dropped from the S&P 500’s top 10 companies, and equity research house Redburn removed “buy” ratings from large integrated oil companies.

gas companies

jplenio / Pixabay

Danielle Fugere, president of As You Sow, made the following statement:

Know more about Russia than your friends:

Get our free ebook on how the Soviet Union became Putin's Russia.

Q2 hedge fund letters, conference, scoops etc

“All companies that are not Paris-aligned, and are not making plans to become Paris-aligned, are a direct threat to investor portfolios. Not only are these companies at risk of value destruction as the low-carbon energy transition moves forward without them, but they are creating significant risk to companies across the economy.

“As investors, we must see movement toward full Paris alignment from companies in the energy sector; this report underscores how unacceptably far off they still are.”

Paris accord and Oil & Gas Companies

Lila Holzman, energy program manager of As You Sow, made the following statement:

“Carbon Tracker’s research highlights concerns shareholders have been raising to oil and gas companies for years: these companies are not moving anywhere close to fast enough to prevent climate catastrophe. There are many steps the energy sector must take to become Paris-aligned; where companies like Exxon and Chevron could be leading the way, they instead have their heads in the sand.”

For more information on As You Sow’s work on climate change, click here.

What do you think? Tell is in the comments section!


As You Sow is a nonprofit organization that promotes environmental and social corporate responsibility through shareholder advocacy, coalition building and innovative legal strategies. Click here to see As You Sow’s shareholder resolution tracker.



About the Author

Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver