Sustainable Energy : Fossil Fuels
This is a methodological document aimed at clarifying how Mirova takes into account sustainable development issues in the framework of the environmental, social and governance analysis of each sub-sector of activity.
Fossil fuels have historically driven economic growth but not without side effects: the now-alarming severity of climate change is directly linked to our fossil fuel use. Phasing out coal, oil, and gas, as quickly as possible, in that order, is the only way to avoid the catastrophic global impacts of unchecked climate change.
Companies in the fossil fuel industry must undergo a complicated transition. Demand for their products must decrease to stave off climate change, so companies have two options: redesign their business models or perpetuate their negative climate impacts until they are required to stop by external forces.
Ideally, fossil fuel companies would reorient their investments towards clean energy solutions like renewable energy systems, electricity generation, advanced1 biofuels, electricity storage, carbon capture and storage, and more.
Sectors: Oil & gas companies operating upstream (drilling, equipment & services, exploration & production) or downstream (refining & marketing, storage & transportation), and coal & consumable fuels