Sustainable Energy : Fossil Fuels

Published on 11/04/2019

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. 

Mirova

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 
 

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Samantha STEPHENS
Samantha STEPHENS
SRI Analyst

Other publications of the author

Other publications of the author
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No matter the final objective - risk mitigation, identifying opportunities, creating impact, or all three – considering environmental and social factors alongside financial information leads to an information advantage for investors.

Should we fail to limit temperature rise to 2°C or less, climate change will almost certainly wreak global havoc and lead to vast costs (IPCC, 2014). To mitigate the costs and impacts of climate change, we have no choice but to reduce emissions as quickly as possible while building resilience in the areas that will be affected. 


 

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Sustainable Energy - A focus on Utilities

This document is part of a series published by Mirova to illustrate our approach to sustainability sector-by-sector. We aim to address solutions, risks, and how we optimize impact through investment. This eighth paper focuses on environmental, social and governance issues in the Utilities sector.

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