Oil and gas reserves should be the basis of sustainable investment

Just like many fund heads guided by the mission, reviewed their defense policy as a result of a complete invasion of Russia into Ukraine, analytics in Goldman Sachs He says now is time for sustainable investors to overestimate their approach to oil and gas companies.

This happens at a time when there are European energy specialties Sliced ​​renewable costs and doubled on fossil fuel Seeking to increase the profitability of shareholders.

Investments focused on environmental, social and management factors (ESG) Change climateHuman rights or corporate transparency.

Tobacco giants, fossil fuel companies and weapons manufacturers were usually among those who were examined or expelled from sustainable portfolios.

“Just like moods on defense companies I believe that oil and gas moods have changed with the Russian-Ukraine wars, “Michel Della Vinya, head of the EMEA natural resources study in Goldman Sachs, CNBC reported on a video call.

Della Vinya stated that a sustainable reluctance to his own energy specialty “main mistake” when evaluating energy transition from the perspective of European investors is the approach he suggests.

Della Vigna Goldman outlined three reasons to back up on why ESG investors should bring oil and gas reserves.

“Let’s be clear, this energy transition will be much longer than expected. We think the peak of oil demand in the middle (and) demand for gas in the 2050s,” said Dela Vinya.

“And we clearly show that we need the development of oil and gas in the green field in the 2040s. So, if we need a new development of oil and gas, why not own these companies?”

International Energy Agency, meanwhile, has – Note The requirement of fossil fuel is expected to the maximum of the decade. The energy watchman is also repeatedly prevent What new energy and gas projects are required to achieve world energy demand when Net-Nula is up to 2050.

The second point of Della Vigna was that oil and gas companies are some of the largest investors in low carbon energy worldwide, adding that the inability to engage and finance oil and gas reserves will eventually serve the barrier to transfer energy.

In addition, Della Vigna said that unlike the utilities he called the builders of infrastructure, oil and gas companies-“market manufacturers” and “risk”.

“So, we need their opportunities, balance and risk. They are a low-level carbon investor, and we like or not, we also need their basic business and gas business,” said Dela Vinya.

“Otherwise, we will not have accessible energy, especially for new markets, and we will have energy poverty, which I think is acceptable in any ESG,” he continued.

“I think the energy companies that are conducting energy transition should be the cornerstone of ESG funds – not the target,” said Dela Vinya.

Not everyone is convinced that oil and gas reserves should follow the ESG defense companies.

“I think it’s a little extreme,” said CNBC IDA Kassa Johannesen, head of commercial ESG in Saxo Bank.

“Just because the defense stocks benefit does not mean that oil and gas should also benefit. I don’t think we should compare them directly,” said Casa Johannesen.

“We see the negative effects of oil and gas. The current climatic situation is not good. We see A record temperature. Increase of greenhouse gas emissions. Oceans warming and The height of the sea level. I mean, why would we like to see more fossil fuels? Most ESG investors will not, ”she added.

Scientists have repeatedly Pushed to rapid reduction of greenhouse gas emissions to stop the average temperature temperature growth. These calls continue through an alarming mileage of temperature records, with the planet registration The hottest year in human history in 2024.

Extreme temperatures have drink According to the climate crisis, the chief driver is burning fossil fuel.

Allen Hood, a senior analyst of the shares that covers the oil and gas industry in Morningstar, said it is difficult to anticipate the time when the oil and gas in ESG would be complete.

He added, however, that a slightly more peaceful investor approach is possible on the basis that energy specialties significantly increase the amount they put into renewable and low -carbon technologies.

“I mean ESG, for me, this is a whole touchsuit – this is the transition of energy (and) climate change. So, it would be difficult for me to say that they will start investing in oil and gas companies,” CNBC said on the phone.

“Now I think General(Energy) enters the portfolio. But someone is like Exxon or even a Chevron … It would be difficult for me to understand how it gets into ESG, ”he added.