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Oil Majors’ Lack Of Climate Disclosure Putting Investors At Risk



Oil Majors' Lack Of Climate Disclosure Putting Investors At Risk

All of the oil majors continue to provide only vague projections of how electric vehicles and renewable energy could radically affect their main businesses of oil and gas, despite the Oil and Gas Climate Initiative‘s pledge this week to invest in low carbon technology.

This comes after recent investigations into ExxonMobil by the US SEC on their reserves valuation in the face of potentially stringent climate regulations globally. The new report by London based non-profit InfluenceMap suggests this lack of disclosure may be an industry wide issue. These findings are particularly relevant in the context of the upcoming release of the first report of the FSB’s Climate Disclosure Task Force, expected in early December 2016.

“The issue of reserves impairment disclosure by the oil and gas majors is now firmly in the spotlight in the wake of the Exxon investigations. Investors and pension holders have a right to know how these companies think their reserves will be affected by climate regulations.” said Steven Heim, Managing Director, Boston Common Asset Management

Exxon, Occidental and Chevron score the worst in the analysis of the ten largest European and North American oil and gas majors due to a mixture of lack of disclosure, low-ambition strategy and negative lobbying against ambitious climate policy, suggesting these three warrant particular investor scrutiny. European majors BP, Shell and Total are close behind, dragged down by lobbying and poor disclosure of electric vehicle penetration impact. Despite proclaiming their support for carbon pricing OGCI members including BP, Total and Eni have all lobbied against efforts to implement science-based carbon pricing measures in the recent past like the EU Emissions Trading Scheme.

We believe oil and gas majors can play a positive and leading role in the transition to a low carbon economy

How the oil and gas majors stack up – overall score for climate risk
“We believe oil and gas majors can play a positive and leading role in the transition to a low carbon economy, but for that, we need to be able to collectively work on the challenges of meeting the global climate target. Firms have to be more transparent on their long term energy assumptions and CAPEX sensitivities to new technologies that can impact their future business models.” said Meryam Omi, Head of Sustainability and Responsible Investment Strategy, Legal & General Investment Management

The analysis shows that the oil companies could be dramatically overstating future demand for petroleum products in road transport, which accounts for at least 35% of their present gross revenue. Most oil companies, including BP, Shell, Total and Eni are either silent or mostly vague on the impact of future electric vehicles on oil demand, despite plans by many automotive manufacturers to sell 25% or more electric or low emission hybrid vehicles as early as 2025. Shell, however, added comments to its view of oil demand in light of these pressures on its November 2 2016 earnings call.

Further, Mary Nichols, the head of the California Air Resources Board and dubbed the “world’s most powerful automotive regulator” wants 100% new cars in California to be zero emission (or close to) by 2030. If adopted in this key market, that translates to a catastrophic drop in markets for gasoline and diesel, a mainstay of big oil’s profits.

“Shareholders are right to query information from management that they consider unrepresentative of the real risks facing the company. Where the information disclosed about the potential impact of climate risk to the business is false, misleading or incomplete, and this affects the share price, investors can sue. These cases could well represent the next wave of shareholder class actions.” said Alice Garton, Senior Corporate Lawyer, ClientEarth


7 New Technologies That Could Radically Change Our Energy Consumption



Energy Consumption
Shutterstock Licensed Photo - By Syda Productions |

Most of our focus on technological development to lessen our environmental impact has been focused on cleaner, more efficient methods of generating electricity. The cost of solar energy production, for example, is slated to fall more than 75 percent between 2010 and 2020.

This is a massive step forward, and it’s good that engineers and researchers are working for even more advancements in this area. But what about technologies that reduce the amount of energy we demand in the first place?

Though it doesn’t get as much attention in the press, we’re making tremendous progress in this area, too.

New Technologies to Watch

These are some of the top emerging technologies that have the power to reduce our energy demands:

  1. Self-driving cars. Self-driving cars are still in development, but they’re already being hailed as potential ways to eliminate a number of problems on the road, including the epidemic of distracted driving ironically driven by other new technologies. However, even autonomous vehicle proponents often miss the tremendous energy savings that self-driving cars could have on the world. With a fleet of autonomous vehicles at our beck and call, consumers will spend less time driving themselves and more time carpooling, dramatically reducing overall fuel consumption once it’s fully adopted.
  2. Magnetocaloric tech. The magnetocaloric effect isn’t exactly new—it was actually discovered in 1881—but it’s only recently being studied and applied to commercial appliances. Essentially, this technology relies on changing magnetic fields to produce a cooling effect, which could be used in refrigerators and air conditioners to significantly reduce the amount of electricity required.
  3. New types of insulation. Insulation is the best asset we have to keep our homes thermoregulated; they keep cold or warm air in (depending on the season) and keep warm or cold air out (again, depending on the season). New insulation technology has the power to improve this efficiency many times over, decreasing our need for heating and cooling entirely. For example, some new automated sealing technologies can seal gaps between 0.5 inches wide and the width of a human hair.
  4. Better lights. Fluorescent bulbs were a dramatic improvement over incandescent bulbs, and LEDs were a dramatic improvement over fluorescent bulbs—but the improvements may not end there. Scientists are currently researching even better types of light bulbs, and more efficient applications of LEDs while they’re at it.
  5. Better heat pumps. Heat pumps are built to transfer heat from one location to another, and can be used to efficiently manage temperatures—keeping homes warm while requiring less energy expenditure. For example, some heat pumps are built for residential heating and cooling, while others are being used to make more efficient appliances, like dryers.
  6. The internet of things. The internet of things and “smart” devices is another development that can significantly reduce our energy demands. For example, “smart” windows may be able to respond dynamically to changing light conditions to heat or cool the house more efficiently, and “smart” refrigerators may be able to respond dynamically to new conditions. There are several reasons for this improvement. First, smart devices automate things, so it’s easier to control your energy consumption. Second, they track your consumption patterns, so it’s easier to conceptualize your impact. Third, they’re often designed with efficiency in mind from the beginning, reducing energy demands, even without the high-tech interfaces.
  7. Machine learning. Machine learning and artificial intelligence (AI) technologies have the power to improve almost every other item on this list. By studying consumer patterns and recommending new strategies, or automatically controlling certain features, machine learning algorithms have the power to fundamentally change how we use energy in our homes and businesses.

Making the Investment

All technologies need time, money, and consumer acceptance to be developed. Fortunately, a growing number of consumers are becoming enthusiastic about finding new ways to reduce their energy consumption and overall environmental impact. As long as we keep making the investment, our tools to create cleaner energy and demand less energy in the first place should have a massive positive effect on our environment—and even our daily lives.

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Responsible Energy Investments Could Solve Retirement Funding Crisis




Energy Investments
Shutterstock / By Sergey Nivens |

Retiring baby-boomers are facing a retirement cliff, at the same time as mother nature unleashes her fury with devastating storms tied to the impact of global warming. There could be a unique solution to the challenges associated with climate change – investments in clean energy from retirement funds.

Financial savings play a very important role in everyone’s life and one must start planning for it as soon as possible. It’s shocking how quickly seniors can burn through their nest egg – leaving many wondering, “How long your retirement savings will last?

Let’s take a closer look at how seniors can take baby steps on the path to retiring with dignity, while helping to clean up our environment.

Tip #1: Focus & Determination

Like in other work, it is very important to focus and be determined. If retirement is around the corner, then make sure to start putting some money away for retirement. No one can ever achieve anything without dedication and focus – whether it’s saving the planet, or saving for retirement.

Tip #2: Minimize Spending

One of the most important things that you need to do is to minimize your expenditures. Reducing consumption is good for the planet too!

Tip #3: Visualize Your Goal

You can achieve more if you have a clearly defined goal in life. This about how your money can be used to better the planet – imagine cleaner air, water and a healthier environment to leave to your grandchildren.

Investing in Clean Energy

One of the hottest and most popular industries for investment today is the energy market – the trading of energy commodities. Clean energy commodities are traded alongside dirty energy supplies. You might be surprised to learn that clean energy is becoming much more competitive.

With green biz becoming more popular, it is quickly becoming a powerful tool for diversified retirement investing.

The Future of Green Biz

As far as the future is concerned, energy businesses are going to continue getting bigger and better. There are many leading energy companies in the market that already have very high stock prices, yet people are continuing to investing in them.

Green initiatives are impacting every industry. Go Green campaigns are a PR staple of every modern brand. For the energy-sector in the US, solar energy investments are considered to be the most accessible form of clean energy investment. Though investing in any energy business comes with some risks, the demand for energy isn’t going anywhere.

In conclusion, if you want to start saving for your retirement, then clean energy stocks and commodity trading are some of the best options for wallets and the planet. Investing in clean energy products, like solar power, is a more long-term investment. It’s quite stable and comes with a significant profit margin. And it’s amazing for the planet!

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