Abstract
During the past decade, investors have become increasingly aware of climate change as a fundamental investment risk. This has led banks and asset managers to shun the oil and gas industry, leading to significant underperformance of oil and gas stocks. The sector’s low valuations left it vulnerable to takeovers, breakups, and buyouts by national oil companies. It seemed that the public financial markets would soon be closed to the industry altogether. Recent events, including the Russia-Ukraine War and the SEC’s climate disclosures requirements, may have changed that. The industry may have just gotten one last shot to work with investors on the energy transition.
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Notes
- 1.
As of March 7, 2022.
- 2.
As of month end February 28, 2022, based on ETF returns.
- 3.
March 8, 2022.
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Chen, S. (2023). Climate and Financial Markets. In: Sustainable Oil and Gas Using Blockchain. Lecture Notes in Energy, vol 98. Springer, Cham. https://doi.org/10.1007/978-3-031-30697-6_2
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