Oil and gas stocks should be the cornerstone of sustainable investment

Just as many managers of the task funds on their defensive policy were reviewed in the widespread invasion of Russia for Ukraine, an analyst in Goldman Sachs He says that time has now come for investors to reassess their approaches in oil and gas companies.

It comes at a time when European energy specializations are allocated Renewed spending clip and Fossil fuel In an attempt to strengthen the returns of shareholders in the short term.

Investments focus on environmental, social and governance factors (ESG) to the preference of companies that are largely recorded in some criteria, such as ClimateOr human rights or the transparency of companies.

Tobacco giants, fossil fuel companies and arms makers are usually among those that have been examined or excluded from sustainable portfolios.

“In the same way Feelings on defense companies I have changed with the war of Russia and Krin, I think feelings related to oil and gas should change. “

Della Veneia said that the continuous desire to own energy specialization is biased through a “big mistake” in assessing energy transmission from the perspective of European investors, said Della Veneia – an approach that is expected to be changed.

Della Venia from Goldman identified three reasons for copying his outlook about the reason for ESG investors to bring oil and gas shares from the cold.

“Let’s be clear, this energy transmission will be much longer than expected. We will be, as we think, at the height of the demand for oil in the mid -thirties of the last century (and) the demand for gas in the fifties,” said Della Veneia.

“We clearly show that we need to develop oil and green gas in the 1940s. Therefore, if we need to develop oil and new gas, why don’t we have these companies?”

The International Energy Agency, at the same time, has He said It is expected that the demand for fossil fuels will reach its peak by the end of the contract. It also has energy control over and over again to caution There is no need for new oil and gas projects to meet the global demand for energy with the achievement of net zero emissions by 2050.

The second point of Della Vigna was that oil and gas companies represent some of the largest low -carbon energy investors around the world, adding that the failure to deal with oil and gas stocks is its financing, and will ultimately work as an energy transfer bar.

In addition, Della Vigna said that unlike the facilities, which he described as infrastructure builders, oil and gas companies are “market makers” and “risk”.

“Therefore, we need their capabilities, the public budget and risk risks. They are one of the largest investors in low carbon and whether we love it or not, we also need their basic work in oil and gas,” said Della Veneia.

“Otherwise, we will not have reasonable energy, especially for emerging markets, and we will have energy poverty, which I do not think is acceptable in any ESG frame,” continued.

“I think the energy companies that lead the energy transmission should be the cornerstone of ESG funds – not a target for abstraction,” said Della Veneia.

“We can see the negative effects of oil and gas. The current climate is Not. We see Standard temperaturesand High greenhouse gas emissionsand Ocean warming and Sea level rise. I mean, why do we want to see more fossil fuels? She added that most Esg investors will not do it. “

Scholars repeatedly It was paid for fast discounts in greenhouse gas emissions to stop the high average global temperatures. These calls continued through a set of disturbing temperature records, with the planet Registration It is the hottest year in human history in 2024.

The maximum temperatures Nourish Through the climate crisis, the main driver is Burning fossil fuel.

Allen Good, a great inventory that covers the oil and gas industries in Mooringstar, said it is difficult to predict as there will be complete acceptance of oil and gas in ESG.

He added, however, that the most relaxed approach to investors is possible on the basis that energy specialties significantly increase the amount they invest in renewable technologies and low carbon.

“I mean ESG, for me, it is a complete reason that is the transmission of energy (and) climate change. So, I will find it difficult to believe that they will say that they will start investing in oil and gas companies,” said Joud CNBC by phone.

“Now, I think what you can start to see is some mitigation around the edges, as they reached some agreement where the company invests X in renewable energy, or that its profits will be X in 10 years, then perhaps a the total(Energy) is included in the portfolio. But a person like Exxon Or even a Chevron … I will find it difficult to see how it happens in Esg. “