Like defense, Goldman says ESG investors should bring oil and gas stocks from cold

For example, many mission-operated fund managers have reconsidered their defense policy in view of Russia’s full-scale invasion of Ukraine, an analyst, Goldman Sachs It is now said that it is time for permanent investors to re -evaluate its approach for oil and gas companies.

It comes at a time when large companies of European energy have Renewable expenses And Fossil fuel doubled In an attempt to promote near-term shareholder returns.

Investments focused on environment, social and governance (ESG) factors are in favor of companies that score highly on some criteria, such as Climate changeHuman rights or corporate transparency.

Tobacco stalwarts, fossil fuel companies and arms manufacturers are usually performed one of those who have been investigated or excluded from permanent portfolio.

“In the same way that Affairs on defense companies Russia-Ukraine has changed with war, I think Mitchell Dela Wigna, head of EMEA Natural Resource Research in Goldman Sachs, should change the spirit of oil and gas.

A frequent reluctance for large energy companies itself is biased by a “major mistake” in evaluating energy infection from the point of view of European investors, Dela Wigna said – an attitude that he expects to change.

Goldman’s Dela Wigna underlined three reasons to back-up his idea why ESG investors should bring oil and gas stock from cold.

Dela Vigna said, “It is clear that this energy infection will be longer than expected. We think, seek peak oil in the mid -2050s (and) demand for peak gas in the 2050s.”

“And we clearly show that we need a thorough greenfield oil and gas growth in the 2040s. Therefore, if we need new oil and gas development, why will we not be the owners of these companies?”

International Energy Agency, meanwhile, Said This hopes that the demand for fossil fuels is at its peak by the end of the decade. Energy watchdog is also repeatedly Wags No new oil and gas projects are required to meet global energy demand while acquiring pure-zero emissions by 2050.

The second point of Dela Vigna was that oil and gas companies represent some of the largest investors in low-carbon energy worldwide, saying that failure to engage with the two, and finance oil and gas shares would eventually serve as a barrier to energy infection.

In addition, Dela Wigna said that unlike utilities, which they described as infrastructure builders, oil and gas companies are “market manufacturer” and “risk -taking”.

“So, we need to take their abilities, balance sheets and risk. They are some of the largest investors in low carbon and or not, we also need their main businesses of oil and gas,” said Dela Wigna.

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

“I think energy -leading energy companies should be the cornerstone of ESG funds – not the goal of a division,” said Dela Wigna.

“We can see the negative effects of oil and gas. The current climate is the condition Not goodWe see Record-breaking temperature, Growing greenhouse gas emissions, Oceanaria And sea ​​level riseI mean, why would we like to see more fossil fuels? Most ESG investors will not, “he said.

Are scientists Frequently Greenhouse was pushed for rapid decrease in greenhouse gas emissions to prevent rising global average temperatures. These calls continue through a dangerous run of temperature records with the planet Recorded Its hottest year in human history in 2024.

There are excessive temperatures fuel Climate crisis, is the main driver Fossil fuel irritation,

Elon Good, a senior stock analyst covering oil and gas industries at Morningstar, said ESG would have a total acceptance of oil and gas, where it is difficult to predict a time.

However, he said that a little more comfortable approach to investors is possible on the basis that large energy companies greatly increased the amount invested in renewable and low carbon technologies.

Good told by CNBC to telephone, “I mean ESG, for me, it’s perfectly, it is completely energy transition (and) climate change. Therefore, I would be difficult to believe that they would say that they are going to start investing in oil and gas companies.”

“Now, I think what you can start to see is something loose around the edges, causing them to come on some agreement where a company is investing X amount in renewable energy, or their earnings will be X in 10 years, then maybe A. Total(Energy) occurs in portfolio. But someone likes Exan Or even a Shehtir … I will be difficult to see how to find in ESG, “he said.