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In a year when rich got richer and poor got poorer, during an economic recession, there's no shortage of flaws to fix in capitalism.
Low-hanging fruit: getting oil companies to disclose what they know about their future climate toll.
Let me explain.
https://www.bloomberg.com/graphics/2020-exxon-carbon-emissions-data-climate-change/
Low-hanging fruit: getting oil companies to disclose what they know about their future climate toll.
Let me explain.
https://www.bloomberg.com/graphics/2020-exxon-carbon-emissions-data-climate-change/
If you have a pension, you almost certainly own some stock in a fossil fuel company. Those managing your pension have a duty to maximize returns and, until now, disregarding climate change helped them do that.
That's now changing. https://www.bloomberg.com/news/articles/2020-09-23/the-state-street-etf-that-proved-oil-doesn-t-pay-green-insight?sref=jjXJRDFv
That's now changing. https://www.bloomberg.com/news/articles/2020-09-23/the-state-street-etf-that-proved-oil-doesn-t-pay-green-insight?sref=jjXJRDFv
It's changing because governments are setting tighter climate goals, which companies will have to align to survive. But investors are still largely playing blind.
That's because emissions data that companies disclose is limited and not always comparable. https://www.bloomberg.com/news/articles/2020-11-03/emissions-data-isn-t-good-enough-for-investors-quant-study-shows
That's because emissions data that companies disclose is limited and not always comparable. https://www.bloomberg.com/news/articles/2020-11-03/emissions-data-isn-t-good-enough-for-investors-quant-study-shows
For oil companies, specifically, it's taken years of activism to get them to disclose the limited data that they do share. But all of that data is largely historical, ie here's what we emitted.
What matters more is what the companies will emit. https://www.bloomberg.com/news/articles/2020-10-05/exxon-carbon-emissions-and-climate-leaked-plans-reveal-rising-co2-output
What matters more is what the companies will emit. https://www.bloomberg.com/news/articles/2020-10-05/exxon-carbon-emissions-and-climate-leaked-plans-reveal-rising-co2-output
Our reporting says that the industry knows its future climate toll. That information can be crucial as @AB_insights shared with us.
If companies don't account for climate regulation, they will have stranded assets and shareholders will lose money. https://www.bloomberg.com/graphics/2020-exxon-carbon-emissions-data-climate-change/?srnd=premium-europe&sref=jjXJRDFv
If companies don't account for climate regulation, they will have stranded assets and shareholders will lose money. https://www.bloomberg.com/graphics/2020-exxon-carbon-emissions-data-climate-change/?srnd=premium-europe&sref=jjXJRDFv
That's because fossil-fuel projects typically cost billions of dollars and last for decades at a time. If investors can see that emissions from these projects are not compatible with climate goals, they can get the company to change.
An example: https://www.bloomberg.com/news/features/2020-12-07/exxon-s-xom-carbon-capture-project-stalled-by-covid-19
An example: https://www.bloomberg.com/news/features/2020-12-07/exxon-s-xom-carbon-capture-project-stalled-by-covid-19
That's why the clamor for emissions forecasts is growing. There will likely be shareholder votes on increasing disclosures. It'll require the public to care and demand investors to vote in favor.
Vote by vote some of capitalism's flaws can be fixed https://www.bloomberg.com/news/articles/2020-10-06/exxon-climate-disclosures-big-oil-hides-carbon-forecasts-from-investors
Vote by vote some of capitalism's flaws can be fixed https://www.bloomberg.com/news/articles/2020-10-06/exxon-climate-disclosures-big-oil-hides-carbon-forecasts-from-investors
