ESG focus on fossil fuel divestment threatens renewables investment, Goldman analyst warns

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ESG focus on fossil fuel divestment threatens renewables investment, Goldman analyst warns FossilFuels

Goldman’s ratio was 1.3 to one at the end of 2021, according to a report by analysts at BloombergNEF. By comparison, JPMorgan Chase & Co., the world’s largest arranger of energy deals, had an energy-supply banking ratio of 0.7 in 2021.

“Anything that pushes companies to produce less energy, like just focusing on absolute emissions, for them, I think, runs the risk of prolonging this energy crisis,” he said.Article content Frantic efforts by European governments to wean themselves off Russian supplies have since helped drive gas prices down to pre-war levels. That’s created a sense of relief across the West, as the ripple effects of lower energy costs start to trickle through to other prices. The risk, however, is that the development leads to a lull in momentum toward the energy transition, according to Della Vigna.

 

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