Issuance of fossil fuel offerings fell by 85 per cent from US$70 billion to US$10 billion in the period analysed from 2012-2020. — letty17/IStock.com pic via AFPPARIS, March 31 ― Share offerings in fossil fuel producing and related companies lost US$123 billion in the last decade, underperforming a baseline world equities index by 52 per cent, according to analysis released today.
Mark Campanale, founder and executive director of Carbon Tracker, said that investors were mistaken in thinking that the historic low oil prices witnessed at the height of the pandemic last year were an aberration. The analysis looked at stock market fortunes of fossil fuel companies and compared them against renewable companies and against the MSCI All Country World Index as a benchmark.
“If you're a member of a pension scheme that has a default passive fund manager that replicates the market, you're almost certainly going to be buying one of these IPOs,” he said.The report showed that investors were largely missing out on the opportunity to increase the value of their assets by buying renewable offerings.