PENN VALLEY, PA, US, March 9, 2021 /EINPresswire.com/ — Fossil fuel-related companies are running to embrace what not too many years ago was anathema: renewables, using hydrogen in various processes, and carbon capture.
Consider just a few examples:
• Natural gas, liquids and oil transporter/terminaling and midstreamer Energy Transfer announced in February it’s supporting construction and will buy the output from the 28 MW Maplewood 2 solar project in West Texas
• Earlier this year, another transportation giant, Williams, announced it was partnering with Greentown Labs Houston to launch Houston’s first clean energy-focused startup incubator
• Oil supermajor ExxonMobil is preparing to invest $3 billion in its so-called low-carbon solutions business line by 2025. Company CEO Darren Woods said at CERA Week by IHS Markit the challenge going forward is meeting the oil and gas demand while addressing climate change and emissions. ExxonMobil has been looking at carbon capture and storage technology for a decade, according to Woods.
If you have an interest in carbon capture and/or where hydrogen usage fits into your operation, plan on attending the First Annual Appalachian Hydrogen & Carbon Capture Conference, presented by Archaea Energy, and developed by Shale Directories and TopLine Analytics.
The one-day program will be held on April 8, at the Hilton Garden Inn Pittsburgh Southpointe. “Hydrogen generation and carbon capture emissions are critical for addressing climate change. The conference will help ESG’s better understand the opportunities,” commented Joe Barone, President and Founder, Shale Directories.
Why is the hated competitor rapidly transitioning to becoming an esteemed partner to O&G industry companies? Taking a phrase from the 1976 movie “All the President’s Men,”: Follow the money.
Industry executives are well aware the “good ol’ days” of just a few years ago, when lenders practically threw cash at companies, seeing little risk and a great deal of reward, are over.
“Today, if an oil or gas company’s leadership isn’t aware of “ESG,” that company won’t be in business much longer, stated Tom Gellrich, CEO and Founder, TopLine Analytics.
Investors more and more are examining oil & gas companies through the lens of environmental, social and corporate governance (ESG) factors, as efforts intensify to promote clean energy, sustainability and the energy transition.
“Environmental, Social, and Governance (ESG) matters are critical to understanding the full risk profile of a company and how prepared it is to drive long-term growth, performance and shareholder value while managing or mitigating risk,” according to Amy Stutzman, Managing Director at energy consulting firm Opportune.
Morningstar reported investors, many of them younger, poured record amounts of money in 2020 into ESG funds, more than doubling the previous year’s investment.
They captured $51.1 billion of net new money from investors last year — the fifth consecutive annual record, according to Morningstar – up from $21 billion invested in ESG funds in 2019.
At the same time, ESG funds (aka, sustainable funds) accounted for about 25% of the money that flowed into all U.S. stock and bond mutual funds last year, according to Morningstar.
Funds that use ESG principles may invest in energy companies not reliant on fossil fuels, or in firms promoting racial and gender diversity.
The number of sustainable funds available to U.S. investors grew to nearly 400 last year, up 30% from 2019, and a nearly 400% increase over the last 10 years, Morningstar said.
In addition, governments have started taking further measures to combat climate change, including instituting additional financial reporting and disclosure requirements.
With laws surrounding emissions and environmental reporting become tougher, investing in ESG programs and working with legislators and environmentalists to understand the future of the legal landscape will pay dividends over time, according to Opportune.
Source: EIN Presswire