First Major Oil Company Rankings Based on Climate Solution Impact
New analytics provide impact investors a level playing field to compare companies on future carbon offset value
NEW YORK — August 12th 2019 — Clean Impact Rankings, launched earlier in 2019 to assess investments based on carbon savings, has announced its new major oil company study. The rankings are the first to use forward-looking analytics that model just how effective the largest oil company efforts in cleantech and renewables can be. Shell Oil bested other majors and is projected to outperform its nearest competitor by almost three-fold in positive carbon impact. Carbon savings delivered by Shell’s climate solutions investing is expected to exceed 110 million tons of CO2 over the next ten years. The new platform built by Canetic Advisors and published by Clean Impact Rankings was built to simplify the complex math and science of climate solution comparison. The tools will allow impact investors eager for a level playing field to contrast various companies and projects quickly and effectively. Canetic Advisors built its core technology with a team of well-respected renewable and cleantech experts and operating executives.
In order to understand how the majors, drive carbon savings, Clean Impact Rankings looked at the 20 largest global oil companies from sources such as S&P Global/Platts, Forbes and Oil & Gas IQ. These firms were then narrowed down to the most active in renewables and cleantech with an emphasis on near term practical efforts that impact Greenhouse Gas Emissions, especially those that result in CO2 abatement. These rankings allow for ease of comparison and lead to detailed return on carbon abatement investing, another metric underway at Clean Impact Rankings. The first rankings from Clean Impact Rankings compared Morningstar’s Low Carbon Medalist Mutual Funds earlier in 2019. More information on the rankings and methodology can be found at www.vestedimpact.com.
Oil companies around the world are no longer just preparing for the future beyond oil and gas but taking more and more concrete investment positions. Some may be more effective as climate solutions than others-the new study helps investors understand the real story. These global integrated majors are rapidly placing bets on everything from bio-fuels, to solar to batteries with varying degrees of capital, success and consistency. The pressure to make solid and meaningful investments and secure a lead in environmentally effective investing is no longer just a public relations gambit. For the first time, these majors are going after realistic pathways that fit with a long-term transition away from fossil fuels.
“These rankings will inform institutions as well as individual investors looking to increase their exposure to the most positive climate solutions and companies. The rankings tell the story for investors keyed in on realistic impact not just the hype. Putting capital to work in publicly traded companies with the most impactful climate solutions can help drive a lower carbon economy.” said Tony Altmann founder of Canetic Advisors.
The assessment found that Royal Dutch Shell is on track to abate 110 million tons of carbon dioxide in the next ten years on a global basis. Ecopetrol SA while relatively small (16x smaller than Shell) dedicates 5.85% of their CapEx to green energy which is double the next contender. Royal Dutch Shell investments were focused on wind, biofuels, and electric car charging.
Canetic Advisors analyzed these majors at the project level and applied its proprietary database and modeling tools to determine just what CO2 emissions reductions can be expected. The models evaluate investments by each company looking at how much, where and what type of technology is being deployed. In addition, the results were weighted based on the share of overall corporate capital spending going into clean and renewable efforts.
Additional information on climate solutions assessments are expected to be released during 2019 to aid individual and institutional investors better understand the positive impact of the investment choices they make.
About Canetic Advisors
Canetic Advisors, a data analytics company established Clean Impact Rankings and conducted the underlying analysis. The firm leveraged aggregated insights from cleantech and renewable energy experts and built its own proprietary analytics platform that segments the energy value chain, efficiency gains expected from specific technologies and a wide reaching national and global set of emissions factors. The firm uses forward-looking actionable insights including its ‘alpha adjusted’ climate impact potential and Carbon Abatement ROI. The firm enables public and private market investors to simultaneously optimize returns and climate impact. More information can be found at www.caneticadvisors.com.
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For further details:
Media Contact: Jennifer Nordhagen
Phone: 212-527-8112; Email: hello@caneticadvisors.com