· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on the Financial Times or enjoy below:
🗞️ Driving the news: Big Oil companies are facing pressure to recalibrate their green transition goals amid high fossil fuel demand and investor skepticism about the profitability of low-carbon strategies
🔭 The context: Several major oil companies, including BP and Shell, have scaled back their climate targets
• ExxonMobil, which never committed to leaving oil and gas, has taken legal action against activist shareholders pushing for more ambitious transition goals
🌍 Why it matters for the planet: The recalibration raises concerns about the pace of the energy transition, essential for cutting global emissions
• Companies argue that the current market and investor landscape make it challenging to fully commit to low-carbon strategies
⏭️ What's next: Oil majors may focus on "asset-light" low-carbon businesses, leveraging their trading capabilities and global footprints rather than investing heavily in new infrastructure
• Clear pricing and incentivization models will be crucial for driving the transition
💬 One quote: “If you create an environment whereby the transition is truly profitable, companies will follow the money,” said Joanne Salih of Oliver Wyman
📈 One stat: BP remains committed to its five transition growth engines: biogas, convenience, electric vehicle charging, hydrogen, and renewables, but questions the pace of progress
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