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Fossil Fuel Investment in Transition or in Denial?
30th Oct. 2023
“Fossil Fuel Investment in Transition or in Denial?” analyses the global oil and gas industry to understand the role that they are playing in transitioning towards a safe climate. It reveals extensive New Zealand investment in the most damaging oil and gas companies.
“Fossil Fuel Investment in Transition or in Denial?” analyses the global oil and gas industry to understand the role that they are playing in transitioning towards a safe climate. It reveals extensive New Zealand investment in the most damaging oil and gas companies.
The report shows that two thirds of the fossil fuel industry remain in denial. Their promises to transition towards net zero climate emissions have been exposed as greenwash. Instead of investing in clean energy, the major oil and gas producers are doubling down on their core business, investing massively to expand their exploration and field development. This reckless drive for short term profits is putting the world on a pathway for climate chaos.
The expansion plans by major oil and gas companies put fossil fuel production far above the targets from the 2015 Paris Agreement. By contrast, there are only a handful of electricity generators internationally that are on track for a pathway consistent with a 1.5°C global temperature rise.
Individuals who invest in those funds need to understand that the majority of their investments are in companies that are contributing to the climate crisis, rather than investing in the climate solutions. These investments have also created financial risk for investors. Past returns from oil and gas companies have been far lower than the overall market, and the risks of further losses are growing.
Fossil Fuel Investment
In Transition or in Denial?
The report shows that New Zealand KiwiSaver and retail investment funds are increasing their investment in the oil and gas companies that are expanding rather than companies that are transitioning. Over the year to end September 2022, investment in the companies expanding increased by 80% compared with 25% for the companies in transition.