Fossil fuel companies are putting hundreds of billions of dollars at risk each year by developing high-cost, high-carbon reserves that may never be economic to extract. Ceres works to prevent companies from wasting investor capital by demonstrating how carbon asset risk poses an existential threat to their business models, accrues increasing levels of stranded assets, and puts trillions in capital expenditures at risk.
The fossil fuel industry’s moment of crisis has been in the making for years, as a variety of market trends – from crashing oil prices as a result of oversupply to the rapid evolution of clean energy technologies to the expansion of climate and clean air policies worldwide – are changing the prospects for future oil demand.
Ceres brings together global investors and other market actors to engage companies in recognizing the risks and opportunities being presented by this energy transition. Increasingly, consensus is emerging around the need for companies to assess, disclose and adapt their strategies for producing energy resources while preserving long-term value in a carbon-constrained world.
The importance of this work goes beyond the sheer number of tons of greenhouse gases that are avoided. New fossil fuel projects are expensive to build, but cheap to operate. If they are built, they could continue to produce for decades, locking us into a high-carbon future.
Our members in the Ceres Investor Network on Climate Risk and Sustainability have a critical role to play in encouraging companies to examine these risks. Ceres works with our partners at the Institutional Investors Group on Climate Change and the Investor Group on Climate Change to push the energy sector to set aside business as usual and plan for the coming low-carbon transition.
February 1, 2017
Companies From Chanel to Ben and Jerry’s are Benefiting From the New “Carbon Insetting” Trend
January 12, 2017
Major Businesses and Investors Support Fuel Efficiency and Greenhouse Gas Standards