Climate Risk

IEEFA Research

IEEFA Investor Memo ExxonMobil (XOM): Company Is an ‘Outlier’ in How It Reports Write-offs on Canadian Oil Sands Assets

Loss Accounting ‘Largely Overlooked by Industry Analysts;’ Full Transparency Could Affect Balance Sheet by $22 Billion

April 17, 2017  (IEEFA.org) – The Institute for Energy Economics and Financial Analysis (IEEFA) today published an investor memo questioning whether ExxonMobil has appropriately accounted for its recent write-off of billions of barrels of Canadian oil sands assets. In “ExxonMobil Investment Note,” IEEFA outlines how ExxonMobil remains the exception in the oil industry in its […]

April 17, 2017 Read More →

More News and Commentary

IEEFA update: Southeast Asian fossil fuel risk is underpriced

Hazards from corruption, policy change, stranded assets, and ill-informed advisors

HONG KONG — We’ve just published a memo describing how July was an exceptionally telling month for Southeast Asia power-generation markets. Our memo argues that fossil fuel risk is underpriced in the region, and it makes four specific points along these lines. First, that there is too little transparency around certain deals in Indonesia. News in […]

August 8, 2018 Read More →

Financial support for Japanese coal industry is dissipating

Asian Power: Since 2012, 50 new coal-fired power plants have been proposed in Japan. However, an increasing number of these proposals have been taken off the table and the number of projects in the development pipeline has dropped to 35. Investor and financier support for the coal industry in Japan is draining away at an […]

August 8, 2018 Read More →

Legal setback for coal industry on federal leases in Montana and Wyoming

Associated Press: A federal judge in Montana has given the Trump administration until late 2019 to analyze reductions to mining in the nation’s most productive coal fields as a way to fight climate change. The order from U.S. District Judge Brian Morris, issued Tuesday, applies to the Powder River Basin of Montana and Wyoming. The […]

August 3, 2018 Read More →

Investor group targets planned GE coal plant in Kenya

Thomson Reuters Foundation: A group of investors in U.S. conglomerate General Electric (GE) has publicly opposed its plans to buy a stake in a Kenyan coal-fired plant, claiming the project would damage the environment and undermine efforts to fight global warming. In a public letter to GE, nearly five dozen institutional and individual shareholders called […]

July 20, 2018 Read More →

U.K. to require companies to release energy use, CO2 data

Reuters: The British government will force large companies to report their energy use, carbon dioxide emissions and energy efficiency measures in their annual reports from April next year, it said on Wednesday. The government said it wants businesses and industry to improve energy efficiency by at least 20 percent by 2030. A previous company reporting […]

July 18, 2018 Read More →

U.K. public pension fund to stop investing in coal

Financial News London ($): The UK public pension fund Nest will cut out coal, uranium and cobalt from its new commodity investments, it said on Monday, as it recruited US-based CoreCommodity Management to manage its money. Nest, which planned a move into commodity assets six months ago, said that CoreCommodity has agreed to take on […]

July 17, 2018 Read More →

‘Exxon, once a “perfect machine,” is running dry’

Wall Street Journal: Exxon faces a number of challenges, including investigations of its accounting and tax practices as well as lawsuits by cities and states seeking funds to pay for the effects of climate change. Its biggest problem is one the giant has seldom faced in its 148-year history: It isn’t making as much money […]

July 16, 2018 Read More →

Japan’s Nippon Life to end lending for new coal projects

The Asahi Shimbun: Nippon Life Insurance Co. plans to become the first leading Japanese financial institution to reject investments and loans into new coal-fired power generation projects at home and abroad, a company source said July 12. The decision, made by Japan’s largest life insurance company, may have a domino effect across the financial industry. […]

July 16, 2018 Read More →

Bankers turning toward green lending as climate risks rise

Bloomberg: Some of Europe’s largest banks are unveiling plans to lend and manage money in greener ways as pressure mounts to account for risks associated with climate change. “It is coming, it’s a trend that’s started,” said Louis Douady, head of corporate social responsibility at Natixis SA in Paris. “The intention is to adapt our […]

July 16, 2018 Read More →

Ireland to divest fossil fuel investments

The Guardian: The Republic of Ireland will become the world’s first country to sell off its investments in fossil fuel companies, after a bill was passed with all-party support in the lower house of parliament. The state’s €8bn national investment fund will be required to sell all investments in coal, oil, gas and peat “as […]

July 13, 2018 Read More →