Home » World » Problem or opportunity? Half of the fossil reserves belong to only 10 financial institutions – Financial News – Financenet – TVNET

Problem or opportunity? Half of the fossil reserves belong to only 10 financial institutions – Financial News – Financenet – TVNET

10 financial institutions that manage fossil fuel reserves

The new study found that the main investors in the fossil fuel industry are governments and prominent American investment companies.

These institutions include Blackrock, Capital Group, Dimensional Fund Advisors, Fidelity Investments, Government of India, Kingdom of Saudi Arabia, Life Insurance Corporation, Norges Bank, State Street and Vanguard .

These investors have enormous influence throughout the fossil fuel industry. Also, interestingly, Saudi Arabia and India both signed the Paris Agreement in 2015 to take action to mitigate the effects of climate change.

The CU200 list shows that at the end of 2020, the largest oil and gas reserves were owned by Saudi Aramco, capable of producing 107 gigatons of emissions. Russia’s Gazprom and Rosnetfj are in second place.

Coal India, meanwhile, is the largest coal company with reserves of 100 gigatonnes of carbon emissions.

“Having such a limited number of investors control the most important part of the fossil fuel industry can be both a problem and an opportunity, depending on how you look at it,” says Dordi.

On the one hand, it takes a small number of votes to actively begin limiting fossil fuel extraction. Moreover, these institutions have sufficient financial influence to change the business strategy of fossil fuel companies.

“If they are serious, the capital market can create an efficient transition to a lower carbon world by influencing the owners of coal, oil and gas reserves,” adds Dordi.

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