Sun. Nov 28th, 2021

In “Third Point blasts Shell’s efforts to walk the green cord” (OpinionNovember 4) Brooke Masters delivered the critical messages we will need if we are to have the best chance of achieving global net zero targets.

Third Point and other activists argue for the break-up of integrated energy companies in their heritage fuel and chemicals businesses, and so-called “green-arm” operations focused on the future.

Masters notes that at the same time, enthusiasm for investment funds that exclude fossil fuel companies, and others that perform poorly on environmental, social and management criteria, appears to have peaked. While it may seem worrying, it will hopefully serve as a wake-up call that will lead to serious discussions about how today’s ESG statistics and guidance are performing. It is said that every choice has a consequence. Recently, we have seen the effect of choices, which are less than well thought out.

Reductions in energy investment and implementation of regulations restricting access to oil and natural gas resources outweigh the gradual advances in renewable fuels and other energy-related technologies.

This is why we are now seeing shortages in energy supply and higher prices around the world. It may seem counter-intuitive, but it’s actually in our best interest to support today’s energy needs with our available resources.

Making the choice today to apply balanced, flexible and aligned approaches to ESG principles can ensure that energy companies continue to attract the necessary investments and obtain the necessary financing that will enable us to bridge fossil fuels to the to build net zero models of the future.

Michael J Roman
Senior Fellow, U.S. Capital Formation Board; President, Certain Point Strategies, Vienna, VA, USA

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