Business

Polluting companies supposed to get hit by climate policy

Owing to the policies by the government to combat climate change, the carbon-intensive firms are probably to lose 43% of their value. Simultaneously, the value of the most advanced companies will increase by 33%. The United Nations commissioned the forecast supported Principles for Responsible Investment (PRI). A fossil fuel company representative told BBC that they are already adopting several practices considering the change in the climate. According to a recent study by Vivid Economics, the value of automakers making the swiftest transition to electric vehicles (EVs) are expected to grow by 108%. As governments recognize the need to accelerate the shut-down of petrol and diesel automobiles to meet climate goals, the value of the manufacturers who are slowly shifting to electric vehicles will lower.

The study also predicts that the value of the many large coal companies may fall by 44%. The top ten gas and oil companies could lose 31% of their current value. The value of power companies with a strong strategy for renewable energy may increase by 104%. Agricultural companies that are wide-open to non-beef protein sources and sustainable biofuels can gain at least 10% of the present value. Those agricultural sectors that are under low pressure can lose 15% to 43%-depending on their connection to deforestation. These numbers are based theoretically on the supposition that politicians will be forced to respond strongly to the growing climate crisis.

Firms are by this time under pressure, and they did respond to a warning from Bank of England, saying that businesses that ignore the climate challenge will go bankrupt. Considering the future risk of policy changes, some insurance companies have refused to provide insurance for new power plants of coal. Mr. Mike Tholen, from the British Petroleum and Natural Gas Industry Group, said that the Oil and gas companies are trying to reduce their carbon footprint. They are adapting to technologies like carbon capture and expanding their business by the use of renewable energy. In the coming time, Oil & gas will be an essential part of the energy. And they will be used with low carbon content to meet global energy demand.