APG Asset Management’s Post

Stranded asset risks present challenges and opportunities for investors. In our final Sustainability & Climate M&A outlook, @Philip Parnell, @Poppy Harris and @Dan Brooks discuss how organisations can use M&A to look beyond the risks and unlock opportunities. Read the full article to find out more #DeloitteDealsMarketOutlook #DeloitteFA

Stranded asset risks present challenges and opportunities for investors. In our final Sustainability & Climate M&A outlook, Philip Parnell, Poppy Harris and Dan Brooks discuss how organisations can use M&A to look beyond the risks and unlock opportunities. Read the full article to find out more. #DeloitteDealsMarketOutlook #DeloitteFA

Dive into the intricate dynamics of the geopolitical landscape in 2023 with our latest article on the polycrisis and the energy trilemma. Discover the key challenges shaping the global energy sector and gain valuable insights to stay ahead in this rapidly evolving landscape. Read more: https://ow.ly/PhgR50QyNm4 #PowerMarket #EnergyTrends #PowerMarketReview2023

This webinar is part of the Scottish Nature Finance Pioneers 'International Nature Finance Exploration Zone'. (Exploration zones = curated conversations within our network exploring natural capital more widely or a specific element in more detail, bringing learning back to the network). Come along and find out more ⬇ https://lnkd.in/gbdZMsC4

The New Pragmatism: Scenarios to understand a volatile energy transition As the energy landscape shifts rapidly, we face unprecedented challenges and opportunities. Embracing "The New Pragmatism" enables us to navigate this volatility through scenario analysis. By exploring diverse pathways—be it technological advancements, policy shifts, or market dynamics—we can better anticipate changes and adapt our strategies. This approach not only fosters resilience but also drives innovation. Global markets are positioned for significant and structural change in the coming years, but the energy transition will likely not occur fast enough. However, new potential pathways for global energy and emission trends could open up. The 2024 S&P Global Commodity Insights Energy & Climate Scenarios describe these potential pathways to the future and indicate what events could accelerate or delay the global energy transition. #EnergyTransition #ScenarioPlanning #Collaboration #Sustainability #Innovation Read the paper via link below https://lnkd.in/g6vCpciY

Energy and economic development are back in favor.

✍ Continued from last week's edition; Key Challenges: 1. Climate Change and Regulatory Pressure: -Regulatory Co-mpliance: Stricter environmental regulations and carbon reduction targets require significant adaptation and investment. -Carbon Management: Companies must develop strategies for carbon capture and storage, or face higher costs and regulatory penalties. 2. Volatile Oil Prices: -Market Fluctuations: Oil prices are subject to geopolitical events, economic conditions, and market speculation, leading to financial uncertainty. -Investment Risk: Volatility impacts investment decisions and the economic viability of new projects. 3. Technological Disruption: -Rapid Innovation: The pace of technological change can be both an opportunity and a challenge, requiring continuous adaptation and investment. -Cybersecurity: As the industry becomes more digitized, the risk of cyber-attacks and data breaches increases. 4. Resource Depletion: -Sustainability: As easily accessible oil reserves diminish, there’s a growing challenge in accessing and developing more difficult and costly resources. -Environmental Impact: Extracting unconventional resources, like oil sands or deepwater reserves, can have significant environmental consequences. 5. Public and Investor Pressure: -Sustainability Expectations: Both the public and investors are demanding greater transparency and sustainability practices. -Social Responsibility: Addressing community concerns and ensuring fair practices in operations and supply chains are increasingly important. The petroleum industry’s future will likely involve a blend of adapting to new realities, leveraging technological advancements, and responding to both market and regulatory pressures. Balancing these elements will be crucial for companies aiming to thrive in an increasingly complex and competitive environment. #petroleum #oilandgas #informativetuesdays #IreO'

A strategic roadmap toward a successful RE transition requires greater investment across the clean energy spectrum. It is estimated that $1.2 trillion of cumulative investment (up until 2030) in clean energy manufacturing and critical mineral supply is needed to keep rising temperatures to 1.5°C. It is imperative that the flexibility of private capital be aligned with the governance expertise of public institutions in order to fund and accelerate climate action. To discuss financing for climate—and more—ReNew Founder, Chairman, and CEO, Sumant Sinha, will host a roundtable discussion at #WEF24 on January 18. The event will see participation from global leaders, government officials, private sector captains, academicians, and thought leaders. Learn more: https://bit.ly/41XzjAC #ReNewAtWEF

I'm a big fan of Barry Eichengreen. Where I disagree with him is not on the strategy but on its execution. I have a complete distrust of carbon credit markets and their capacity to set the right "credit price". If we look at the one the EU has set up, it's a disaster. Those carbon prices have hit the roof, increasing 2- to 3-fold. The problem is that the energy sector is monopolistic and "nationalistic". In the US, it is even more fragmented. Let's not put the cart, the financial market, before the horse, the energy market. So, first, restructure the energy market, then yes, don't forget to restructure the financial markets as well. Then, particularly for the US, getting rid of shale oil would be suicidal. Right now, it is the only source of the country's competitive advantage. Shale oil is to the US what coal is to the Chinese. So let's be pragmatic and practical. Let's work towards the following: - clean fossil fuels, both oil & gas and coal (China's coal consumption accounts for 60% of the total!) - move out of wind and solar, which were a mistake - develop nuclear and hydro. - produce annually fewer cars. That's both ICE cars and EVs - reduce the 1 billion cars in circulation by half over 10 years. And turn off those lights. The US, which accounts for less than 5% of the world's population consumes 25% of the electricity. By contrast, 4 to 5 billion people still live in the Middle Ages.

September starts with the completion of Oliver Wyman's Financial Services: Climate Change simulation on Forage. In the simulation I:  -Standard Executive Summary Study: Analyzed The Standard Executive Summary and classified financed emissions.  -Target Metrics Exploration: Explored target metrics such as Absolute Financed Emissions, PEI, and FELI, and their calculation methods.  -Net-Zero Scenario Recommendation: Researched external net-zero scenarios and recommended one to Bank ABC for target-setting, considering cost, policy strictness, and transition risks.  -2030 Value Calculation and Strategic Recommendations: Calculated forecasted 2030 values and provided strategic recommendations to Bank ABC for achieving their goals.