As the world moves to a more sustainable future, investors are faced with many methods in which to express their climate goals. Typically, the large energy super-majors and big polluters are singled out as the main culprit for the greatest greenhouse gas emissions.
Simultaneously, the Saudi based Aramco, (world’s largest oil & gas producer) has launched a $1.5 Billion Venture Fund to invest in carbon capture, storage and low carbon fuels.
The oil major has expressed difficulty with energy transition technologies, in particular the ability to meet increasing demand while the global energy mix tips towards sustainable methods of energy production such as wind and solar. Their solution, which is outlined in their first sustainability report is aim to reduce the carbon intensity (the amount of Co2 produced per unit of energy produced). This increase in efficiency, coupled with investment in carbon capture, storage and reuse looks to facilitate an operational net-zero goal by 2050.
While it is to be seen if the efforts outlined above are effective and not just further marketing attempts, it is important to note that the majority of research would suggest that we will need reduce carbon levels and not only achieve a net-zero target. Although, the same research would also outline that reducing current emissions is more effective than future removal efforts (with current technologies).
As inflation and an economic slowdown threaten standards of living globally, faith-based investors face difficult choices in their investment options. Perhaps this provides a more diversified, balanced approach to investing, which includes all possible technologies and agents in the global sustainability effort.