Key points
It highlights that USD28trn of fossil-fuel revenues are at risk in a 450-ppm world but that business as usual also has big risks for fossil-fuel companies.
The Kepler Cheuvreux sustainability team thinks that investors need more details on the breakdown of oil companies’ assets by project type and on their capital-allocation processes in order to be able to better assess carbon risk and cost/revenue risk. They see an opportunity for the oil industry to engage in a transparent dialogue with investors on the carbon risks it faces and thus provide a transparent stress test of its business model against potentialfuture climate-policy scenarios.