Tendencias y Estudios / Convergencia y sostenibilidad

Energy Investing: Exploring Risk and Return in the Capital Markets

Capital allocation decisions in the private sector hinge upon expectations. Given the inherent challenges of seeing into the future, investors often rely on history as a guide. Has investing in clean energy made financial sense over time? Was the recent crash in fossil fuel commodity prices positive or negative for renewables? To shed light on this debate, we investigate the historical risk and return proposition to investors in the energy sector.

Our study examines the financial performance of listed companies engaged in fossil fuel supply as compared to those active in renewable power over the past 5 and 10 years. Our twofold aim is to document the characteristics of this evolving investment universe and set the stage for a more advanced analysis of investment attractiveness in future reports.