Trove Research is the consulting company for Guy Turner. This website publishes my independent research on sustainable investing and the energy
transition, and gives examples of recent assignments.
Why investors in oil & gas should not fear the pivot to renewables
Investors worried about falling returns when oil companies commit to moving away from fossil fuels into renewable energy should fret less. The oil and gas industry is actually not that profitable and investors should gain by the switch to renewables.
This is the result of an analysis of the financial performance of 7 oil and gas majors (BP, Shell, Total, Repsol, ENI, Equinor and Exxon) and 6 pureplay renewable quoted renewable businesses (Greencoat Wind, Orsted, Bluefield Solar, TRIG, Nextenergy and Foresight Solar) from 2014 to 2019. Over these 6 years the return on capital in the renewable energy sector was 4.9% compared to 4.7% for oil and gas. However the return on equity in renewables has been nearly double that of oil and gas, 8.6% compared to 4.5%.Investment Returns in Oil Gas and Renew[...]
Adobe Acrobat document [335.5 KB]
Major new study from Trove Research shows that green investors are spoilt for choice but need more consistent returns
An extensive new study from Trove Research shows that financial institutions have a huge range of options to invest sustainably, with over 430 funds available worldwide. These funds manage some $140bn of assets, covering listed equities, private equity, venture capital, bonds and infrastructure. But with this choice comes complexity and risk, with large variations in financial performance and green attributes both across and within asset classes. However, with a deeper understanding of the fundamentals and risk profiles of sustainable investments, more robust green portfolios can be created.
Download the Executive Summary here. Please contact us directly for a copy of the full 67 page report.Trove Research_Sustainable Investing__Ex[...]
Adobe Acrobat document [911.5 KB]