ESG Research Update
/Study finds half global fossil fuel assets may be worthless by 2036
Recent research out of the University of Exeter exploring the worth of fossil fuel assets in the future has revealed that nearly half these assets may be worthless within 14 years under the net-zero transition. Early adopters will profit from the shift, with those countries slow to decarbonise suffering. Renewables and more money for new investments will make up for the losses to the global economy.
The report underlines the risks involved in over-producing oil and gas for future demand, leaving tens of trillions of dollars in stranded assets. Lead author Jean-Francois Mercure says the shift to clean energy is a benefit to the world overall but requires careful handling to avoid ‘regional pockets of misery’ and the potential for global instability.
“In a worst-case scenario, people will keep investing in fossil fuels until suddenly the demand they expected does not materialise and they realise that what they own is worthless. Then we could see a financial crisis on the scale of 2008,” Mercure said, issuing a warning to oil hubs such as Houston, with the same fate as Detroit’s loss of the US car industry hanging over them.
The paper shows that a drop in demand for oil and gas prior to 2036 will shift the balance of the geopolitical landscape. Renewable energy will become cheaper and more stable, while fossil fuels will experience greater volatility in pricing. Carbon assets (oil, coal) will be left out of the ground but unburnt, with machinery no longer making money for its owners.
The paper, Reframing incentives for climate policy action, was published in Nature Energy.
Ageism rife in Australia, research says, and nobody knows what to do about it
A new research project found that almost half of the over-50s surveyed had experienced ageism in the past year in Australia, but only one in five did something about it. The research coincided with Ageism Awareness Day 2021.
The research was conducted to help understand the experience of ageism and our willingness to combat it.
Key findings of the study include:
In the over-50s group surveyed in Australia, 45 per cent say they have experienced ageism in the past year
52 per cent say they have witnessed ageism in the past year
82 per cent of those who experienced ageism didn’t take any action, saying either that it was hard to prove (27 per cent), they didn’t know how to respond (24 per cent), they weren’t sure if it was really ageism (22 per cent) or they didn’t know what their options were (9 per cent)
Ageism is being brought into the spotlight as another form of discrimination that ultimately hurts our communities and hurts the bottom line of companies - the loss of older people with a lot of experience can be significant. Ageism can be subtle and hard to pinpoint, but could be not being promoted or missing out on further education opportunities.
EveryAGE Counts is a campaign to educate people and raise awareness when responding to ageism.
