Carbone4 takes stock of the electricity sector

Carbone4 takes stock of the electricity sector

The latest publication of the electricity sector analysis by Carbone4


Carbone4 takes stock of the Electricity Sector and publishes its latest summary note of the results of the analysis campaign of around one hundred companies in the electricity sector. The analyzes were carried out using the Carbon Impact Analytics (CIA) method, which aims to measure companies’ exposure to transition risk with an overall score, calculated from sector indicators that vary from A + to E-.

Thanks to the data collected and calculated during this campaign, Carbone4 established the ranking of companies in the electricity sector according to their degree of exposure, their ability to reduce this exposure, and the strategies put in place to align, or not, with the objectives of decarbonizing the world economy.

Highlights of this synthesis

– A great diversity of profiles

  • Among the companies with lower market capitalization, there are two radically opposed worlds: the one which still depends mainly on fossil ressources and the one which move away from them by preferring low-carbon ressources (many pure-players of renewable energies) ;
  • Among the companies with larger market capitalization, we find a majority of low-carbon profiles without having pure-players of low-carbon energies.

– A great heterogeneity of decarbonization between the different actors

  • Some companies had a sudden awareness last years and are now only engaged in low-carbon energies, such as Orsted or Vattenfall;
  • However, this awareness is not unanimous and some players in electricity production continue to be heavily exposed to fossil fuels, mainly in America and Asia.

To achieve the objectives of a 2°C scenario, the direct emissions linked to the electricity production must be divided by 4 between 2019 and 2040; It will therefore be necessary not only to continue to invest in low-carbon electricity production means, but also in electricity transport and distribution infrastructure and in storage.

Carbone4 analysis is available here

Source : Carbone4 takes stock of the Electricity Sector

Post Author: Wealth Monaco