POWER AND UTILITIES
Throughout the year, we made significant strides in advancing the dialogue with investors and policymakers on the need for industry reform to ensure a secure, affordable, and timely energy transition. Our efforts focused on how policy, regulation, and investors can propel market-based, financially sustainable solutions.
One of our key achievements was capturing the attention of Investor Relations Japan, the largest specialized IR services company in the country.Our comprehensive company profiles led to a strategic shift in decarbonisation efforts among Japanese companies. This was further underscored by the extensive citation of our Japan Carbon Pricing report in a policy statement released by the Japan Climate Leaders’ Partnership (JCLP), clearly demonstrating the profound influence our research has on shaping the perspectives of key stakeholders.
Through our influential public engagement efforts, we successfully contributed to shaping the public discourse on critical issues with far-reaching implications. While in March 2022, Catharina Hillenbrand, our Head of Corporate Research, presented our insights on energy supply at the prestigious House of Lords, further demonstrating our thought leadership in the field. Additionally, Mark Fulton, Chair of our Research Council, appeared on Al Jazeera’s “Counting the Cost” to discuss the crucial topic of coal financing by governments and banks, amplifying our message to a global audience.
Our research and its far-reaching implications also found resonance in international media.Our report “Stop Fuelling Uncertainty was quoted in a Wall Street Journal article, “Long-Term Deals Help Japan Secure Ample Gas Amid Global Shortfall.” The citation underscored the importance of diversifying away from reliance on volatile nations for energy security. Similarly, TIME referenced our Poland Analyst Note in a piece on Europe’s struggle to reduce reliance on Russian gas, highlighting the implications of Poland’s gas infrastructure expansion plans on its Net Zero commitments.
In 2022, our efforts in updating company profiles and developing detailed “country profiles” significantly improved data transparency and led to increased awareness among investors, diplomats, and policymakers about the current economic status and financial viability of coal and gas.This comprehensive data offering armed stakeholders with key insights into the challenges and opportunities each country faces in the energy sector. The real-world impact of these initiatives was reflected in the surge in investor consciousness about these issues and their raised expectations of companies’ climate commitments. This changing landscape, marked by early commitments from companies addressing shareholder concerns on climate change, strongly reaffirms our theory of change, even though more work remains to be done.
Looking Ahead to 2023
Our goal remains to drive meaningful power sector decarbonisation by linking financial risks with real economy context and meaningful transition. Further to this, we support responsible investment and sustainable markets, through a managed and orderly decarbonisation of the power sector. Our research is designed to influence financial markets and policymakers towards pursuing and adopting transition enabling policies and actions (including early coal retirement). In 2023, we aim to expand this, to provide a practical and reliable framework for financial institutions to make risk-adjusted financing decisions compatible with the power sector decarbonisation.