VIDEO: At Saudi Capital Market Forum, CEO makes a case for striking the right balance
As ESG emphasis grows, Amin Nasser calls for a more holistic and just approach to investing in the global energy transition.
Amin Nasser, Aramco president and CEO speaking at the Saudi Capital Market Forum 2023
An increased emphasis on ESG (environmental, social, and governance) is a move in the right direction. However, if ESG-driven policies are implemented with an automatic bias against any and all conventional energy projects, the resulting underinvestment will have serious implications.
Unfortunately, that is exactly what is already happening.
Proponents of the popular energy transition narrative paint a picture of a utopian world where alternatives are ready to replace oil and gas almost overnight. For a less-risky global energy transition, everyone, including capital markets, must take a more realistic view of how the global energy transition will unfold.
The biggest single challenge for capital markets related to the global energy transition is striking the right balance by restoring investment in vital conventional energy resources, by increasing investment in technologies that reduce the carbon footprint of oil and gas, and of course, by continuing to invest in new energy sources, including renewables, as well as blue and green hydrogen.
There are wide-ranging, financially attractive opportunities for you, provided you adopt a more holistic and just approach to investing in the global energy transition.