EMEA Sustainability "Investor feedback on our energy transition framework"...

Research evidence excerpt

EMEA Sustainability "Investor feedback on our energy transition framework"...

ectors responsible for funding and executing much

of the transition itself. In many respects, the debate mirrors the broader discussions

taking place around transition portfolios, with investors increasingly questioning

whether sustainability frameworks adequately recognise companies undergoing

transformation rather than only those that are already low-carbon.

4. Competitiveness is becoming the new ESG

Discussion

What we heard:

Competitiveness may be replacing "net zero" as the dominant sustainability

discussion. This is a constructive development in our view, as it shifts the debate

from targets towards energy security, industrial strategy and economic resilience.

Investors are increasingly focused on industrial policy and energy costs.

The transition is increasingly being viewed through an economic lens.

Investors generally viewed recent ETS developments as evolutionary rather than Discussions around ETS reform,

revolutionary. Attention is now turning towards the next phase of policy reforms and industrial policy and energy costs

whether policymakers can maintain meaningful carbon-price incentives while ensuring increasingly converged towards a

European industry remains globally competitive. In many respects, competitiveness is common concern: how Europe

increasingly becoming the bridge between sustainability and industrial policy, with maintains industrial leadership while

investors viewing the energy transition less as an environmental objective and more as simultaneously accelerating

an economic strategy. decarbonisation.

5. The energy transition is increasingly about

security, resilience and competitiveness

Investors increasingly frame the transition through security and resilience.