Investment - Articles - Shell write down questions investing in fossil fuels


Commenting on Shell’s decision to write down up to $22bn from the value of its assets Charles Ward, a professional trustee at Dalriada Trustees, said:

 “Yet another oil major is writing down the value of its assets. It’s a sign there will be an accelerated move to a lower carbon economy, which calls into question the financial rationale for continuing to invest in fossil fuels. Research conservatively suggests that between $1tn and $4tn of value will be written down as a result of economies transitioning to lower carbon technologies.

 This is a trend that pension fund trustees cannot ignore. Trustees should be asking challenging questions of their investment managers and how they are managing their exposure to stranded asset risk. As trustees, we are responsible for over £1tn of our members’ money and it is incumbent on all of us to look to the future and make sure we are proactively managing our exposure to such a material risk.

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