It’s no secret that governments and regulators have been ramping up enforcement of greenhouse-gas regulation. But here’s something counterintuitive: Shares of some oil and energy companies — players in so-called dirty industries — may deliver better investment returns relative to companies in cleaner industries, even amid tightening regulatory constraints.
Why this could happen requires understanding what it means to manage climate transition risk. Transition risk refers to the up- and downside risk associated with the shift…
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