Can Commodities Companies be ESG Investments?

New ways of measuring emissions are helping to focus minds at energy and commodity firms, but it's harder to convince investors of their ESG attributes 

James Gard 9 October, 2019 | 1:54PM

Chinese coal plant

Mining and oil companies present some of the toughest challenges for ESG investors. With climate change top of the agenda after the UN Climate Action Summit in New York in September, companies that are actively contributing to greenhouse gas emissions are on the back foot.

Firms such as Exxon Mobil and BHP, some of the largest in the world by market capitalisation, may be spending heavily to promote the idea that they are moving towards a sustainable future, but they are struggling to convince a sceptical public.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
BHP Group PLC1,418.40 GBX-4.79
BlackRock Energy and Resources Income56.00 GBX-5.41
Rio Tinto PLC3,608.00 GBX-1.93

About Author

James Gard  is content editor for Morningstar.co.uk

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