ESG strategies have contributed to a serious decline in energy investments by focusing too much on divestment from fossil fuels and not enough on investment in renewable power sources, according to a senior researcher at Goldman Sachs Group Inc.
“The focus on decarbonization is correct, but I think it needs to be driven by more investment, not divestment,” Michele Della Vigna, Goldman’s head of natural resources research, said in an interview. “The key is to move away from divesting oil and gas towards more investment in renewables and in low carbon.”