Gas and oil firms reclassified under non-renewables on LSE

(The Guardian, 3 Jul 2019) Trade group says change may have opposite intended effect towards low carbon future.

Oil and gas companies listed on the London Stock Exchange have been reclassified under a non-renewable energy category in a move designed to distinguish between heavily polluting companies and greener producers.

The change has been made by the index provider FTSE Russell, which now groups companies such as BP, Royal Dutch Shell, Cairn Energy, Petrofac, Premier Oil and Tullow Oil, formerly labelled oil and gas producers, in the non-renewable energy sector. Coal companies, previously classified under basic materials/mining, also now come under non-renewable energy.

Green energy producers, most of which were grouped under alternative energy, have been reclassified under renewable energy. They include the Danish wind turbine manufacturer Vestas Wind Systems and the Spanish offshore wind group Siemens Gamesa Renewable Energy.

There are no UK companies listed under renewable energy.

Susan Quintin, the managing director of product management at FTSE Russell, said the changes to the industry classification benchmark would provide “greater visibility to other forms of energy such as renewables”.

However, the trade body Oil & Gas UK expressed concern over the re-labelling, saying many oil and gas companies were broadening their strategies.

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The Guardian, 3 Jul 2019: Gas and oil firms reclassified under non-renewables on LSE