It is hard to imagine a less sentimental forum than the London Stock Exchange. Wishful thinking counts for nought; reality, no matter how chastening, is all. That clarity means that the LSE has just reclassified oil and gas companies in a non-renewable energy category to differentiate between heavily-polluting companies and greener producers. Companies such as BP, Royal Dutch Shell, Cairn Energy, Petrofac, Premier Oil, and Tullow Oil are now grouped in the non-renewable energy sector. Coal companies also fall under that heading. This change reflects a new awareness around climate change. It also confirms that the LSE has accepted that the industries are no longer as attractive to ethical, or simply awake, investors as they once were. Though not related, the LSE reality check might influence those who will consider a fracking licence application for an area in Fermanagh’s Lakelands. That application should be rejected, and our Government should use its influence to ensure it is. If the LSE can change its attitude to carbon energy, then surely the administrations on this island can, too.
Index provider FTSE Russell has relabelled a group of oil & gas producers as “non-renewable energy” to segregate them from greener alternatives which have been reclassified as “renewable energy. The the FTSE Indices has changed its indices June and September 2020 , while the the FTSE Indices and Russell US Index will use the legacy benchmarks until June and September 2020 respectively. Petrofac is among the companies that are in the non-renewable category.