Europe’s energy ministers have met today to discuss how Europe can become energy independent from Russia and these discussions will likely continue in the medium-term. In the short-term there are no real quick fixes except from limiting transportation (work-from-home is one mitigation strategy as 50% of oil consumption in the EU is for road transportation). Medium-term strategy is likely including potential gas and oil deals with North African countries, Iran or Venezuela, besides accelerating the green energy share of total energy production on top of more LNG capacity (Germany has decided to build two new LNG terminals as quickly as possible) and air-to-heat pumps replacing gas as the heating source; however, the next dilemma is what energy source we use for electricity production.
The list below shows some companies with exposure to LNG.
- Sempra Energy
- Cheniere Energy
- Flex LNG
- Golar LNG
- Awilco
- NextDecade
- Teekay
The list below shows companies with exposure to air-to-heat pumps.
- Mitsubishi Electric
- Daikin Industries
- Carrier Global
- Johnson Controls
- Nibe Industrier
Companies with Russian exposure
ESG is a popular investment among investors and the invasion of Ukraine means that ESG is likely to expand to include geopolitical risks such as conflict zone assets of the aggressor. In this case Russian assets will get the status of being non-ESG compliant for many portfolios and BP’s decision over the weekend will put enormous morally pressure on other European companies to decide what to do with their Russian assets. The list highlights some key companies with significant business exposure to Russia (others could have exposure through assets besides revenue).
- Polymetal International
- Evraz
- Uniper
- Forum
- Raiffesen Bank International
- Carlsberg
- Neste
- Rockwool
- Renault
- Danone
- Sandvik