Author(s): Sumit Kumar
Energy plays an important role in our life. Traditionally investing in energy was considered a great investment from a return perspective. With an increased awareness of ESG (Environment, Social and Governance) and Climate risk among investors, there is evidence of investment not being channeled to the conventional energy sector for the past few years. This has caused a major decline in investment in this sector. In the current research, we wanted to give evidence of how the investment has shrunk into this sector and issues arising because of it. The conventional energy sector needed more funds to re-invent themselves transition from operating at higher ESG risk level to Lower ESG. This lower ESG risk transition requires adequate funding and funding has become a challenge due to the ESG concerns of the conventional energy sector. This paper examines how the traditional energy sector has stuck into a funding spiral and it is challenging to come out of the situation.