Big Oil has a place in green funds, says Deutsche Bank CIO

European oil and gas companies including BP and Shell have increased renewable energy investment, although they are expanding production of dirtier energy too. — Reuters

LONDON: Sustainability funds should be able to hold traditional energy shares because excluding them is denying investors one of the best ways to bet on a shift to renewable energy, a senior environmental, social and governance (ESG) executive at Deutsche Bank’s Private Bank says.

Fossil fuel stocks have boomed since Russia’s invasion of Ukraine in February 2022 sent fossil fuel prices soaring, leaving the performance of ESG funds lagging.