OSAKA, Japan--(BUSINESS WIRE)--Japanese Wealth Management company Saikyo Sakura Assets has commented that Spanish energy company Respol has declared that it will become carbon neutral by 2050. This move is being made to adhere to the environmental goals established by the global Paris Agreement to address climate change.
Saikyo Sakura Assets researchers noted that Respol outlined several paths for it to be on target for reaching its set goals. This includes shifting from upstream operations to generating more cash flow. Value over volume is the new objective, seamlessly integrating alternative energy technology into its operations is its main priority.
Respol also is set to boost the production of fuels and chemicals which are less carbon-intensive. Investing capital into carbon capture technology and alternative power generation are also sectors of focus. With an aim to "become a leading international player in renewable energies" Respol sets the stage for a paradigm shift within the oil industry.
As of today, nearly three-quarters of emissions reduction can be attained through already-established technologies. As for the rest, carbon capture, reforestation, and other strategies will help fill in the gap noted analysts from Saikyo Sakura Assets.
Respol has stated that it will incur a charge amounting to €4.8 billion ($5.3 billion) for post-tax impairment. This comes as the company goes through a revaluation process of its hydrocarbon-based assets, such as oil and gas, to become compliant with the objectives of the Paris Agreement.
"Respol are setting more ambitious objectives in fighting climate change while being sustainable and profitable for all its shareholders," commented Frank Hunter, Head of Corporate Derivatives at Saikyo Sakura Assets.
Its announcement were made during a pivotal moment for the oil and gas industry, with pressure increasing on companies within the Oil & Gas sector, given their impact on the emission of greenhouse gases, along with depressed oil prices.
About Saikyo Sakura Assets
Saikyo Sakura Assets provides investment advisory services to private retail individuals and corporate institutions. Saikyo Sakura Assets currently holds over $6.32 billion U.S. dollars of assets under management. Established in 2011 the company operates from its headquarters based in Osaka, Japan, it also has a dedicated in-house research facility based in Busan, South Korea.