Much attention has been paid to the concept that global warming will cause a dramatic drop in the value of carbon
reserves. A major shift towards non-carbon-based energy and non-carbon feedstocks for chemical processes could “strand” assets tied to oil drilling, coal mining, and fracking activities. Various groups have tried to quantify the downside risk to energy companies, if the response to climate change occurs.
However, there are other assets that climate change could strand. And, there are other sustainability trends that could result in stranding other types of assets. Both corporate managers and investors should probably examine these risks, too.