Carbon omissions: Investors lose out as renewable energy stocks outpace fossil fuel companies

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Renewable energy firms have outpaced fossil fuel companies over the past decade, including during the recent pandemic crisis, generating higher returns and lower volatility. New research from Imperial College Business School shows that despite the advantages, institutional investors are failing to reap the rewards of renewables.

“Our results show that renewable power is outperforming financially, but has still not attracted sizeable support from listed equity investors,” says Dr Charles Donovan, executive director of the Centre for Climate Finance and Investment at Imperial College Business School.

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