Shell, Exxon Decisions Highlight Rethink in Energy Investment

Shell, Exxon Decisions Highlight Rethink in Energy Investment

In one particular corner of the market—bonds issued by oil companies including Shell—investors appear to be juggling their holdings to get ahead of possible changes.

The development of climate change as a factor for investors to consider is shaking the investment world. The Dutch court ruled on Wednesday that Shell must cut its emissions by 45% by 2030, a move that amps up the pressure to decarbonize. Shell said it plans to appeal.

Those decisions echo forces already creating new dynamics in how investors look at fossil-fuel companies.