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How financial markets react to Total’s strategy of becoming a responsible energy major?

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  • Margaux Escoffier

Abstract

This paper investigates the market reaction to the upstream oil and gas and climate strategy of Total SA. It aims at (i) analyzing whether the market welcomes Total's climate commitment and (ii) comparing investors' reaction to both categories of announcements. By using an event study, our results highlight that the market reacts negatively to both Total's upstream oil and gas and climate strategy. However, the market reacts more negatively to its climate strategy meaning that investors may consider that Total has to do better in terms of climate commitment to mitigate the risk of climate change.

Suggested Citation

  • Margaux Escoffier, 2020. "How financial markets react to Total’s strategy of becoming a responsible energy major?," EconomiX Working Papers 2020-30, University of Paris Nanterre, EconomiX.
    • Handle: RePEc:drm:wpaper:2020-30
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    More about this item

    Keywords

    Energy transition; climate strategy; financial markets; event study; oil and gas companies; Total SA;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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