Energy Transition Trackers
Mitigating Risks and Capturing Opportunities of a Changing Climate
Why Pay Attention to the Energy Transition?
The energy transition is reshaping industries and redefining the energy sector. For investors, the challenge lies in understanding whether the capital market prices are reflecting the transition to a low carbon economy and whether companies are realizing financial value from their strategic shifts.
To help investors make these assessments, FFI Solutions has developed the Energy Transition Trackers — hypothetical strategies designed to monitor whether capital markets are pricing the energy transition at both a macro and fundamental level.
Oil & Gas Trackers
FFI assesses the financial and strategic positioning of oil and gas companies along the energy transition spectrum using proprietary transition metrics that identify:
- Leaders making ambitious low-carbon commitments and investments, and
- Laggards relying primarily on traditional hydrocarbon strategies
We have established separate trackers for integrated companies and independent E&Ps.
Portfolio Structure
Integrated Oil & Gas
Integrated Trackers Overview
Each Integrated portfolio includes nine large, global companies with diversified revenue streams across upstream, midstream, and downstream activities.
Firms more aggressively investing in electrification and low-carbon solutions tend to be European majors and sub-majors.
Companies maintaining traditional business models are more frequently based in the Americas and other regions.
Because the portfolios are concentrated, they may be sensitive to individual company performance, though this is offset by the scale and stability of integrated operators.
Recent market conditions have generally favored companies with more traditional strategies, which have outperformed peers investing more heavily in transition initiatives.
Exploration & Production
E&P Trackers Overview
Each E&P portfolio includes 18 companies, offering a broader, more diversified representation of global upstream producers.
North American companies—particularly those in the U.S. and Canada—make up the largest share.
E&P firms are more directly exposed to commodity-price swings and economic cycles.
Engagement with the transition is typically operational (e.g., shifting toward natural gas) rather than through major investments in renewables.
While natural gas is expected to remain significant in the future energy mix, recent results have not shown a clear performance advantage for gas-weighted producers over oil-weighted ones.
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