Critical Analysis of Shareholder Benefits from Spin-Offs and Carve-Outs of Carbon-Intensive Businesses: A Study of the Energy Industry
Journal Title: Opportunities and Challenges in Sustainability - Year 2023, Vol 2, Issue 1
Abstract
The energy trilemma is a significant challenge of our time, driven by advancing climate change, social and political changes, and the impact of the war in Ukraine. This has led to the traditional business models of the energy industry and utilities being challenged. Against the backdrop of environmental sustainability, energy security, and affordability, this paper examines whether German utilities can achieve greater sustainability while creating shareholder value by divesting their carbon-intensive businesses. The analysis of the spin-off of E.ON-Uniper and the carve-out of RWE-Innogy reveals positive impacts on shareholder value, corporate performance, and a higher share price of all four companies after the splits. One conclusion that can be drawn is that divesting carbon-intensive businesses might create value for the company and its shareholders. However, it is important to note that the analysis did not demonstrate any benefits in terms of improved ESG ratings due to divestment.
Authors and Affiliations
Justin Brune, Daniel Harder, Lars Klingenberger
Keywords
Related Articles
- EP ID EP732055
- DOI https://doi.org/10.56578/ocs020101
- Views 90
- Downloads 1
Evaluating Spatial Accessibility to High-Tech Health Services in the Spanish Iberian Peninsula: A GIS-Based Analysis
This study explores the spatial accessibility of high-tech health services across municipalities on the Spanish Iberian Peninsula, focusing on the adequacy of service provision by haemodynamic facilities relative to pote...
Innovative Development as Determinant of Corporate Economic Security
The current challenges of globalization provide business entities of various economic systems with multifaceted opportunities, while creating new threats to economic security. These and other challenges require enterpris...
Evaluating the Evolution and Regional Disparities in Green Finance within the Yangtze River Economic Belt: A Longitudinal Analysis from 2007 to 2020
Based on five dimensions, a green finance evaluation indicator system for the Yangtze River Economic Belt was constructed. The Criteria Importance Though Intercrieria Correlation (CRITIC)-entropy weight method was employ...
Visibility of Sustainability Certifications in Tourism Enterprises: A Content Analysis of Electronic Platforms in Balıkesir Province
In the contemporary landscape, sustainability emerges as a pivotal indicator of corporate commitment to environmental stewardship. This study aims to elucidate the extent to which tourism enterprises, particularly those...
Health Financing in the Pursuit of Sustainable Development Goals: An Examination of Global Averages and Turkey's Position
In the quest to achieve Sustainable Development Goals (SDGs), health economics and the financing of health expenditures emerge as pivotal elements. This literature-based exploration delves into the intricate nexus betwee...