Goldman Sachs has identified 17 oil and gas stocks it claims offer “the perfect ESG arbitrage” – companies trading at traditional energy multiples while delivering clean tech growth. Their proprietary Transition-ROTE™ model screens for:
✓ >25% capex in low-carbon projects
✓ Verified Scope 1-2 emission reductions
✓ Board-level climate accountability
Top picks include:
• Eni (45% renewable investment ratio)
• Cheniere Energy (carbon-neutral LNG leader)
• Suncor (most advanced biofuel conversion)
The strategy targets 12-15% annual returns from what Goldman calls “the great energy re-rating” – as markets recognize hydrocarbons’ essential transition role.
“These are effectively clean energy companies disguised as oil stocks,” said portfolio strategist Mark Delaney. The report shows transition-aligned fossil firms outperformed pure renewables by 8% annually since 2022.
