Engie’s Strategic Shift: the transition from fossil fuels to renewables

Penta’s analysis looks at French utility company Engie’s commitment to replacing investment in fossil fuels with renewable energy sources.

In 2015, Engie announced it would halt all investment into coal plants. This case study examines the success of this transformation, particularly in relation to the changing sentiment of its stakeholders over the six years following this decision.

At a time when green investments by companies that made their fortune in fossil fuels are often viewed with scepticism and accusations of greenwashing, we look at whether is it possible for a former gas giant to truly make the transition to credible clean energy advocate.

• Following the 2016 announcement, Engie’s share price fell 25% and its sentiment hovered around neutral. However, stakeholder sentiment showed an upward trend throughout 2016 to 2022, suggesting a positive response to its shift away from fossil fuels.
• Having divested throughout 2016 and into 2017, reports of investments into an onshore windfarm and hydro power stations led to an uplift in sentiment which would continue over the next four years.
• Throughout 2019, Engie benefitted from stakeholder positivity following contracts won with local governments, including an £85m contract with Catalyst Housing Association.

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