Oil prices are soaring. Returns on energy stocks have been robust. The 30 largest oil companies account for some 6% of the entire global equities market. In building wealth to pay for your kids' college or your own retirement, ignoring energy stocks can be costly. If you're a mutual-fund investor, you probably already own a chunk of Big Oil, even if you don't realize it.
Fast Company asked the sustainability experts at HIP Investor Inc. and the Social Venture Technology Group for help. These firms have together developed an exclusive methodology they called HIP -- Human Impact + Profit -- for measuring the environmental and social impacts of business. HIP and SVT founders R. Paul Herman and Sara Olsen argue that, over the long term, companies' willingness to grapple with environmental and social issues translates into higher net income, through new products and lower costs, and stronger stock returns. We asked the HIP/SVT team to analyze the world's 10 largest oil companies.
It's a dilemma for investors who want hefty returns and a clean green conscience: Can you own Big Oil and still feel good in the morning?
Energize Your Portfolio with Renewables
HIP & SVT examine 21 renewable-energy pure-play companies -- covering energy types as diverse as solar/photovolataic, wind, fuel cell, ethanol, and cogeneration.
The Price at the Pump Around the World
What would you pay for a gallon of gas?
Today's accounting systems only examine financial results (revenues, costs, taxes) and liabilities that are financially measurable. But a company creates many more impacts. The Human Impact + Profit methodology addresses that.
Quiz: How HIP is Your Company?
Answer ten questions and get an estimated HIP score for you business.
About the Contributors
We recognize those that contributed to the Sensible Investing: Oil project, including individuals from HIP Investor and SVT Group.
Slideshow: Can Big Oil
Become Big Green? Can big oil transform itself into a sustainable global power called Big Green Energy? Here's some ideas.
HIP Investor's Guide
to Big Oil
A concise look at HIP Investor's assessment of the 10 largest oil companies.
Slideshow: Who's Helping
Big Oil Focus on Sustainability?
Here's are the managers leading Big Oil's efforts in sustainability.
Podcast: Sensible Investing
HIP Investor and SVT Group founders R. Paul Herman and Sara Olsen on investors using sustainability to judge the viability of investing in oil.
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