Profitability During a Sustainability Transformation - A Case Study of a Swedish Petroleum and Biofuel Company
Abstract
This report examines the financial profitability of a petroleum and biofuel company
during their sustainability transformation. The case company is Preem AB, the largest
fuel company in Sweden. The study finds that debt-to-equity ratios tend to increase
with investments in more sustainable solutions. This could propose a higher financial
risk to the firm. The report also proposes and discuss the use of metrics for CO2-
emission that are easier to understand than just the weight of the gas emitted. Preem
does not seem to benefit from being part of the European Union’s Emissions Trading
System (ETS), since their green investments are focused on reducing emissions in
the use phase of their products, not in the production phase, which is what the ETS
measures and rewards.
The case study is based on an interview with a director at Preem to get an insight to
the green investments. Data for financial- and environmental performance are collected
from official reports published by Preem.
Degree
Student essay
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Date
2023-02-27Author
Crona, Michael
Linnér, Filip
Keywords
This report examines the financial profitability of a petroleum and biofuel company during their sustainability transformation. The case company is Preem AB, the largest fuel company in Sweden. The study finds that debt-to-equity ratios tend to increase with investments in more sustainable solutions. This could propose a higher financial risk to the firm. The report also proposes and discuss the use of metrics for CO2- emission that are easier to understand than just the weight of the gas emitted. Preem does not seem to benefit from being part of the European Union’s Emissions Trading System (ETS), since their green investments are focused on reducing emissions in the use phase of their products, not in the production phase, which is what the ETS measures and rewards. The case study is based on an interview with a director at Preem to get an insight to the green investments. Data for financial- and environmental performance are collected from official reports published by Preem.
Series/Report no.
IFE 22/23:3
Language
eng