The transition to a low-carbon energy future requires energy firms to divest from fossil fuel assets and develop new business models in line with the energy transition. Nonetheless, many energy firms continue to invest in new fossil fuel infrastructures, thereby reinforcing the risk of carbon lock-in. Many actors in the energy ecosystem fail to recognise the risks associated with climate change and do not implement necessary business changes. Using the CDP data from 2018 to 2023, this paper investigates which factors influence climate-related risks and how they have evolved over time. This research goes beyond the only study of regulatory risk, looking at several climate-related risks. As businesses evolve only if new markets are perceived, this paper also investigates the role of climate-related opportunities in shaping climate-related risk perception. To have complete information on firms’ implication in the energy value chain, we add to the CDP data, information coming from the NGO Urgewald datasets on coal, oil and gas (GOGEL and GCEL). Overall we found that if the financial performance of the energy sector is overperforming, investments in greener activities remain low. Preliminary findings also show that opportunities influence risk perception as well as the degree of activities’ brownness.
