Oil Companies in Disguise: Are Investors Mispricing Automotive Climate Risk? (Americas Session)
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- Major global automakers may underestimate real‑world Scope 3 emissions by about 33 % on average.
- The Carbon Gap arises from optimistic assumptions about vehicle lifetimes, hybrid usage rates, and emissions boundaries.
- Adjusted carbon intensity shows some automakers now match or exceed oil‑and‑gas firms.
- Hybrid‑heavy strategies may be prolonging oil demand and increasing long‑term stranded‑asset risk.
- Electrification pathways differ, creating clear winners and laggards among OEMs.
Why it matters: Investors risk holding hidden oil exposure worth roughly a third of automakers' reported emissions, while automakers with hybrid‑heavy roadmaps may see stranded‑asset losses and lower valuations.
