Abstract
•Private Investors are vital to materialize a sustainable transition in the fossil fuel sector.•This network analysis maps the market structure of equity ownership in fossil fuel firms.•Ownership is concentrated among a small subset of influential shareholders.•Just ten financial actors can accelerate a sustainable transition in the fossil fuel industry.•This paper bridges the gap in literature on finance, supply-side policy, and climate stability.
Investors have a central role to play in sustainability transitions, due to their inordinate influence on the governance of the fossil fuel extraction industry. Using network analysis, this paper links fossil fuel firms to equity owners, by distinguishing ownership characteristics of top shareholders and establishing a ranked list of the most prevalent shareholders based on emissions potential and network centrality. Our study reveals that among the most prevalent owners, are government signatories of the Paris accord and prominent American investment managers. We conclude that a concentrated number of investors have the potential to influence the strategic direction and governance of these firms and should consequently be held accountable for financing the economic activities that contribute to climate instability. This paper directly contributes to the fragmented body of academic research on financial systems and sustainability transitions.