Energy transition has become one of the major challenges that will shape the global agenda in the coming decades. In addition to government policies or major energy conglomerates' strategies, non-energy firms also play a significant role in the energy transition with their growing share in renewable energy supply and other pro-environmental investments. Using the Resource-based View and Dynamic Capabilities perspectives, we discuss non-energy firms' capability-based energy transition strategies and explore the channels through which these strategies affect their financial performance. We test our hypotheses using S&P 500 firms' data and show that energy transition capabilities have a positive moderating effect on the relationship between renewable energy sector return and non-energy firms' financial performance in the short term. Furthermore, these capabilities have a positive moderating effect on the relationship between fossil fuel prices and non-energy firms' financial performance in the long term. Our findings indicate that energy transition capabilities created a virtuous investment-return opportunity for non-energy firms between 2009 and 2021. 

Biography

I am a Ph.D. candidate at Ivey Business School, and my research is about the role of firms in energy transition. My research interests include renewable energy policies, electricity market design, and innovation in the energy sector.