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TotalEnergies
TotalEnergies

-7.1%

Energy / Energy and oil production

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Risks

1. Rising Costs: With TotalEnergies’ commitment to renewable energies and its desire to potentially become Carbon Neutral by 2050, the company is likely to incur higher costs in order to transition away from fossil fuels and make investments to develop renewable energy sources.


2. Regulatory/Political Risks: Changes in government policies or regulations may affect TotalEnergies’s strategy and ability to reach established goals.


3. Investment Risk: TotalEnergies’ current strategy involves making investments in alternative energy sources which may not be proven or fully developed. Therefore, there is an inherent risk that such investments may not have the desired returns or may not be successful.


4. Reputation Risk: The public and shareholders may doubt TotalEnergies’ ability to deliver on the promises that it has made with regards to achieving its sustainability goals. This could have a negative impact on the company’s reputation and its share price.


5. Technology Risk: Rapid technological advances in the renewable energy sector may cause TotalEnergies to become obsolete if it does not keep up. This could have a huge impact on its profitability.


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