General Electric (GE) on Monday said it would exit the business of building coal-fired power plants to allow it to focus more on renewable energy. The US industrial conglomerate said the exit could include job layoffs, divestments, and site closings. However, it convinced customers that it would complete existing obligations. GE has previously said that it would reduce exposure to fossil fuels and intensify focus on renewables.
According to analysts, GE move makes its portfolio more environment, social, and governance (ESG) centric. The company’s share plunged about 9% on Monday, but analysts said it was not due to the announcement. Industrial peers 3M and Honeywell also saw their shares fall by about 6% on Monday amid broader downtrend in the Wall Street’s main indexes due to concerns on reimposed coronavirus lockdowns.
