When climate risks threaten the business model

In May 2026, the SVVK-ASIR issued a ‘Deny Debt’ recommendation for the first time against seven companies in the fossil fuel sector, including PBF Energy Inc. (PBF). Throughout the process, which has been ongoing since 2024, PBF has shown no willingness to engage in dialogue and has not set any fundamental goals for reducing emissions. As a result, the SVVK-ASIR issued a ‘Deny Debt’ recommendation. The lack of progress reflects a deeper problem: PBF now acknowledges climate risks, but does not indicate how the company intends to adapt its fossil fuel business model to the challenges of the energy transition. As a result, investors lack the basis for providing further capital.

PBF Energy Inc. (PBF), headquartered in Parsippany, New Jersey (US), is one of the largest independent refining companies in the US. The company refines crude oil and sells fuels, heating oil, lubricants and petrochemical precursors. The business therefore continues to be based primarily on fossil fuels.

The company itself warns of climate impacts

For the first time in 2025, PBF publicly acknowledged the risks of climate change for its own business. These include higher CO₂ costs, stricter regulations and potential depreciation of assets and investments. In doing so, the company recognises that the energy transition could have a significant impact on its business model.

However, it remains to be seen how PBF intends to mitigate these risks. The company has not yet demonstrated how future-proof its business model is under changed market and regulatory conditions. For investors, this is exactly what matters. Identifying risks is a first step. Equally important is the question of how a company adapts its business and investments to these changes. PBF has not yet provided a convincing answer to this question.

The biggest risk lies in the core business

The decisive challenge for PBF does not concern its own refineries, but the products it sells. More than 90 percent of greenhouse gas emissions arise from the use of fuels and other fossil fuel products by customers. By contrast, direct emissions from refineries are significantly lower. At the same time, PBF has not published any goals for reducing these emissions in the long term.

This leaves one key question unanswered: how can a company remain successful in the long term if its most important products come under increasing pressure during the energy transition?

Individual projects are no substitute for a business restructuring plan

PBF does invest in renewable diesel [1], hydrogen [2] and renewable energy. Such projects can be important building blocks for a company's advancement. However, it is not yet clear how relevant these activities will be for PBF’s business in the future. The company does not publish targets for sales, profits or investments in these areas. It is therefore not clear whether the projects are part of a comprehensive business restructuring plan or whether they are merely individual initiatives without overall strategic planning.

Why the SVVK-ASIR issued a ‘Deny Debt’ recommendation

In recent years, PBF has made progress in climate reporting, governance and risk identification. However, this progress is only the starting point. A credible plan for how the company intends to respond to the long-term challenges of the energy transition is missing.

The ‘Deny Debt’ recommendation is therefore intended to send a clear signal. Investors not only expect transparency regarding risks but also a comprehensible strategy for the future of the company. Unless PBF can demonstrate how its business model will survive in an economy with significantly fewer fossil fuels, the provision of additional capital for the expansion of the current business does not appear justified.

[1] The Saint Bernard Renewables plant is a biorefinery in Louisiana that produces renewable diesel from biogenic raw materials. PBF Energy holds a 50% stake and accounts for the investment as an equity method investment, i.e. the investment is not fully consolidated but recorded on a pro rata basis in the income statement.

[2] The MACH2 (Mid-Atlantic Clean Hydrogen Hub) hydrogen project is a publicly supported initiative to build a hydrogen economy in the Delaware region. PBF Energy is a project partner and is exploring investments in green hydrogen and renewable energies.