Which option correctly reflects climate change risks described for the oil and gas sector, including regulations to limit warming, unburnable reserves, and equity valuation reductions?

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Climate change risks for the oil and gas sector span policy actions, asset value risks, and financial market impacts. Regulations to limit warming—such as carbon pricing, stricter emissions standards, and methane controls—can change project economics, shift demand, and raise operating costs. The idea of unburnable reserves comes from carbon budgets; if a portion of reserves cannot be burned to meet climate targets, those assets may become stranded and lose value. Equity valuation reductions reflect how investors reprice assets in light of transition and regulatory risks, potentially lowering market values or driving impairments as future cash flows are revised downward. Taken together, these elements describe the full scope of climate-related risks for oil and gas, so the option that includes all of them best represents the described risks.