ESG

Guest view: Offsets reach moment of maturity

24 September 2021

There’s no guarantee the world will keep global warming to 1.5 degrees Celsius. As such, emissions cuts to tackle areas that can’t or won’t decarbonise will become key. Paris Agreement overseer Christiana Figueres argues that offsets deserve a chance to overcome their flaws.

Capital Calls: Wall Street B-team arrives in D.C.

23 September 2021

Concise views on global finance: U.S. senators sent SPAC managers letters questioning incentives in blank-check vehicles.

Wanted: Exxon-like activism at top Aussie polluter

23 September 2021

AGL’s investors have warned the $2.6 bln energy giant to up its game on climate change. Poor strategy, including a bungled coal spinoff, has halved its market value in 2021. An activist-led shakeup of its underwhelming board, as at the U.S. driller, would bring needed change.

Road to COP: Denmark’s green giant

21 September 2021

Orsted is one of the most highly valued players in the global energy transition. Chief Executive Mads Nipper’s main job is to ensure things stay that way as demand for its wind power intensifies. Ahead of Glasgow’s critical COP26 conference in November, he chatted to George Hay.

BP’s hard baptism goes with transition territory

20 September 2021

The UK oil major has sold choice assets to control debt since embarking on its green pivot a year ago, and CEO Bernard Looney just replaced the boss of his key renewables arm. If he needs a boost, Danish wind star Orsted looked equally bumpy at a similar stage of its evolution.

South Africa is litmus test for climate solidarity

15 September 2021

Despite its relatively small size, the Rainbow Nation’s economy is a big CO2 emitter. Yet Pretoria can ill afford a switch from coal due to soaring public debt. A $10 bln aid plan could be the answer, if lenders can close their eyes to the financial and political risks.

Norway readies fresh round of green air guitar

14 September 2021

The Scandinavian state is on track for a left-wing coalition pledging to do more on climate change after eight years of conservative rule. But rapid cuts to national hydrocarbons output aren’t likely. Given Norway has a $1.4 trln wealth fund, it can afford to go beyond gesturing.

Road to COP: Hydrogen comes faster than you think

14 September 2021

At this fall’s United Nations climate summit, world leaders will seek to take concrete steps to fight global warming. Green hydrogen could help, but it’s still too expensive. Snam CEO Marco Alvera tells Lisa Jucca why the hydrogen energy revolution is likely to surprise us all.

RWE makes for a good coal wind-down guinea pig

10 September 2021

The 22 bln euro German utility’s new activist wants it to ditch carbon-intensive lignite assets faster. If the government wants to hit tougher CO2 emissions targets, RWE will have to. The least-bad way forward may be for Berlin to assume the offending power plants itself.

Texas abortion law shows limit of company advocacy

9 September 2021

Shar Dubey, CEO of dating group Match, is starting a fund to help staff who need abortions now that Match’s home state bans most of them. Dubey’s proposal raises legal and other issues. But financial realities make it hard for her company, or others, to go much further.

Allbirds IPO peddles altruism with ESG feathers

3 September 2021

If the ethical shoemaker’s “sustainable public equity offering” is a hit, others will copy it. That would make finance a greater force for good. But Allbirds itself is easy to copy, too, and its governance is second rate. Above $2 bln, investors help the world at their own risk.

Italian data land grab comes at a price

31 August 2021

Fintech group ION has upped its bid for risk intelligence provider Cerved to 2 bln euros. An overall premium of 45% reflects growing demand for financial information. Offloading Cerved’s debt collection unit, worth perhaps 400 mln euros, would help recoup some of the cost.

Guest view: Climate’s lessons for the water crisis

27 August 2021

Tackling carbon emissions is at last mainstream thanks to data, science, a clear message and plenty of capital. Martijn Wilder, co-founder of climate advisory and investment firm Pollination, argues that drawing on those can help alleviate worsening floods and water scarcity.

Maersk’s green ships have first-mover disadvantage

26 August 2021

The $53 bln container giant is buying eight vessels powered by carbon-neutral methanol. Maersk gets a green halo, and customers could shoulder its increase in costs. The catch is that clean fuel alternatives currently in development are likely to be cheaper, and greener.

DWS greenwash probe could be ESG tipping point

26 August 2021

The German asset manager’s shares slumped 12% amid a U.S. investigation into alleged overstatement of its green credentials. A lack of consistent ESG metrics and terminology is a long-running, sector-wide problem. The desire to avoid similar attention could fast-track a cleanup.

Intel offers pointers to ease U.S. water crises

17 August 2021

A federal agency is for the first time slashing how much the Colorado River supplies to some states. Climate change means the problem may in time affect California. The chip giant’s efforts to save water in Arizona show how business can help mitigate problems caused by aridity.

Viewsroom: Battling the climate emergency

12 August 2021

A new U.N. report on global warming gives financiers fresh reasons to take bigger steps to help avert or mitigate the consequences, Breakingviews editors argue. A plan by the UK’s Prudential and the Asian Development Bank to close coal-fired power stations offers a model.

UN climate warning is a gauntlet for green finance

9 August 2021

Carbon emissions from human activity are “unequivocally” to blame for global warming, a new report says. Financial markets are belatedly coming up with solutions, like a Prudential-inspired plan to close coal plants. All their creativity is needed to tackle the planet’s crisis.

Cox: Saudi may have a super-green future after all

5 August 2021

At a recent G20 summit, the kingdom didn’t just align with U.S. and European climate crusaders. Its delegates even tried to break an impasse with India on coal. It’s a sign of how confident Saudi has become in its ability to manage, and profit from, the energy transition.

BP’s oil price boon is a mixed blessing

3 August 2021

Rising crude values allowed the $84 bln UK group to raise its payout and give CEO Bernard Looney more funds to pivot away from fossil fuels. But the bonanza could focus investor minds on less speedy rivals with scope to pay higher dividends, like Shell. That may hurt BP’s appeal.