Toyota will send its hybrids to the breaker’s yard 14 Dec 2021 The $250 bln carmaker is dramatically increasing its electric ambitions after lagging for years. It could help defend its earnings multiple lead over Ford and GM. But Toyota still lobbies against tougher emissions standards. Powering down its hybrids will add carbon clarity.
The Exchange: Top chef who turned his back on meat 14 Dec 2021 Daniel Humm’s Eleven Madison Park in New York garnered three Michelin stars and was voted the world’s best restaurant in 2017. But after the pandemic, the marathoning Swiss transplant pivoted his kitchen entirely towards plant-based cuisine. He tells Rob Cox why.
Fortescue unearths transition leadership challenge 10 Dec 2021 The Aussie miner’s CEO will step down, a year after Chairman Andrew Forrest unveiled his bold green-hydrogen plans. Straddling iron ore and new energy is no easy feat. Others trying to remake themselves for a new era also will wrestle with finding the right person for the job.
Capital Calls: Deutsche and DWS, Big Four 9 Dec 2021 Concise views on global finance: The German bank’s ownership of the asset manager looks less appealing after an ESG reporting scandal riled U.S. regulators; a record $167 bln in revenue will soothe the accountancy giants’ breakup pains.
Saint-Gobain’s U.S. deal will cement its Sika envy 6 Dec 2021 The $34 bln French construction firm tried and failed to buy its Swiss rival, which then went on a growth spurt. Saint-Gobain’s $2.3 bln offer for U.S. group GCP will help it decarbonise. The catch is that Sika made a similar move last month, and the returns on that look better.
Nissan’s green drive hits yellow light 30 Nov 2021 Shareholders booed the Japanese automaker’s plan to invest $18 bln in clean cars over the next five years and make half its fleet electric by 2030. The erstwhile electric-car leader wants to regain ground, but it’s a financial stretch with profit weak and the stock overvalued.
Capital Calls: Remy Cointreau, African petrol 25 Nov 2021 Concise views on global finance: With profits soaring, the cognac maker will face mounting pressure for M&A; commodity trader Vitol buys out minority shareholders in London-listed fuel distributor Vivo.
Capital Calls: China’s data centre sale 24 Nov 2021 Concise views on global finance: Global Switch is attracting big-name private equity interest, but its quirky setup might justify suitors asking for a discount.
ESG ratings’ big dogs may need to learn new tricks 23 Nov 2021 IOSCO wants better oversight in the murky world of sustainability grading. The global standards-setter hasn’t called for much that the likes of MSCI can’t live with. But the direction of travel suggests incumbents will lose out as data becomes more sophisticated and transparent.
Reliance-Aramco no-deal is sign of the ESG times 22 Nov 2021 A Saudi plan from 2019 to invest $15 bln into the Indian company’s refining arm is being re-evaluated as Reliance’s green ambitions complicate matters for both sides. The impasse reflects the hectic pace of the energy transition, and the cheap capital available to fund it.
Australia deserves to pay climate risk premium 18 Nov 2021 Canberra adopted a net-zero emissions target mainly to keep the country from being punished by investors. Its newly released assumptions on electric vehicles, mining and more confirm a lack of seriousness in the plan. Sustained pressure from fund managers could make a difference.
Bitcoin miner’s green patina is fool’s gold 17 Nov 2021 In a somewhat novel twist for the power-sucking cryptocurrency business, Iris Energy relies mainly on renewables. That probably helped boost its valuation in a $1.6 bln IPO, but it feels like style over substance. And the climate hype cannot mitigate some serious risk factors.
China’s central bank tries brighter shade of green 16 Nov 2021 A new lending programme could, by one estimate, lead to nearly $1 trln of investment in clean energy projects. It’s a bolder policy than from Western peers, and also a clever way to tackle the stagflation dilemma. Runaway stimulus remains a risk, as does misallocated capital.
Breakdown: COP’s bare minimum is still a ratchet 15 Nov 2021 Glasgow’s UN global climate shindig needed to outline a clear path to halve emissions by 2030 and secure way more cash for developing states. It managed neither. Still, the final agreement, and a joint U.S.-China pact, make it harder for companies to delay on climate change.
Viewsroom: GE goes for breakup; COP not out yet 11 Nov 2021 Though Larry Culp’s move to separate the U.S. industrial conglomerate into three parts marks the end of an era, the decision was inevitable, John Foley argues. And the UN climate do kicks off its second week with one step backward. George Hay and Rob Cox check in from Glasgow.
U.S.-China climate pledge adds psychological lift 11 Nov 2021 The world’s two biggest polluters surprised COP26 with a joint statement, albeit one with few new greenhouse-gas cuts. At least it tries to separate global warming from other diplomatic problems, and it should help others set their sights higher. Something is better than nothing.
The Exchange: Bank of America boss Brian Moynihan 9 Nov 2021 With a $2.8 trln balance sheet, BofA is one of the largest banks in the Glasgow Financial Alliance for Net Zero. Moynihan tells Rob Cox what this means operationally, how the bank is helping “hard to abate” firms to transition, and what it’s like to be back at conferences.
Forget COP26. The world needs COPPER 26 5 Nov 2021 The climate shindig is all about cutting demand for fossil fuels. The required flipside is a 2020s surge in production of metals for all those extra wind turbines and electric cars. Stay tuned for a separate forum in which governments and miners thrash out how that might happen.
Coal’s end will come sooner than Glasgow suggests 5 Nov 2021 Agreements struck at the COP26 summit point to the fossil fuel being a major carbon dioxide source for 20 years or more. But even after a recent rally, the valuations of specialist miners like Peabody and Whitehaven imply the mineral will be around for nowhere near as long.
Viewsroom: Climate and tech shindig dispatches 5 Nov 2021 World and business leaders made some headway in pledges to limit planetary frying during the first week of COP26 in Glasgow, say George Hay and Rob Cox. Also, venture capitalists and startups mingled along the banks of the Tagus in Lisbon with Peter Thal Larsen and Karen Kwok.