Sustainability

Xi puts clean energy to good use beyond climate

23 September 2020

China’s president says his country will be carbon-neutral by 2060. The pledge is credible because it’s in Beijing’s interests; Xi may also be trying to warm frigid European negotiators, and defang sceptics. It’s also plausible because China is exporting pollution to poor countries.

Review: Oil historian of record drops his compass

18 September 2020

Three decades after his celebrated history of the hydrocarbon industry, “The Prize”, Daniel Yergin has published “The New Map”. His account of recent energy geopolitics is typically authoritative. A discussion of the ongoing energy transition, however, lacks clear signposts.

BP’s wind tilt is more steady breeze than gale

18 September 2020

The UK oil major’s “green week” yielded a target of 20 GW of renewable energy by 2025. Even with a mooted $5 bln a year in investment, BP would struggle to get there via higher cost offshore wind. That’s probably why CEO Bernard Looney’s blueprint allows for a steadier pace.

Green bonds could slide into irrelevance

17 September 2020

Securities used to finance environmentally friendly investments are thriving, with everyone from JPMorgan to Germany charging in. Yet the $800 bln market does not necessarily mean greener issuers. As investors get better at differentiating, green bonds could become redundant.

UBS reframing of ESG investing changes the game

11 September 2020

Portfolios factoring in social and climate issues are now the “preferred” option for its $2.6 trln of private-client assets. Making them the default, with no caveats about performance, is a big deal. It’s necessary, if not sufficient, to drive substantive real-world change.

Rio Tinto board can choose CEO – at expense of ESG

10 September 2020

Many shareholders want harsher punishments for the mining giant’s destruction of Aboriginal heritage sites. Robust returns are one reason to stop short of axing boss Jean-Sebastien Jacques. If he stays, though, Rio’s responsible investing credentials will be deeply discounted.

U.S. climate report’s obviousness is its strength

9 September 2020

A CFTC-led study on the financial risks from global warming isn't revelatory. Instead, it rehearses the dangers and suggests solutions already common in Europe and elsewhere. Backing from Wall Street, Big Agriculture and Big Oil helps point to a more consistent response.

HSBC takes first sip of natural capital

27 August 2020

The UK bank is teaming up with advisory startup Pollination to invest in sustainable forestry, water supply, natural carbon capture and such. Nature-based solutions are key to minimizing climate change. HSBC's JV is a step towards building the needed mainstream scale.

Fashion can bear the costs of virtue cotton

25 August 2020

Most of China’s crop comes from the persecuted Uighurs’ home region. Forced labour may taint some of that, but clothes makers do not yet trace their complex supply chains back to the farms. Scrutiny from politicians and investors means careful sourcing makes financial sense.

BP gets serious about tough corporate reshaping

4 August 2020

CEO Bernard Looney’s dividend cut frees up cash for renewables investment. Plans to axe oil output by 40% by 2030 show added commitment to flicking the green switch. Selling assets is easy but growing new businesses is hard. BP risks ending up neither an oil nor an energy major.

Corona Capital: Ford narrows the gap

30 July 2020

Concise views on the pandemic’s corporate and financial fallout: The Detroit automaker put in a better second-quarter performance than expected. That’s good news for under-pressure CEO Jim Hackett – and allows Ford to close some of the distance to rival GM.

All sides could gain from $42 bln NorNickel reset

28 July 2020

An agreed management shakeup would protect the role of CEO Vladimir Potanin, who holds 35% in the Russian miner, and dodge legal disruption. Rusal, with 28%, could eke out more control. Other investors would get a better-run company, and a lower risk of ecological catastrophe.

Corona Capital: Baseball, Gas cloud, Luxury goods

28 July 2020

Concise views on the pandemic’s corporate and financial fallout: Baseball’s Covid-19 cases put popular college sports competitions in jeopardy; a recovery in drilling for gas is bad news for the environment; Gucci and other luxury retailers finally embrace the digital revolution.

Silver rally may have a bright, green future

23 July 2020

The white metal’s price is up more than gold's so far this year. Silver’s industrial uses mean it shines when lockdowns lift, but there’s a political dimension too. As an ingredient in solar panels, it could benefit from U.S. presidential hopeful Joe Biden’s clean-energy plan.

Hydrogen investing is a lottery worth playing

22 July 2020

The element has huge potential as a carbon-free energy source. Prior false dawns, sky-high valuations and the difficulty of identifying which companies will endure are causes for investor caution. But the scale of the opportunity means there’s also a risk of missing out.

Biden’s climate smorgasbord lacks some key dishes

15 July 2020

The presidential hopeful borrowed plenty of ingredients for his four-year, $2 trln plan for clean infrastructure and energy. It lacks detail and omits the role of private investors and the fate of fossil-fuel firms. But his politically well-pitched proposal has broad appeal.

Green laggards face a rising tide of short selling

15 July 2020

A new BNP Paribas fund will hedge investments in companies embracing the energy transition by betting against shares in refuseniks. Shorting ESG sinners isn’t easy, and has even caused controversy. But as disclosure improves it can play a growing role in sorting sheep from goats.

BlackRock warrants a spot on its climate watchlist

14 July 2020

The $6.5 trln asset manager voted against 53 companies for environmental missteps in the past 12 months and put 191 more on notice. It’s much better than the previous year, and necessary after CEO Larry Fink’s call to climate arms. But BlackRock’s own role needs monitoring too.

Corona Capital: Lockdown diets, Beating the Fed

14 July 2020

Concise views on the pandemic’s corporate and financial fallout: Covid-19 is prompting diets for both animal and human; and the Fed takes a hit on a garbage deal.

Biden task force lacks sense of dollars

9 July 2020

A wish list from the U.S. presidential candidate’s advisers runs the gamut from universal healthcare and zero emissions to racial equity and infrastructure spending, plus tax increases. Missing is much, if any, clarity on the financial equation. Trillions of dollars are at stake.