Environment

Capital Calls: Amazon and consumers

29 Apr 2022

Concise views on global finance: People are spending more amid price hikes, while the e-commerce giant struggles with them.

Elon Musk’s Twitter deal sullies his climate cred

27 Apr 2022

The Tesla CEO’s master plan is to combat global warming, which he calls the “biggest threat” to humanity. Committing most of his available wealth to buying a social media company doesn’t much help the cause. It’s a $33 bln missed opportunity to reduce even more carbon emissions.

Banks enter AGM season wearing green bullseyes

25 Apr 2022

Top U.S. lenders and some European rivals face votes on their climate policies at looming annual general meetings. Banks may resist greening their loan books if that hits earnings. But even if they clear the immediate hurdle, the heat will be on to clarify their net-zero plans.

China Inc has little to celebrate on Earth Day

22 Apr 2022

The annual environment-focused event gives titans like Alibaba a chance to showcase decarbonisation efforts. But since President Xi Jinping's net-zero emissions pledge, there has been little progress from China's biggest polluters. Greenwashing risks becoming the corporate norm.

EU greenwashing fix gets off to dodgy start

14 Apr 2022

Some 4 trln euros of funds are now deemed sustainable under European disclosure rules governing ESG investing. Yet the EU yardstick for such a definition is vaguer than for some private sector players. At the very least this is confusing; at most it actually aids greenwashing.

Renault is awkward guinea pig for Tesla-like trick

13 Apr 2022

The group may list its electric-vehicle business. Automaker CEOs look enviously at the rich valuation of Elon Musk’s group. Yet Renault’s battery unit is modest, and poor profitability and messy governance would mean its rump combustion operation would look even less desirable.

Australia can charge up a war on climate change

12 Apr 2022

Saul Griffith, author of “The Big Switch”, tells The Exchange why neither hydrogen nor carbon capture can tackle global warming. Instead, electrifying everything from cars to stoves will, thanks to ample sun and wind Down Under. It’d spark a jobs and exports boom, too.

Hydrogen’s civil war reveals its winner

31 Mar 2022

The element has a big role in beating climate change. But fans of natural gas-based “blue” hydrogen and its zero-carbon “green” cousin are constantly vying for supremacy. Soaring fossil-fuel prices and energy supply fears after Russia’s Ukraine invasion are handing green victory.

On climate, SEC can dictate but market will decide

25 Mar 2022

U.S. plans for companies to disclose more on emissions are a guaranteed legal punch bag. But even if the SEC’s bid falls flat, and its edgier elements might, much of what’s outlined is helpful and relatively simple. If investors want it, change can come even when fiat fails.

The climate revolution is underhyped

15 Mar 2022

Kleiner Perkins Chair John Doerr outlines in his new book a plan to reach net-zero emissions by 2050. As an early backer of Amazon and Alphabet, he also explains how saving the planet is a business opportunity akin to the internet in this episode of The Exchange podcast.

Dixon: War boosts need for “green Marshall Plan”

11 Mar 2022

The West needs more allies, not just to turn Russian President Vladimir Putin into a global pariah, but to show China what will happen if it too throws its weight around. A good way to do this is to supercharge its embryonic plan to help developing countries grow in a green way.

Capital Calls: Americans accept inflation for now

10 Mar 2022

Concise views on global finance: U.S. prices rose a whopping 7.9% year-on-year in February. Even so, Russia’s invasion of Ukraine has improved President Joe Biden's approval ratings. It may not last.

Capital Calls: Snowflake’s no snowflake

3 Mar 2022

Concise views on global finance: The data warehouse firm doubled revenue, but the stock was whacked. Snowflake’s solid finances mean missteps are valuation conundrums, not existential threats.

Climate change hands states an insurance dilemma

1 Mar 2022

Severe weather caused $343 bln worth of damage last year, and prompted insurers to either drive up premiums or cease home coverage altogether. States can avoid creating insurance black spots by taking over from the likes of Zurich. The catch is they may not be very good at it.

U.N. climate report takes aim at net-zero 2050

28 Feb 2022

The world is moving too slowly to stop global warming, per the multinational body’s latest study. Ditching fossil fuels will reduce natural and man-made disasters. But too many governments and companies use the mid-century emissions targets to delay action. That’s unsustainable.

Ukraine war gives impetus to climate backsliders

24 Feb 2022

Politicians are supposed to be fast-tracking decarbonisation. Russia’s invasion may speed the long-term shift to renewable energy. But it could also empower fossil fuel fans to ease energy security fears via new supply. Investors, lured by high crude prices, may go along with it.

Aussie coal exits put dithering government on spot

17 Feb 2022

Origin wants to shut the country’s largest plant powered by the fossil fuel seven years early, following rivals’ lead. It drew ire from the ruling coalition, whose green-transition plan is lacklustre. Renewables have won the economic fight; the political battle is a slower burn.

BHP’s deal willpower put to ultimate test

15 Feb 2022

A record $7.6 bln interim dividend speaks to the miner’s rude health. Boss Mike Henry sees opportunities from inflation and less risk in China. His confidence and a simplified share structure make capital discipline even harder in the quest to bulk up on energy-transition metals.

High power prices are no reason to ditch net zero

14 Feb 2022

Some politicians blame soaring energy costs on the global drive to cut carbon emissions. Yet climate change policies don’t explain the price spike, while investment in oil and gas is high enough. The criticism risks undermining tougher challenges like reducing demand for power.

Vietnam electric car whizz takes ambitious road

9 Feb 2022

Carmaker Vinfast is going all-electric and aims to sell overseas. The strategy combines conglomerate power through parent Vingroup with potential for a faster-than-expected shift to new energy vehicles in Southeast Asia. It maps a decent drive to a mooted $3 bln U.S. listing.