ESG

Joe Biden’s climate law is too valuable to repeal

18 Sep 2024

The outgoing president’s Inflation Reduction Act has spurred $500 bln in green investments in two years. Regardless of who replaces him, politicians, companies and utilities will want to protect lucrative tax credits. A Donald Trump victory might bend the law, but not break it.

Luxury’s legal pain is new threat to valuations

20 Aug 2024

Italian prosecutors allege sweatshop-like worker conditions at subcontractors of houses like LVMH’s Dior. That’s a bad look after recent luxury price rises. But if the sector has to hike costs to improve its supply chains, investors may find a new reason to mark valuations down.

European boards have too little skin in the game

17 Jul 2024

Non-executive directors at big US companies get 60% of their pay in equity. That’s rare in Britain, France and Germany, where many board members own a slither of stock. Cash fees warp incentives, discourage engagement, and risk making Europe’s capital markets less competitive.

Ben & Jerry’s rocky ESG road bucks vanilla trends

4 Apr 2024

The purpose-driven ice cream brand is being scooped out of Unilever as corporate activism increasingly invites controversy. And yet the maker of flavors like Empower Mint has grown faster than its parent. Social values, especially when authentic, can mix well with financial aims.

Starbucks union is labor’s mighty mouse moment

6 Mar 2024

An organization representing workers withdrew its board nominees for the $103 bln coffee company after getting some concessions, which look perfunctory. But the structure of Starbucks’ workforce isn’t amenable to successful collective bargaining. Even a small labor win is a win.

Tesla-BYD rivalry is mostly manufactured, for now

3 Jan 2024

Elon Musk’s outfit ceded its title of world’s biggest EV maker to the Chinese company. In a growing industry, that’s irrelevant, plus BYD has a home advantage. The longer-term danger to Tesla, assuming geopolitics doesn't upend its supply chain, is if its peer advances in tech.

Aussie tycoon will blaze new green activist trail

2 Jan 2024

Atlassian co-CEO Mike Cannon-Brookes has already used some of his billions to tackle climate change, like battling the country’s top carbon emitter. Quitting the software firm would make him more effective. Other wealthy moguls may then join him in the activist trenches.

Biofuels comeback will give West a rare energy win

20 Dec 2023

Propellants from plant waste and animal fats have lost out amid an e-mobility push. Yet the difficulty of using electricity for planes and ships, and the rise of non-edible crops as feedstock, will offset food supply fears. Western groups like BP, Total and Eni will benefit.

How rich societies can live well with slow growth

11 Dec 2023

Advanced economies are expanding less rapidly, while ageing populations, conflict and climate change demand more resources. An acquisitive mindset leads to unhappiness and conflict. But if societies embrace a more purposeful, caring and greener future, they can flourish.

 

Energy transition investing is caught in traps

8 Dec 2023

COP28 attendees pledged to triple renewables, but there’s still no plan to quit fossil fuel. Brookfield’s $13 bln joint bid for Aussie emitter Origin lined up a poster child deal for how companies can make the leap. Its failure has lessons for the world’s broader efforts.

Imagine a better climate pact than COP

4 Dec 2023

The UN summit in Dubai, known as COP28, is unlikely to achieve much because all 197 states need to agree. If a few powerful nations set bold targets and then coaxed others to follow suit, progress would speed up. That will not happen unless the US and China take the lead.

 

UAE green fund risks missing its poor-nation mark

1 Dec 2023

The COP28 climate-summit host unveiled a $30 bln vehicle featuring Brookfield, BlackRock and TPG to help cut emissions. If the firepower goes to developing countries, it will plug big financial gaps. If wealthier nations are the main recipients, it’ll be a squandered opportunity.

COP28’s big dilemma: fossil fuel cuts, or fudges

28 Nov 2023

The success of the Dubai climate shindig rests on how much it slashes emissions via cuts to oil production, and how much it relies on carbon storage or removal. In this Exchange podcast, Energy Transitions Commission chair Adair Turner warns against relying on the latter.

COP28’s big challenge: green cash for poor states

15 Nov 2023

To hit net zero, rich countries need to find an extra $1 trln a year of public and private cash for the developing world. As delegates head to Dubai for 2023’s key climate shindig, the UAE could bolster its credibility as host by focusing attention and resources on a fix.

Influencer model infects US political fundraising

27 Oct 2023

The US House elected a speaker after four people gave it a try. The chaos partly reflects how politicians now receive support. Social media enables them to reach voters without the backing of their party. The new way to create star power will disrupt politics as it has Hollywood.

Cooled auto hotheads give labor disputes hope

26 Oct 2023

Ford Motor’s new union agreement could cost $2 bln in pay rises. That stings, but is well short of earlier asks while also recompensing workers. Much about the agreement seems reasonable. As labor pressures continue, the agreement suggests sensible outcomes are possible.

Time is ripe for another push on carbon pricing

24 Oct 2023

Green subsidies can help fight climate change but are fiscally unsustainable. Regulations can be politically unfeasible, while doing nothing is ecologically untenable. Carbon taxes raise cash, some of which can be used to ease the public backlash.

Brookfield energy deal changes antitrust climate

10 Oct 2023

An Australian regulator decided speedy emissions reductions outweigh competition fears in the Canadian investor’s $12 bln joint bid for power company Origin. The ACCC’s terms for approving the buyout are a handy base for other watchdogs to build on as climate-driven M&A grows.

 

Capital Calls: US government shutdown

29 Sep 2023

Concise views on global finance: Civil servants, who already earn 24% less than the market rate, lose their pay when Washington closes. Legislators, meanwhile, keep collecting their $174,000 salaries. Having skin in the game would help focus congressional minds.

Green energy’s tailwinds blow the other way

22 Sep 2023

Falling costs, cheap capital, and supportive politicians spurred a $7 trln global rush into renewable power. Now fractured supply chains and higher interest rates mean the transition is more expensive. These new headwinds will test the resolve of consumers - and of governments.