ESG

Capital Calls: U.S. inflation, French cloud outage

13 Oct 2021

Concise views on global finance: U.S. consumer prices rose 5.4% in September as the White House weighs the Federal Reserve chief’s re-nomination; OVHCloud’s network went down the day before the cloud-computing group is due to price a 3.6 bln euro Paris listing.

High fashion has golden shot at green revamp

12 Oct 2021

LVMH has recovered from Covid-19. With a record valuation and lavish cash flows, the $370 bln luxury giant can afford an overdue splurge on axing its carbon footprint. Setting the trend in an industry that accounts for 4% of emissions will also pile pressure on rivals.

EU cheer only partly masks green bond shortcomings

12 Oct 2021

The bloc’s debut 12 bln euro issue of debt earmarked for environmental aims was a big success and may encourage more launches. But such securities only incentivise sustainable behaviour if issuers can borrow at cheaper rates. That’s not always the case.

Capital Calls: Australia’s climate change

12 Oct 2021

Concise views on global finance: Prime Minister Scott Morrison may yet unveil a national emissions-reduction plan for COP26 after winning cover from a major business group, the biggest state, and the Murdoch press.

Road to COP: Mark Carney on finance’s climate role

12 Oct 2021

The UN climate envoy is enlisting banks, asset managers, insurers and others in wide efforts to keep global warming to no more than 1.5 degrees. He tells Rob Cox what to expect from the industry at Glasgow, how multilateral development banks need to “up their ambition” and more.

Eni’s green listing shows appropriate restraint

12 Oct 2021

The $50 bln Italian oil major’s renewables IPO may value it at 10 bln euros. Recent efforts by rivals don’t inspire confidence, but Eni’s offer blends a nascent green power business with its more established energy retail arm. That should get takers at a more modest valuation.

Capital Calls: Green investors, ASOS, Renren

11 Oct 2021

Concise views on global finance: Al Gore’s asset manager finds listed equities can influence a larger chunk of global emissions; the online retailer parts company with its CEO; the startup investor’s $300 mln settlement with aggrieved investors is likely to be an exception.

Time for bank holdouts to join Carney’s green club

8 Oct 2021

Most big western lenders have joined the ex-BoE boss’s GFANZ group pledging tough climate targets. Yet those run by Jamie Dimon, Charlie Scharf, Andrea Orcel and David Solomon have yet to do so. As with taking state capital in 2008, taking part makes more sense than holding out.

Tesla’s move to Texas further mars ESG credentials

8 Oct 2021

Elon Musk is relocating the electric-vehicle champion’s home base after a Covid-19 spat with California. It will put it in a state building a weak record on green energy and women’s rights. A company already hit by bad governance is giving investors more reasons to think twice.

BlackRock brings shareholder democracy to the few

7 Oct 2021

Clients with a combined $2 trillion of index-fund investments will get more say on how votes at underlying companies are cast. It’s only for large institutions, and many will stick with the status quo. Bigger change would come if CEO Larry Fink offered the same to all investors.

Chancellor: Going green is everything except easy

6 Oct 2021

British Prime Minister Boris Johnson told the United Nations just weeks ago that transitioning to a carbon-neutral economy would be a cinch. Oops. The global energy crisis changes everything. Not least, it makes the cost of jettisoning hydrocarbons a great deal more expensive.

Mining magnate is Greta’s unlikely kindred spirit

6 Oct 2021

Fortescue boss Andrew Forrest goes beyond the climate activist’s “blah blah blah” net-zero dismissal by calling such targets “a lie”. He’s basically right, but his own company clings to the carbon trope. The ambition on green hydrogen and Scope 3 targets, however, is welcome.

Road to COP: How can banks stop planetary frying?

5 Oct 2021

In the first instance, financial institutions can reduce travel budgets and replace radiators in office buildings and branches. The real leverage comes in how they manage customer assets and deploy balance sheets, UBS Chief Executive Ralph Hamers says in a chat with Rob Cox.

Cox: How Greta can transition from blah blah blah

4 Oct 2021

The young Swedish climate activist grabbed headlines in Milan at the runup to COP26 last week, castigating “so-called leaders” for talking much and acting too little. She’s got a point. But generational resentment won’t halt global warming. She’d be better off going nuclear.

Capital Calls: Pandora, Facebook files pack punch

4 Oct 2021

Concise views on global finance: A leak with rich people’s offshore activities and a Facebook exposé reinforce perceptions with facts; GitLab’s float shows Microsoft’s wise 2018 buy; Volvo IPO aims to supercharge EV plans; BT’s bid to rule UK broadband may face U.S. competition.

Solvay activist’s Greenpeace costume doesn’t wash

4 Oct 2021

Smug from shaking up Danone, Bluebell Capital is chiding the chemicals group for dumping limestone on a Tuscan beach. With only token economic exposure, its bid to oust boss Ilham Kadri lacks heft. It’s also unclear what other investors gain from joining its eco-warrior campaign.

Rivian risks reckless run onto public markets

4 Oct 2021

The electric-vehicle maker backed by Amazon and BlackRock only just started selling its first model. It’s also burning cash fast and Jeff Bezos’s e-commerce empire has the upper hand as a big customer for delivery vans. A mooted $80 bln valuation sounds like a runaway IPO.

Capital Calls: Biodiversity, Email, Gene IPO

30 Sep 2021

Concise views on global finance: Taskforce on Climate-Related Financial Disclosures gets a nature-based counterpart; Sweden’s Sinch clinches its fourth communication-software deal in seven months; a 40% bounce on Oxford Nanopore's market debut puts some life into London.

Capital Calls: Reliance Industries, Mediobanca

29 Sep 2021

Concise views on global finance: The Indian giant is trying to stave off an investor rebellion against its board appointment; top shareholder Leonardo Del Vecchio is proposing a governance shakeup at the Italian bank.

Road to COP: Italy’s ecological transition chief

28 Sep 2021

Prime Minister Mario Draghi picked Roberto Cingolani, a trained physicist, from the private sector to lead the country’s mega-ministry combining environment and energy. As Milan hosts the warmup to the COP26, Cingolani discusses Italy’s role in the global decarbonization fight.