ESG

The Exchange: The green transition’s financing gap

5 May 2021

Plenty of capital is focused on creating the next Tesla. Less is directed towards medium-sized players doing vital but less flashy stuff like insulating buildings. Tikehau Capital co-founder Mathieu Chabran tells George Hay how some asset managers are stepping into the breach.

Capital Calls: Peloton, Honest Co, Office Depot

5 May 2021

Concise views on global finance: Treadmill recall leaves investors in the workout app stranded; shares in Jessica Alba’s consumer packaged goods company opened more than 30% above their IPO price; the office-supply company paper-shuffles its way to a higher valuation.

Biden’s biggest climate threat is U.S. politics

22 Apr 2021

An environmental confab of 40 world leaders returns America to the global stage. Rivals like Xi will attend, though some pledges may be vague. Given Joe Biden’s predecessor showed how easily U.S. vows can be undone, his task is to make promises stick before power shifts again.

Jamie Dimon is the stone in green investors’ shoe

21 Apr 2021

The JPMorgan boss runs the biggest fossil fuel financer and is one of the few bankers to spurn Mark Carney’s new group of net-zero pledgers. A strong share-price performance and ample profit buy Dimon leeway. They also set his bank up as the ultimate challenge for ESG activism.

Guest view: Getting finance in shape for COP26

21 Apr 2021

The $100 trillion required to decarbonise the world economy by 2050 won’t materialise without the financial sector. But banks, insurers and asset managers need a single set of standards to assess their net-zero ambitions. That’s now happening, write Mark Carney and Nigel Topping.

Capital Calls: Bank of America, WeWork, Kering

20 Apr 2021

Concise views on global finance: The bank’s shareholders voted against a deeper dive into its impact on racial inequality; the office landlord is taking bitcoin as payment, for now; the Gucci owner needs to run faster to catch arch-rival LVMH.

Anglo American tests shareholders’ ESG bona fides

8 Apr 2021

The miner is giving investors one share in its spun-off thermal coal unit for every 10 already held. The commodity’s kryptonite status means many European institutions will want to get rid of them for the same reason as Anglo. But rising coal prices may turn some heads.

Newspaper bidding war puts ESG on the front page

6 Apr 2021

Beneficent billionaires led by hotelier Stewart Bainum offered $680 mln for Tribune, topping a bid from hedge fund Alden. The white knights want to help U.S. newspapers like the Baltimore Sun find civic-minded owners. Yet price will decide if social good beats capital returns.

The Exchange: Sustainable finance

30 Mar 2021

European bank ING is a leader when it comes to holding borrowers to climate-change commitments. In an interview hosted by the European-American Chamber of Commerce New York, ING Americas CEO Gerald Walker talks to Breakingviews’ Richard Beales about the future of green finance.

Europe’s greenwash-slayer becomes Trojan Horse

30 Mar 2021

The EU has proposed classifying natural gas as sustainable. Its taxonomy, which differentiates green assets from the rest, is likely to be watered down further. Such an imperfect guide risks leading investors astray and delaying progress towards decarbonising the economy.

ESG wave crashes into Volkswagen’s narrow straits

26 Mar 2021

U.S. eco-investors have pushed ordinary shares in the $153 bln automaker way above equal preference stock after CEO Herbert Diess upgraded battery car plans. Investors’ need for voting rights plus VW’s small free-float may explain why. But the lack of clarity invites a snapback.

Right-wing activists pose challenge to ESG crusade

25 Mar 2021

The SEC may make it easier for investors to demand ballots on topics like climate change and racial justice. That could also let through conservative proposals firms like Intel and Verizon previously swatted away. Companies may just need to get used to the spirit of open debate.

Deliveroo’s main sustainability doubt is financial

25 Mar 2021

Some fund managers are shunning the food delivery group’s IPO over its treatment of workers. Unlike most ESG laggards, the $11 bln group is loss-making. Concern about labour rights and founder Will Shu’s super-voting stock are secondary to whether it can turn a consistent profit.

Guest view: The EU is tarnishing its green jewel

23 Mar 2021

The European Union’s Taxonomy is supposed to mean stakeholders can differentiate between sustainable investments and carbon-heavy ones. A new plan to treat gas as green is a huge mistake, argues Sandrine Dixson-Declève. It turns a potential global template into a paper tiger.

Banks’ climate pledges suffer from water scarcity

22 Mar 2021

It barely gets a mention in Wall Street’s net-zero goals. Yet water accounts for a good slug of carbon emissions and 90% of global warming-related crises from U.S. droughts to Australia’s floods. Banks can speed toward sustainable finance by paying attention to the resource.

Aramco’s next share offer is just as hard a sell

22 Mar 2021

The $1.9 trln Saudi oil giant’s annual results showed Covid-19 scars. If Riyadh sells more shares, Aramco’s low costs and spare capacity may be appealing to non-Saudi investors that largely sat out its 2019 IPO. But many environmental, social and governance red flags remain.

Danone’s purpose will survive chairman’s departure

22 Mar 2021

Emmanuel Faber’s sustainability credentials did not prevent the yoghurt maker from ousting him. But fears the group will disavow its ESG ideals are misplaced. The standards are embedded in the French company’s operations and legal status. Besides, investors still support them.

UK governance overhaul faces messy application

18 Mar 2021

The government wants company directors to face bans and pay clawbacks if they cause losses or failure. The proposals’ fuzzy language may warp incentives, and lead to legal disputes. PM Boris Johnson’s desire to attract listings to Britain after Brexit may also blunt their teeth.

Axa delivers kick up derrière to green investing

15 Mar 2021

The French group will no longer insure RWE or invest in its shares due to its coal exposure. It’s harsh on the German utility, which also has extensive wind and solar power assets. But it may be a wakeup call for other big companies with less impressive decarbonisation plans.

The Exchange: World Bank President David Malpass

9 Mar 2021

The Covid-19 crisis has exposed the economic and other inequities between the world’s richest and poorest countries. The World Bank’s boss discusses these challenges, ranging from vaccination drives and debt relief to the existential threat of climate change, with Rob Cox.