ESG

Aussie energy crisis is an embarrassment of riches

10 Jun 2022

A looming gas supply shortage and high-power prices are due to years of bad policy in a country that should be a renewables poster child. It’s a chance for new Prime Minister Anthony Albanese to layout a comprehensive clean energy plan that will foster a green investment boom.

Glencore rebuff sets up less noxious coal deal

2 Jun 2022

The trader calls a Chinese offer for the 38% of Aussie miner Yancoal it doesn’t own “unacceptable”. That’s an understatement. It’s a deeply discounted deal offering payment via a convertible bond. Political risk looms large too, but Yankuang has to make the financials less toxic.

Global cracks complicate West’s energy transition

2 Jun 2022

Modern civilisation is built on fossil fuels. If past shifts are a guide, switching to renewable energy will take decades, says Edward Chancellor. Conflict with Russia and tensions with China make this harder. The West faces a choice between decarbonisation or deglobalisation.

Ukraine war helps China’s coal addiction stack up

2 Jun 2022

President Xi Jinping’s administration is boosting coal production to stave off power cuts. The top emitter is embracing the fossil fuel tightly as wealthy nations bid aggressively to replace Moscow’s natural gas supplies. The rational financial choice is a firm blow to net zero.

DWS CEO exit is helpful deterrent for greenwashing

1 Jun 2022

Asoka Woehrmann resigned from the $7 bln asset manager as regulators probe allegations it exaggerated its sustainable investing skills. Fund groups have benefitted from booming demand for ESG investments. The fallout at DWS gives other bosses an incentive to tone down the hype.

ESG raider needs to dig deeper

31 May 2022

Jeff Ubben’s Inclusive Capital has made a $1.9 bln offer for UK homebuilder Countryside. It’s both a bet on the need for more affordable housing, and an opportunistic raid on a target tainted by governance woes. But the ValueAct founder’s lowball bid needs a little sprucing up.

Nomura and Mitsui cultivate fertile climate ground

31 May 2022

The Japanese duo is buying trees-focused Australian fund manager New Forests. Mitsui also has backed Climate Friendly, which helps farmers sell carbon credits for sustainable agriculture. Done properly, it’s a lucrative and impactful sector deserving of greater investment.

Busted AGL breakup clears smoggy climate thinking

30 May 2022

The $4.3 bln power producer is ditching half its board, including the CEO and chair, after billionaire Mike Cannon-Brookes rounded up support to torch a demerger plan. With the obstructive old guard gone, it can more swiftly shed coal, be it under new leadership or a new owner.

AB InBev’s low-alcohol miss has sobering effect

27 May 2022

The world’s biggest brewer wants 20% of its beer volume in 2025 to contain little or no alcohol. Hitting the booze-free target requires unlikely growth of 30% a year. That puts a dampener on CEO Michel Doukeris’s do-gooder vibes, as well as his sales and margin potential.

HSBC’s jarring ESG message, Davos in spring

26 May 2022

The bank’s head of responsible investing believes policymakers are exaggerating the financial risks of climate change. In this Viewsroom podcast, Breakingviews columnists discuss the ramifications of those remarks. Plus: The World Economic Forum is back, but the mood is dour.

BoE pours cold water on bank global-warming panic

24 May 2022

The watchdog’s stress test showed UK lenders can weather a chaotic climate switch without a capital hit. For bank CEOs copping flak for funding polluters, it’s a let-off. The other lesson is that governments will get little help from financial regulators in greening the economy.

Australian election augurs serious climate upgrade

23 May 2022

Labor’s more ambitious green goals helped unseat the conservative coalition. Wins by climate-focused independents warn further against complacency. New Prime Minister Anthony Albanese also will rely on Greens for support. Bolder 2035 emissions targets would set the right tone.

Fortescue energy transition loses sight of another

18 May 2022

The $42 bln miner and wannabe green hydrogen champ is hiring older white men as part of a management shakeup that repositions two women. Chair Twiggy Forrest and former GE, AGL and RBA bosses may bring useful experience, but it’s important to keep making progress in all phases.

Guest view: Blue finance can save Asia’s oceans

13 May 2022

The region accounts for over 80% of plastic waste like bags and bottles that litter the world’s seas, damaging wildlife, the climate and livelihoods. IFC boss Makhtar Diop explains how a new debt market can help the cleanup by closing a $150 bln-a-year funding gap.

India heatwave throws food security for loop

12 May 2022

Crops are wilting after weeks of climate change-induced scorching temperatures. On top of domestic pain, it casts doubt on India’s new role exporting grain to replace supplies lost to Russia’s war in Ukraine. That’ll create more dilemmas for political leaders near and far.

BlackRock spikes guns of green activists

10 May 2022

Larry Fink’s group will back more oil and gas production. After COP26, institutional money looked set to phase out fossil fuels, but an energy crisis has intervened. Rivals may follow the $10 trln fund giant, propping up driller valuations and complicating the green transition.

How the UK can cut power bills and go green

3 May 2022

The government is so scared of the cost-of-living crisis that it doesn’t want consumers to pay for low-carbon wins like heat pumps, even though this cuts energy bills in the long run. Instead utilities could do the job and spread the cost over 20 years, argues Hugo Dixon.

Breakup opposition will smoke out AGL’s C-suite

3 May 2022

A lacklustre plan to split coal power from the retail business is sputtering after Atlassian co-CEO Mike Cannon-Brookes grabbed an 11% stake and vowed to vote no. It leaves boss Graeme Hunt and his team vulnerable. Their exit would open the door to a fresh takeover approach.

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.

How to return control of companies to their owners

28 Apr 2022

Investors used to argue that companies exist to maximise profits. Now they want executives to consider environmental, social and governance issues. The danger is that money managers impose their priorities, Edward Chancellor says. But there are ways to give ultimate owners a say.