ESG

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.

Rio’s culture rot puts investors on the spot, too

14 Feb 2022

The miner’s endemic racism, sexism and bullying is a wider wake-up call. Shareholders tend only to push firms for board diversity and equal pay. Yet a dysfunctional workplace runs deeper, affecting earnings and even M&A. It’s time social failings got some climate-style activism.

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.

Tesla can build cars, but culture may be harder

11 Feb 2022

The environmental promise of boss Elon Musk’s vision necessitates rapid growth. Managing a workforce expanding 42% annually, though, brings new risks for leaders more used to disrupting social and governance norms than upholding them. Lawsuits from workers hint at the problem.

China’s electric cars map ambitious road to Europe

11 Feb 2022

Xpeng is introducing its battery-powered brand to two more countries on the continent; Nio is close behind. There are no shortcuts from Shanghai to Stockholm, and competing with $900 bln Tesla will be tough. But an asset-light strategy limits the financial fallout if they fail.

Amundi’s mini-BlackRock status comes with a catch

9 Feb 2022

The French fund powerhouse now has 2 trln euros of assets, and is in fast-growing areas like passives and ESG. Yet Amundi’s strength in selling funds partly relies on its bank partners’ loyalty, which might change. That weakness helps explain a less-than-stellar stock price.

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.

Toshiba rejig goes long pragmatism, short vision

7 Feb 2022

The $18 bln Japanese titan now intends to split into two, not three. Ditching its earlier plan as too costly makes some sense, while buybacks and more asset sales may somewhat placate its most vocal critics. What’s lacking, though, is a longer-term strategy – and leadership.

Big Oil elbows out banks as Fed’s new kingmaker

3 Feb 2022

The energy sector has come out swinging against Sarah Bloom Raskin, President Biden’s pick to lead supervision at the U.S. central bank. The ex-Fed governor is outspoken on climate risks. The business lobby could frustrate her confirmation, even with Democrats in Senate control.

Wall St can have $47 trln field day in wetlands

2 Feb 2022

Swamps, mangroves and reefs store surprising value. Some is tied to services like tourism but much comes from these ecosystems’ ability to suck up carbon and reduce flood risk. The headline number may be heady but creative financiers ready to dive in will find a deep opportunity.

Rio Tinto’s cultural fix will be an uphill dig

2 Feb 2022

The $117 bln mining giant is rife with bullying and racial and sexual abuse, according to a damning report. Miners’ improved safety records show reform is possible, if hard. Investors’ apparent indifference, though, makes prioritising workplace respect even tougher.

Capital Calls: Netflix, Google-India

28 Jan 2022

Concise views on global finance: Netflix hints at deals by flagging the risks associated with potential acquisitions; Google’s $700 million investment in Bharti Airtel also reflects on Reliance.

The Exchange: Hydrogen wave

27 Jan 2022

Can green hydrogen decarbonise big chunks of our economies? Air Products CEO Seifi Ghasemi, who’s backing the carbon-free gas in a major Saudi Arabia project, thinks so. He tells Lisa Jucca how his $61 bln group plans to be the world’s top green hydrogen producer in five years.

ESG fervour is weathering its first big storm

27 Jan 2022

Despite a U.S. greenwashing probe, Germany’s 7 bln euro asset manager DWS is seeing further green inflows. Investors’ zeal for funds that tick ethical boxes is outdoing concerns about their fine print and performance relative to dirty funds. Yet the worries aren’t going away.

Capital Calls: TCI’s railroading tactics

26 Jan 2022

Concise views on global finance: The fund run by Chris Hohn has settled with Canadian National after a messy battle for the board.

New backer would fuel Aussie hydrogen hype machine

25 Jan 2022

Fortescue’s ambitious plans to use the gas for renewable energy help it trade at a premium to mining peers. Scant detail raises concerns, however. Chair Andrew Forrest could ease them by selling a stake in the FFI green unit, as GM and Ford did with their self-driving outfits.

Larry Fink’s pragmatism is awkward but lucrative

18 Jan 2022

The BlackRock CEO rejected criticisms that stakeholder capitalism is “woke”, while backing natural gas. The danger for Fink is that he occupies a no man’s land position on culture war hot topics. His consolation is that $10 trln of assets suggest investors are down with that.

New Credit Suisse chair has grim streak to break

17 Jan 2022

António Horta-Osório has resigned from the Swiss bank after flouting Covid-19 rules. It’s less than a year since he arrived to steady the lender following CEO Tidjane Thiam’s ousting. Incoming Chair Axel Lehmann, formerly of UBS, has to hope his reputation is more durable.

Unilever can still avoid Danone’s fate

14 Jan 2022

The $137 bln Dove maker’s stock has lagged rivals, activist Nelson Peltz may be circling, and other investors are grumbling. The recent ouster of the French yoghurt maker’s boss is a warning. CEO Alan Jope could pre-empt any revolt with clearer targets to sell struggling brands.

EU greenwash laxity could see it build back worse

13 Jan 2022

Europe’s green taxonomy is meant to direct billions of euros towards clean energy so a post-virus continent can “build back better”. Yet political fudges mean gas and nuclear count as sustainable. Worse, the tool’s new draft contains loopholes that could make it dirtier still.