Sustainability

The Franken-economy that will thrive post-pandemic

24 Dec 2020

The ideal nation to emerge from Covid-19 has South Korea’s superb internet connections and technology know-how. Like Singapore, robots are widely used in industry. And it boasts skilled workers to rival Switzerland, sells high-value exports to China, and leads on green energy.

Big Oil will cash in on sun and wind

21 Dec 2020

Covid-19 and ESG have crushed the stock prices of companies like Total and BP. Listing their growing renewables businesses would help capitalise on inflated valuations. There’s a hedge of sorts: if the spinoffs don’t work they can be bought back on the cheap, Iberdrola-style.

Guest view: Woke markets present growing dangers

18 Dec 2020

The politicisation, and even weaponisation, of ESG investing is a concern, argues Frank Sixt, finance director at CK Hutchison. Exclusionary strategies are too prone to populist influence and ratings are chaotic. Absent quick changes, capital allocation distortions will rise.

Heathrow expansion faces long Covid-19 quarantine

16 Dec 2020

Britain’s Supreme Court cleared the way for the London airport to build a third runway, boosting its capacity by two-thirds. The pandemic-induced collapse in air travel makes passenger forecasts obsolete. Even if demand recovers, airlines will struggle to cover the extra costs.

Sheriffs take overdue ride into ESG wild west

15 Dec 2020

French and Dutch regulators have called for greater oversight of ratings and products that gauge companies’ green credentials. Nailing down a coherent approach will be tricky. But the breakneck growth of sustainable investing makes clearer ground rules critical.

Corona Capital: Gaming M&A, Beauty’s bold face

9 Dec 2020

Concise views on the pandemic’s corporate and financial fallout: Consolidation in video games reaches the next level as Sweden’s MTG buys Hutch Games for $375 million; and Spanish cosmetics, fashion and perfume group Puig predicts revenue will double by 2023.

UK’s cheaper zero-carbon route comes at right time

9 Dec 2020

Decarbonising the British economy could cost less than 1% of GDP a year, Britain’s climate adviser reckons, well below its previous estimates. Politicians still need to act on the plan. But a credible roadmap is a guide for others ahead of next year’s UK-hosted global conference.

Glasenberg-less Glencore is surprise green champ

4 Dec 2020

Gary Nagle is the miner’s new CEO. The South African inherits a different firm to the one compatriot Ivan Glasenberg led. Running down coal mines to hit zero CO2 emissions by 2050 and boosting copper and cobalt pitches Glencore as an unlikely centrepiece of the green transition.

Corona Capital: Movie releases, Ads, Running

4 Dec 2020

Concise views on the pandemic’s corporate and financial fallout: HBO Max uses its muscle on movie releases; advertising wins some and loses some; Brooks’ beast year.

Hershey cocoa spat tests limits of investor ethics

4 Dec 2020

Ghana and Ivory Coast may stop selling sustainable beans to the Reese’s maker, accusing it of dodging payments for impoverished farmers. That could make it harder for the $31 bln group to flaunt its sustainability kudos. The snag is that so far shareholders don’t seem to care.

Japan Inc confronts limit of corporate carbon cuts

4 Dec 2020

Companies including Sony are lobbying for more renewable power in Japan. They need to satisfy clients like Apple, who have committed to carbon-neutral supply chains as soon as 2030. But even an edict from the $2 trln tech titan can’t force change where policymakers lag behind.

Thyssenkrupp is acid test of German green resolve

19 Nov 2020

The ailing giant’s steel arm lost 950 mln euros last year and is a major carbon dioxide polluter. Right now it would cost a bomb to convert the division into a hydrogen-powered, low-carbon star. Still, extending subsidies would chime with Berlin’s commitment to a green recovery.

Corona Capital: Brexit curveball, Sonos

19 Nov 2020

Concise views on the pandemic’s corporate and financial fallout: a Covid-19 scare for European Brexit negotiators puts an already-optimistic deadline to the test; and wireless-speaker maker Sonos joins the list of companies profiting from consumers being stuck indoors.

Deutsche Boerse jumps on ESG train with ISS deal

18 Nov 2020

CEO Theodor Weimer is spending $1.8 bln on 80% of the U.S. proxy adviser after missing out on Italy’s bourse and an FX trading platform. Accurately scoring companies’ environmental, social and governance credentials is a growth business. But it’s also a crowded field.

Corona Capital: Dimon weighs in, Gen Z

18 Nov 2020

Concise views on the pandemic’s corporate and financial fallout: JPMorgan’s chief executive calls for U.S. politicians to “just split the baby” on stimulus; and Generation Z deals a new body blow to the idea that office life will emerge from the pandemic unscathed.

UK green revolution takes baby-step beyond slogans

18 Nov 2020

Britain is to ban new petrol car sales by 2030 and invest in hydrogen to hit its 2050 decarbonisation goal. The sums cited are modest and the targets lack detail. The plan’s success hinges on Prime Minister Boris Johnson convincing private investors to pick up the slack.

Renewable energy gets its very own Masayoshi Son

13 Nov 2020

Aussie mining mogul Andrew Forrest unveiled plans for his Fortescue to go big in green projects. Targets include competing with global oil giants in production capacity. The bold strategy will spark a frenzy – both helpful and harmful – just as the SoftBank boss did in tech.

Japan’s financiers face a carbon cleanup

11 Nov 2020

New Prime Minister Suga wants to cut greenhouse gases to zero by 2050. That’s ominous for MUFG, Mizuho and peers, who provided more than $150 bln in loans and underwriting for fossil fuels over five years. Powerful investors like $1.6 trln pension fund GPIF can crack the whip.

Green energy valuations could use stiffer tailwind

5 Nov 2020

Siemens Gamesa and Danish rival Vestas now have over 60 bln euros of orders for wind turbines between them. But valuations look toppy even if they hit margin targets. A possible Joe Biden U.S. presidency is also less likely to supercharge renewables with a Republican Senate.

Biden win would clear multiple green roadblocks

29 Oct 2020

The Democratic nominee will rejoin the Paris agreement on emissions cuts if he wins the U.S. election. That’s good, but largely symbolic. More important are a pledge to hike clean energy spending and the scope for his administration to advance green financing and carbon pricing.