Sustainability

Banks’ green torpor will leave shares stuck in mud

4 Oct 2019

Half the world’s top 50 private lenders lack commitments to sustainable financing. Those that do make them too vague for useful comparisons between peers. As climate risks rise, banks like JPMorgan that give far more funding to fossil fuels are cruising for an investor bruising.

BP’s new boss has a tougher gig than forerunner

4 Oct 2019

Bernard Looney will replace Bob Dudley as the oil major’s chief executive. While the latter restored BP’s image and balance sheet after the Gulf of Mexico spill, the exploration veteran will manage the transition to a low-carbon world under a very bright spotlight.

Markets short-termism keeps climate fight boxed in

27 Sep 2019

Governments and the private sector alike pledged to do more to tackle global warming at the U.N. climate summit. Committed financial resources, though, are thin on the ground. Blame wary CFOs, hidebound investors and skewed incentives. It’s creating huge embedded risks.

Fiddling with bank capital can help the planet

27 Sep 2019

Financial regulators are caught in a bind over climate change. They want lenders to favour environmentally sustainable projects, but also want to prevent them from going bust. A decision by France’s Natixis to apply green criteria to its balance sheet may help break the stasis.

Viewsroom: WeWork overhaul won’t be enough

26 Sep 2019

Adam Neumann lost his CEO role and control of the shared-office provider after its valuation plummeted in preparation for a now-postponed IPO. But WeWork’s business model remains a problem. Plus: Thomas Cook’s collapse hits China’s Fosun. And: parsing financial climate pledges.

Hadas: Good economy helps with climate change

25 Sep 2019

Man-made global warming is an urgent concern for heads of state gathering at the United Nations. Receding poverty, technological momentum and slowing population growth all make the challenge less daunting. These great economic trends need more support from governments.

Volkswagen’s damaged CEO remains roadworthy

24 Sep 2019

Herbert Diess has presided over a share price fall, made a Nazi joke, and may now face a criminal charge of market manipulation. Assuming he survives the latter, his recent truck IPO and focus on electric vehicles are right. Oddly, the $85 bln group would be weaker without him.

The Exchange: Lord John Browne

23 Sep 2019

The former BP boss-turned-renewable-energy-supporter-turned-gas baron stops by to discuss “Make, Think, Imagine,” his new book that’s part an explanation of and part an ode to the benefits of engineering. As UN Climate Week kicks off, he also discusses his take on global warming.

Guest view: Water can make or break climate action

23 Sep 2019

Billions lack access to safe water and sanitation. Traditional fixes are energy- and carbon-intensive. But as Peter Gleick of the Pacific Institute and Gary White and Matt Damon of Water.org argue, a mix of leak detection, renewable power and green finance can take up the slack.

Climate-savvy financiers are the next jobs bubble

23 Sep 2019

Banks and investment firms need people with the skills to raise their environmental game. Technology and on-the-job training can help. But for better or worse, outside hires send a stronger signal. With clients and consultants chasing the same talent, it will get expensive.

Green finance can fix its Groucho Marx problem

23 Sep 2019

The comic once quipped he wouldn’t join a club that would have him as a member. With lots of signatories but muted impact, the U.N.-backed PRI has long been the butt of similar jokes. New pledges need tough bouncers and a better VIP area. French bank Natixis may have a solution.

Climate strikes give governments cover to act

20 Sep 2019

Millions are downing textbooks and tools to demand more action against global warming. People power fueled a mass aversion to plastic. And many ideas and financing vehicles to enable the climate fight already exist. The worldwide protests allow politicians to take a tougher line.

Germany’s climate menu mixes small beer and fudge

20 Sep 2019

Angela Merkel’s coalition will begin pricing carbon at 26 euros a tonne to reduce emissions. That gives big polluters little incentive to clean up. It also limits Berlin’s need to disguise that its new 50 bln euro fund to smooth the transition will stay off-balance sheet.

Viewsroom: Not your mother’s oil shock

19 Sep 2019

Saudi Arabia is quickly repairing the damage drones inflicted on its oil industry. But the fallout has implications for everything from security to U.S. shale drillers to climate change-driven alternative energy. Plus: Why are AB InBev and ESR restarting Hong Kong listing plans?

Guest view: Finance can put out rainforest fires

17 Sep 2019

The burning Amazon has sparked international concern, tension between Brazil and Europe, but no solutions. One remedy, argue execs at the Coalition for Rainforest Nations, is for big firms to pay landowners to keep the forests and use the investment to offset their own pollution.

Big Oil’s climate smokescreen is about to clear

13 Sep 2019

Exxon Mobil and others often cite a well-worn global warming scenario to imply their models are sustainable. A major study, by a body whose signatories represent $86 trln of assets, should make that harder. Especially as it will soon shine a spotlight on individual companies.

Climate-linked debt’s influence starts to spread

11 Sep 2019

Italian utility Enel’s new bond has a coupon that rises if it misses green-energy goals. Unlike previous sustainability bonds, it can use the cash for anything. That should widen the market for such debt. Investors can magnify the impact by demanding tougher penalties.

Carmakers’ antitrust probe is more smoke than fire

6 Sep 2019

A pledge by BMW, Ford, Honda and VW to cut emissions has caught the eye of a U.S. watchdog. Some aspects of their deal may deserve scrutiny. But competition between the four, and the industry, is fierce. It’s hard to see how their plans would leave consumers worse off.

Viewsroom: How money really can grow on trees

5 Sep 2019

Done right, reforestation can capture much of the carbon causing climate change. It would improve crop yields and water quality and lessen the power of floods and storms like Hurricane Dorian. There are good financial returns to reap, too. Plus: the Alibaba competitor to watch.

White House hopefuls freeze out key climate allies

5 Sep 2019

Democrats have outlined responses to global warming ranging from a carbon tax to green energy, along with some huge spending plans. But companies and investors are already pushing for change. It’s a mistake to think government has to do all the heavy lifting and foot the bill.