Sustainability

Exxon CEO risks fueling unholy investor alliance

4 Sep 2019

Darren Woods reckons human progress and the unreliability of alternative energy sources justifies investing more in emissions-laden fossil fuels. But his argument ignores the $293 bln driller’s poor returns. That may give financial investors common cause with climate activists.

Climate-activist investors are due for a new dive

3 Sep 2019

Treating and moving water can account for 20% of energy use. And many companies are ignoring the risk to their operations of too much or too little of the liquid, judging by a recent industry conference. That presents fertile ground for pushy stock- and bondholders.

Growing money on trees beats fossil-fuel returns

30 Aug 2019

Reforestation improves the management of water, soil and crops as well as storing carbon. It can also yield investment returns higher than Exxon and most of the other top 100 emitters of greenhouse gases manage. Especially with the Amazon rainforest ablaze, it merits top billing.

Wall Street mistakes water for a business washout

26 Aug 2019

Big banks and investors are thin on the ground at water confabs, including this week’s bumper affair in Stockholm. Yet clean, fresh supplies are increasingly scarce. The economic and financial implications interact with climate risks, too. The finance whizzes are missing out.

Climate-denying magnate stoked potent opposition

23 Aug 2019

Billionaire David Koch’s funding for anti-global warming causes helped delay a response to a mounting crisis. He died as record fires beset the Amazon. But governments, companies and investors have already consigned his belief that free markets cure all ills to the scrap heap.

Carmakers have $372 bln incentive to defy Trump

23 Aug 2019

That’s the annual sales at risk if they don’t meet emissions rules in California and 14 other states that are tougher than the U.S. president wants. True, carmakers could lose sales elsewhere if Trump were right that cleaner cars cost more and work less well. But he isn’t.

Green bond purists overlook benefits of grey

19 Aug 2019

Companies that pollute can sell debt with an eco-friendly tag if they ringfence the money for climate-conscious projects. Critics call this “greenwashing”. But the extra transparency asked of borrowers is useful. So is an injection of ethical thinking into corporate treasuries.

Germany would kill a few birds with one green bond

15 Aug 2019

Raising ring-fenced money to manage a shift away from fossil fuels would underscore Berlin’s focus on making the transition. It would also give eco-friendly finance a boost. And ideally, the government would exclude spending on a greener future from its balanced budget goal.

Hong Kong businesses pick an ill-timed ESG fight

13 Aug 2019

A stock exchange plan to increase disclosure on green issues and governance has met resistance from local firms, wary of extra costs. The city already lags the likes of Singapore on such reporting; protests are hardly adding to its appeal. A corporate victory would be pyrrhic.

European oil majors’ gas lifeline could be a noose

1 Aug 2019

Royal Dutch Shell and Total rely on gas for future growth. That’s greener than oil, but weak second-quarter results show the drawback of their exposure. More importantly, longer pay back times than shale projects may help explain why the pair trade at a discount to U.S. peers.

Prada’s independence hinges on green millennials

31 Jul 2019

As creative guru Miuccia turns 70, the fashion brand’s stock sits 35% below its IPO price. To return there Prada needs Gucci’s sales growth and LVMH’s margins. Unless neophyte 31-year-old son Lorenzo’s renewables push enthuses his peers, it may not stay independent.

Only taxes can close aviation’s carbon gap

29 Jul 2019

The industry wants its 2050 emissions to be a third those of today. With traffic set to treble by then, that’s unlikely. Electric airliners remain a pipedream and relying on biofuels would mean ploughing up a third of the U.S. Curbing demand via taxes may be the only solution.

U.S. car-pollution pact cuts through D.C. smog

25 Jul 2019

California’s deal with BMW, Ford, Honda and VW shows the auto industry can cut U.S. emissions despite White House intransigence. The better match with overseas standards should aid progress and profitability. Add incentives to invest in electric vehicles and it’s a smart mix.

Miner exits shift coal spotlight to Anglo American

16 Jul 2019

BHP is the latest heavyweight to consider a sale of thermal coal assets. That's sensible given weak prices, pressure from investors and a business that is barely material. Anglo's bigger exposure means a tougher choice - with few buyers, there’s a case for staying the course.

Rio sounds copper warning from Mongolian steppe

16 Jul 2019

The miner's flagship Oyu Tolgoi expansion will be up to 30 months late, and could cost as much as a third more than planned. It’s a fresh blow to a project that has been bruised by local politics. The latest snag is a reminder of why the red metal has become so hard to dig up.

Viewsroom: Can India solve its water crisis?

11 Jul 2019

Chennai, the country’s Motor City, has run dry. Another 20 metropolises could follow by next year. The personal and economic toll is mounting. Plugging leaks, better crop choices and proper pricing can help. Often, as water problems elsewhere show, that requires good governance.

EQT victors have two sets of activists to please

10 Jul 2019

The Rice brothers have won control of the underperforming $4 bln U.S. natural-gas producer which bought their company in 2017. They aim to turn around EQT within a year. Skeptics of the original tie-up, like Jana, will be watching – and climate-aware investors could show up, too.

PG&E’s hands may slip on bankruptcy steering wheel

2 Jul 2019

The California utility is, for now, in charge of its exit from Chapter 11, where it landed with $30 bln of wildfire liabilities. But the less new capital it seeks, and the more it ties future cash flow to past costs, the more credible a rival plan from creditors will become.

UK climate disclosure needs more than a big stick

2 Jul 2019

The government may force companies and pension funds to say how global warming will affect them. That might catch out the few that currently don’t. But given information from those that do is often useless, setting clear rules may be better than a legal obligation to publish.

California’s green-power glut has a silver lining

24 Jun 2019

The Golden State wants half its electricity needs from renewables by 2025, yet last month reduced solar and wind production by the most on record. Expensive storage is the problem. That should soon change. Meantime, savvy companies can take advantage of sporadic free power.