Sustainability

Zambia case puts corporate ethics guff on notice

11 Apr 2019

Britain’s Supreme Court says Vedanta can be sued in London for pollution offences in the African state. Multinationals have tended to trumpet corporate social responsibility at head office, while ignoring sins at subsidiary level. Whatever the case’s outcome, that will change.

Exxon shows climate activists a red rag

3 Apr 2019

The oil giant squashed an investor proposal to set emissions-reductions targets, with help from the U.S. markets watchdog. It’s pretty short-sighted, and raises the risk disgruntled shareholders start using blunter weapons, like votes on board directors and executive pay.

Shell hits climate ball back into investors’ court

2 Apr 2019

The $260 bln oil major is tying lobbying to its emissions-reduction agenda, augmenting its status as the industry’s most progressive on global warming. It’s a low bar, though. Shell’s modest concession should motivate shareholders to keep holding big polluters’ feet to the fire.

UK water-scarcity fix may pour billions down drain

22 Mar 2019

Climate change and population growth could cause chronic shortages by 2050. Whitehall’s preference is to target individual consumption and talk up costly infrastructure. It would be smarter and cheaper to push the biggest users – business and the power industry – to cut back.

U.S. floods add new twists to 2020 elections

21 Mar 2019

Several midwestern states have suffered some of their worst deluges on record, raising more climate-change fears. That could influence voters in Iowa, where presidential candidates face their first test. And the floods’ financial toll may prompt underwater farmers to dump Trump.

The Exchange: The water-crisis marathoner

19 Mar 2019

Investors and companies are ill prepared for the rising scarcity of this most important natural resource. With World Water Day on March 22, Thirst CEO Mina Guli lays out the issues and explains why she decided to run 100 marathons in 100 days to draw attention to the problem.

Hadas: A bluffer’s guide to the MMT debate

6 Mar 2019

So-called modern monetary theory might be gaining respectability, after the radical approach was touted along with a huge “Green New Deal” by U.S. Democrats. Mainstream economists are fighting back. The debate, riddled with politics, hinges on at least five questions.

Shale drillers may be singing oil’s swan song

12 Mar 2019

Cash is flooding into Texas wells, attracted by quick investment returns. Yet the Permian’s short production cycles may hasten the arrival of peak oil. With sustainability investors pressing for cleaner fuels, some industry executives are already planning for a post-crude future.

SEC throws sand in ESG investors’ wheels

5 Mar 2019

It’s not just CEOs who are irked by investors’ call for more disclosure over environmental, social and governance risk. A top official from the U.S. securities regulator said that such proposals waste the agency’s time. Pension funds pushing for change have a long march ahead.

Investors and citizens try to dam U.S. water risk

1 Mar 2019

An Ohio city voted to protect Lake Erie by granting it rights similar to humans'. Investors managing $6.5 trln want fast-food giants like McDonald's to reduce suppliers' pollution. It's welcome pushback against lax business practices and President Trump's environmental neglect.

Asset managers given climate-risk ultimatum

19 Feb 2019

Groups that signed up to the leading principles of sustainable investing may be in for a shock. From next year they must report on their global-warming risks or face expulsion. Forcing managers of over $40 trln of assets to live up to their word can be a powerful tool for change.

Veganism may prove a more durable diet fad

19 Feb 2019

Climate change and concern for animal welfare are prompting more consumers to shun meat. As with the low-carb trend of the early 2000s, companies are scrambling to keep up: vegan sausage rolls helped boost British baker Greggs’ sales. The shift is more than a flash in the pan.

PG&E governance brownout calls for a jump start

14 Feb 2019

The troubled California utility wants to replace half its board, but shareholder BlueMountain proposes a full reset. A complete overhaul is rarely wise, but in PG&E’s case it could be helpful. The catch is, looming bankruptcy means the activist fund may not be the best advocate.

Farting cows can propel DSM higher

14 Feb 2019

The Dutch group’s feed supplements reduce bovine flatulence, a big source of methane emissions. That’s not yet on the market, but shows how DSM’s nutrients and chemicals can defy the economic slowdown. A robust balance sheet means it’s financially sustainable, too.

Viewsroom: U.S. water crisis may evaporate wealth

7 Feb 2019

Overuse and climate change are sapping the Colorado river, source of a fifth of U.S. GDP and at least $1.3 trln of market value. The feds and basin states are struggling to adapt, but investors pay little heed. Plus, can India Prime Minister Modi’s budget help him win re-election?

U.S. Green New Deal is at least a big idea

7 Feb 2019

The progressive Democrat plan envisages sweeping measures to combat climate change and a raft of social ills. It’s vague, flawed and hotly opposed by Republicans. But backer Alexandria Ocasio-Cortez has a knack for getting noticed – and a serious environmental debate is overdue.

Market ignores Colorado river crisis at its peril

7 Feb 2019

The waterway supports at least $4 trln in GDP and $1.3 trln in stock value across seven U.S. states. Declining flows are worsened by rising temperatures, and screwy governance makes basin-wide planning hard. Now the feds are stepping in. Yet investors have barely caused a ripple.

Chevron climate pay plan may get more out of less

7 Feb 2019

The $230 bln oil giant is tying compensation to emissions cuts. The details may seem less ambitious than Shell’s, and pay is still partly linked to production. But the scheme targets methane, includes most Chevron workers and sets a potent challenge for U.S. rivals.

Guest view: Investors can shore up mining risks

6 Feb 2019

A $1.3 trln shareholder group wants better standards after Vale’s dam disaster killed at least 100 people. It’s a start. But real change means pushing firms on everything from profitability to climate change, argue Ceres’ Monika Freyman and Upmanu Lall of Columbia University.

PG&E takes pre-emptive bankruptcy to a new level

29 Jan 2019

The California utility has filed, despite having a $20 bln surplus of assets over liabilities, offers of finance, and one less big wildfire to worry about. The company hasn’t yet made a persuasive case for choosing a process that will surely be lengthy, expensive and distracting.