Sustainability

Green hydrogen revolution risks dying of thirst

5 Oct 2022

Backers make three miscalculations about the gas’ key input, water: that they won’t need much, that it’s cheap, and that desalination is a breeze. Some $700 bln is needed for projects from Australia to Saudi to Europe, but water scarcity means many will be left high and dry.

Patagonia lobs ESG breakup calls back to the wild

16 Sep 2022

Founder Yvon Chouinard has ceded control of the clothing firm to use its earnings to fight climate risk. A sale would have built a bigger war chest. But he wants to defend his company’s values and workers, too. It shows how splitting environmental and social goals is wrongheaded.

Climate both dries and drowns case for hydropower

31 Aug 2022

The IEA and others reckon hitting net zero requires doubling the energy source’s output. But aridity from China to the Americas highlights a big vulnerability. Flood risk is even more widespread. Add environmental degradation and hydropower is often more trouble than it’s worth.

Investors add $10 trln activist wrench to H2O risk

22 Aug 2022

Water has long played second fiddle to emissions in battling climate change. Now Fidelity, DWS and 62 other money managers want big users from McDonalds to Microsoft to better manage and protect the resource. With droughts and floods set to inundate earnings, it’s past time.

U.S. climate win may distort global net-zero race

18 Aug 2022

The $430 bln legislation signed by President Joe Biden should spark faster uptake of solar, wind and hydrogen in the country. Over time, it could cut green power costs worldwide. But the U.S. plan’s reliance on subsidies risks thwacking Asian renewable energy supply chains first.

Electric perfection is enemy of hybrid-car good

16 Aug 2022

Activists are attacking Toyota and others for sticking with designs that recharge using combustion. Yet pure electric models are only as green as their power grids and require heavy infrastructure investment. Puritanism is premature, and could prompt consumer backlash.

BlackRock climate resilience faces political test

11 Jul 2022

The $10 trln asset manager’s advocacy of sustainable investing could backfire if Republican critics win the U.S. midterm elections. Billions of dollars of funds and advisory mandates are at stake. BlackRock can afford to hold its ground, but only so far.

Aussie energy crisis is an embarrassment of riches

10 Jun 2022

A looming gas supply shortage and high-power prices are due to years of bad policy in a country that should be a renewables poster child. It’s a chance for new Prime Minister Anthony Albanese to layout a comprehensive clean energy plan that will foster a green investment boom.

Glencore rebuff sets up less noxious coal deal

2 Jun 2022

The trader calls a Chinese offer for the 38% of Aussie miner Yancoal it doesn’t own “unacceptable”. That’s an understatement. It’s a deeply discounted deal offering payment via a convertible bond. Political risk looms large too, but Yankuang has to make the financials less toxic.

Ukraine war helps China’s coal addiction stack up

2 Jun 2022

President Xi Jinping’s administration is boosting coal production to stave off power cuts. The top emitter is embracing the fossil fuel tightly as wealthy nations bid aggressively to replace Moscow’s natural gas supplies. The rational financial choice is a firm blow to net zero.

Nomura and Mitsui cultivate fertile climate ground

31 May 2022

The Japanese duo is buying trees-focused Australian fund manager New Forests. Mitsui also has backed Climate Friendly, which helps farmers sell carbon credits for sustainable agriculture. Done properly, it’s a lucrative and impactful sector deserving of greater investment.

Busted AGL breakup clears smoggy climate thinking

30 May 2022

The $4.3 bln power producer is ditching half its board, including the CEO and chair, after billionaire Mike Cannon-Brookes rounded up support to torch a demerger plan. With the obstructive old guard gone, it can more swiftly shed coal, be it under new leadership or a new owner.

Australian election augurs serious climate upgrade

23 May 2022

Labor’s more ambitious green goals helped unseat the conservative coalition. Wins by climate-focused independents warn further against complacency. New Prime Minister Anthony Albanese also will rely on Greens for support. Bolder 2035 emissions targets would set the right tone.

Guest view: Blue finance can save Asia’s oceans

13 May 2022

The region accounts for over 80% of plastic waste like bags and bottles that litter the world’s seas, damaging wildlife, the climate and livelihoods. IFC boss Makhtar Diop explains how a new debt market can help the cleanup by closing a $150 bln-a-year funding gap.

India heatwave throws food security for loop

12 May 2022

Crops are wilting after weeks of climate change-induced scorching temperatures. On top of domestic pain, it casts doubt on India’s new role exporting grain to replace supplies lost to Russia’s war in Ukraine. That’ll create more dilemmas for political leaders near and far.

Breakup opposition will smoke out AGL’s C-suite

3 May 2022

A lacklustre plan to split coal power from the retail business is sputtering after Atlassian co-CEO Mike Cannon-Brookes grabbed an 11% stake and vowed to vote no. It leaves boss Graeme Hunt and his team vulnerable. Their exit would open the door to a fresh takeover approach.

Elon Musk’s Twitter deal sullies his climate cred

27 Apr 2022

The Tesla CEO’s master plan is to combat global warming, which he calls the “biggest threat” to humanity. Committing most of his available wealth to buying a social media company doesn’t much help the cause. It’s a $33 bln missed opportunity to reduce even more carbon emissions.

Banks enter AGM season wearing green bullseyes

25 Apr 2022

Top U.S. lenders and some European rivals face votes on their climate policies at looming annual general meetings. Banks may resist greening their loan books if that hits earnings. But even if they clear the immediate hurdle, the heat will be on to clarify their net-zero plans.

China Inc has little to celebrate on Earth Day

22 Apr 2022

The annual environment-focused event gives titans like Alibaba a chance to showcase decarbonisation efforts. But since President Xi Jinping's net-zero emissions pledge, there has been little progress from China's biggest polluters. Greenwashing risks becoming the corporate norm.

EU greenwashing fix gets off to dodgy start

14 Apr 2022

Some 4 trln euros of funds are now deemed sustainable under European disclosure rules governing ESG investing. Yet the EU yardstick for such a definition is vaguer than for some private sector players. At the very least this is confusing; at most it actually aids greenwashing.