Sustainability

Australia can charge up a war on climate change

12 Apr 2022

Saul Griffith, author of “The Big Switch”, tells The Exchange why neither hydrogen nor carbon capture can tackle global warming. Instead, electrifying everything from cars to stoves will, thanks to ample sun and wind Down Under. It’d spark a jobs and exports boom, too.

Dixon: War boosts need for “green Marshall Plan”

11 Mar 2022

The West needs more allies, not just to turn Russian President Vladimir Putin into a global pariah, but to show China what will happen if it too throws its weight around. A good way to do this is to supercharge its embryonic plan to help developing countries grow in a green way.

Capital Calls: Danone

8 Mar 2022

Concise views on global finance: The French yoghurt maker’s new CEO presents underwhelming new financial targets.

Capital Calls: Snowflake’s no snowflake

3 Mar 2022

Concise views on global finance: The data warehouse firm doubled revenue, but the stock was whacked. Snowflake’s solid finances mean missteps are valuation conundrums, not existential threats.

U.N. climate report takes aim at net-zero 2050

28 Feb 2022

The world is moving too slowly to stop global warming, per the multinational body’s latest study. Ditching fossil fuels will reduce natural and man-made disasters. But too many governments and companies use the mid-century emissions targets to delay action. That’s unsustainable.

Brookfield drafts inspired climate-deal blueprint

21 Feb 2022

The Canadian investor and Atlassian co-CEO Mike Cannon-Brookes want to buy AGL for A$5 bln and spend up to A$20 bln more to make the coal-heavy company a renewable-energy powerhouse. It’s a potent idea that others could emulate. The price to get started will be higher, however.

Aussie coal exits put dithering government on spot

17 Feb 2022

Origin wants to shut the country’s largest plant powered by the fossil fuel seven years early, following rivals’ lead. It drew ire from the ruling coalition, whose green-transition plan is lacklustre. Renewables have won the economic fight; the political battle is a slower burn.

Aussie climate M&A deal offers best of both worlds

16 Feb 2022

ANZ is taking a small stake in climate-change advisory and investing startup Pollination for $50 mln. The bank gets business acumen in a hot sector and its partner can offer clients access to a big balance sheet. The price reflects the scarcity value of green talent.

High power prices are no reason to ditch net zero

14 Feb 2022

Some politicians blame soaring energy costs on the global drive to cut carbon emissions. Yet climate change policies don’t explain the price spike, while investment in oil and gas is high enough. The criticism risks undermining tougher challenges like reducing demand for power.

Capital Calls: ABB’s car chargers, Airport M&A

10 Feb 2022

Concise views on global finance: The Swiss engineering group’s listing plans come at an unfortunate moment; Britain’s John Menzies takes a risk with rejection of “opportunistic” approach from Kuwaiti air services group NAS.

Vietnam electric car whizz takes ambitious road

9 Feb 2022

Carmaker Vinfast is going all-electric and aims to sell overseas. The strategy combines conglomerate power through parent Vingroup with potential for a faster-than-expected shift to new energy vehicles in Southeast Asia. It maps a decent drive to a mooted $3 bln U.S. listing.

Capital Calls: Continental, Harley-Davidson

8 Feb 2022

Concise views on global finance: German car-parts maker Continental may spin off its self-driving unit, while the iconic maker of motorbikes has turned supply shortages to its own advantage.

Offshore wind power gets a tartan quantum leap

7 Feb 2022

The green energy’s drawback is its major use of scarce coastal shelf. Scotland’s recent auction of 15 gigawatts of floating turbines, enough to power 60% of UK homes, changes the game. The economies of scale created should make a nascent technology cost-competitive quicker.

Capital Calls: Netflix, Google-India

28 Jan 2022

Concise views on global finance: Netflix hints at deals by flagging the risks associated with potential acquisitions; Google’s $700 million investment in Bharti Airtel also reflects on Reliance.

The Exchange: Hydrogen wave

27 Jan 2022

Can green hydrogen decarbonise big chunks of our economies? Air Products CEO Seifi Ghasemi, who’s backing the carbon-free gas in a major Saudi Arabia project, thinks so. He tells Lisa Jucca how his $61 bln group plans to be the world’s top green hydrogen producer in five years.

ESG fervour is weathering its first big storm

27 Jan 2022

Despite a U.S. greenwashing probe, Germany’s 7 bln euro asset manager DWS is seeing further green inflows. Investors’ zeal for funds that tick ethical boxes is outdoing concerns about their fine print and performance relative to dirty funds. Yet the worries aren’t going away.

New backer would fuel Aussie hydrogen hype machine

25 Jan 2022

Fortescue’s ambitious plans to use the gas for renewable energy help it trade at a premium to mining peers. Scant detail raises concerns, however. Chair Andrew Forrest could ease them by selling a stake in the FFI green unit, as GM and Ford did with their self-driving outfits.

Larry Fink’s pragmatism is awkward but lucrative

18 Jan 2022

The BlackRock CEO rejected criticisms that stakeholder capitalism is “woke”, while backing natural gas. The danger for Fink is that he occupies a no man’s land position on culture war hot topics. His consolation is that $10 trln of assets suggest investors are down with that.

Unilever can still avoid Danone’s fate

14 Jan 2022

The $137 bln Dove maker’s stock has lagged rivals, activist Nelson Peltz may be circling, and other investors are grumbling. The recent ouster of the French yoghurt maker’s boss is a warning. CEO Alan Jope could pre-empt any revolt with clearer targets to sell struggling brands.

EU greenwash laxity could see it build back worse

13 Jan 2022

Europe’s green taxonomy is meant to direct billions of euros towards clean energy so a post-virus continent can “build back better”. Yet political fudges mean gas and nuclear count as sustainable. Worse, the tool’s new draft contains loopholes that could make it dirtier still.