FT News Briefing Are companies bailing on fossil fuels or doubling down?
Aug 14, 2024
A surprising rally in US stocks follows softer inflation data, while northern Sweden emerges as a potential powerhouse for green energy. However, the world’s largest coal producer, Glencore, reverses its plans to divest from coal amid shifting investor sentiments. The podcast dives into the challenges major companies face in embracing green energy and explores the complex dynamics between energy firms, fossil fuel investments, and innovative technologies like cryptocurrency. It's a thought-provoking look at the intersection of profit and sustainability.
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Glencore's Coal Reversal
- Glencore, the world's biggest coal exporter, reversed its plan to spin off its coal business.
- Shareholders preferred the profits from coal over ESG goals, influencing Glencore's decision.
Reasons for Glencore's Shift
- Glencore CEO Gary Nagel cited three reasons for the reversal: shifting ESG sentiment, coal's profitability, and the need for industry consolidation.
- Investors are becoming more pragmatic, recognizing the world's continued reliance on fossil fuels.
Sweden's Green Ambitions
- Investor Harald Mix aims to reduce global emissions by 1% through green companies in Northern Sweden.
- The region offers abundant green energy due to its isolation and low transmission capacity.