– Leaders Strategy Shines in ESG Indices with 1.45% Return
– TotalEnergies’ Green Hydrogen Push to Slash 5 Million Tonnes of CO2
– Texas Plots Offshore Carbon Sequestration in Bold Climate Move
– Spanish Recycling Rate Dives to 36%, Falling Short of EU Goals/span>
Market Recap
All ESG indices outperformed the unconstrained index last week, with the Leaders strategy living up to its name, returning 1.45%.
(1 week performance from 03/06/24 to 07/06/24)
TotalEnergies Sign Long-Term Green Hydrogen Supply Agreement
TotalEnergies and industrial gases company Air Products have announced a new 15-year green hydrogen supply agreement aimed at reducing the operating greenhouse gas emissions footprint of TotalEnergies’ European refineries.
The announcement follows the launch last year by TotalEnergies of tenders for the supply of 500,000 tons per year of green hydrogen. TotalEnergies has six refineries in Europe and has stated that it wants to replace 500,000 tons per year of the hydrogen consumed in its refineries with green hydrogen by 2030, which it anticipates could help reduce CO2 emissions by approximately 5 million tonnes annually.
Texas plans to store CO2 offshore
The Texas General Land Office (GLO) has announced a request for proposals (RFP) to lease 1.1 million acres of state-owned offshore areas for carbon sequestration projects. This initiative is a significant step in the state’s efforts to mitigate climate change by capturing and storing carbon dioxide (CO2) emissions from industrial sources beneath the Gulf of Mexico.
Carbon sequestration, the process of capturing and storing CO2 to prevent it from entering the atmosphere, is a critical technology for reducing greenhouse gas emissions. Texas, being a major industrial hub, generates substantial CO2 emissions.
Study reveals Spanish recycling falls short
A recent study conducted by Eunomia Research and Consulting and Reloop has revealed a significant discrepancy in Spain’s reported versus actual collection rates for plastic beverage bottles up to three litres. The study finds that Spain’s actual collection rate is just 36%, far below the previously reported 71%.
The European Union’s Single-Use Plastics Directive mandates that member states achieve a 70% collection rate for these bottles by 2023. The directive sets an even more ambitious target of 77% by 2025.
EU approves aid deal for Italy, adding an abundance of Green energy
The European Commission has approved, under EU State aid rules, an Italian scheme to support a total of 4590 MW of new capacity for electricity production from renewable energy sources. The scheme contributes to the EU’s strategic objectives relating to the European Green Deal, while helping to end dependence on Russian fossil fuels and fast forward the green transition.
The scheme will support the construction of new plants running on innovative and not yet mature technologies, namely geothermal energy, offshore wind power (floating or fixed), thermodynamic solar, floating solar, tidal, wave and other marine energy as well as on biogas and biomass.
Download
Sources.
Anthony Walters – Head of ESG at Clever Adviser Technology Ltd (Clever)
Market recap – Data sourced from FE FundInfo & Koyfin (quoted in Pounds Sterling).
TotalEnergies, Air Products Sign Long-Term Green Hydrogen Supply Agreement, by ESG today, 10/06/24
Texas Opens Proposals for Offshore Carbon Sequestration Leases by ESG News, 10/06/24
Study by Eunomia Research and Consulting and Reloop reveals which nations are among the world’s highest recyclers, by ESG today, 07/06/24
EU Commission Approves Italian Aid for 4590 MW of Renewable Energy to Advance Green Transition by ESG News, 05/06/24
Risk Warning: These are Anthony’s views at the time of writing and should not be construed as investment advice. The opinions expressed are correct at time of writing and may be subject to change. Capital is at risk. The value and income from investments can go down as well as up and are not guaranteed. An investor may get back significantly less than they invest. Past performance is not a reliable indicator of current or future performance and should not be the sole factor considered when selecting funds.
Regulatory Information: This is a general communication provided for informational purposes only. It is educational in nature and not designed to be taken as advice or a recommendation for any specific investment product, strategy, plan feature or other purpose in any jurisdiction, nor is it a commitment from Marlborough or any of its subsidiaries to participate in any of the transactions mentioned herein. Any examples used are generic, hypothetical and for illustration purposes only. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any securities or products. In addition, users should make an independent assessment of the legal, regulatory, tax, credit, and accounting implications and determine – together with their own professional advisers if appropriate – if any investment mentioned herein is believed to be suitable. Investors should ensure that they obtain all available relevant information before making any investment. Any forecasts, figures, opinions or investment techniques and strategies set out are for information purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice.
All information presented herein is considered to be accurate at the time of production, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted. Issued by Marlborough Investment Management Limited, authorised and regulated by the Financial Conduct Authority (reference number 115231). Registered office: PO BOX 1852 Lichfield, Staffordshire, England, WS13 8XU. Registered in England No. 01947598. The Clever Marlborough Model Portfolio Service (‘Clever MPS’) is a collaboration between Marlborough Investment Management Limited as the Discretionary Fund Manager and Clever Adviser Technology Limited, a company registered in England and Wales (company number 2910523) with registered office at Watergate House, 85 Watergate Street, Chester, Cheshire CH1 2LF (“Clever”). Clever is a technology and software provision company which developed a methodology and proprietary suite of algorithms for the monitoring, analysis, collation, and transmission of data on the performance of Investment Funds and related portfolios within the UK market which Marlborough utilises for investment purposes.
CleverAdviser
