CleverAdviser
– Asda: Go Green, Save Green
– Google’s Solar Surge
– UK: Carbon, Consider Yourself Captured
– 3M’s GHG Goals: Cutting Carbon, Not Corners!
Market Recap
In a rare sight, the unconstrained/non-ESG strategy outperformed for the week, whilst all other strategies made comfortable gains.
(1 week performance from 30/09/24 to 04/10/24)
UK Commits £21.7 Billion to Carbon Capture Project
The UK government has reaffirmed its commitment to combatting climate change by allocating up to £21.7 billion to carbon capture and storage (CCS) projects. This funding aims to support the development of CCS technology over the next 25 years in two key industrial areas, significantly underscoring the nation’s dedication to achieving its climate targets.
Prime Minister Keir Starmer emphasised the dual benefits of this initiative: “Today’s announcement will give industry the certainty it needs – committing to 25 years of funding in this groundbreaking technology – to help deliver jobs, kick start growth, and repair this country once and for all”, he stated. The focus is not only on reducing emissions but also on driving economic growth and job creation, particularly in Northern England’s industrial regions.
Google Signs 435 MW Solar PPA to Power U.S. Operations
Sustainable energy firm energyRe has signed a 12-year power purchase agreement (PPA) with Google, supplying the tech giant with 435 MW of renewable energy for its operations in the central U.S., thanks to a new solar project.
The project will be developed, owned, and operated by energyRe, and the firm will supply the generated electricity and Renewable Energy Credits (RECs) to Google. The deal was facilitated through LEAP (LevelTen Energy’s Accelerated Process), which was co-developed by Google and LevelTen Energy to make clean energy buying and selling more efficient.
Asda offers favourable financing to suppliers in return for ESG performance
Asda have announced the launch of a new sustainable supply chain finance scheme in partnership with HSBC UK, adding a sustainability-linked enhancement to its Supply Chain Finance program.
The new sustainability-linked supply chain finance program follows a commitment by Asda to set science-based carbon emissions reduction targets across its value chain. Scope 3 emissions accounts for 98% of the company’s carbon footprint, with the vast majority of these originating in Asda’s supply chain. Under the program, Asda will offer more than 250 suppliers three tiers of enhanced rates of financing, based on disclosure of ESG data, target setting, and taking action on shared sustainability goals.
3M Commits to Reduce Emissions Across the Value Chain by More than 40%
3M has announced a series of new and updated climate-related goals, including a new target to reduce absolute Scope 3 greenhouse gas (GHG) emissions by 42% by 2030, on a 2021 basis. Scope 3 emissions include indirect emissions across a company’s upstream and downstream value chain, including those originating in its supply chain, and from the use of its products.
The company also announced that its near-term emissions reduction goals have been validated by the Science Based Targets initiative (SBTi) as being in line with the 1.5° C trajectory of the Paris Agreement.
Sources.
Anthony Walters – Head of ESG at Clever Adviser Technology Ltd (Clever)
Market recap Data sourced from FE FundInfo & Koyfin (quoted in Pounds Sterling).
3M Commits to Reduce Emissions Across the Value Chain by More than 40% by 2030 by Mark Segal, ESG Today, 07/10/24
Asda Ties Financing Rates for Suppliers to Decarbonization, ESG Reporting and Performance, by Mark Segal, ESG Today, 02/10/24
Google Signs 435 MW Solar PPA to Power U.S. Operations, by ESG Today, 08/10/24
UK Commits £21.7 Billion to Carbon Capture Despite Project Delays and Rising Costs, by ESG News, 07/10/24
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.
