EU targets methane polluters as new data reveals the worst offenders
Plus, how Exxon might target geothermal energy, and the latest on embattled Brazilian meat giant JBS's potential IPO on the NYSE
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LONDON (Callaway Climate Insights) — Only two weeks after the most sophisticated satellite to detect methane gas leaks was placed in orbit, the European Union said it plans to use advanced data on methane to target countries and companies who are the worst polluters, and stop buying energy from them.
We’ll see how much of that is talk versus actual threat, but because of new ways to determine methane leaks that let anyone quickly identify where they are and who is responsible, the actual impact of potential legislation such as this would be powerful.
Scientists have long known that China, the U.S., India, Russia, Iran, and Mexico are the biggest producers of methane, which is some 80 times more harmful than carbon in trapping heat in the atmosphere. But individual companies, and particularly new and existing leaks, are much harder to identify.
Some reports have said only 100 companies are responsible for almost three-quarters of methane production. Any early list would only turn up one U.S. company — Exxon XOM 0.00%↑ . But there are many private coal companies around America who are leaking methane constantly.
Now that new satellite information is coming, it will be easier for governments and regulators to target polluters real-time.
With methane responsible for about a quarter of all climate change we are seeing and feeling today, this data, and targeted follow-up, could have a real impact on reducing emissions quickly. Investors will soon be tracking this stuff themselves if they aren’t already.
Don’t forget to contact me directly if you have suggestions or ideas at dcallaway@callawayclimateinsights.com.
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Shareholder proposals benefit ESG scores, but there’s a catch
. . . . Proxy season begins on Wall Street this month, and after two years of rough markets and targeted campaigns against sustainability, a sharp reduction in climate proposals is expected. One activist even plans to push BlackRock BLK 0.00%↑ to reduce its sustainable efforts.
But Mark Hulbert, citing new research, writes that companies pushed by shareholders to better address their climate efforts actually improve their ESG scores, though not always their financial performance.
It seems the cost of improving their climate reputations for their shareholders often weighs on their balance sheets, which holds their shares back, Hulbert writes, claiming that sustainable investors may have to accept lower returns as part of the reward for moving companies toward transition. . . .
Climate complaints, delays, lawsuits threaten Brazilian meat giant JBS’s planned IPO
. . . . The next step in embattled Brazilian meat giant JBS’s campaign to sell shares on the New York Stock Exchange will come next week after its earnings, when it files a registration statement that will likely delay the IPO until later this year, if at all, writes Michael Molinski.
Complaints about greenwashing from shareholder activists, regulators and now some lawsuits have caused JBS to delay its plans and may scuttle the sale entirely if investor demand for its shares doesn’t materialize soon.
The company, the largest meatpacking company in the world, has been accused of everything from destruction of rainforests to buying cattle from criminal gangs, to lying about its zero admission strategies to drum up investor interest.
The ultimate decider here will be the SEC, which is already under pressure on its climate efforts from all directions. No word on when a decision will come, but the new registration statement will either be the first move in a new chapter, or the start of the final act . . . .
Thursday’s subscriber insights
A new orb in the sky
. . . . Do you have magic balls? Well, if you’re an electricity transmission company, it seems you should. A new technology out of Norway allows grids to be much more efficient in distributing energy, something that’s much needed as renewables grow. Read more here. . . .
How Exxon might make a move in geothermal energy
. . . . Exxon CEO Darren Woods said the oil giant is watching improvements in geothermal technology closely as a potential future source of clean energy to add to its portfolio.
Exxon tinkers in carbon capture and things such as hydrogen, but has avoided geothermal to date. Advances in how heated water is pulled from the earth might make it something Exxon, which has experience pulling stuff from the earth, could easily consider.
Or they could just buy someone. Ormat Technologies ORA 0.00%↑ comes to mind. The Nevada company, with a $4 billion market cap, has been investing heavily in geothermal in recent years and has said it sees increasing signs of more demand as electricity needs soar because of AI.
Others include Climeon in Sweden or Polaris Renewable Energy in Canada, which has geothermal operations in South America.
Things move fast in new technologies and geothermal has long lagged sexier renewable energy plays such as solar and wind. It’s only responsible for about 1 percent of global energy usage. But with tech giants increasingly looking for new renewable energy sources to build their AI data centers with, and now Exxon sniffing the market, it might be that for some of these early geothermal pioneers, their time is about to come. . . .
Who will be the big players in geothermal?
. . . . Geothermal energy is great. It doesn’t wax and wane like solar and wind. It’s relatively non-scarring of the landscape. But it’s quite hard to make happen. But guess who else has much of the expertise to exploit it? Read more here. . . .
Editor’s picks: Are we running out of oil? Does it matter?
Watch the video: People used to be really worried about peak oil — what happened? And does it matter if we run out? DW’s new channel Planet A explores the shift towards an eco-friendly world — and challenges ideas about what dealing with climate change means. The new program looks at the big and the small: What we can do and how the system needs to change.
Texas board of education pulls money from BlackRock over ESG
The Texas State Board of Education said this week it will pull more than $8 billion in investment funds out of BlackRock over its ESG initiatives. A report from ESGToday quotes a statement by the state board’s chairman, Aaron Kinsey, citing BlackRock’s “dominant and persistent leadership in the ESG movement.” The report also notes Texas has been active in the anti-ESG movement. It banned Barclays from the municipal bond market over its ESG policies, and created “a list of asset managers for potential divestment for allegedly boycotting energy companies, as well as conducting a hearing grilling executives from BlackRock and State Street over their ESG and climate-related stewardship, engagement voting and investment practices.”
Latest findings: New research, studies and projects
Ready for summer in the city?
Using human flow big data from mobile phone communications, researchers analyzed people’s exposure to heat around Shinagawa Station in Tokyo. The study, titled Impact of Summer Heat on the Movement of People in Tokyo Based on Mobile Phone Location Data, explored the relationship between different modes of transportation and wet-bulb globe temperature, revealing significant variations in pedestrian behavior, especially during holidays. According to the abstract, results argue for heat countermeasures that focus on protecting weekday commuters, who are more likely to walk despite high temperatures, and promoting nighttime pedestrian activities on holidays to minimize heat exposure. “This study demonstrates the importance of integrating weather conditions into urban planning and public health strategies to improve pedestrian comfort and safety in the context of rising temperatures caused by climate change.” Authors: Eiko Kumakura, National Institute for Land and Infrastructure Management; Yasunobu Ashie, Building Research Institute; Takahiro Ueno, Waseda University.
More of the latest research:
Words to live by . . . .
“Nature is so powerful, so strong. Capturing its essence is not easy — your work becomes a dance with light and the weather. It takes you to a place within yourself.” — Annie Leibovitz