War and ESG

The Russia-Ukraine war has thrown up several issues around ESG. Given that the EU is neighbour to the warring parties, the impact of war is direct. But the war also has ramifications around the world. So let us look at some implications for ESG. Emissions: The recent IPCC report highlighted the urgency to reduce GHGContinue reading “War and ESG”

Financing the Shift to Net Zero

The shift to net-zero requires both a transition in global energy and a significant reduction in greenhouse gases emitted by industries. Both require huge levels of investment.  However, most investments required to shift to net zero are large, complex, and risky. This raises an interesting question of where the money will come from to achieve net-zeroContinue reading “Financing the Shift to Net Zero”

ESG Share buybacks: Innovative ESG Finance

An innovation in ESG finance is taking root. An essential part of the “S” of ESG is the commitment to stakeholders. Returning money to shareholders rather than investing in negative NPV projects is one such commitment. In an ESG buyback, a company allocates part of the outperformance of its share buyback to the funding ofContinue reading “ESG Share buybacks: Innovative ESG Finance”

Climate Bad Banks for Stranded Assets

Stranded assets are becoming a reality. Take the case of thermal coal. It is widely recognised that thermal coal is no longer a growth opportunity. This is coupled with the fact that debt financing grew sharply and leverage ratios have skyrocketed. A bulk of financing for thermal power plants has come from debt. With thermal power plantsContinue reading “Climate Bad Banks for Stranded Assets”