Welcome to our weekly chat about the environmental and social issues that influence the way we work, spend our money and live our lives. We're your hosts, Maitane Sardon and Dieter Holger. Want to get our newsletter every Wednesday? Hit the subscribe button in the upper right corner and please share with your friends!
Hi, Maitane! We usually don’t talk about last week’s news, but a lot went down at Climate Week in New York City. Probably the biggest headline was a promise by China’s President Xi Jinping at the United Nations that the country would reach peak emissions before 2030 and carbon neutrality by 2060.
Definitely. Environmental activists and policy experts say China's pledge is a huge step forward for the world’s largest carbon emitter, but they all agree the country has a massive challenge ahead. Last year, almost 70% of its electricity generation came from thermal sources, mainly coal. But the country has ramped up its investments in renewable energy. It spent $19.5 billion building wind power in the first eight months of 2020.
We’ll keep an eye on China since the coming months will be key to gauging how serious the country is about its climate goals. California also made a decision that could upend the auto industry: banning gasoline and diesel cars by 2035. What have you seen in the corporate world, Maitane?
More than we can cover! Walmart said it plans to have zero carbon emissions across its operations by 2040 by betting on renewables to power its facilities, electrifying its vehicles and switching to eco-friendly cooling and heating equipment over the next decade. Swiss company LafargeHolcim, one of the world’s biggest cement makers, became the first building-materials company to have its climate goals approved by the Science Based Targets Initiative, a U.N.-backed nonprofit auditor. PepsiCo also said it wants to use 100% renewable energy by 2030.
These moves by governments and corporations have opened up investment opportunities. Saxo Bank is tracking a basket of 56 stocks selling green products and services, including hydrogen fuel-cell maker Plug Power, hydropower provider China Yangtze Power and Tesla. This group of stocks has shot up 78% this year, compared with 5% for companies in the global MSCI ACWI Index. The Danish investment bank says the European Union’s proposal two weeks ago to increase the bloc’s emissions-reduction goal to 55% from 40% by the end of the decade could be helping some of these stocks.
That makes sense. One more thing I’m watching is how buildings contribute to climate change. Combined, buildings and the construction industry are one of the biggest sources of pollution and energy use, making up 40% of global greenhouse-gas emissions, according to the International Energy Agency. Blackstone Group, one of the world’s largest real-estate owners, is targeting a 15% emissions cut within the first three years of buying any company or property. That’s why it will start asking questions around energy use when considering a deal.
I bet that will force more companies and building owners to pay extra attention to their environmental footprint so they can win over investors. Now let’s open it up to our readers: What other climate-change policies would you like to see from governments or companies?
Share your thoughts below, email us or catch us on Twitter. Your words could appear in our next edition! Have a great week and remember to wash your hands. 👋
Meet the team:
Elevate the Conversation is produced by the editorial teams of The Wall Street Journal and Dow Jones Newswires. Here's a little bit more about us, along with our contact information. We'd love to hear from you.
Dieter Holger, Reporter: I have a knack for uncovering values-based investing trends and I’m obsessed with spreadsheets and charts. I really enjoy ‘80s music, skateboarding and yoga (but I’m bad at both). dieter.holger@wsj.com @dieterholger
Maitane Sardon, Reporter: I have a passion for amplifying the voices of those at the center of stories. I love running on Barcelona’s beaches and binging on chocolate ice-cream to compensate (it’s all about balance). maitane.sardon@wsj.com @sardomaitane
Catherine Lindsay, Editor: I like breaking down complex ideas and explaining them. On the weekend, you’ll find me wandering the city with my film camera at the ready. catherine.lindsay@wsj.com @CathsLindsay
Tammy Lian, Designer: As a visual producer, I'm always excited by the challenge of creative problem solving. In my spare time, you can usually find me taking care of my ever-growing collection of plants and drinking tea. tammy.lian@wsj.com @violian.tammy