Today’s ESG Updates
Sustainable investing is witnessing substantial growth, particularly among younger generations. A recent report from Morgan Stanley revealed that 88% of investors globally are keen on sustainable investment opportunities, with an overwhelming 99% of Gen Z and 97% of Millennials expressing interest. This trend is further emphasized by the fact that 59% of these younger investors plan to increase their sustainable investment allocations within the next year, primarily due to their confidence in potential returns. The themes of clean energy and energy efficiency are at the forefront, with over 80% of participants recognizing the profitability of the energy transition. Furthermore, a significant majority of younger investors are prioritizing broader Environmental, Social, and Governance (ESG) issues, which is influencing their choice of financial advisors; 96% of Gen Z and 92% of Millennials prefer advisors who offer sustainable investment options.
UK to Install Solar Panels on Most New Homes by 2027
The UK government has announced a plan to require the installation of solar panels on nearly all new homes in England by 2027. This initiative aims to lower energy bills by over £440 annually while contributing to the country’s net-zero carbon goals. Builders will be mandated to install solar panels on new properties, with the expectation that 80% of these homes will have panels covering around 40% of their roofs. Although the addition of solar panels will increase construction costs by £3,300 to £4,000, the long-term benefits include enhanced energy efficiency and reduced expenses over time. Currently, approximately 40% of new homes already feature solar technology.
Shell’s Q1 Profit Drops 28%, Maintains $3.5B Buyback
Shell has reported a 28% decline in its first-quarter net profit, amounting to $5.58 billion, although this figure surpassed analysts’ expectations. The company faced challenges due to lower oil prices and diminishing refining margins but still proceeded with its $3.5 billion share buyback program for the fourteenth consecutive quarter. Shell’s gearing ratio is reported at 18.7%, which is more favorable compared to BP’s 25.7%. The refining margin for Shell has decreased to $6.2 per barrel, while its gas trading division has remained stable. Despite these challenges, the company has kept its investment budget for 2023 in the range of $20-$22 billion, with a focus on returning value to shareholders.
Oil Prices Rise on China-US Talks, Trump Warns on Iran
In early Asian trading, oil prices experienced an uptick, with Brent crude increasing by 0.6% to reach $62.51 per barrel and US WTI crude rising to $59.62. This surge followed China’s indication of a willingness to engage in discussions with the United States, suggesting a potential easing of trade tensions. Although concerns regarding a possible recession and oil demand had previously pressured prices, renewed optimism has improved market sentiment. Additionally, US President Trump’s warning of impending secondary sanctions on buyers of Iranian oil has raised fears of tighter supply, further contributing to the increase in oil prices.
