Today’s ESG Updates
Sustainable investing has gained significant traction, particularly among younger generations, with an impressive 88% of global investors now expressing interest. Notably, this enthusiasm is spearheaded by Gen Z, with a remarkable 99% showing a preference for sustainable investment options.
Sustainable Investing Surges, Led by Gen Z and Millennials
According to the latest Sustainable Signals report from Morgan Stanley, a substantial 88% of investors worldwide are keen on sustainable investing, led by Gen Z at 99% and Millennials at 97%. With 59% planning to increase their investments in sustainable assets over the next year, confidence in financial returns is a major driving force. Clean energy and energy efficiency are the most favored investment themes, with over 80% of participants viewing the transition to sustainable energy as financially beneficial. Younger investors are also more likely to prioritize environmental, social, and governance (ESG) factors when selecting financial advisors, with 96% of Gen Z and 92% of Millennials preferring those who provide sustainable investment options.
UK to Install Solar Panels on New Homes
The UK government has announced plans to mandate the installation of solar panels on nearly all new homes in England by 2027. This initiative aims to cut energy costs by more than £440 per year for homeowners while contributing to the nation’s net-zero emissions targets. Builders will be required to install solar panels on new properties, with 80% of the homes featuring panels that will cover approximately 40% of their roofs. While the upfront costs for installation are estimated to range between £3,300 and £4,000, the long-term benefits of improved energy efficiency and reduced utility expenses make this investment worthwhile. Currently, around 40% of new homes are already equipped with solar technology.
Shell Reports 28% Drop in Q1 Profit, Maintains $3.5B Share Buyback
In its latest financial report, Shell revealed a 28% decline in its net profit for Q1, totaling $5.58 billion, although this figure surpassed expectations. Despite the challenges of declining oil prices and reduced refining margins, Shell is proceeding with its $3.5 billion share buyback program for the fourteenth consecutive quarter. The company’s gearing ratio stands at 18.7%, which is more favorable compared to BP’s 25.7%. Shell’s refining margins have decreased to $6.2 per barrel, though its gas trading division has shown resilience. The company also confirmed it would maintain its investment budget of $20-$22 billion for 2023, prioritizing returns for shareholders.
Oil Prices Rise on China-US Talks, Trump Warns on Iran
Oil prices experienced an uptick in early Asian trading on Friday, with Brent crude rising by 0.6% to $62.51 per barrel and US West Texas Intermediate (WTI) crude reaching $59.62. This increase followed China’s expressed willingness to engage in discussions with the US, which alleviated some trade war tensions. Although fears of a recession and concerns regarding oil demand had previously pressured prices, the renewed optimism has buoyed market sentiment. Additionally, US President Trump’s warning of secondary sanctions on buyers of Iranian oil has sparked fears of tighter supplies, further driving up oil prices.
