Weekly ESG Highlights: January 19, 2023

FactSet StreetAccount regularly publishes company-level and summary-style ESG news. Below is a summary of key ESG trends and insights from the past week.

theme performance

• Thematic sector largely fell in the weekHowever, it outperforms the broader market. Renewables have so far been mixed with North American stocks supported by policy tailwinds, while European stocks have fallen. Bernstein’s research highlights European energy stocks RWE, SSE and Drax Group as attractive acquisition targets for oil giants looking to expand their renewable energy presence.

• High beta solar and hydrogenThe segment characteristically outperformed in the face of market declines, with hydrogen suffering minor losses and solar rising. Adapted to the outperformance of modern technology. Cybersecurity is also doing relatively well following many analyst upgrades.

• EVs Volta, a charging company acquired by Shell. EVs fell most of the week on concerns about continued price competition. Tesla sees strong demand following price cuts in the US and China. Xpeng is slashing prices to compete. The less-established manufacturer cut capital and he raised Acrimoto, which is struggling to maintain a foothold against big players whose margins are already being squeezed by rising battery prices.

environment

• in the United States, Federal Reserve Board AskedSix of the largest US banks will study the impact of climate change on their operations, with results expected in July. Harvard researchers have shown that ExxonMobil’s internal global warming forecast is one of the best. correctaround the world since the 1970s

• Elsewhere,Sultan Al Jaber, COP28 President and Abu Dhabi Oil Officer backedby John Kerry, calledTriple renewable energy by 2030. protestOn Big Oil’s Role at the Conference warningFrom the US Secretary General on the production of fossil fuels. Protest against IRA subsidies ContinueA British business secretary has called packaging protectionist and dangerous.

• 34 companiesit was BanishedFrom the FTSE4Good Index, Corporate Knights recognized the highest number of 100 individually indicating failure to meet rising environmental standards SustainableSchnitzer Steel tops the list.

society and governance

• • Tesla news stream More: A senior Tesla engineer testified that a video promoting self-driving features was staged at Musk’s request. A securities fraud trial has begun in San Francisco federal court over Musk’s tweets about Tesla’s plans to go private. In Germany, unions complained of fear of what they would call unfair working hours.

  • In other news A US Senate panel will hold a hearing on ticket industry issues on Jan. 24, following protests against Live Nation Entertainment’s handling of Taylor Swift’s ticket sales. UK MPs have reached agreement on an online safety bill. Tech executives whose platforms consistently fail to protect children will face criminal charges. Filed by an activist group, the food giant has filed an SEC complaint alleging that JBS failed to meet its emissions targets related to green bonds.

Chart of the week: Stocks undercut holiday flight cancellations as Southwest Airlines takes reputational hit

Southwest Airlines (LUV-USA, Figure 1, indexed stock shown in blue) is on the strong performance seen in airlines (S&P 500 Airline Index, Figure 1, shown in white) over the past month. We are far behind. This is due to the reputational and revenue hit associated with a large number of flight cancellations during the holidays, reportedly due to outdated computer systems. As an example (Figure 2), Truvalue Labs-adjusted Insight Scores in the “Business Ethics” category show that Southwest Airlines has fallen significantly behind its peers over the past month. Southwest’s CEO said the company spendWhile spending $1 billion on modernizing IT systems, the company expects a negative impact of $725 million to $825 million leading to a net loss in the fourth quarter.The Department of Transportation is investigating whether the cancellation was controllable and whether customers were treated fairly. attack, citing the issue of holiday scheduling among the concerns. Figure 3 shows his lower Truvalue Labs Adjusted Insights score for ‘Labor Practices’ for this airline compared to the same airline.

Figure 1: Southwest Airlines stock price (indexed) compared to the S&P 500 Airline Index (Source: FactSet)

Figure 2: Truvalue Labs Adjusted Insights Scores for the “Business Ethics” category. Changes over the past month. Some Airlines (Source: FactSet)

Figure 3: Truvalue Labs Adjusted Insights scores for the Labor Practices category. level; some airlines (Source: FactSet)

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FactSet Research Systems Inc. I published this content on January 19, 2023 You are solely responsible for the information contained therein. It will not be edited or modified and will be distributed by the public. January 19, 2023 20:10:05 UTC.