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The Great Reset begins: Wall Street green-lights move out of non-sustainable assets in $120 trillion transformation

Big money moves into sustainable investments in multi-trillion dollar fundamental reshaping of finance

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It’s a new dawn on Wall Street.

The UN Agenda 2030 “great reset” is being fuelled by big money.

“Big money is turning its back on companies that aren’t conforming to one simple idea…sustainability – and it is fueling one of the biggest transfers of capital the world has ever seen. In fact, within a year, 77 per cent of institutional investors will stop buying into companies that aren’t, in some way, sustainable,” said Oilprice.com

The transformation is being led by the world’s largest global investment management company – New York based Black Rock, Inc., with US$7.81 trillion in assets under management as of Q4 2020.

BlackRock says its clients will double their “environmental, social and corporate governance” (ESG) investments in just five years.

Its 2021 Global Outlook refers to a New Investment Order: “We have entered a new investment order. The Covid-19 pandemic has accelerated profound shifts in how economies and societies operate across four dimensions: sustainability, inequality, geopolitics and the joint macro policy revolution. We believe this calls for a fundamental rethink of investment portfolios – starting now.

“The pandemic has added fuel to pre-existing structural trends such as an increased focus on sustainability, rising inequality, and the dominance of e-commerce at the expense of traditional retail. Strategic implication: We prefer sustainable assets amid a growing societal preference for sustainability.”

It appears the global green movement has finally been heard on Wall Street.

Fund managers now say climate change is their top concern – and a leading-criterion when deciding where they put their money.

“Sustainable assets already account for $17.1 trillion, but there could be as much as $120 trillion up for grabs. And that’s exactly why sustainable stocks are outperforming the market,” reports Oilprice.com

“They are the new go-to investment…this sector is a safe haven in that the road to sustainability is long. AND it’s not just Big Money’s downside protection against ESG-related risks, many are money-makers.”

Today’s institutional investor is looking for the value that only high-tech sustainability, good governance and social impact can deliver. 

Price Waterhouse Cooper (PwC) advises investors “public awareness of ESG-related risks has catapulted climate change and sustainability to the top of the global agenda” and COVID has brought “the real-life impacts of overlooking ESG factors into the spotlight.”

BlackRock CEO Larry Fink refers to a “fundamental reshaping of finance”, saying: “Climate change has become a defining factor in companies’ long-term prospects.”

“The evidence on climate risk is compelling investors to reassess core assumptions about modern finance. Research from a wide range of organizations – including the UN’s Intergovernmental Panel on Climate Change, the BlackRock Investment Institute, and many others, including new studies from McKinsey on the socioeconomic implications of physical climate risk – is deepening our understanding of how climate risk will impact both our physical world and the global system that finances economic growth,” said Fink.

The S&P Global “ESG Risk Atlas: Sector and Regional Rationales and Scores” rates oil and gas at high in terms of exposure to environmental and social risks.

This will likely hurt future oil and gas sector investment.

Ken Grafton is the Western Standards Ottawa Bureau Chief. He can be reached at kgrafton@westernstandardonline.com

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9 Comments

9 Comments

  1. John

    January 2, 2021 at 9:53 pm

    We will be living like the Saudis, 5% own 95% of all wealth.

  2. Guest

    January 2, 2021 at 5:22 am

    Did you notice that Black Rock isn’t asking it’s clients how they want to invest they are forcing their clients to invest how Black Rock is dictating to them to invest. Institutional Investors? That’s not you and I folks that’s what a Socialist tells the masses. I own Black Rock ETF’s but not for long & I suggest you think of doing the same & buying the company stocks you want to invest in yourself with a Self Directed TFSA.

    Fuck Socialism & fuck the Socialists whom want to control what we think feel & say. Ho yes Fuck You also Trudeau.

  3. GonadTheRuffian

    January 1, 2021 at 3:59 pm

    This so-called Reset is the beginning of the rich getting much richer and the poor much poorer. Global Warming is the biggest scam ever perpetrated.

    • Justino T.

      January 2, 2021 at 6:14 pm

      its the UCP government that is making the poor poorer, the far right properganda and lies is the biggest scam ever. Wake up and see its the aristocratic corporations that are keeping the middle class and poorer class down. Tax the rich.

  4. That's Dr. #SAND to you...

    December 31, 2020 at 3:27 pm

    So nuclear energy is cool now!

    Oh, wait…..

  5. Allen

    December 31, 2020 at 3:34 pm

    A world gone mad.

  6. godot

    December 30, 2020 at 2:09 pm

    The China Virus is the greatest hoax ever perpetrated on the human race. It is a barefaced power grab by the globalists. First they tried climate change. When that did not cower the population into submission, the virus was implemented. Wake up sheeple – your civil liberties are being stolen – never to be returned.

  7. Charles Martell III

    December 30, 2020 at 12:53 pm

    Klimate Risk ?
    Pure nonsense . . . the Klimate has always changed . . . AGW = unproven Hypothesis after 30 years of pseudo-science and of course projections that never happened.

    Today . . . we are neither Warmer or Colder than we have been in the past . . .

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Energy

Fortune Minerals to purchase JFSL facility for $5.5 million to build cobalt refinery

Fortune Minerals’ proposed refinery will process concentrate for lithium-ion rechargeable batteries for electric vehicles, portable electronic devices, and stationary storage cells.

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Fortune Minerals is set to purchase JFSL Field Service’s former steel fabrication plant for
$5.5 million in Alberta’s Industrial Heartland.

Fortune Minerals intends to acquire the site to construct a $600-million hydrometallurgical refinery for the planned NICO Cobalt-Gold-Bismuth-Copper mine in the Northwest Territories.

Fortune Minerals’ proposed refinery in Lamont County would process concentrate for lithium-ion rechargeable batteries for electric vehicles, portable electronic devices, and stationary storage cells.

Alberta’s Industrial Heartland Association represents five area municipalities that work together to attract chemical, petrochemical, oil, and gas investment. The group said the move is strategic for the region.

“Fortune Minerals’ innovative vision and metallurgical process technology for the NICO Refinery will promote further energy supply chain integration within North America, solidifying Alberta and Alberta’s Industrial Heartland as a critical jurisdiction for Canada’s energy future,” said executive director Mark Plamondon in a release.

The proposed refinery is anticipated to create 100 new jobs and maybe more should the refinery expand to recycling metals from post-consumer batteries from across Alberta.

The province took some credit for Fortune Minerals’ announcement.

“Alberta’s mineral strategy and action plan capitalizes on our untapped potential and helps meet demand for the critical and rare earth minerals which are essential to supporting a low-carbon economy,” said Alberta Energy Minister Sonya Savage.

“Fortune Minerals’ investment announcement demonstrates that our strategy is working.”

Plamondon cited alignment of the project with the province’s oft-touted environmental-social governance (ESG) values.

“The (project) supports our region’s robust diversification efforts and highlights our value proposition for companies looking to execute their capital growth strategies, develop new technologies and advance their ESG priorities.”

The new $231 million, 97-km Tlicho highway to Whati provided the necessary access for the project.

The highway “will allow metal concentrates to be trucked from the mine to the rail head at Hay River or Enterprise, NWT for railway delivery to the company’s planned refinery in Alberta.”

Alberta’s Heartland is Canada’s largest hydrocarbon processing region.

Goesselin is a Western Standard reporter

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Energy

IEA recognizes Canadian oil industry as the environmental world leader

In 2018, oil and gas companies also invested $3.6 billion in environmental protection initiatives, recognized by the IEA as by far the largest environmental protection spend of any industry in the country.  

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Canada is doing great but should take measures to continue its reputation as a preferred oil and gas supplier on the global market, says the International Energy Agency.

IEA Executive Director Fatih Birol is a big advocate for net zero targets, but still recognizes the reliance on oil and gas that will persist into the future.

He said he prefers oil supply to come from “good partners” like Canada, he told a press conference.

“Canada has been a cornerstone of global energy markets, a reliable partner for years,” said Birol.

“We will still need oil and gas for years to come… I prefer oil is produced by countries … like Canada (that) want to reduce the emissions of oil and gas.” 

The same IEA report included recommendations for Canada to incentivise moves away from oil production, yet the director still recognizes Canada’s contribution to the global market.

World oil consumption returned to pre-pandemic levels and natural gas demand surpassed levels pre-COVID-19 last year, according to IEA data.

Yet Canada only supplies 6% of the current world market.

Consumption of both oil and gas is expected to continue rising even as more renewable energy sources come online. 

A Russian-caused natural gas crisis in Europe has many looking to Canada as a great alternative.

“The world needs reliable partners,” said Birol, of the European situation.  

Canada is the fourth-largest producer of oil and natural gas in the world and home to the third-largest oil reserves.

“This creates employment for Canadians and secure and reliable oil and gas for both domestic and global markets,” the IEA said.  

The IEA recommends that remaining competitive in global oil and gas markets requires further emission reductions, to ensure the sector remains a major driver of the Canadian economy beyond 2050.

Emission reduction has already been steadily implemented in Canada, analysts praised the oil and gas industry’s “strong track record” of reducing emissions intensity.

The oilsands by have decreased emissions by 32% since 1990 and further reductions of up to 27% are expected by 2030. 

Canadian oil and gas companies spend an average of $1 billion per year on clean energy technology, in addition to billions in environmental protection.  

In 2018, oil and gas companies also invested $3.6 billion in environmental protection initiatives, recognized by the IEA as the largest environmental protection spend of any industry in the country.  

“Canadian oil and natural gas producers are leveraging their improving environmental, social and governance performance and Canada’s stringent environmental regulations to build a global competitive advantage.”

Ewa Sudyk is a reporter with the Western Standard
esudyk@westernstandardonline.com

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Energy

Oil price jump prompts additional $6 billion in investments

Oilsand investments alone are expected to increase to $11.6 billion in 2022, a 33% jump.

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The largest oil and gas industry group in Canada says it’s expecting $32.8 billion in oil patch spending this year, a 22% jump from last year.

Canadian Association of Petroleum Producers (CAPP) says the increased investment will help capitalize on the surge in crude oil prices, the growth will amount to an additional $6 billion this year.

Oilsand investments alone are expected to increase to $11.6 billion in 2022, a 33% jump.

As of Friday, the price of West Texas intermediate crude oil today is $87.05.

Tim McMillan, president of the CAPP, said the seven-year high price of oil doesn’t mean bad news, as companies are recording record cash flows and investment remains well below what it was in the boom years.

For example, in 2014 the Canadian industry captured 10% of total global upstream natural gas and oil investment, and the oil patch received record investment at $81 billion.

“Today we’re at $32 billion, and we’re only capturing about 6% of global investment,” said McMillan.

“We’ve lost ground to other oil and gas producers, which I think is problematic for a lot of reasons … and it leaves billions of dollars of investment that is going somewhere else, and not to Canada.”

Alberta is expected to be the leader among provinces in overall oil and gas capital spending, with upstream investment expected to increase 24% to $24.5 billion in 2022.

Over 80% of the industry’s new capital spending this year will be focused in Alberta, representing an additional $4.8 billion of investment into the province compared with 2021, according to CAPP.

Investment increase is also excepted in British Colombia, Saskatchewan and offshore production.

This means major recovery for the industry, as 2020 was harsh with global demand crashing and oil prices collapsing.

Global investment is on the down turn, as potential investors are discouraged by Canada’s history of cancelled pipeline projects, regulatory hurdles and negative government policy signals.

McMillan explained many now see Canada as a “difficult place to invest.”

“Rapid demand growth for oil and natural gas globally and strengthening commodity prices mean there is opportunity for Canada’s industry for decades to come,” said McMillan.

“To ensure a true recovery takes hold in Canada, government at all levels along with the industry must work together to create an environment where the natural gas and oil industry can thrive and attract investment back to Canada.”

Ewa Sudyk is a reporter with the Western Standard
esudyk@westernstandardonline.com

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