At the end of September, the Dax group Siemens spins off its energy division. The stock exchange prospectus now shows a major concern of the managers: “Fridays for future”. They are afraid that the activists will spoil business for the power plant builder.
When new companies go public, a warning list is also part of the standard repertoire. The securities prospectus not only contains many financial details. Cautious lawyers also list the risks the company could face in the future. This is intended to nip investor lawsuits in the bud. The 500-page securities prospectus for the new Siemens Energy stock has now been published. It also mentions that protests by climate and environmental protection activists can cost the company business in the future if there is extensive reporting.
If you want to find more about the importance of ESG and why companies that do not respect these criteria are now losing the support of investors, download for free the Born2Invest mobile app. With our companion app, you can find out the most important business news in the world and stay on top of everything that matters to you.
Climate change and environmental protection are now the keys to success for companies
Not only at Siemens Energy, but also with new stocks as diverse as those of the U.S. software company Palantir or the German motorhome manufacturer Knaus Tabbert, climate change is now increasingly mentioned in the risk list as a factor influencing the future development of the company.
In the case of stocks from the energy sector, the reference to the trend towards “decarbonization”, as the shutting down of environmentally harmful CO2 emissions is called, has already appeared in the past. A risk from the perspective of coal-fired power plant operators. It is therefore not surprising that four years ago this reference already appeared in the stock exchange prospectus of the German Uniper group with its conventional power plants.
The topics of climate change and environmental protection are now becoming increasingly important to investors. The financial sector is more frequently refusing to invest in coal and is taking a closer look at how a company does business and how it behaves towards society and the environment. Smoking chimneys were a symbol of flourishing business decades ago. Now they are a stigma and more a sign of environmental pollution.
Investors attach greater importance to sustainability
Under the abbreviation ESG (Environmental, Social and Governance) as a paraphrase for environmental, social and corporate management standards, companies are already being evaluated worldwide. In spring, Deutsche Börse launched a Dax 50 ESG list, with 50 particularly sustainable companies sifted out of shares in the Dax, MDax and TecDax.
The insurance group Münchener Rück ranks first. In the list, Siemens, including its energy activities, is also in 19th place for ESG and the medical technology company Siemens Healthineers is in 84th place. The energy companies RWE and E.on have no chance at all of getting into this special green Dax because of their coal-fired power plants.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in WELT, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Nine Ways to Make Your Blog More Engaging
Knowing how to make your blog engaging is one of the most important elements of any smart digital marketing strategy....
UrbanFisio Launches Virtual Assistant to Surpass €1 Million by 2021
The company UrbanFisio had a turnover of $1.03 million (€878,000) in 2020 and expects to reach $1.53 million (€1.3 million)...
How Rating Discrepancies Undermine ESG
According to some experts, companies with higher sustainability scores have better risk management and compliance standards, leading to fewer extreme...
Elon Musk Said Tesla Will Accept Bitcoin Again
After Tesla accepted Bitcoin as a means of payment in March 2021, the company revised the decision again just two...
Trusters’s Real Estate Crowdfunding Fund Raised €7.3 Million in Six Months
In the first half of the year, the real estate lending crowdfunding platform Trusters raised $8.6 million (€7.3 million), almost...
Featured6 days ago
Markets May Have Hit a Temporary Top that Could Continue into September
Business6 days ago
Extended Reality Investment Alert: XRApplied (XRA) Conditionally Approved to List on CSE
Business6 days ago
Why T-Bond Yields Increased in the Past Three Decades
Crypto5 days ago
Canada Continues to Embrace Cryptocurrencies