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.
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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.
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First published in WELT, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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