The entire Bitcoin network already requires more energy than Peru or Hong Kong, or almost half of Austria’s power supply. Such a development is clearly at odds with achieving the goals of the Paris Climate Agreement, i.e. to curb global warming to below 2 degrees.
I have recently read an interesting research report by one of our independent research partners, Gavekal Research. Gavekal Research is based in Hong Kong, and one of its strengths is its deep knowledge of the Asian market. The piece titled “Good Governance, Poor Performance” discusses good corporate governance. This is a central pillar of traditional as well as sustainable investment.
Power comes from the socket. Hidden behind it, lies a reality that is a tightrope walk between supply and demand. An imbalance causes blackouts. Energy produced from renewable sources is particularly volatile. A solution for this problem are energy storage devices, especially batteries. The latter offer the advantage of being able to efficiently store power that has been produced locally (e.g. by solar cells). They also make power mobile and can replace petrol and diesel in our cars. In our interview, Dominik Benedikt, Senior ESG-Analyst Erste Asset Management, explains the effects of the rising demand for batteries with regard to environmental, social, and governance aspects.
A growing number of devices do not need a constant connection to the power grid anymore and therefore allow a mobile usage. Batteries ensure that power is available regardless of its time and place of production. In a world that does not work without energy we need storage units that can provide large amounts of energy. However, every solution to this problem comes with a price tag, also in terms of sustainability.
Read the current issue of our sustainable Magazine ERSTE RESPONSIBLE RETURN – The ESG Letter here:
ARCHE NOAH was founded 26 years ago. The careful, protective handling of seeds and the protection of the diversity of agricultural crop has been the focus of the charitable association ever since. More than 15,000 members, patrons, and partners who invest money and ideas in the mission of maintaining the diversity of agricultural crop support ARCHE NOAH.
How does ARCHE NOAH see the issue genetically modified organisms and patents on food and seeds?
The global, sustainable corporate bond fund ERSTE RESPONSIBLE BOND EMERGING CORPORATE has clearly passed the threshold of EUR 100mn of assets under management. A perfect occasion to take stock. Christian Schön, member of the board of directors of Erste Asset Management, explains what role sustainable investments play in emerging markets, especially in the corporate bond segment.
Our latest issue of our sustainability magazine (ESG-Letter) deals with chocolate.
Austrians love chocolate, no matter what aggregate state. Solid, as melting bar, liquid, as hot chocolate, or gaseous, as perfume or aphrodisiac. We have a sweet tooth and love our chocolate. But what does this have to do with sustainability? A lot, as we believe.
The Paris climate conference has yet again confronted the public with the importance of a sustainable and environmentally friendly economy for the future of our planet. The goal of imposing a cap on global warming of below two degrees centigrade requires a Herculean effort. Paul Severin interviews Clemens Klein, senior fund manager about the results of the conference.
Volkswagen: the largest German car manufacturer. The Porsches: the wealthiest family of Austria. Ferdinand Porsche, the engineering genius who would build the cars that ultimately dominated the German autobahn after Hitler’s war. VW is a part of (industrial) history.
But recently, Volkswagen has also written a different sort of history: do you remember José Ignacio López de Arriortúa, who was accused of having misappropriated trade secrets when he left his post as Head of Purchasing with VW and took a position with GM, and who was also the eponym of the López effect? Do you remember the sex scandal where prostitutes had been paid for and flown in from Brazil by the company specifically to “convince” the shop stewards committee of the proposals put forth by management? Do you remember the takeover battle between Porsche and VW and the rollercoaster ride it caused on the stock exchange? Do you remember the headlines about the fight for power between the Supervisory Board president Piech and the CEO Winterkorn. A multi-billion euro company with hundreds of thousands of employees had been temporarily reduced to the pawn of two alpha males.
Being our Chief Sustainable Investment Officer, Gerold Permoser is responsible for all Environmental, Social and Corporate Governance (ESG) investments of Erste Asset Management. In our magazine ERSTE RESPONSIBLE RETURN he tells how a dreaded French exam did not go “perdu”, what Engagement means exactly and why it pays off for companies and investors.