Skip to Content
scroll

Fossil fuels

Advanced Search

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

Ask a question

    The Latest Q&A

    Question asked

    Fossil fuels

    Does MM consider ESG when investing? I've noticed a very high number of coal stocks being recommended regularly by MM over the past year, which is disappointing in this day and age. While I concede it's challenging to completely eliminate fossil fuel emissions from investment decisions, a hard line can easily be drawn on coal companies, and in particular Woodside which has a terrible record on emissions and blatant lobbying against any environment regulation. For clarity, I do invest in mining companies recognising industrial production relies on mining for metals, but energy production using coal is very distinct. I'd like to see much less emphasis on pure play coal in MM's analysis FWIW.

    Answer

    Hi Nick,

    It’s hard for MM to appease all subscribers’ views and ethical perspectives, although we are totally on board with Australia’s commitment to achieve net zero greenhouse gas emissions by 2050, and coal has a role to play in getting us there. Bigger picture, our philosophy has always been about achieving the best returns where possible allowing subscribers to pick their personal view through our holdings and calls, i.e. we’ve previously heard similar views towards gambling and nuclear to name two groups with decent coverage in the ASX.

    In the case of Coal, we do see a more limited future for Thermal Coal used in power generation, however, Metallurgical Coal, which is a key component of global steel production we think will be around for a long time and should not be thrown in the same bucket. Interestingly, AustralianSuper has just bought into Whitehaven Coal in a move they say is consistent with its commitment to net zero emissions by 2050, given WHC’s ~70% exposure to Met Coal.

    • We actually think Met Coal is an incredibly important element on the path to achieving net zero. It’s hard to build wind turbines and other renewable infrastructure without steel!
    chart
    image description
    Whitehaven Coal (WHC) v Paladin Energy (PDN)
    image description

    Relevant suggested news and content from the site

    image description
    Overview
    image description
    PULSE CHECK WEBINAR: Portfolio positioning towards FY26
    image description
    Wednesday 18th June – ASX +6pts, BOE & APA
    image description
    Major Movers Today
    image description
    Gerrish: The correction is done, we’re positioning for what comes next
    image description
    Wednesday 18th June – Dow off -299pts, SPI off -16pts
    image description
    ASX200 Index
    image description
    Tuesday 17th June – Dow up +317pts, SPI up +5pts
    image description
    ASX200 Index
    image description
    Monday 16th June – ASX +20pts, STO & ASX
    Members only

    UNLOCK MARKET MATTERS NOW

    Take a free trial.

    No payment details required.

    Already a member? Click here to login
    Back to top