Teck Resources' coal spinoff shows power of sustainable finance movement: experts

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Teck\u0027s move makes sense given today\u0027s investment environment, said Michelle de Cordova, principal with Vancouver\u002Dbased ESG Global Advisors.

In what CEO Jonathan Price described as a “transformative transaction,” the Vancouver-based mining firm said Tuesday it will spin off its steelmaking coal assets to create a separate publicly traded company called Elk Valley Resources Ltd.Start your day with a roundup of B.C.-focused news and opinion delivered straight to your inbox at 7 a.m., Monday to Friday.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc.

She added that where “ethical investing” was once a niche area, targeted to investors who wanted their portfolio to reflect their own individual morals, it has evolved in recent years to become much more than that. In addition, the UN-convened Net Zero Asset Owner Alliance is a group of powerful institutional investors that has committed to transitioning their investment portfolios to net-zero GHG emissions by 2050.

“I’m sure smart companies are looking at some of these investor standards that are being set and thinking about, ‘how can I make my offering appropriate.”‘Article content Leonard Brooks, a professor of business ethics at the University of Toronto’s Rotman School of Management, said while energy prices are currently high, demand for coal will decline over time. In addition, he said banks and other financial institutions are under increased pressure from shareholders to make lending policies for “dirty” energy sources more stringent and explicit.Article content

Hari Balasubramanian — founding managing partner of EcoAdvisors, a Halifax-based firm which aims to guide more capital to environmental solutions — said Teck’s steelmaking coal is different than thermal coal, in that it would be difficult to replace with renewable energy.Article content

 

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Coal isn’t sustainable.

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Teck Resources' coal spinoff shows power of sustainable finance movement: expertsExperts say Teck Resources' plan to separate its coal business from its base metals operations shows the influence of the sustainable finance movement.
Source: CTVCalgary - 🏆 26. / 68 Read more »

Teck to spin off coal business into Elk Valley ResourcesCanadian diversified miner Teck Resources on Tuesday announced the reorganisation of its business into two independent, publicly listed companies. The company would change its name to Teck Metals and would spin off its steelmaking coal business into Elk Valley Resources (EVR). CEO Jonathan Price said that the transaction simplified the portfolio of each company, allowing for strategic and financial focus and the ability to pursue tailored capital allocation strategies.
Source: MiningWeeklyCA - 🏆 48. / 63 Read more »