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.Sign up to receive daily headline news from the Calgary SUN, a division of Postmedia Network Inc.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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