A White House Boost For EV Charging Names and Other ESG News This Week

FactSet StreetAccount publishes regular company-level and summary-style ESG news. Below is our recap of key ESG developments and insights over the past week.

EV Charging Names Receive a Further Boost as White House Finalizes US Standards

The segment had already been on a tear this year though stock prices remain well below 52-week highs; shares lag both the Nasdaq and broad renewables over the past year.

One-Year Stock Price Indices for EV Charging Companies

Source: FactSet

Returns and Select Metrics for EV Charging Companies Compared to Market and Thematic Segments (as of 12:15pm ET, Feb. 15)

Source: FactSet

Thematic performance

• Thematic sectors are mostly higher on the week led by US names. EV infrastructure outperforming following Biden's announcement of new EV charging standards with a focus on domestic production. Press highlighted potential winners ChargePoint, EVgo , Lincoln Electric, and Blink Charging. The White House announced 7.5K Tesla chargers will be made available to all EV drivers by the end of 2024. This comes as the car maker is again adjusting prices after strong demand resulted in the Model Y selling out for the quarter, with no more production planned until April. BP announced it will invest $1B in charging across the US by 2030 to help meet Hertz rental demand. Ford has halted production of the F-150 Lightning over a possible battery issue, and questions are being raised over a planned battery plant with CATL.

• US solar is seeing gains following government plans to direct $7B to residential solar projects. Analysts note shift to EVs is also driving PV demand; Sunnova, SolarEdge, Shoals, Sunrun have received focus as top picks. European renewables, hydrogen and alt fuels are all underperforming their US peers so far this week.

• Fossil fuel financing continues to make headlines with British banks Barclays and NatWest both announcing plans to stop lending for new fossil fuel exploration. BP rationalizes the paring back of its climate goals, claiming the decision has "no link" to lower renewables returns. In contrast, Equinor has defended its loss making renewables business, arguing the strategic investment will improve profitability.

Environment

• Corporate climate plans are facing scrutiny after reports from CDP and NewClimate Institute found a widespread lack of clarity and ambition. Meanwhile, street research found that companies improving GHG emissions intensity tended to outperform, including in the Oil & Gas sector. Across research, Maersk, Enel, EDP, Ryanair, General Electric, Edison and Suncor are among names praised for their emission reduction strategies and progress.

• The EU Commission formally approved a ban on new combustion-engine cars by 2035. In a move criticized by environmental groups for not going far enough, the Commission also proposed a 45% reduction in emissions from heavy-duty vehicles by 2030 and 90% by 2040. In a push to protect biodiversity and climate, The Netherlands set nitrogen emissions targets.

• In the US, the SEC is mulling a softening of forthcoming company climate disclosures. Elsewhere, Pakistan plans to quadruple domestic coal-fired power. World Bank president David Malpass announced his resignation following criticism over his stance on climate change.

Social

• Australia law will require companies to report on their gender pay gap. Two miners at Perenti-owned mine in Australia die after ground collapsed beneath them. UK postal, rail strikes cost 840K working days. Tesla workers in NY launch campaign to form a union, some say they were fired as a result. Royal Mail appears to have refused hackers £65M ransom, risking potential data leak.

Governance

• EU to investigate Amazon's $1.7B Roomba acquisition amid scrutiny of big tech deals. DOJ reportedly accelerates Apple antitrust investigation. Epstein victims were paid from JPMorgan accounts according to new details filed in lawsuit. Texas investigating why Targa Resources took two weeks to report natural gas leak. Mercedes-Benz faces more than 300K claims from UK drivers over diesel emissions rigging. EPA could hold Norfolk Southern liable for East Palestine train derailment and chemical pollution. FCA launches Barclays probe over anti-money laundering systems. Adani appoints financial controller to oversee holdings in bid to placate investors. Lockheed Martin and Raytheon Technologies have been sanctioned by China.