Macquarie (ASX:MQG) share price unfazed amid questions over climate conflict

The Macquarie Group Ltd (ASX: MQG) share price is the green today despite talk the group’s climate policy may not be. Here’s the lowdown.
The post Macquarie (ASX:MQG) share price unfazed amid questions over climate conflict appeared first on The Motley Fool Australia. –

asx share price investigation represented by lots of fingers all pointing at business man investor

Macquarie Group Ltd (ASX: MQG) is facing claims its investments in companies engaged in fracking are in conflict with its swing towards climate protection. Despite the negative press, the Macquarie share price is currently trading 1.63% higher than yesterday’s close.

At the time of writing, shares in the company are trading at $157.38 apiece.

The questions were raised this morning by The Sydney Morning Herald and The Age, which they report have since been confirmed by Macquarie, after the publications examined public disclosures.

The highlighting of Macquarie’s investments in companies involved in fracking come only a week after the investment bank announced it is committed to aligning its financing activities with the global goal of net-zero emissions by 2050.

Let’s take a closer look at the reported “red flag”.

Macquarie’s fracking investments

The Macquarie share price is on the rise today despite reports this morning the company’s investments in fracking are a “‘red flag’ for investors with net-zero targets”.

Hydraulic fracturing – known as fracking – is the process of recovering oil or gas from shale rock. It is done by drilling into the earth and injecting water, sand, and chemicals into the rock at high pressure, releasing gas or oil.

Fracking has been criticised for the amount of water it uses and its suspected effects on groundwater, as well as other pollution concerns.

The Age and The Sydney Morning Herald listed a number of international companies engaged in fracking activities that Macquarie has investments in. It also highlighted the investment bank’s holdings in ASX-listed Empire Energy Group Ltd (ASX: EEG), the company “leading the push on fracking operations in contested basins in the Northern Territory.”

Macquarie CEO Shemara Wikramanayake was quoted by The Age and The Sydney Morning Herald as saying:

We don’t have a specific view on fracking, we’re not involved in any fracking projects ourselves. We are really focusing on the solutions and what are the new ways the world can source energy of which there are many which are environmentally friendly.

Macquarie’s climate policy states:

We recognise that much of the world will depend on oil and gas to power economies and that until new, commercially viable technologies become available, these fuels will have a continued role in the provision of essential energy.

It makes no specific mention of fracking and, according to The Age and The Sydney Morning Herald, when questioned, Wikramanayake advised that Macquarie “did not have a house policy on fracking.”

Macquarie share price snapshot

Regardless of today’s news, the finance giant’s shares have been performing well on the ASX lately.

Currently, the Macquarie share price has gained around 14% since the start of the year. It’s also more than 50% higher than it was this time last year.

The company has a market capitalisation of around $56 billion, with approximately 346 million shares outstanding.  

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Macquarie (ASX:MQG) share price unfazed amid questions over climate conflict appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!