Alpha-Centric ESG Research

Kyle Rudden

The collective carbon footprint of global freight transportation and logistics is utterly massive, and growing. Freight and logistics accounts for 10-15% of the world's greenhouse gas (GHG) emissions, or 3.4-5.1 billion tonnes of carbon dioxide (CO2) per year of the world's 34 billion-tonne total. Current GHG mitigation and decarbonisation policies will be enough to fully offset GHG emissions from expected growth in freight transportation and logistics. Projections suggest a 60-80% increase in emissions by 2050, when a decrease of 55-80% is needed to meet the Paris Agreement goals.Climate impacts of trade growth are compounded by how it will shift freight movement from North Atlantic to Indian Ocean corridors, increasing average distances 12%. More critical is the local leg; 10% by tonne-kilometres but 30% of GHGs (inland modes like trucking are more GHG-intensive).On a company level, carbon footprint – present and future – depends on several things. Aside from macro issues like regional fuel mix and climate policies, two big factors are: 1) a company's specific function (e.g., freight trains vs. logistics software), and 2) its decarbonisation initiatives.The collective carbon footprint is a major ESG issue but we should not apply a broad-brush. Freight and logistics companies are vital to the economy and deliver life-critical goods like medication and food. Moreover, companies like <a href="https://www.smartkarma.com/entities/jd-logistics" target="_blank" data-smartkarma-citation="entities:31500:1" rel="noopener">JD Logistics (JDL HK)</a> – are leading a "greening" of supply chains.This is an important ESG issue to watch, but not an "exclusionary screen" by any means.

The collective carbon footprint of global freight transportation and logistics is utterly massive, and growing. Freight and logistics accounts for 10-15% of the world's greenhouse gas (GHG) emissions, or 3.4-5.1 billion tonnes of carbon dioxide (CO2) per year of the world's 34 billion-tonne total. Current GHG mitigation and decarbonisation policies will be enough to fully offset GHG emissions from expected growth in freight transportation and logistics. Projections suggest a 60-80% increase in emissions by 2050, when a decrease of 55-80% is needed to meet the Paris Agreement goals.Climate impacts of trade growth are compounded by how it will shift freight movement from North Atlantic to Indian Ocean corridors, increasing average distances 12%. More critical is the local leg; 10% by tonne-kilometres but 30% of GHGs (inland modes like trucking are more GHG-intensive).On a company level, carbon footprint – present and future – depends on several things. Aside from macro issues like regional fuel mix and climate policies, two big factors are: 1) a company's specific function (e.g., freight trains vs. logistics software), and 2) its decarbonisation initiatives.The collective carbon footprint is a major ESG issue but we should not apply a broad-brush. Freight and logistics companies are vital to the economy and deliver life-critical goods like medication and food. Moreover, companies like JD Logistics (JDL HK) – are leading a "greening" of supply chains.This is an important ESG issue to watch, but not an "exclusionary screen" by any means.

Carbon Footprint of Freight Transportation and Logistics and Other ESG Issues

Last week's announcement by Singapore Exchange – regarding its launching four FTSE ESG Index futures – is a really big deal for SGX. Not that it will not solve all of SGX's problems overnight; the liquidity-building takes time, and four ESG contracts won't make up for all those lost MSCI trades.Nonetheless, these ESG futures contracts are "worth" more than one might think, in two ways. For SGX FIRST, the launch proves its ability to execute. For SGX in general, it's a much-needed boost – financial and psychological – after last year's MSCI losses.I will be publishing a series of on various ESG investment products, starting with derivatives (very soon). That will provide additional detail.

Last week's announcement by Singapore Exchange – regarding its launching four FTSE ESG Index futures – is a really big deal for SGX. Not that it will not solve all of SGX's problems overnight; the liquidity-building takes time, and four ESG contracts won't make up for all those lost MSCI trades.Nonetheless, these ESG futures contracts are "worth" more than one might think, in two ways. For SGX FIRST, the launch proves its ability to execute. For SGX in general, it's a much-needed boost – financial and psychological – after last year's MSCI losses.I will be publishing a series of on various ESG investment products, starting with derivatives (very soon). That will provide additional detail.

SGX FIRST Launches ESG Futures Putting It in the Company of ESG Derivatives Leaders ICE and Eurex

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

<ul>
<li>Rather than going back to profit on Q2 this year, we think it is more likely that <a href="https://www.smartkarma.com/entities/samsung-sdi-co-ltd" target="_blank" data-smartkarma-citation="entities:503:1" rel="noopener">Samsung SDI (006400 KS)</a> will be profitable in Q3 this year. </li>
<li>It will involve around a 70% utilization rate in the EV battery plant, maximizing US AMPC, and a higher contribution from higher-margin batteries for data centers. </li>
<li>The current share price weakness is a buying opportunity but investors do not need to rush, build your positions slowly and carefully. </li>
</ul>


Rather than going back to profit on Q2 this year, we think it is more likely that Samsung SDI (006400 KS) will be profitable in Q3 this year. 
It will involve around a 70% utilization rate in the EV battery plant, maximizing US AMPC, and a higher contribution from higher-margin batteries for data centers. 
The current share price weakness is a buying opportunity but investors do not need to rush, build your positions slowly and carefully. 


Last week, <a href="https://www.smartkarma.com/entities/singapore-exchange-ltd" target="_blank" data-smartkarma-citation="entities:1047:1" rel="noopener">Singapore Exchange (SGX SP)</a> made a momentous <a href="https://www.sgx.com/media-centre/20201215-sgx-strengthens-commitment-sustainability-s20-million-plan" target="_blank" rel="noopener">announcement</a> in the sphere of Asian sustainable/ESG finance and investing. <a href="https://first.sgx.com" target="_blank" rel="noopener">SGX FIRST</a> is its new multi-partner sustainability initiative. The acronym, FIRST, is for "Future in Reshaping Sustainability Together," but it says so much more.SGX FIRST, puts SGX first, in the ranks of Asia's most sustainable stock exchanges.This is different. SGX FIRST is a well-conceived, high-level, strategic sustainability initiative on an entirely different plane than the many "platform" launches of late. It is indeed part platform, but to view it as only that misses its essence entirely. SGX FIRST stands out in three interrelated ways:<ol>
<li>
Intelligent: Unlike "me-too" ESG portals, SGX FIRST is an integrated strategic plan leveraging existing strengths, products, and relationships. It's making progress, not even a week out.</li>
<li>
Impactful: Intelligent design and synergies-galore should translate into real impact; the ability for SGX FIRST to foster and shape sustainable capital markets in Singapore, and APAC.</li>
<li>
Profitable: Yet to be seen, but likely. This is the stuff of virtuous cycles, from establishing ESG domain authority to licensing fees and other incomes. Altruistic capitalism, but capitalism.</li>
</ol>In this game of ESG "platforms," SGX is playing chess, whilst others chew on checkers.In light of pandemic-induced hard times for SGX, this may be what the doctor ordered.

Last week, Singapore Exchange (SGX SP) made a momentous announcement in the sphere of Asian sustainable/ESG finance and investing. SGX FIRST is its new multi-partner sustainability initiative. The acronym, FIRST, is for "Future in Reshaping Sustainability Together," but it says so much more.SGX FIRST, puts SGX first, in the ranks of Asia's most sustainable stock exchanges.This is different. SGX FIRST is a well-conceived, high-level, strategic sustainability initiative on an entirely different plane than the many "platform" launches of late. It is indeed part platform, but to view it as only that misses its essence entirely. SGX FIRST stands out in three interrelated ways:

Intelligent: Unlike "me-too" ESG portals, SGX FIRST is an integrated strategic plan leveraging existing strengths, products, and relationships. It's making progress, not even a week out.

Impactful: Intelligent design and synergies-galore should translate into real impact; the ability for SGX FIRST to foster and shape sustainable capital markets in Singapore, and APAC.

Profitable: Yet to be seen, but likely. This is the stuff of virtuous cycles, from establishing ESG domain authority to licensing fees and other incomes. Altruistic capitalism, but capitalism.
In this game of ESG "platforms," SGX is playing chess, whilst others chew on checkers.In light of pandemic-induced hard times for SGX, this may be what the doctor ordered.

SGX FIRST Puts SGX First in the Ranks of Asia's Most Sustainable Stock Exchanges

Sometimes, the "ESG stuff" can really alter the outcome of an IPO. The <a href="https://www.smartkarma.com/entities/saudi-aramco" target="_blank" data-smartkarma-citation="entities:27317:1" rel="noopener">Saudi Aramco (ARAMCO AB)</a> debut was curbed by Environmental concerns. WeWork's failed IPO is a case study in founder-led Governance risk. Palantir quashed its "adjustable voting power for founders" after an uproar.
ESG impacts IPOs. But not Ant's IPO.
Ant's ESG profile is strong. There a few skeletons in the closet if you look hard enough, but they are bygone and irrelevant . Current ESG blemishes are minor. There isn't much dirt for ESG idealists to wallow in. If they are even looking at all; as a "China deal," ESG has a different relevance for Ant.
Ant's IPO is a momentous ESG event, but not in the traditional and obvious way.
This is not about ESG impacting Ant's IPO. This is about Ant's IPO impacting ESG.
Looking at Ant through a typical ESG lens will make one's head spin. But step back and look again, and it becomes clear that Ant is a strategically-integrated masterpiece at the vanguard of a critical crossroads – the intersection of Fintech, financial inclusion, green finance, and sustainability.
It is all a matter of perspective.
Seeing the forest for the trees.

Sometimes, the "ESG stuff" can really alter the outcome of an IPO. The Saudi Aramco (ARAMCO AB) debut was curbed by Environmental concerns. WeWork's failed IPO is a case study in founder-led Governance risk. Palantir quashed its "adjustable voting power for founders" after an uproar.
ESG impacts IPOs. But not Ant's IPO.
Ant's ESG profile is strong. There a few skeletons in the closet if you look hard enough, but they are bygone and irrelevant . Current ESG blemishes are minor. There isn't much dirt for ESG idealists to wallow in. If they are even looking at all; as a "China deal," ESG has a different relevance for Ant.
Ant's IPO is a momentous ESG event, but not in the traditional and obvious way.
This is not about ESG impacting Ant's IPO. This is about Ant's IPO impacting ESG.
Looking at Ant through a typical ESG lens will make one's head spin. But step back and look again, and it becomes clear that Ant is a strategically-integrated masterpiece at the vanguard of a critical crossroads – the intersection of Fintech, financial inclusion, green finance, and sustainability.
It is all a matter of perspective.
Seeing the forest for the trees.

Ant Group Pre-IPO ESG Assessment: Seeing the Forest for the Trees

United States

MSCI Inc. provides investment decision support tools to investment institutions worldwide. The Company produces indices and risk and return portfolio analytics for use in managing investment portfolios.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

MSCI Inc (MSCI US)

Carbon Footprint of Freight Transportation and Logistics and Other ESG Issues

The carbon footprint of global freight and logistics is large, growing, and a source of ESG risk for investors. Fortunately, firms like JD...

Kyle Rudden

SGX FIRST Launches ESG Futures Putting It in the Company of ESG Derivatives Leaders ICE and Eurex

SGX's lauch of ESG futures is a big deal. It proves SGX FIRST's ability to execute, and softens the pain of MSCI losses.

Kyle Rudden

Samsung SDI (006400): Q3 Rather than Q2

Samsung SDI (006400 KS) is expected to turn profitable in Q3 this year, driven by increased utilization in EV battery plant and higher-margin...

Henry Soediarko

SGX FIRST Puts SGX First in the Ranks of Asia's Most Sustainable Stock Exchanges

"What's in a name? "asked Shakespeare. Quite a lot, when the name "SGX FIRST." FIRST is an acronym, but it also makes a bold statement; that SGX is...

Kyle Rudden

Ant Group Pre-IPO ESG Assessment: Seeing the Forest for the Trees

xxxx Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim...

Kyle Rudden

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Carbon Footprint of Freight Transportation and Logistics and Other ESG Issues

The carbon footprint of global freight and logistics is large, growing, and a source of ESG risk for investors. Fortunately, firms like JD...

Kyle Rudden

SGX FIRST Launches ESG Futures Putting It in the Company of ESG Derivatives Leaders ICE and Eurex

SGX's lauch of ESG futures is a big deal. It proves SGX FIRST's ability to execute, and softens the pain of MSCI losses.

Kyle Rudden

Samsung SDI (006400): Q3 Rather than Q2

​Samsung SDI (006400 KS) is expected to turn profitable in Q3 this year, driven by increased utilization in EV battery plant and higher-margin...

Henry Soediarko

SGX FIRST Puts SGX First in the Ranks of Asia's Most Sustainable Stock Exchanges

"What's in a name? "asked Shakespeare. Quite a lot, when the name "SGX FIRST." FIRST is an acronym, but it also makes a bold statement; that SGX is...

Kyle Rudden

Ant Group Pre-IPO ESG Assessment: Seeing the Forest for the Trees

xxxx Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim...

Kyle Rudden

Samsung SDI (006400 KS) is expected to turn profitable in Q3 this year, driven by increased utilization in EV battery plant and higher-margin...