Euronext Rebrands ESG to Boost European Defence Firm Investment

Today’s ESG Updates

• Euronext Rebrands ESG for Defence Investment: Euronext relabels ESG to attract defence funding amid geopolitical shifts despite lacking clear action plans.
• US-China Begin Trade Talks: Officials meet May 9–12 to ease tariff tensions in ongoing trade war.
• Harbour Energy Cuts 25% of UK Staff: Job cuts blamed on UK’s Energy Profits Levy and investment uncertainty.
• Orsted Halts Hornsea 4 Wind Project: Rising costs force cancellation, though future revival remains possible.

Euronext rebrands ESG to counter political taboos and push defence investment

European exchange operator Euronext announced a series of measures to encourage European defence investment. This includes helping companies list on the stock market and speeding up bond launchings. The move follows the political push to increase defensive independence from the US as the political landscape increasingly alienates the two superpowers. Euronext’s CEO and Chairman Stephane Boujnah said it was responding to a “new geopolitical order” as Euronext looks to attract investment, going as far as to rename ESG to Energy, Security and Geostrategy. However, some analysts are skeptical about the lack of action plans presented by Euronext to achieve said investments. IPOs will decide the success of the defence promotion, with Europe clearly seeking defensive independence to protect its power in the current political landscape. A lack of action plans can greatly hinder business promotion, it is therefore essential to use ESG tools to create robust action plans to promote investment.  

***

Further reading: Euronext rebrands ESG in drive to help European defence firms

Trade war watch: China and the US to start talks over trade agreements this week

US and Chinese officials are set to have talks this week to deescalate the trade war between the world’s two largest economies. Chinese Vice Premier He Lifeng, US Treasury Secretary Scott Bessent, and US Trade Representative (USTR) Jamieson Greerare are set to attend talks in Switzerland from 9 to 12 May. The talk follows the ongoing tariff trade war between the US and China, with both nations imposing tariffs of  125-145% on imported goods from their competing markets. Trade experts expect the talks to extend over months and potentially over a year, citing conditions similar to those of the talks of 2018. Both US and Chinese stocks rose, with the news with investors encouraged to keep an eye on the negotiations and interest rates.

***

Further reading: US and China to start talks over trade war this week

Harbour Energy to cut 25% of its UK workforce due to government measures

The UK’s largest oil and gas producer has fallen victim to the Energy Profits Levy, forcing 250 UK workers to leave the company as the UK energy sector continues to struggle. Scott Barr, managing director of the firm’s UK business, confirmed a review of the 250 job losses expected in Aberdeen, citing lower levels of investment and the government’s ongoing challenging regulatory environment as the root cause of the decision. Russell Borthwick, chief executive of Aberdeen and Grampian Chamber of Commerce, referred to the issue as “the tip of the iceberg” as the UK government looks to reform the Energy Profits Levy to bring investment and certainty. 

***

Further Reading: Harbour Energy to slash its UK workforce by 25%, company says 

Orsted axes Hornsea 4 offshore wind farm project as market conditions worsen

Orsted has cancelled the development of its 2.4GW Hornsea 4 offshore wind farm project, citing rising supply chain costs, increased interest rates, and rising execution risks. The company stated a reduction in “expected value creation” as market conditions have made the project unsustainable in the agreed timeline. The Danish company remains fully committed to supporting the UK’s ambitious wind energy targets. Hornsea 4 will remain in the company’s portfolio, with the possibility of renewing the project at a later date. The UK remains the global leader in offshore wind with positive policy frameworks proving popular with private investment, as Orsted cashes in €1.2B earnings from offshore sites. Clean energy is proving to be an industry gaining traction, with businesses having the possibility to form partnerships with providers using ESG solutions.

***

Further reading: Ørsted to discontinue the Hornsea 4 offshore wind project in its current form

Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit:  jjlm-fr