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.

| More on:
asx company executive with multiple fingers all pointing at him

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.  

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.

More on Share Market News

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »

Father in the ocean with his daughters, symbolising passive income.
Dividend Investing

I'd spend $8k on these ASX 200 shares today to target a $6,102 annual passive income

I believe these ASX 200 shares will continue rewarding passive income investors for years to come.

Read more »