Activism and Sustainability, Is Air Products Unique, Or Should Others Be Worried?

C-MACC Weekly Sustainability and Energy Transition Report

Activism and Sustainability, Is Air Products Unique, Or Should Others Be Worried?

• 1st Topic of the Week: Sustainability activism has, until recently, focused on criticisms around companies not doing enough, but the tide has turned, and some chasing sustainability goals are now likely to be accused of destroying shareholder value. Air Products is in the crosshairs for capital misallocation among other things.
• 2nd Topic of the Week: We look at the rising biofuel ambitions which coincide with declining green hydrogen ambitions (because of costs) and question whether there are enough inputs. We also look at the amount of money the DOE is authorizing short term and question how wise this is.
• Otherwise: We provide our monthly look of clean agriculture, look at feedstock intensity and its impact on the cost of green/clean products, undervalued solar and wind stocks (maybe) and trade barriers

Exhibit 1: The activists at Air Products are focused on EBITDA and EBITDA growth, if they get that right the multiple expansion will follow

Source: CapitalIQ and C-MACC Analysis