Connect with us

Published

on

A view of the Exxon Mobil refinery in Baytown, Texas.

Jessica Rinaldi | Reuters

Jennifer Grancio was among the leaders at Engine No. 1, the upstart investing firm focused on climate and energy transition, that bested ExxonMobil in a 2021 proxy contest upset few saw coming. What Engine No. 1 decided to do next was maybe as surprising: move away from the activist investor approach that worked so well in winning board seats at the oil and gas giant.

Now CEO, Grancio doesn’t want the firm to be defined by the Exxon headline, but rather by a long-term investing approach that is a blueprint for how companies should think about huge systems changes like energy transition, and how investors should access the value that will be created by the companies that get it, and scale transformed businesses.

“Investing is something you can do for the very short-term, but for the vast majority of asset owners … they are all looking for performance over time,” Grancio said at the CNBC ESG Impact virtual event on Thursday. “The market can get confused about investing only for ideology or the extremely short-term, but Engine No. 1 is going deep with companies, looking primarily at the business model and how it will need to change over time to create value for shareholders.”

The ExxonMobil campaign does hit on the big themes: having the right governance in place to see companies through big systems changes, making the right investments and avoiding the wrong ones. “We got into Exxon as an investor because we knew if it is smart and has the right management for energy transition and how the business is valued after energy transition, that will be great for shareholders,” she said. “We think of the ExxonMobil campaign as being about governance and long-term capitalism,” she said.

Grancio shared a few of her foundational ideas for investing in the future and staying ahead of the market at ESG Impact.

Lots of technology, but not tech stocks

“As investors, we like to talk about Google and Amazon, but where the returns will really be generated in the next decade, we look to agriculture, autos and energy,” Grancio said.

Engine No. 1 is doing a lot of work with autos, which it has been public about, including an investment in GM, on what she describes as a long term transition.  

Incumbents like GM will have a huge reduction of emissions and be a big winner, says Engine No. 1's Grancio

“People know about Tesla, but they forget about GM and Ford,” Grancio said.

“We will have this huge transition and it needs scale, and that’s millions and millions of cars and there is huge room for incumbents like GM and Ford to be part of creating and meeting all of this demand,” she said. This doesn’t mean Tesla won’t be a winner, she added, but GM and Ford also will be, Grancio said.

Don’t just be an index fund investor

Engine No. 1 has a passive index ETF — Grancio was among the senior leaders of the BlackRock iShares ETF business before joining Engine No. 1 — but she warns investors that in the same way they may focus on Tesla and forget about the rest of the auto sector, they will miss out on big investment opportunities if they stick with the index portfolio weightings.

“If you leave your money in a passive index fund, or you only buy the super-growth stocks, you will have a huge problem in your portfolio,” she said. “Investors are underweight the big transition ideas if they are in the indexes,” she added.

Grancio said holding the market in an index fund allows investors to use their shareholder voting power to drive outcomes, which it did by banding together with many large institutional shareholders to take on Exxon, but many of the biggest transition plays, from energy to transportation, are underweights for the majority of investors because of index fund use.

Another big example she cited is agriculture, and a company that she said is getting it right: Deere. “It makes tractors and tractors are dirty, but if we flip that and think about impact and the global food crisis and solving it, Deere’s moves into precision ag are better for climate and yield and financial performance of farmers,” she said. Deere is building a business to solve a huge systemic problem which also has an impact investing perspective, she said.

Still investing in big oil, and expecting energy transition to take a ‘little longer’

Grancio says that Engine No. 1’s work with Exxon is a sign that ESG investing works. “Look at the appreciation of different companies in energy and Exxon has more than doubled, significantly higher than peers, and it wasn’t just the price of oil,” she said.

She also cited Oxy (formerly Occidental Petroleum) which has been a leader in the energy transition space and has more than doubled in 2022 “because it is different from peers,” she said. “We believe these are fundamentally investment issues,” she added. Another important factor that made Oxy different from peers: a massive investment made by Warren Buffett in the company.

Engine No. 1 continues to be an active owner of energy companies, working on many of the same issues that it did at Exxon even if not through a proxy war: managing capital allocation, setting clear targets on emissions, and investing in green energy business.

But she says that the last year during which the price of oil spiked as a result of the war in Ukraine and critical energy shortages in Europe were exposed does mean that the energy transition “will probably be a little bit longer.”

“People use fossil fuels and we have not made this transition, and if we need fossil fuel assets we need them to be managed by the biggest companies in a way that is also looking at new technologies to maintain value after the transition, when we will be more in need of renewables and carbon capture,” she said.

That’s why she continues to see big energy companies as an investment opportunity. “They know how to do these things at scale. We need to deliver energy to the world today, but as we get to the other side of the energy transition, how they deal with these issues will be required for them to still have a great business,” she said. “We think there is a lot of room to work constructively with companies on these issues.”

US reshoring of manufacturing should be a new focus

While it does not fit neatly into an ESG box like climate, Grancio said one of the biggest investment opportunities in the future that she is chasing will be American companies in manufacturing, transportation and logistics tied to a huge resurgence in domestic production and manufacturing.

“Investors are not holding railroads, not assuming cars or chips will be made in the U.S.,” she said.

On Thursday, President Biden touted a plan by IBM to invest $20 billion in New York-based chip manufacturing, two days after Micron Technology announced up to $100 billion in semi manufacturing investments in the state.

Without providing details, she said Engine No. 1 will be creating an investment in the future around the opportunity to invest in the U.S. supply chain. “We’ll be doing something,” she said. 

The U.S. domestic manufacturing revival is, in a sense, form of “systems change,” as globalization of prior decades is disrupted. And that fits Engine No. 1’s overall discipline. “We really think you have to understand systems and companies at a deep level to make good choices. Investing should never be ideological. It should be about understanding these companies and how industries are changing,” she said. And at a time of serious political blowback against ESG investing focused primarily on energy companies and climate change, she added, “Hopefully, we don’t let theater get in the way on this.” 

Continue Reading

Environment

Hyundai Ioniq 9 first drive: Stylish SUV outside, spacious and versatile 3-row minivan inside

Published

on

By

Hyundai Ioniq 9 first drive: Stylish SUV outside, spacious and versatile 3-row minivan inside

Hyundai flew us out to Savannah, Georgia, a few weeks ago to get our first impressions of the much-anticipated Ioniq 9 three-row SUV. The vehicle uses the same E-GMP platform as the Kia EV9 and some smaller HMG EVs but the real question is: how is the Ioniq 9 different? Let’s take a look…

Size matters

This is a big EV with spacious three rows that seat six or seven adults comfortably. As far as I am concerned,the Ioniq 9 is Hyundai’s flagship vehicle.

The drive was similar to the Kia EV9, which is obviously a good thing. The big vehicle has solid electric acceleration, and Hyundai has done great work with the suspension to make this heavy car feel light on its toes. But Hyundai has made efforts to make the drive even smoother and quieter. The foam-filled tires, soft suspension, acoustic glass, and active noise cancellation all make the ride feel like floating rather than driving.

Front-row seats are not only spacious but also offer ample comfort and legroom. Also, there’s plenty of legroom in the second row (42.8 inches) and spacious third row (32.0 inches). Did I mention this is a big vehicle?

Advertisement – scroll for more content

What stands out to me on the interior is the flat floor enabled by the E-GMP battery and remarkably long wheelbase (3,130mm / 123.2 inches). It doesn’t feel like an SUV inside, it feels like a big minivan (oxymoron noted). While many folks are embarrassed to be seen in a minivan, nothing beats the configuration internally for trips and driving more than 4 people around – so the comparison is fully complimentary.

Hyundai obviously kitted us out with their top-end interiors, and they definitely felt sporty and luxurious.

Frunk

The Frunk o the Ioniq 9 isn’t anything to write home about and one of the few downsides to this vehicle. Hyundai of course says that their customers don’t want it, just like the bigger Frunk-maker’s say that their customers love it. For better or worse, it is a great place to put some charging cables, a tire inflator kit or some valuables but don’t expect it to be used frequently like a Tesla/Rivian or F-150/Silverado Frunk for groceries and general purpose cargo.

I really love the look of the Ioniq 9, which the company says is shaped like a sailboat hull with its big taper at the back. That also gives the Ioniq an otherworldly low drag coefficient of 0.259. That, along with the big 110kWh battery and Hyundai’s always efficient EVs, gets this thing to 335 miles for the RWD version. The performance AWD variant only drops down to 311 miles, a hit worth taking.

That range and the spacious interior mean that this is a great road trip EV. AWD versions can even tow up to 5000lbs. HMG’s software adjusts range predictions based on towing. Aerodynamics and efficiency of the trailer will all determine how much range is sacrificed but with over 300 miles to start with, odds are it will get you where you are towing.

NACS charging

The Ioniq 9 is one of the first non-Tesla EVs to come standard with a NACS charger, meaning it can natively charge at most Tesla Superchargers. Hyundai also includes an adapter so it can charge at CCS Combo stations and use a J-1772 Level1/2 charger.

Exterior

I am torn on the exterior look of the Ioniq 9. I love the shape, which Hyundai says is reminiscent of the aerodynamic hull of a sailing ship. I love the pixel lights that have become iconic in Hyundai’s EV lineup. Even the overall silhouette, something that Hyundai calls “Aerosthetic”—a harmonious blend of aerodynamics and aesthetics— is pretty incredible.

But I don’t love some of the design ornaments–like the cutout pieces over the front and back wheels. While I realize that seems like a nit-pick, I can’t unsee it. It is more subdued in the darker colors, however.

Pricing: starts at $58,955 for the RWD S trim and goes up to $76,490 for the Performance Calligraphy Design AWD trim. Eligible for $7500 Federal tax credit and various state/local and utility discounts.

Electrek’s take

I really love this take on the 3rd row electric SUV. Would I take the Ioniq 9 off-road like a Rivian? No. Does it accelerate like a Telsa Model X? No.

However, it does everything most third-row SUV owners expect, and it does it quietly and effortlessly. For those looking for a luxurious 3-row electric SUV with an interior that rivals the comfort of a minivan, you have to put the Hyundai Ioniq 9 at the top of your list.

FTC: We use income earning auto affiliate links. More.

Continue Reading

Environment

Honda pulls the plug on its larger electric SUV, but that’s not all

Published

on

By

Honda pulls the plug on its larger electric SUV, but that's not all

That larger Honda electric SUV may be a pipe dream after all. Honda follows Ford, Toyota, and other automakers in adjusting major EV plans in the US.

Honda scraps plans for a larger electric SUV

Although Honda’s first electric SUV, the Prologue, was one of the top-selling EVs in the US last year, the Japanese automaker is preparing for a slowdown.

Thanks to the Trump Administration’s recently passed “Big, Beautiful Bill,” which kills off the $7,500 federal tax credit at the end of September, Honda expects lower demand for EVs.

According to a new Nikkei report, Honda is now scrapping plans for its larger electric SUV in the US, its largest market. Instead, the company will focus on hybrid vehicles, similar to recent moves from Ford, Toyota, and others.

Advertisement – scroll for more content

Honda’s larger electric SUV was due to be released around 2027, about the same time as Ford and Toyota’s three-row EV SUVs. The upcoming Honda 0 Series electric SUV and sedan are still set to arrive starting next year.

We got a sneak peek of the midsize electric SUV in April after a camouflaged prototype made its debut on the streets of Tokyo for the first time.

Honda announced earlier this year that it is reducing its planned EV investments by $21 billion through 2030, as it expects lower demand. Like Ford and Toyota, Honda will focus on hybrids in the meantime.

Honda-larger-electric-SUV
Honda 0 SUV (Source: Honda)

In a separate report on June 20, Nikkei claimed that Honda and Nissan were considering a new US partnership just months after their global tie-up fell through.

Electrek’s Take

Honda is one of the few Japanese automakers to gain some momentum in the US EV market, but scrapping plans for the bigger model could put it behind rivals like Hyundai and Kia.

Through the first half of the year, Honda has sold over 16,300 Prologues in the US. In comparison, Toyota sold just over 9,200 bZ4X models.

Even Acura’s EV is seeing significantly more demand than expected. Acura sold 10,355 ZDX models in the first half of 2025, outpacing the Cadillac Lyriq, which is based on the same platform. Earlier this year, Mike Langel, vice president of national sales for Acura, told Automotive News that the company expected to sell around 1,000 ZDX models a month this year.

Honda, like most of the auto industry, is bracing for a shakeup as the Trump Administration rolls back EV incentives, putting the US on track to lag even further behind leaders like China.

FTC: We use income earning auto affiliate links. More.

Continue Reading

Environment

Paris’ popular bike share program has a big sticky finger problem

Published

on

By

Paris' popular bike share program has a big sticky finger problem

Paris’ bike-share system, Vélib has long been considered one of the shining success stories of urban micromobility. With a massive fleet of over 20,000 pedal and electric-assist bicycles around Paris, the service has helped millions of residents and tourists get around the City of Light without needing a car or scooter. But lately, a growing problem is threatening to knock the wheels off this urban mobility marvel: theft and joyriding.

According to city officials and the service operator, more than 600 Vélib bikes are now going missing every single week. That’s over 30 bikes a day simply vanishing from the system – some stolen outright, others taken on “joy rides” and never returned.

“At the moment we’re missing 3,000 bikes,” explained Sylvain Raifaud, head of the Agemob company that currently operates the Velib system. That’s nearly 15% of over 20,000 Vélib bikes across Paris.

The sticky-fingered culprits aren’t necessarily professional thieves or organized crime rings. Instead, they’re often regular users who treat the shared bikes like disposable toys.

Advertisement – scroll for more content

The city estimates that many people have figured out how to pry the bikes out of the system’s parking docks, unlocking one for a casual cruise and then ditching it somewhere far from a docking station.

Once pried free, the bikes are technically usable for the next 24 hours until their automatic locking feature kicks in. At that point, the bikes are often simply abandoned. Some end up in alleyways. Others get tossed in rivers. A few just disappear completely.

And since the bikes are intended to be parked at their many docking stations around the city, they don’t have GPS chips, further complicating recovery of “liberated” bikes.

The issue started small but has grown into more than an inconvenience – it’s beginning to undermine the entire purpose of the service. With bikes going missing at such a high rate, many Vélib docking stations are left empty, especially during rush hours.

Riders looking for a quick commute or a convenient hop across town are increasingly finding themselves without available bikes, or having to walk long distances to find a functioning one.

That kind of unreliability chips away at user confidence and threatens to drive potential riders back into cars, cabs, or other less sustainable forms of transport at a time when Paris has already made great strides to dramatically reduce car usage in the city.

The losses are financially painful, too. Replacing stolen or vandalized bikes isn’t cheap, and the resources spent on tracking down missing equipment or reinforcing anti-theft measures are stretching thin. Vélib has faced theft and vandalism issues before, especially during its early years, but this latest surge has officials sounding the alarm with renewed urgency.

Officials acknowledge that there’s no easy fix. Paris, like many cities with bike-share systems, walks a fine line between accessibility and accountability. Part of what makes Vélib so successful is its ease of use and widespread availability. But those same features make it vulnerable to misuse – especially when enforcement is limited and the consequences for abuse are minimal.

The timing of the problem is especially unfortunate. In recent years, Paris has seen impressive results in reducing car traffic, expanding bike lanes, and promoting cycling as a key part of its sustainable transport strategy. Vélib is a cornerstone of that plan. But if the system becomes too unreliable, it risks losing the very people it was designed to serve.

Meanwhile, as Parisians increasingly find themselves staring at empty docks, the challenge for the city and Vélib will be to restore confidence in the system without making it harder to use. That means striking the right balance between freedom and responsibility, between open access and protection against abuse.

In a city where cycling is supposed to be the future of mobility, losing thousands of bikes to joyriders and sticky fingers isn’t just frustrating; it’s unsustainable.

FTC: We use income earning auto affiliate links. More.

Continue Reading

Trending