Why is Fortescue’s Andrew Forrest helping publishers deal with Google, FB?

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Why is Fortescue’s Andrew Forrest helping publishers deal with Google, FB?

FMG, Andrew Forrest, FMG Diesel Subsidy push, Australian mining
Image source: © Timonschneider | Megapixl.com

Highlights

  • ASX:FMG signs campaigns for a shift from diesel subsidy to green energy.
  • Founder Andrew Forrest will be helping small news publishers deal with Google and Facebook for the supply of news content.
  • Andrew Forrest appears active in the ESG space via FMG and Minderloo.

Australia is working towards a green future, and major backing is needed from its mining sector. In a positive from this ESG front, Fortescue Metals Group Ltd (ASX:FMG) chair Dr Andrew Forrest has pushed to end the subsidy given on Diesel. FMG's mining billionaire is also helping small Australian publishers collectively negotiate with Google and Facebook to supply news content via his philanthropic organisation, Minderloo.

Why FMG owner, Forrest wants end of Diesel subsidy?

  • According to Dr Forrest, the end of diesel subsidy Australia's miners would mean a government saving of AU$5 to AU$7 billion a year.
  • FMG owner believes that the subsidy money can be instead used to retool Australia and push green hydrogen and ammonia fuels and green electricity.
  • FMG group already has started its Fortescue Future Industries, largely shifting to decarbonisation due to the potential future of green energy.
  • As a part of its ESG strategy, Fortescue has even announced an industry-leading target of net-zero scope 3 emissions by 2040.

Not just environmental but, Forrest is also active in the social aspect of his businesses.

How is Andrew Forrest helping small businesses?

  • Forrest's philanthropic organisation, Minderoo Foundation, has recently shared that it would request the Australian Competition and Consumer Commission (ACCC) to let it help small news publishers to bargain for content supply with Google and Facebook.
  • Facebook and Google were required to negotiate with Australian outlets for content that drives internet news traffic and advertising.
  • However, both companies have struck licensing deals with only main media moguls, not small firms.
  • Miderloo will thus help these small publishers to negotiate for news to be able to use it for public benefit.
  • The 18 small publishers chosen by Andrew Forrest for help include online publishers targeting local or regional content.

Investors may view all of it under FMG's ESG integration umbrella.

Bottom line-

A push for ESG initiatives works for the long-term benefit of an organisation. FMG and its founder Forrest’s current approach seems to be a peg to remove any kind of ESG risks on the metals and mining group.

Meanwhile, On ASX today, FMG shares are 2.5% up, trading at AU$15.860 per share as of 3:20 PM AEDT.

Do Read - 3 ASX listed shares with over 12% dividend yield - FMG, RIO, AGL

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