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Once a week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) continues to be the most shorted ASX share after its short interest remained flat week on week at 12.1%. Short sellers will have been disappointed to see Flight Centre’s shares jump today after the US announced the reopening of its borders.
• Kogan.com Ltd (ASX: KGN) has short interest of 10.7%, which is up notably week on week. Short sellers appear to be targeting this ecommerce company due to inventory issues and its slowing sales growth.
• Redbubble Ltd (ASX: RBL) has short interest of 10.4%, which is up slightly since last week. Short sellers have been increasing their positions in this ecommerce company since the release of a disappointing quarterly update.
• Webjet Limited (ASX: WEB) has short interest of 9.2%, which is up slightly week on week. Valuation concerns appear to be the reason for this high level of short interest.
• Zip Co Ltd (ASX: Z1P) has seen its short interest jump to 8.9%. Short sellers have increased their positions despite the buy now pay later provider delivering a record monthly performance in October.
• Mesoblast limited (ASX: MSB) has short interest of 8.8%, which is down slightly week on week. Concerns that this biotech company will have to raise funds soon could be weighing on sentiment.
• Electro Optic Systems Hldg Ltd (ASX: EOS) has 8.6% of its shares held short, which is up week on week once again. Short sellers have been increasing their positions after the defence and space company downgraded its earnings guidance.
• Inghams Group Ltd (ASX: ING) has 8.3% of its shares held short, which is flat week on week. Last week this poultry producer’s shares sank after revealing that higher grain costs were impacting its financial performance.
• Cooper Energy Ltd (ASX: COE) has 7.9% of its shares held short, which is up week on week once again. Short sellers have been targeting this energy company due to concerns over the Sole Gas operation.
• BHP Group Ltd (ASX: BHP) has seen its short interest remain flat week on week at 6.9%. The softening iron ore price could be behind this high level of short interest.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

More reading

• Here’s why travel shares led the ASX 200 on Monday
• ASX 200 companies take note – global carbon credit trades soaring
• Here are the top 10 ASX shares today
• Why API, Evolution, Flight Centre, and Sydney Airport shares are pushing higher
• Why is the Webjet (ASX:WEB) share price taking off on Monday?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Electro Optic Systems Holdings Limited, Kogan.com ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings Limited, Kogan.com ltd, and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Aristocrat Leisure Limited (ASX: ALL) share price fell by the wayside today. This comes after the gaming technology company shared an update regarding its attempt to acquire leading global online gambling software supplier, Playtech.

By the end of Monday’s session, shares in Aristocrat Leisure were trading 2.1% lower to $47.25. As a result, the company is now trading 4.8% below its 52-week high.

Let’s take a deeper look at the latest ASX announcement for Aristocrat Leisure.

Playing snakes and ladders with Playtech

Despite having already successfully raised $895 million in capital to fund the Playtech acquisition, Aristocrat Leisure has now encountered a potential roadblock.

According to today’s release, Playtech has now entered a dance of courtship with another party. The company received a preliminary approach from Hong Kong-based Gopher Investments, which might amount to a bid of £3 billion (~A$5.46 billion).

Reportedly, Gopher Investments began building its position earlier this year and has become a substantial shareholder in Playtech. At this stage, Gopher has merely sought access to information in order to conduct due diligence. As such, a formal offer may not eventuate, though it can’t be ruled out either.

This development throws a spanner in the works of what looked like a likely deal for the ASX-listed Aristocrat Leisure. Currently, the Aussie gaming company has mostly solidified a deal with Playtech valuing it at approximately A$5 billion.

To raise these funds, the company is issuing 31 million new shares which are expected to hit the ASX in mid-November. Running the numbers, this would represent a dilution of roughly 4.8% of the company’s current shares on issue.

Perhaps the market is concerned Aristocrat will be stuck with $1.3 billion worth of cash and nothing to put it towards.

Lastly, the timing of the announcement is almost uncanny. Today was the last day for the retail component of the capital raise. This would see a further expected A$405 million collected from retail investors.

What’s next for ASX-listed Aristocrat?

Today’s announcements stated that the company would continue to work with Playtech to progress its own acquisition proposal. In fact, the scheme document was mentioned to be published ‘shortly’, recommending shareholders recommend the acquisition.

Finally, Aristocrat noted it would share any further updates relating to its new potential competition. The Aristocrat Leisure share price remains 51% higher year-to-date.

The post Aristocrat (ASX:ALL) share price slides amid takeover update appeared first on The Motley Fool Australia.

More reading

• 10 top ASX shares to buy in November
• These three ASX shares smashed 52-week highs today
• 3 fantastic ASX shares that could be buys in November
• Why is the Aristocrat (ASX:ALL) share price dipping on Monday?
• Why AMP, Aristocrat, Brainchip, and Healius shares are racing higher

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Monday has been a big day for ASX 200 travel shares as the sector faced numerous exciting happenings.

Earlier this afternoon (Australian time), the United States’ international borders were flung open to vaccinated travellers.

However, there was perhaps more exciting news for ASX market watchers. This morning, Sydney Airport (ASX: SYD) confirmed it had agreed to a $23.6 billion takeover offer.

As a result, the Sydney Airport share price shot up 2.7% over the course of today. Meanwhile, that of Qantas Airways Limited (ASX: QAN) gained 4%.

Though, it was the ASX 200 travel agents that walked away with the best wins.

The Webjet Limited (ASX: WEB) share price ended Monday’s session 4.7% higher than it did Friday’s.

Flight Centre Travel Group Ltd (ASX: FLT) did even better. Its share price surged 5.7% despite the company’s silence.

For context, the S&P/ASX 200 Index (ASX: XJO) fell 0.06% today.

Let’s take a closer look at the news that likely piqued the market’s interest in the ASX 200 travel sector on Monday.

ASX 200 travel shares outperform

ASX 200 travel shares had a great day’s trade as the world awaited the United States’ international borders reopening, which happened the moment the market closed.

As of 12:01 am eastern standard time Monday (3:01 pm AEST and 4:01 pm AEDT), vaccinated travellers from all over the world are welcome to travel to the United States for non-essential purposes.

It’s the first time non-essential travel has been allowed into the United States since March 2020 when then-President Donald Trump slammed the borders shut to help stop the spread of COVID-19.

Perhaps in anticipation, some United States-based travel shares surged higher on Friday. Expedia Group Ltd (NASDAQ: EXPE) gained 15% on Friday, while Airbnb Inc (NASDAQ: ABNB) soared 12%.

Those gains might have helped inspire today’s movements on the ASX.

Meanwhile, the market was spoilt by exciting news from Sydney Airport on Monday.

The ASX-listed airline has accepted the Sydney Aviation Alliance’s takeover bid of $8.75 per share.

Though, shareholders might want to wait before getting too excited. The acquisition is still subject to approval from the Foreign Investment Review Board and the Australian Competition and Consumer Commission. It will also need to be approved by 75% of Sydney Airport’s shareholders.

The post Here’s why travel shares led the ASX 200 on Monday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why API, Evolution, Flight Centre, and Sydney Airport shares are pushing higher
• Why is the Webjet (ASX:WEB) share price taking off on Monday?
• Sydney Airport (ASX:SYD) share price lifts off following takeover news

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Shares in DigitalX Ltd (ASX: DCC) stormed higher towards the end of market trade on Monday. This came after the blockchain and asset management services company released an update regarding its Bitcoin (CRYPTO: BTC) and digital asset holdings.

At the close of trade today, the DigitalX share price was up 10% at 11.5 cents after earlier surging 15% higher. It’s worth noting that its shares are a whisker away from breaking its multi-year high of 13.5 cents reached last November.

What did DigitalX announce?

At the end of each month, the company provides a snapshot of its funds under management and digital asset exposure.

For October, DigitalX recorded a record high of total funds under management at $38.99 million. This represents a 36.8% increase on the prior month, buoyed by the recent inflows and a strong digital asset market.

DigitalX highlighted a new funds flow of $1 million along with the Bitcoin price soaring to a new all-time high. The company’s Bitcoin and digital asset holdings are valued at $53.77 million, which includes 216 Bitcoin held as corporate treasury.

The company advised the monthly performance for its asset funds was driven by Bitcoin and the DigitalX fund, up 37.46% and 27.82% respectively. In addition, gold and equities from the All Ordinaries Index (ASX: XAO) were mixed, down 1.74% and up 0.12% correspondingly.

Quick take on DigitalX

Founded in 1998, DigitalX is an Australian technology and investment company focused blockchain technology development and digital assets funds management.

DigitalX gives investors a way to gain digital asset exposures through a secure and accessible platform.

The company operates through three segments, blockchain consulting and development, asset management, and other. The latter relates to governance, finance, legal, and risk management, company secretarial and management of the corporate entity.

DigitalX share price summary

Over the last 12 months, the DigitalX share price has lifted close to 60%, with year-to-date gains hovering around 20%.

Based on today’s price, DigitalX commands a market capitalisation of about $81.36 million and has approximately 739.68 million shares outstanding.

The post DigitalX (ASX:DCC) share price surges 10% on Bitcoin update appeared first on The Motley Fool Australia.

More reading

• Why has the DigitalX (ASX:DCC) share price rallied 57% in a month?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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How has the Medibank Private Ltd (ASX: MPL) share price performed against the S&P/ASX 200 Index (ASX: XJO) in the last 3 months? Good question!

The Medibank share price certainly didn’t have a pleasant start to the week today. It’s closed at $3.43 a share, down 1.3% for the day.

But how has it fared over the past 3 months? Well, back on 9 August, Medibank shares closed at a price of $3.41 each. That means Medibank shares have gone almost nowhere over the past 3 months (well, a gain of 0.59%) going off those bookend dates.

But that’s not to say the share price did nothing that whole time. In fact, on 7 September, the company hit a new 52-week high of $3.62 a share. By the back end of October, this private health insurance giant descended as low as $3.32 a share. That’s a difference of around 8.3%.

You can see this visually represented in the graph below:

But, as it turns out, this particular 3 month period has resulted in the Medibank share price going nowhere. That’s just how these things work sometimes. So how did the ASX 200 perform by comparison?

Well, the ASX 200 closed at 7,538.4 points back on 9 August. Today, it finished up at 7,452.2 points, a drop of 1.14% over the same period. Suddenly, Medibank’s anaemic performance over this period doesn’t look quite so bad, seeing it was still a market-beating investment.

Saying that, there was another silver lining for Medibank shareholders during this period. On 30 September, Medibank paid out its final dividend for FY21, a 6.9 cents per share payment, fully franked. This dividend in itself is worth a yield of roughly 2% on today’s pricing, so shareholders had that to bank over the past 3 months as well.

Medibank Private share price snapshot

Whilst Medibank has had a rather uninspiring 3 months, its longer-term performance is far more robust. Year to date, Medibank shares are up a healthy 13.95%, outperforming the ASX 200’s 11.49% performance over the same period. Over the past 12 months, Medibank shares are also up by 26.1%, again beating the ASX 200’s 20%.

At Medibank Private’s closing price of $3.43 today, this ASX 200 company has a market capitalisation of $9.45 billion, with a trailing annual dividend yield of 3.7%.

The post Here’s how the Medibank (ASX:MPL) share price has performed against the ASX200 in the last 3 months appeared first on The Motley Fool Australia.

More reading

• ASX 200 companies take note – global carbon credit trades soaring
• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• AFIC (ASX:AFI) shares have a net tangible asset backing of $7.51 each. What does this mean?
• Why has the ANZ (ASX:ANZ) share price dropped 2% today?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Rio Tinto Limited (ASX: RIO) share price could be a consideration for its projected grossed-up dividend yield of 21%.

That dividend projection is from the broker Credit Suisse, which thinks that Rio Tinto is going pay a large dividend for the miner’s 2021 financial year. Rio’s FY21 follows the 2021 calendar year, so this current financial year will show the benefit of the strong iron ore prices a few months ago.

The broker thinks that investors will continue to be interested in Rio Tinto because of its ongoing good payments to shareholders.

Less rosy picture for FY22

Each analyst has their own expectations for what Rio Tinto’s FY22 will look like.

Credit Suisse is expecting the Rio Tinto dividend yield to fall to 10.9% in FY22 as profit returns to a lower level.

The broker puts the current Rio Tinto share price at 8x FY22’s estimated earnings.

Rio Tinto’s falling share price

Over the last six months, Rio Tinto shares are down by around 33%. In the last month alone it has dropped around 13%.

Under a month ago, the business released its third quarter production results. Despite the challenges of COVID-19, Rio Tinto noted that its iron ore shipments of 83.4mt were 2% higher year on year and 9% higher than the second quarter of 2021.

Within that update, Rio Tinto said that it’s expecting Pilbara shipments to be between 320mt to 325mt, down from the previous guidance of being at the low end of 325mt to 340mt. This was due to “modest delays” to completing the new greenfield mine at Gudai-Darri and the Robe Valley brownfield mine replacement project due to the tight labour market in Western Australia.

However, production of bauxite, aluminium, copper and titanium dioxide slag were all lower than the third quarter of 2020.

Rio Tinto has also entered into three partnerships to progress its work to decarbonise its value chain, such as zero-emission mining haulage solutions.

Lithium project

In July 2021, Rio Tinto announced that it had committed $2.4 billion to the Jadar lithium-borates project in Serbia, one of the world’s largest greenfield lithium projects. If approved, this project could have a growing influence on the Rio Tinto share price in the coming years.

It still remains subject to receiving all relevant approvals, permits and ongoing engagement with local communities and the Government of Serbia.

Rio Tinto is looking to increase its exposure to battery materials that are used in large scale batteries for electronic vehicles and storing renewable energy. This would position Rio Tinto as the largest source of lithium supply in Europe for at least the next 15 years. Rio Tinto also said Jadar will produce borates, which are used in solar panels and wind turbines.

First saleable production is expected in 2026, at a time of “strong market fundamentals” with lithium demand forecast to grow by 25% to 35% per annum over the next decade. At full production in 2029, the mine is expected to produce around 58,000 tonnes of lithium carbonate annually.

Rio Tinto share price target

Credit Suisse has put a price target of $106 on Credit Suisse, which is a potential upside of around 20% over the next 12 months, if the broker is right.

The post Is the Rio Tinto (ASX:RIO) share price a buy for its 21% dividend yield? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• Evergrande latest, plus another Chinese developer just missed a payment
• Why did the Rio Tinto (ASX:RIO) share price go backwards in October?
• Here’s why the Rio Tinto (ASX:RIO) share price is down 23% so far in 2021
• Here’s why the Rio Tinto (ASX:RIO) share price is down 29% in the last 3 months

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Shares in ASX gold explorer Bellevue Gold Ltd (ASX: BGL) finished the day on top, climbing 10.6% into the green to close at 94 cents.

Bellevue Gold shares made the leap forward despite no market-sensitive information out of the company’s camp today.

In light of this, why don’t we take a look at what was driving the gains in Bellevue’s share price on Monday.

What’s up with Bellevue Gold shares today?

Whilst there was nothing remarkable from Bellevue’s corner, S&P/ASX All Ordinaries Gold Index (XGD) also posted a solid 2.4% gain today, highlighting strengths across the broad sector.

In fact, the price of the yellow metal has made a sharp upward turn over the past week, bouncing off a low of US$1,736/t.oz on 3 November.

It now trades at US$1,819.94//t.oz at the time of writing, a gain of almost 5% in just a matter of days. As such, the precious metal now commands its highest premium in 3 months.

Strengths in the price of gold bode in well for the Bellevue Gold price. Why is this so you may ask?

It boils down to the fact that Bellevue Gold is an ASX resource share that has direct exposure to gold as an explorer and producer.

As a result, it is considered a price taker on whatever the going spot rate is in the gold markets. Consequently, Bellevue’s share price can and does fluctuate with any volatility in the price of gold.

One unique factor about gold as an investment is that it can be bought 24 hours a day, even if certain markets do close depending on times.

This means the impulse from a jump in the price of gold may not be felt by ASX gold players until the following day.

From 5 November until the end of play today, gold has made another upward move, gaining a further US$27 per troy ounce in that time.

With this in mind, and considering the tight cause-effect relationship between the company’s share price and the volatility of the underlying metal, it starts to make sense of what could be driving Bellevue’s shareholder’s gains today.

This, and the fact that investors appear to be piling into ASX gold shares over the past month, as indicated by strengths in the broad index.

Bellevue Gold share price snapshot

It’s been a difficult 12 months for Bellevue Gold and its share price, having lost 31% in that time after falling a further 16% this year to date.

Each of these results has lagged the S&P/ASX 200 index (ASX: XJO)’s climb of around 20% in that time.

The post Here’s why the Bellevue Gold (ASX:BGL) share price surged 10% today appeared first on The Motley Fool Australia.

More reading

• Why the Incitec Pivot (ASX:IPL) share price slipped on Monday?
• The week ahead: Unemployment, business and consumer confidence and inflation. Scott Phillips on Nine’s Late News
• ASX 200 companies take note – global carbon credit trades soaring
• Big pay rises on the cards? And what about Bitcoin? Scott Phillips on Weekend Sunrise
• Here are the top 10 ASX shares today

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Shares in industrial supplies and chemicals company Incitec Pivot Ltd (ASX: IPL) lost ground today, finishing the session 0.63% lower at $3.13.

At one point, investors were selling the company’s shares in droves, resulting in an intraday low of $3, roughly 5% in the red from the open.

Incitec Pivot shares edged down today following a company announcement on the company’s Gibson Island operations in Brisbane.

The company will cease operations at its Gibson Island fertiliser plant due to limitations in securing an economically viable gas supply to the site.

Here are the details.

What did Incitec Pivot announce?

The company’s announcement notes that, despite its ongoing efforts, Incitec Pivot has been unsuccessful in securing a long-term gas supply to the site.

As a result, the company is closing down operations from December 2022 when its current natural gas feedstock supply arrangements expire.

The decision to close the plant was no doubt a tough one. It comes after more than 50 years of operation and will have a direct impact on up to 170 employees.

Importantly, Incitec Pivot’s Brisbane fertiliser distributor centre is set to continue despite the closure of its manufacturing plant.

Estimated one-off costs for the plant’s closure include an $83.5 million cash charge to close the facility and a $102.5 million non-cash asset write-down.

There is also a potential land sale of up to $45 million. However, this depends on the final investment decision from the company as it may not intend to actually sell the facility.

Instead, the company has commissioned a feasibility study into the production of industrial-scale green ammonia to repurpose the plant.

Incitec Pivot states it is committed to being “the leading supplier of quality fertilisers and soil health services to the agricultural sector”. According to the company, a move to green ammonia would create new opportunities moving forward.

What impact will this have?

The company expects the plant’s closure will have a meaningful impact on its earnings from January 2023. Most obviously, there will no income from the Gibson Island segment.

However, subsidiary Dyno Nobel Asia Pacific is now expected to source 20,000 tonnes of ammonia per annum from other suppliers. This is expected to lead to a $5 million to $10 million per annum impairment for Incitec.

There is also ‘stranded corporate and insurance costs’ of approximately $10 million per annum embedded into Incitec Pivot’s decision to close the plant.

Speaking on the impacts, Incitec Pivot’s CEO Jeanne Johns said:

It is disappointing for our people and Australian manufacturing that we could not reach a suitable commercial gas supply agreement to continue the operation of the Gibson Island facility from processing natural gas, however we look to create new opportunities aligned to the Company’s forward strategy.

Incitec Pivot share price snapshot

Over the past 12 months, Incitec Pivot shares have climbed more than 50% after rallying 37% this year to date.

Nonetheless, it has outpaced the benchmark S&P/ASX 200 Index (ASX: XJO)’s return of around 20% in the last year.

The post Why the Incitec Pivot (ASX:IPL) share price slipped on Monday? appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares on Monday
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• HESTA boss calls out ASX 300 companies without net-zero targets

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Motley Fool Australia Chief Investment Officer Scott Phillips joined Peter Overton on Nine’s Late News on Sunday night to discuss the big economic week ahead, including unemployment numbers out on Thursday, some important consumer and business confidence data, and inflation figures from around the world.

The post The week ahead: Unemployment, business and consumer confidence and inflation. Scott Phillips on Nine’s Late News appeared first on The Motley Fool Australia.

More reading

• Here’s why the Bellevue Gold (ASX:BGL) share price surged 10% today
• Why the Incitec Pivot (ASX:IPL) share price slipped on Monday?
• ASX 200 companies take note – global carbon credit trades soaring
• Big pay rises on the cards? And what about Bitcoin? Scott Phillips on Weekend Sunrise
• Here are the top 10 ASX shares today

Motley Fool contributor Scott Phillips has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Australia’s biggest listed companies, those trading on the S&P/ASX 200 Index (ASX: XJO), would do well to take note of the latest figures out from Xpansiv.

Xpansiv, according to the company’s website, is “the global marketplace for ESG-inclusive commodities.”

What did Xpansiv report?

In a report released on Friday, Xpansiv announced that its CBL platform, “the world’s largest exchange for trading carbon credits, renewable energy certificates, water entitlements, and digital fuels”, saw its carbon credit volumes soar 292% year-on-year.

Volumes have now already exceeded 100 million tonnes year-to-date.

This comes, in part, as ever more companies are working to get ahead of the net-zero carbon goals promised by their governments in line with the Paris Climate Agreements.

Commenting on the rapid growth, Ben Stuart, Xpansiv’s chief commercial officer said:

This truly momentous milestone is a testament to the vital role the voluntary carbon market plays in corporate net-zero programs, CBL’s central position as a global trading and clearing hub for carbon, the dedicated support of our more than 400 members, and the ingenuity and incredibly hard work of our team.

How are ASX 200 companies faring?

While some ASX 200 companies are proactively targeting emissions reductions, others are lagging, compared to their global peers.

That’s according to a report by global investment groups which include Investor Group on Climate Change (IGCC), the Asian Investor Group on Climate Change, and Ceres.

The groups said that the actions or inactions of some ASX 200 companies is largely due to a lack of climate leadership from the Aussie government.

As my Foolish colleague Brooke Cooper, wrote last month following the release of the report, “Australia spent less than 2% of its COVID-19 economic recovery spending on green initiatives.”

Explaining why that could impact ASX 200 shares, IGCC’s policy director Erwin Jackson said:

There’s a really big gap emerging between Australia’s current 2030 target and what our other major allies and trading partners are doing. That gap is a big concern for investors because… it shows Australia is exposed to the transition in the global economy that is under way…

It’s not always easy knowing who’s going green on the ASX 200

With that said, ASX 200 investors won’t always find it simple to know just how much companies are really doing in terms of their emissions pledges and wider ESG principles.

As Shayne Eliot, CEO of Australia and New Zealand Banking Group Ltd (ASX: ANZ) recently pointed out, “Clearly, one of the risks at the moment is there is too much money out there, the risk of greenwashing, of trying to cobble together things to give it some sense of ‘greenness’ to satisfy that massive level of demand.”

Now there are far too many shares on the ASX 200 to cover them off here.

But some of the biggest companies are taking concrete steps to address carbon emissions.

At its recent annual general meeting (AGM), mining giant BHP Group Ltd (ASX: BHP), for instance, highlighted its efforts on this front.

As The Motley Fool reported on the day, those include:

• Establishing a pipeline of decarbonisation projects to reduce carbon emissions by at least 30% by 2030.
• Committing an extra US$75 million to partnerships working to decarbonise its steelmaking customers.

With the fast growing market for carbon credit trading, ASX 200 companies should have more avenues moving forward to get in line with emission reduction pledges.

The post ASX 200 companies take note – global carbon credit trades soaring appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• AFIC (ASX:AFI) shares have a net tangible asset backing of $7.51 each. What does this mean?
• Why has the ANZ (ASX:ANZ) share price dropped 2% today?
• ASX 200 (ASX:XJO) midday update: Sydney Airport agrees to takeover, Wesfarmers’ strikes API deal

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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