Praxis Mutual Funds® and other investors participated in a recent dialogue on climate change with AES, continuing their long-term engagement with the company. AES is a Virginia-based electric utility with operations in the U.S. and around the world.
Dialogue topics included:
- Emissions reduction goals – AES continues to make substantial progress toward its goal of a 70% reduction in carbon emissions by 2030 from its 2016 baseline; investors noted that establishing a long-term, net-zero carbon emissions goal, while aspirational, sends a strong market signal.
- Climate report update – the new AES climate report will contain key metrics, scenarios, and explain pathways to reach climate goals; the report was delayed due to COVID-19 but will be completed in early 2021.
- Battery storage technology – AES is at the forefront of battery technology that helps integrate intermittent sources of power (such as wind and solar) into the electric grid
- Worker and community impact – AES is developing commitments and principles on just transition that will be included in the new climate report
Praxis' climate advocacy with utilities is focused on supporting the low-carbon transition. This transition refers to the necessary change of the global economy from carbon-intensive operations and energy sources to zero- or low-carbon options in order to prevent the worst effects of climate change.
Praxis has also joined with other investors to promote a “just transition” to a low carbon economy, which refers to integration of concerns about workers and communities into climate-related planning and activity.