AES continues on the path toward cleaner energy

Shareholder advocacy |

Praxis encourages just transition to a low-carbon economy

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

Wind farm
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.

Chris Meyer, Stewardship Investing Research and Advocacy Manager | Praxis Mutual Funds

Author

Chris Meyer
Manager of Stewardship Investing Research and Advocacy

Shareholder Advocacy in Action

At Praxis, our investments generate a competitive financial return and deliver a clear and direct benefit to people and our planet. We believe it is our responsibility to encourage companies toward responsible business behavior.

 

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Disclosure

As of Oct. 31, 2020, the Praxis Value Index Fund has invested 0.20% of its assets in AES. Fund holdings are subject to change. To obtain holdings as of the most previous quarter, visit praxismutualfunds.com.