Praxis presses the low carbon transition

Shareholder advocacy |

Major progress made in engagements with utilities

As new and updated scientific reports document the accelerating threats of climate change, the need to act boldly has never been more urgent. Praxis has been working on climate-related issues for more than two decades, helping to lay the foundation for numerous pro-climate company actions, and recent progress has been remarkable.

Praxis' climate advocacy efforts are focused on supporting the low carbon transition. The “low carbon transition” refers to the necessary transition of the global economy from carbon-intensive operations and energy sources to zero or low carbon operations and energy sources.

Utilities contribute 30% of all U.S. greenhouse gas (GHG) emissions and within the power sector there is significant opportunity for positive climate impact through emissions reductions, clean energy uptake and other means.

Praxis has been engaging utilities on issues such as GHG emissions, climate change scenario planning, coal plant retirements, and renewable energy for more than 10 years. Below are current Praxis engagements and examples of each company’s latest climate commitments:

  • American Electric Power: carbon emission reduction of 70% by 2030 and 80% by 2050 from 2000 baseline.
  • AES: 70% reduction in carbon intensity by 2030 from 2016 baseline.
  • Duke Energy: net-zero carbon emissions by 2050.
  • NiSource: complete coal plant phaseout by 2028 and 90% carbon emission reduction by 2028 from 2005 baseline.
  • Southern Company: net-zero carbon emissions by 2050.

Each of these commitments has been made within the past two years and improved on earlier goals. Combined, they represent exciting shifts in future planning with the potential to transform the utility landscape.

Praxis and other shareholders have continually urged utilities to adopt more aggressive climate goals and will keep advocating for policies in line with the low carbon transition. These engagements are bearing fruit, as they pay dividends for our climate and encourage a more sustainable and resilient power sector.

Chris Meyer

Author

Chris Meyer
Manager of Stewardship Investing Research and Advocacy

Shareholder Advocacy

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 August 31, 2020, the Praxis Value Index Fund has invested 0.72% of its assets in AEP, 0.16% of its assets in AES, 0.02% of its assets in Duke Energy, 0.28% of its assets in NiSource and 0.70% of its assets in Southern Company; and the Praxis Impact Bond Fund has invested 0.30% of its assets in Duke Energy. Fund holdings are subject to change. To obtain holdings as of the most previous quarter, visit praxismutualfunds.com.