Praxis engages energy companies on climate related issues
Meaningful progress made on the low carbon transition
Praxis Mutual Funds® pursues advocacy on climate change as a faith-based response to our role as stewards of creation. Praxis has engaged energy companies on issues such as greenhouse gas emissions, climate scenario planning and renewable energy for over a decade.
While extreme weather associated with the climate crisis is straining and disrupting our systems, investors and companies are prioritizing climate action as never before. Praxis has been part of this growing momentum, which includes significant recent progress at major companies.
Listed below are select Praxis engagements with energy companies and key commitments and milestones reached within the past two years:
- American Electric Power: net zero carbon emissions by 2050 and 80% reduction by 2030; goal of 50% electricity generation from renewable sources by 2030.
- AES: net zero carbon emissions for all business scopes by 2050, net zero for electricity sales by 2040; reduction of coal-fired generation to less than 10% by 2025.
- ConocoPhillips: net zero carbon emissions by 2050; GHG emissions intensity reduction of 40-50% by 2030.
- Duke Energy: net zero carbon emissions by 2050; less than 5% coal generation by 2030 and complete phaseout by 2035.
- NiSource: complete coal phaseout by 2028 and emissions reductions of 90% by 2030; projection of more than 60% of electricity generation from renewable sources by 2030.
- Southern Company: net zero by 2050 and 50% reduction by 2030; 2022 Just Transition Report
These commitments from energy companies represent real, forward steps in the race to quickly reduce emissions.
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 options in order to avoid the most consequential effects of climate change. A key part of the low carbon transition is the principle of a “just transition” that refers to the integration of worker and community concerns into climate-related planning and activity.
Praxis works in collaboration with other investors through the Interfaith Center on Corporate Responsibility, Ceres, and Climate Action 100+ to engage companies and map out a sustainable future. Challenges remain, but it’s clear that many investors and companies are aligning behind the low carbon transition.