Praxis Mutual Funds® believes the natural environment is a finite resource and a gift from God. We pursue advocacy on climate change as a faith-based response to our role as stewards of Creation. We engage power companies to encourage the low carbon transition to mitigate the growing impacts of climate change and provide for a sustainable electric supply into the future.
Praxis participated in recent dialogues with AES, American Electric Power, Duke Energy, and Southern Company. All four utilities have made the following commitments:
- Net zero carbon emissions by 2050.
- Carbon emissions reductions of 50% by 2030 from 2020 levels.
- Advocacy for public policy that encourages the low carbon transition.
- Adherence to Just Transition principles.
Praxis has collaborated with these utilities for more than five years to pursue win-win-win scenarios among the companies, employees and their communities, and ratepayers. The dialogues provide a forum for frank discussions of goals and opportunities, as well as challenges and obstacles.
The companies see sustainability as a competitive advantage. Reducing emissions and transitioning to renewable sources of energy make business sense. For instance, in nearly every region of the U.S., wind and solar are the cheapest options for new power installations. Pursuing these renewable energy sources keeps future power prices in check for ratepayers. Continued use of fossil-fuel-powered electricity generation could cause the companies to be less cost competitive and subject to regulatory risks for pollution.
Another key part of the low carbon transition is the principle of Just Transition – the integration of worker and community concerns into the process. Just Transition can mean supporting workers affected by coal or gas power plant closures through opportunities to remain at the company, job retraining, or education grants. It also means partnering with affected communities, providing options for underprivileged groups, and ensuring that renewable energy jobs are well-paying and sustainable.
Praxis will continue to engage power companies on policies that work for all stakeholders.