Powering the low carbon future

Shareholder advocacy |

Investors and electric utilities have played key role

For nearly ten years, Praxis Mutual Funds has worked with investor partners to engage power companies in the transition to a low carbon economy, responding to God’s call to care for the world entrusted to us.

The electric power sector is responsible for approximately 30% of US greenhouse gas (GHG) emissions and represents a great opportunity for reducing pollution at scale, given viable low carbon alternatives. As solar and wind have increased their footprint in the power sector, emissions are steadily decreasing. In fact, solar and wind output are expected to pass coal in 2024. This is good news for Creation, thanks in part to the role of investors in promoting climate action.

Praxis and our partners concentrated on four areas during engagements with electric utilities in the past year:

  1. Emissions reductions – The focus is ultimately on how power companies can significantly reduce GHG emissions as quickly as possible to avert the worst effects of climate change. This includes the integration of renewable power as well as efficiency measures.
  2. Just Transition – A Just Transition considers and addresses the effect on stakeholders, workers, and local communities as companies retire and bring on new energy assets. Investors seek the publication of Just Transition metrics and annual updates to better understand and track progress over time.
  3. Climate lobbying – Some companies make green commitments but then undermine them through their direct or indirect lobbying on public policy. The goal is better disclosure and accountability for climate lobbying.
  4. Executive compensation advocacy – Investors increasingly encourage executive compensation metrics tied to GHG reduction targets.

Praxis directly engages AES, American Electric Power, Duke Energy, NiSource, and Southern Company to pursue win-win-win scenarios between the companies, employees, and ratepayers – scenarios that benefit shareholders as well. These dialogues provide a forum for frank discussions of goals and opportunities, as well as challenges and obstacles.

The outcome of these regular meetings has contributed to tangible commitments from each utility:

  • Carbon emissions reductions of at least 50% by 2030 from 2020 levels.
  • Advocacy for public policy that encourages the low carbon transition.
  • Adherence to Just Transition principles.

Praxis pursues 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, promoting policies that work for all stakeholders.

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

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.



As of Dec. 31, 2023, the Praxis Value Index Fund has invested 0.09% of its assets in AES; 0.26% of its assets in American Electric Power; 0.57% of its assets in Duke Energy; 0.10% of its assets in NiSource; and 0.51% of its assets in Southern Company. Fund holdings are subject to change. To obtain holdings as of the most recent quarter, visit praxismutualfunds.com.