Utilities need to invest for a cleaner and greener future
No to coal
All nine companies have committed to not developing any new coal capacity, and to reducing existing exposure. “More transparency is needed on the retirement schedule of coal-fired plants,” says Robeco engagement specialist Cristina Cedillo Torres.
“The timing of this is important to understand the future financial impact on companies and the investments that will be needed to develop alternative generation sources. Carbon neutrality can only be achieved if new technologies and supporting infrastructure are developed. Some examples of this are battery storage, smart grids, and carbon capture and storage.”
As active sustainable investors, Robeco and Lyxor’s engagement with electric utility companies forms part of the wider Climate Action 100+ Initiative, a global investor coalition with over 370 signatory asset owners and asset managers with USD 35 trillion in assets under management.
The initiative aims to secure commitments from boards and senior management to implement a strong governance framework which clearly articulates the board’s accountability and oversight of climate change risk and opportunities, and to enhance disclosures in line with the TCFD recommendations.
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