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As a member of the Climate Majority Project (formerly the 50/50 Climate Project) LAPFF is part of a coalition of investors representing $1.8 trillion in combined assets demanding that the 20 largest publicly traded electricity producers in the US commit to realising net-zero carbon emissions by 2050.
In its latest report ‘NET-ZERO BY 2050: Investor risks and opportunities in the context of deep decarbonisation of electricity generation’ the Climate Majority Project outlines the potential risks investors face if their portfolios fail to commit to decarbonisation.
In a statement, the coalition group said: “Mitigating the worst effects of climate change will require companies that supply electricity to make the transition to using a combination of sources that generate ‘net-zero’ carbon emissions by 2050 at the latest.” As investors in publicly traded electric utilities the coalition demand that companies focus on devising a means by which these targets can be achieved in an economically attractive way.
The investor group calls on utilities to adopt a number of governance reforms to help them to achieve partial decarbonisation in the interim: (i) identify a board member responsible for overseeing the transition; (ii) develop a transition plan towards achieving net-zero emissions by 2050; (iii) incorporate carbon reduction metrics into executive remuneration; and (iv) disclose how its lobbying activity will support its commitment. These recommendations should be implemented into the relevant 2020 proxy statements.
Find the full report here.