Shareholder group makes a stand on electrification

Shareholders are increasingly looking to invest in clean energy, particularly electrification and its association with e-mobility and reduced carbon.

One group, As You Sow, says it has withdrawn shareholder proposals at two large US gas and electric utilities, Dominion Energy and DTE Energy.

The first-time proposals asked the utilities to address building electrification – instead of natural gas distribution – to decarbonise in line with the Paris Climate Agreement, that electrification also supporting EV charging.

Natural gas is a fossil fuel that creates climate impacts across its supply chain through combustion emissions and leakage of methane, a potent greenhouse gas with 84 times the climate impact of carbon dioxide, As You Sow says.

Electrification has emerged as an increasingly cost-effective solution to achieve net-zero emissions. Already, more than 40 cities in California and across the US have adopted policies to curtail natural gas in buildings and support building electrification.

“As experts align to advocate to ‘electrify everything’ to decarbonise our buildings, utilities and investors must be proactive or risk stranded assets and loss of value,” As You Sow senior energy program manager Lila Holzman says.

As electrification becomes more cost-competitive and policies gain traction, most utilities face a challenging transition.

“Investors need clear information on utility plans responsive to electrification efforts and whether utilities are supporting or fighting policies that would accelerate electrification,” As You Sow senior research associate Daniel Stewart says.

“Utilities like DTE have the opportunity to show leadership by supporting electrification solutions.”

As You Sow along with other shareholders have filed a resolution with California utility Sempra Energy on its climate-related lobbying practices, the resolution slated to be voted on by shareholders at Sempra’s AGM shortly.

As You Sow is a non-profit organisation promoting environmental and social corporate responsibility through shareholder advocacy, coalition building, and innovative legal strategies.