On April 10, 2018, Ceres released a new framework developed by M.J. Bradley & Associates (MJB&A) that offers guidance for electric power companies on best practices for navigating the accelerated transition to the low-carbon economy in line with the global Paris Agreement, which commits countries to keeping temperature rise well below 2-degrees Celsius in relation to pre-industrial levels.
The new framework, Climate Strategy Assessments for the U.S. Electric Power Industry: Assessing Risks and Opportunities Associated with a 2-Degree Transition and the Physical Impacts of Climate Change, describes the use of scenario analysis to assess potential implications of a 2-degree transition and the physical impacts of climate change. It addresses how climate strategy assessments can be used to strengthen a company’s strategic planning and to meet investor and stakeholder expectations.
MJB&A clients offered the following perspectives on the framework:
“Climate change presents unique risks and opportunities for the electric power sector, which is why sector-specific methodology for assessing and applying climate strategy is critical,” said Bruno Sarda, vice president of sustainability for NRG Energy, a leading integrated power company in the U.S. “This framework is a useful tool for companies like ours to provide credible, concise and comparable disclosures around climate strategy to our stakeholders.”
“Sustainability and transparency are central to our mission to safely and reliably deliver affordable and clean energy to our customers,” said Steve Malnight, senior vice president for strategy and policy at PG&E Corporation. “This framework provides useful guidance and a common language for energy utilities to use when communicating with our customers, investors, and fellow businesses as we collectively work to meet the challenge of climate change.”
“NiSource is relentlessly focused on serving our customers in a way that is safe, affordable, reliable, environmentally responsible and sustainable,” said Kelly Carmichael, vice-president of environmental for NiSource. “We’ll be performing a detailed review of our long-term generation needs and environmental future in 2018. By promoting consistency and comparability of climate-related disclosure, this framework will help U.S. electric companies provide a clearer picture of our progress, risks and opportunities.”
Ceres' press release on the report is available here.