According to the most recent Emissions Gap Report from the United Nations Environment Programme (October 2021), critical gaps remain between the commitments of national governments and the actions necessary to prevent the worst effects of climate change. Companies have an important and constructive role to play in enabling policymakers to close these gaps. Corporate lobbying activities that are inconsistent with meeting the goals of the Paris Agreement and holding global warming to 1.5 degrees Celsius over pre-industrial levels, present regulatory, reputational and operational risks to companies. Such policy engagement also presents systemic risks to our economies and markets, as delays in implementation of the Paris Agreement increase the physical risks of climate change, undermine economic stability, and introduce uncertainty and volatility into investment portfolios. We believe that Parisaligned climate lobbying helps to mitigate these risks and contributes positively to the long-term value of companies. Of particular concern are trade associations and other politically active organizations that speak for business but, unfortunately, often present forceful obstacles to progress in addressing the climate crisis. When a company presents itself as a proponent of climate action but funds organizations that work against policy solutions, they open themselves up to reputational damage, especially in this age of social media. As investors, we view fulfillment of the Paris Agreement’s agreed goal — to hold the increase in the global average temperature to well below 2°C above preindustrial levels, and to pursue efforts to limit the temperature increase to 1.5°C — as an imperative. We are convinced that unabated climate change will have a devastating impact on our economies, on political stability and therefore on our clients and the value of their portfolios. We see future business as usual scenarios of 3-4°C as both unacceptable and uninvestable. Although NextEra is a renewable energy leader with a largely positive record on climate-related policy advocacy, it has also reportedly lobbied against certain energy efficiency and renewable energy policies.1 In 2019, for example, NextEra’s Florida Power and Light subsidiary lobbied to reduce Florida’s energy reduction goals by 99.9%.2 NextEra also belongs to several trade associations that oppose robust U.S. climate regulation. Although NextEra’s CEO reviews trade association positions that may conflict with the company’s core strategy, the role of independent directors is unclear. A thorough evaluation of NextEra’s climate lobbying, overseen by independent directors, would help build credibility with investors and policymakers and reduce the risk of policy advocacy that is misaligned with a stable climate and NextEra’s best interests.