The Intergovernmental Panel on Climate Change has issued1 a "dire warning about the consequences of inaction" and emphasized the urgency of more ambitious climate action. Utilities have a critical role in mitigating climate risks. Already, the sector is undergoing a rapid transition away from coal, but growing reliance on natural gas creates ongoing risk. Natural gas is a major contributor to climate change due to methane leaks and routine combustion emissions.
Despite over 100 countries committing to reduce methane emissions 30% by 2030 compared to 2020, preliminary analysis3 showed an annual increase in atmospheric methane during 2021. Methane is an accelerant of extreme weather events and over 25 times more potent4 a greenhouse gas than carbon. Investing in new gas infrastructure5 may be uneconomic and result in costly stranded assets comparable to early retirements now occurring for coal. While some low-carbon scenarios6 show gas use continuing, they rely on carbon removal technologies - a risky assumption since the technology has yet to prove economic at scale.

Existing alternatives to natural gas - including renewables plus storage, electrification, and energy efficiency - are increasingly cost-effective for meeting energy needs while reducing climate impacts. Cities are setting policies prohibiting gas hookups for new buildings in favor of safer, healthier electric buildings. Furthermore, states, cities, and large consumers are setting ambitious renewable energy targets8, which utilities will need to supply or risk losing business. While NextEra Energy ("the Company") is to be commended for taking climate conscious steps9, including its "real-zero" by 2045 commitment, investors lack sufficient information about if or how the Company can reconcile its build out of natural gas infrastructure and remained aligned with global climate goals as well as achieving "real-zero" by 2045. The Company is a partner in the Mountain Valley Pipeline (an expensive new natural gas infrastructure project still under construction). This project is incongruent with investors' desire for the Company to align with the Climate Action 100+ initiative10. This indicates that the Company may not be sufficiently addressing commitments for new natural gas infrastructure projects to be reconciled with climate stability goals or the existence of increasingly low cost, clean energy pathways. Shareholders are concerned that the Company's continued involvement in projects like the Mountain Valley Pipeline is increasing its exposure to climate-related risks by investing in significant gas holdings that may become stranded assets11. Already the Company has written off $800 million this year on top of the $1.2 billion write off from 2021 from the Mountain Valley Pipeline investment.