Environmental racism is a systemic risk that exacerbates the climate crisis and racial inequities. [1] Failure to adequately assess, mitigate, and remediate impacts on communities can result in litigation, project delays, and significant fines. For example, NextEra owns approximately 31% of the Mountain Valley Pipeline (MVP), a fracked-gas pipeline running through West Virginia and Virginia. MVP is the subject of numerous fines, legal battles, and community opposition that have caused significant project delays and material costs. [2] In 2022, NextEra announced an $800 million loss for MVP, [3] following a $1.2 billion impairment charge in 2021. [4] A 2023 ruling found that the pipeline violated water quality standards at least 46 times and construction permits 139 times. [5]

The Federal Energy Regulatory Commission identified that MVP runs through at least five environmental justice (EJ) communities, and ? of compressor stations are sited in EJ communities.[6] The project violated numerous rights of the Occaneechi and Monacan Indian Nations, including the right to Free, Prior, and Informed Consent, and has desecrated at least eight known burial mounds.[7] A recent study found that mining projects can incur up to $30 million per week from stoppages due to conflict with communities. [8]

NextEra owns 42% of the Sabal Trail Pipeline, and 84% of the pipeline’s route sits within a mile of communities of color or low-income communities. [9] The project faces opposition from civil rights groups, who claim it will “further burden an already overburdened and disadvantaged African-American community.” [10] Also, similar to MVP, Sabal Trail disparately impacts Indigenous Peoples and faces stark opposition from tribes along the pipeline route. [11] Other NextEra facilities located in majority Black communities, such as the proposed battery storage facility in College Park, GA, have faced scrutiny for overburdening communities of color. [12]

Fenceline communities have criticized NextEra and its project partners for ineffective community consultation regarding environmental damages and insufficient remediation. In January 2024, Virginian community groups claimed MVP violated a 2019 consent decree tied to a $2.15 million penalty. [13]

As states continue to pass EJ legislation [14] and investor demands for EJ accountability rises, there is an increased regulatory and reputational risk. [15] An audit would help NextEra avoid adverse impacts on EJ communities while reducing reputational risk and liabilities.