International scientific bodies recognize the critical role that the US electricity sector plays in meeting the Paris Agreement’s goals of limiting global temperature rise. For example, according to the International Energy Agency (IEA), reaching global net zero emissions for the energy sector by 2050 requires “overall net zero emissions electricity in advanced economies,” such as the US, by 2035.[1] Meeting the Paris Agreement’s goals is necessary to avoid increasingly severe climate risks for companies and investment risks for investors.

In 2020, Ameren made a company-wide commitment to reach net zero emissions by 2050. In 2023, Ameren updated its carbon emissions reduction targets (60% by 2030, 85% by 2040, and net-zero by 2045 from a 2005 baseline) that the Company claims are “science-based and consistent with the objectives of the Paris Agreement to limit global temperature rise to 1.5°C.”[2] However, Ameren has not obtained independent third-party validation that its targets are based on sound methodology and actually aligned with the Paris Agreement goals.

The Transition Pathway Initiative (TPI) recently conducted an assessment utilizing the IEA Net Zero Scenario (the most broadly accepted and globally used scenario for assessing the pace of the energy transition and Paris-alignment) and found that Ameren’s 2030 and 2040 targets are not in alignment with a 1.5-degree scenario. For example, according to TPI’s comparison to North American benchmarks, the carbon intensity of Ameren’s published 2030 target may be as much as 4.8 times the level consistent with limiting global average temperature rise to 1.5 degree Celsius and more than 3 times the level consistent with Below 2 Degrees outcomes.[3]

As a result, long-term investors are concerned that Ameren’s targets may not be aligned with Paris agreement goals and believe that Ameren’s disclosure of independently evaluated targets is a credible way to address these concerns.

We urge shareholders to vote FOR the proposal.