FEM logo
Fund EcoMarket

the sustainable, responsible and ethical investment information hub

NRG – a topsy turvy case study

I have Raj Thamothram of Preventable Surprises to ‘thank’ for bringing this shocker of a story to my attention.

In brief – this is a tale of the investment markets rewarding a company for turning its back on green issues and attempting to turn back the clock.

There is much to say and many questions to ask – including how on earth can a company go from ‘green’ to ‘brown in 2017 (even in the USA)? Can some investors really feel it is right to back fossil fuels over renewables post COP21, post TCFD report, post IFoA Risk Alert … and with so many major investors signed up to the PRI and other initiatives? Evidently so.

The silver lining is that NRG appears to have set its renewables division free to follow its own strategy, unencumbered by the darker forces pulling them back down to their fossil fuel roots.

This bizarre story is beautifully told in some detail by their former CEO here on GreenBiz.

Further searches online help build up a picture of the heartache that went before… highlighting the not so subtle differences between activist investors and responsible engagement.

In the current topsy turvy political climate what happens next is hard to predict.  What is likely to happen in the longer term feels far easier to call.

My recommendation for major investors, particularly those with ESG and SRI strategies is: engagers (particularly PRI signatories) – use the tools in your armoury and get engaging, divesters – get divesting – and positive, thematic investors – pick your theme!

A thought for financial advisers and others… we all know that most individual investors invest for the longer term, so take some time to identify likeminded fund managers.  All investors are in the market for profit.  Not all seek short term profit at any cost.

To find funds that have forward looking, responsible and intelligent climate related investment polices (and who understand environmental as well as financial risks) check out our free to use Fund EcoMarket SRI fund research hub.

https://www.greenbiz.com/article/inside-rise-and-fall-nrgs-green-strategy

 

Sign Up to our Newsletter

If you are a Financial Services Industry professional you can sign up for our newsletter

Click Here

Latest News

Newsletter update from SRI Services
November 30, 2018

  Following on from a rather busy few months here are some news highlights and links to  recent activity, published this morning in our SRI Services & Fund EcoMarket newsletter (click this link for formatted version or see text and links below.)   ====== SRI Services &  Fund EcoMarket news (and beyond!) (For UK based Financial […]

‘Sustainability & Suitability’ SRI event videos
November 8, 2018

I am delighted to share the videos from our ‘Sustainability and Suitability’ SRI event for those who were unable to attend on the day. Keynote speaker Lord Deben’s climate change speech was a particular highlight.

Why Climate Change Matters to Investors – Lord Deben video from our 3 October event
October 25, 2018

We were absolutely delighted to welcome Lord Deben (John Gummer) to our SRI Services and Partners event on 3 October 2018. Lord Deben spoke elequently and passionately on ‘Why Climate Change Matters to Investors’ – his speech can be viewed here, on the Fund EcoMarket YouTube channel: (And yes, we concur with the view that […]