Nextera Energy

NextEra Energy has set a net-zero goal to reduce its scope 1 and 2 emissions by 100% by 2045. It aims for interim emissions reductions of 70% by 2025, 82% by 2030, 87% by 2035 and 94% by 2040, compared to 2005 levels. The company does not plan to rely on offsets and has targets for transitioning its generation by fuel type from 2025 to 2045 with interim goals set for every five years. The company can improve further by including scope 3 emissions in its targets and aiming to achieve net-zero emissions by 2035 to align with the net-zero emissions scenario for advanced economies proposed by the International Energy Agency (IEA).

The company’s emissions intensity for its own energy generation decreased between 2017 and 2021. However, to align with its 1.5°C pathway in 2026, the company must reduce its emissions intensity by approximately 9% per year. The company does not report its total capital expenditure (CapEx) on low-carbon electricity generation in 2021. It plans to allocate about 75% of its CapEx to low-carbon technologies between 2022 and 2027, which is still below the sectoral-level expectation of 95%.

Wind and solar energy generation already account for nearly 30% of NextEra Energy’s total revenue. The company is expanding its low-carbon generation and battery energy storage capacity. NextEra also aims to develop 16 GW of green hydrogen production capacity by 2045, with the goal of replacing traditional gas-based energy sources. The company offers energy efficiency and savings services to its clients; however, it is currently unclear whether these services generate revenue. The energy efficiency upgrades offered by the company include heating, ventilation, and air conditioning (HVAC), lighting, controls, building envelopes and renewable energy. Additionally, its subsidiary FPL launched the largest community solar power programme in the US.

NextEra Energy’s subsidiary FPL has established a partnership with Florida International University for further research and development (R&D) on renewable energy technologies to increase renewables deployment. FPL is also investing in R&D of electric vehicle (EV) infrastructure, distributed generation and hydrogen pilots, and has recently secured approval to develop Florida’s first green hydrogen project. The company can improve its performance by disclosing its investments in R&D and reporting a breakdown of its investments by the type of technology.

The company is working with solar vendors on plans to reuse or recycle solar power infrastructure components when a site is decommissioned. It also collaborates with wind vendors for waste management when wind sites are decommissioned or repowered, such as using recycled blades as raw material for cement.

NextEra has set a net-zero target to reduce its scope 1 and 2 emissions by 100% by 2045. The target is supported by interim emissions reduction targets at gaps of five years. Moreover, the company does not plan to rely on offsets to achieve its net-zero target. The company has not set any scope 3 emissions targets.

Between 2022 and 2025, NextEra Energy Resources expects to bring online an additional 28-37 GW of low-carbon energy generation capacity. By the end of 2031, the company’s subsidiary FPL is planning to have more than 12 GW of solar energy capacity, increasing it to 90 GW by 2045. The company plans to add 50 GW of battery storage to FPL’s grid and convert 16 GW of existing natural gas units to run on green hydrogen. The company plans to phase out coal by 2028 and fossil fuels by 2045.

In 2021, the company added 2 GW of wind power capacity, 1.5 GW of solar power capacity and 1 GW of battery energy storage and repowered 435 MW of wind generating capacity. FPL’s Indiantown Cogeneration facility was retired in 2020, resulting in the company’s exit from coal generation in Florida. The company’s green hydrogen pilot project, which is expected to be in service in 2023, will use solar energy to produce 100% green hydrogen through a roughly 25 MW electrolysis system.

The company’s emissions intensity trend decreased between 2017 and 2021. However, the company needs to increase its rate of emissions reduction by over 2 times its historical trend to align with its 1.5°C pathway. NextEra is projected to significantly exceeds its 1.5°C carbon budget for the period 2022-2037. The company is not transparent about its low-carbon capital expenditure (CapEx) in 2021 or its investments in low-carbon R&D.

NextEra has made significant progress towards reducing its emissions intensity between 2016 and 2021. Though the company aims to become net zero by 2045, the level of ambition is not aligned with the net-zero scenario for advanced economies set by the IEA. The company’s planned low-carbon CapEx for the next five years is also below sectoral-level expectations.

No evidence was found that the company commits to social dialogue or discloses the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

The company has a commitment to create and support access to green and decent jobs as part of the low-carbon transition. However, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company assessing employment dislocation risks. No public commitment by the company was found stating its intention to re-skill and up-skill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company re-skills and up-skills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. The company lobbies for just transition policies and regulations. It engaged at the federal level in the United States which aided the development of a robust renewable electric generation industry that supports tens of thousands of jobs. However, no relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment.

No evidence that the company commits to respecting human rights and the ILO fundamental rights at work, nor does it expect its business relationships to respect the ILO fundamental rights at work. No evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and supply chain. Moreover, no evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers and external stakeholders.

The company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. However, no evidence was found of a time-bound target for paying all workers a living wage. Furthermore, no evidence was found that the company discloses the proportion of its direct workforce covered by collective bargaining agreements and the company’s required working hours. The company discloses some indicators of workforce diversity, including the gender and ethnicity of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity. No evidence was found that the company commits to gender equality and women’s empowerment.

No evidence was found that the company commits to protecting personal data and that it has a privacy statement regarding the collection, sharing and access to personal data. Moreover, no relevant disclosure was found of the company’s global tax strategy and the corporate income tax paid for each relevant jurisdiction. While the company does have a policy prohibiting bribery and corruption, no evidence that it includes corresponding clauses in its contracts with business relationships. There is no evidence that the company has a lobbying and political engagement policy, nor does it specify that it does not make political contributions. No relevant disclosure was found of the company’s expenditure on lobbying activities.