WEC Energy Group

WEC has set a target to reduce its scope 1 and scope 3 category 3 absolute emissions by 60% by 2025, 80% by 2030 and 100% by 2050, compared to 2005. However, its targets could not be assessed as the company states that it plans to use offsets but is unclear as to what percentage of its targets will be achieved through these offsets. The company should clearly report any offsets it intends to use to allow for a complete analysis of its targets and progress against them. Further, the company should set intermediate targets no more than five years apart to incentivise near-term action on its long-term goals.

More than a third of WEC’s sold electricity comes from the company’s purchased power for retail. As a consequence, engaging with its suppliers is integral for the company to help reduce emissions across its entire value chain. Despite this, no evidence was found to suggest the company engages with suppliers on climate change issues or greenhouse gas (GHG) emissions reduction through strategies, initiatives or partnerships. The company can improve on this by developing a comprehensive supplier engagement strategy to influence its suppliers to reduce their emissions.

WEC has a trade association policy and supports the Paris Agreement. In 2019, WEC joined the Wisconsin Governor’s Task Force on Climate Change, which brought together representatives from a range of local industries and communities to address emissions in this US state. Nevertheless, WEC does not have a monitoring and review process to ensure its policy positions remain consistent with the Paris Agreement goals. The company is a member of and on the board of multiple trade associations that have been identified as having non-climate-aligned positions, including the American Gas Association which promotes the use of fossil gas. WEC should demonstrate stronger support for decarbonisation by severing its links with trade associations that hold a negative stance on climate policies.

WEC has set a target to reduce its scope 1 and scope 3 category 3 absolute emissions by 60% by 2025, 80% by 2030 and 100% by 2050, compared to 2005. However, WEC has not set sufficient intermediate targets. Setting regularly spaced intermediate targets will help the company incentivise near-term action on its longer-term goals.

The company plans to invest USD 5.4 billion into renewables such as solar and wind power and battery storage between 2023 and 2027. In addition, it plans to spend USD 1.9 billion on its infrastructure segment to facilitate the addition of renewables to its portfolio between 2023 and 2027. The company targets a renewable energy share of 39% and nuclear energy share of 24% in its energy generation portfolio by 2030. WEC also plans to phase out coal by 2035.

Currently, renewables and nuclear sources account for 8% and 22% of the company’s energy generation, respectively. The company reports focusing its R&D efforts on battery storage technologies, coupled with solar power, air source heat pumps, energy efficiency, load shaping and energy management information services. It is also piloting electric vehicle (EV) fast charging and renewable natural gas.

WEC’s emissions intensity trend between 2017 and 2022 decreased by the rate of reduction required by its 1.5°C pathway between 2022 and 2027, in part due to an increased share of low-carbon electricity. However, WEC’s emissions intensity associated with its purchased power for resale significantly increased during this period. To align with its 1.5°C pathway in 2027, WEC must reduce its emissions intensity for its own energy generation by approximately 10% per year and for its purchased power by approximately 9% per year.

WEC plans to grow the share of renewables in its portfolio from 8% in 2022 to 39% in 2030. However, the company’s emissions reduction targets and transition planning are hindered by its lack of low-carbon capital expenditure (CapEx) and R&D investment. While the company aims to exit coal by 2035, its current and future reliance on fossil gas is inconsistent with its decarbonisation commitments.

No public commitment was available displaying the company engages in social dialogue with workers and unions. The company does disclose the categories of stakeholders it engages with on a just transition, including employees, union leadership, regulators, investors and communities. The company incorporates social dialogue and stakeholder engagement in its just transition planning. However, no evidence was found that the company has a set of time-bound, measurable indicators to mitigate the social impacts of the low-carbon transition on workers, affected stakeholders and its business relationships.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, 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’s assessment of employment dislocation risks. The company discloses the actions it takes to provide training opportunities for workers and affected stakeholders. For instance, it conducts learning events including operator qualification training and other job skill training for its employees. Furthermore, the company discloses the measures it takes to embed equality of opportunity for women and vulnerable groups in these actions. It does this through offering job training, leadership development, and health and wellness learning to low-income students. However, no evidence was found of the company having a process for identifying skills gaps for workers and stakeholders affected by the low-carbon transition or a public commitment to help workers displaced by the transition to reskill or upskill.

The company contributes to the social protection of workers. However, 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. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. 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. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

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.

While the company commits to respecting the health and safety of its workers, no evidence that it expects the same commitment of its business relationships. 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 race/ethnicity of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity. Moreover, no evidence was found that the company commits to gender equality and women’s empowerment.

The company commits to protecting personal data. However, no evidence was found of a privacy statement regarding the collection, sharing and access to personal data. While the company discloses its corporate income tax paid for each relevant jurisdiction, no relevant disclosure was found of its global tax strategy. While the company has a policy prohibiting bribery and corruption, no evidence that it includes corresponding clauses in its contracts with business relationships. While the company has a lobbying and political engagement policy, no evidence that it specifies that it does not make political contributions. Moreover, no relevant disclosure was found of the company’s expenditure on lobbying activities.