American utility supplier agrees to ‘enhance disclosures’ on emissions after shareholder engagement

The Southern Company has agreed to “enhance disclosures” on how its existing greenhouse gas (GHG) emissions are consistent with the Paris Agreement following on from shareholder engagement with the Seattle City Employees’ Retirement System (SCERS).

Last week, SCERS, which stewards over $3.3bn in assets, and Ceres, an investor network on Climate Risk and Sustainability, announced that they have reached an agreement with the American gas and electric supplier relating to its carbon emissions goals and public disclosure of its process for achieving net zero by 2050.

On LinkedIn, Leola Ross, deputy chief investment officer and head of environmental, social and governance at the Seattle City Employees’ Retirement System, said: “This agreement is the result of proactive shareholder engagement discussions between Southern and SCERS, spanning several months.

“Per the agreement, the Southern Company will enhance disclosures describing how its existing GHG reduction goals are consistent with the Paris Agreement’s aim to keep global temperature rise well below 2°C.”

The agreement also outlined that in 2023, the company will initiate a process to update its GHG reduction targets, with the utility supplier adding scope 2 emissions (indirect emissions) in the process.

In addition, the Southern Company will address issues relating to reliable energy provision for multiple sources of its energy, which include renewable and fossil fuel energy.

The shareholder agreement also focused on engagement, with the utility supplier agreeing to have dialogue with organisations producing 1.5°C models and companies which had accounted for the regional differences in resource potential.

The Southern Company also committed to continuing engagement with SCERS to advance its decarbonisation efforts.