Key Takeaways
- Several carbon-intensive electric cooperative utilities are adopting decarbonization strategies.
- We believe decarbonization initiatives could reduce the environmental exposures we associate with utilities’ environmental, social, and governance (ESG) attributes.
- When considering ESG risks, our view of a utility’s health and safety characteristics will likely improve with decarbonization, but the costs consumers might bear could create affordability issues that add to social risks.
- We believe that adopting decarbonization strategies reflects positive governance attributes.
- Whether due to size, the composition of their generating fleets, or their customers’ income levels, some utilities will face significant hurdles that could frustrate decarbonization efforts.
17 Feb, 2021