Report confirms Xcel Energy’s strategy built to succeed in a low-carbon future
Xcel Energy recently published its second report responding to the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). The report shows the value of the company’s strategy of deploying renewable and other clean-energy resources, building a more resilient energy grid and meeting the evolving needs of customers — all while keeping service reliable and bills as low as possible.
The publication provides an in-depth view of Xcel Energy’s clean energy strategy and preparedness for managing the risks associated with climate change, as well as opportunities presented by a low-carbon energy transition. In 2018, Xcel Energy became the first major U.S. energy provider to announce a goal of delivering 100% carbon-free electricity by 2050, with an interim goal to reduce carbon emissions 80% by 2030. The company has since expanded its aspirations to provide net-zero energy by 2050 through goals that address all the ways its customers use energy — including electricity, heating and transportation.
“As we implement plans to achieve ambitious clean energy goals, we’re preparing our company for long-term success,” said Frank Prager, senior vice president and chief sustainability officer. “Our clean energy strategy is the most comprehensive in our industry. It will significantly reduce emissions, provide investment opportunities for our company and help manage energy reliability and affordability for customers.”
TCFD’s framework asks organizations to report on four categories related to climate change, including governance, strategy, risk management, and metrics and targets. It also recommends that companies develop a climate-scenario analysis, which tests the resilience of their strategies.
Xcel Energy’s new TCFD report provides more extensive analysis compared to the previous report published in 2020. In the new report, Xcel Energy demonstrates that all three goal areas — electricity, heating and transportation — align with current climate science and the international target of limiting warming to 1.5 degrees Celsius from preindustrial levels.
Xcel Energy has a long history of robust environmental, social and governance (ESG) reporting, but this framework focuses solely on a company’s strategy to manage the risks associated with climate change and the opportunities associated with clean energy.
In addition to its TCFD reporting, the company annually registers and discloses its greenhouse gas emissions, including carbon, through The Climate Registry, a nonprofit established in 2007. the company’s disclosures to The Climate Registry are verified by a third party. Xcel Energy is a founding member of The Climate Registry and was awarded its top “All Star” status for the quality of its reporting.