Press Release: Entergy responds to shareholder distributed energy business model proposal; company commits to prepare two-degree risk report
Jackson, Mississippi – May 4, 2018 – A shareholder resolution filed at Entergy by corporate responsibility group As You Sow and sustainable investment manager Arjuna Capital, received strong support from 30% of Entergy’s shareholders. The resolution highlights the need for Entergy to modernize its business model and incorporate distributed, low carbon technologies such as energy storage, rooftop solar, energy efficiency, and demand response. This is the third consecutive year that this resolution has received significant investor support. In response, the Company announced at its Annual General Meeting that it intends to produce a report evaluating the risks to the company of a two-degree scenario in which the world is quickly decarbonizing. Many utilities acknowledge the disruptive changes that decarbonization and technology will bring to their business models and are adapting accordingly. By showing strong support for this resolution, shareholders have signaled that Entergy must address the risks and opportunities in the energy market occurring due to climate change. Distributed generation of electricity is expanding through residential rooftop solar and corporate installations of renewable power. Utilities must either meet these customers’ demand, or risk losing them to independent generation solutions.
“Entergy, like the rest of the utility sector, is at an existential fork in the road. Choose the wrong path and it will run into a huge competitive threat, namely in the form of consumer-owned rooftop solar and storage,” said Natasha Lamb, Managing Partner, Arjuna Capital. “Anticipate the threat and Entergy can turn instead toward distributed energy as business opportunity.”
“Utility customers, both large and small, are demanding clean energy. Utility companies must adapt or lose business,” noted Lila Holzman, Energy Program Manager, As You Sow. “Entergy’s commitment to undertake a two-degree carbon risk analysis is a positive step and shows the company is thinking about how it will thrive in a low carbon future.”
As You Sow is a nonprofit organization that promotes environmental and social corporate responsibility through shareholder advocacy, coalition building, and innovative legal strategies. See our resolutions here.
Arjuna Capital is a registered investment advisor, specializing in sustainable and impact investing. www.arjuna-capital.com.
MEDIA CONTACTS:
Cyrus Nemati for As You Sow, (510) 735-815, cnemati@asyousow.org
Patrick Mitchell for Arjuna Capital (202) 441-7647, pmitchell@hastingsgroup.com