NextEnergy Capital (NEC)
Climate Impact & Sustainability Data (2021, 2023, 2024)
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Climate Change Mitigation
- Biodiversity
- Human Rights
- Supply Chain Responsibility
Environmental Achievements
- Avoided 328.7 KtCO2e of GHG emissions in 2021
- Avoided 142.8 ktoe of fossil fuels in 2021
- Developed a Biodiversity Strategy with Exemplar Sites implementing site-specific measures to enhance native flora and fauna.
- Implemented Universal Biodiversity Management Plan (UBMP) across 30 sites, aiming for net biodiversity gain.
Social Achievements
- Community engagement incorporated into investment strategy, including consultation with local parishes and councils during pre-planning phases.
- Community benefit fund incorporated into the financial profile for each new investment.
Governance Achievements
- ESG factors integrated into investment decisions, from preliminary screening and exclusion to risk management.
- Due diligence questionnaires sent to all counterparties (sellers, contractors, and suppliers), screened for AML purposes.
- Head of ESG present at Investment Committees to ensure ESG-related investment objectives are upheld.
Climate Goals & Targets
- Not disclosed
- Not disclosed
- Further rollout of UBMP across additional sites within the next 12 months.
Environmental Challenges
- Potential significant harms to other environmental objectives (ecosystems, biodiversity, climate change, PV system lifecycle impacts)
- Limitations of IFI Harmonised Factors (based on country averages/estimates)
- Limitations of forecasts in estimating emissions avoided.
Mitigation Strategies
- Due diligence and investment decision-making processes to avoid significant harms to other environmental objectives.
- Use of internationally recognized IFI Harmonised Conversion Factors, updated periodically by UNFCCC.
- Actual measure of progress based on actual renewable electricity generated and associated emissions avoided calculations, not solely on forecasts.
- Biodiversity Strategy and UBMP to mitigate biodiversity impacts.
Supply Chain Management
Supplier Audits: Due diligence questionnaires for module and inverter manufacturers
Responsible Procurement
- Module framework agreements with reputable manufacturers; ESG considerations integrated into supplier selection.
Climate-Related Risks & Opportunities
Physical Risks
- Flooding
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: SFDR, EU Taxonomy Regulation, OECD Guidelines for Multinational Enterprises, UN Guiding Principles on Business and Human Rights, UN Sustainable Development Goals, UN Principles for Responsible Investment, IIGCC, TCFD
Certifications: Null
Third-party Assurance: External third-party specialist
UN Sustainable Development Goals
- Not disclosed
Aligned with UN Sustainable Development Goals; sustainability framework founded on three pillars: biodiversity, climate change, and human rights.
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Not disclosed
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- People
- Nature
- Prosperity
Environmental Achievements
- Achieved carbon neutrality in 2024 (excluding financed emissions from funds)
- Avoided 627,000 tCO2e by NEC’s funds (as of 31 March 2022)
- Implemented biodiversity management plans on 167 assets
- ESG due diligence on 10 module manufacturers
Social Achievements
- 87% of employees felt genuinely supported to take advantage of flexible working policies (September 2023 survey)
- Appointed a Group H&S Manager to drive improvements in H&S performance
- Developing a Stakeholder and Community Engagement Plan
- NextEnergy Foundation raised over £3.2m and committed over £517,300 in grants in 2023
Governance Achievements
- Commendable progress in the 2023 UN PRI Benchmark Assessment, outperforming the PRI median score in all three categories
- Five stars in all modules and 100% in the Confidence Building Measures module of the 2023 UN PRI assessment
- Updating Sustainability Policies and aligning practices with the new Sustainability Strategy
- Establishing a new internal ESG governance structure at Group and company levels
Climate Goals & Targets
- Set emissions reduction targets for each fund in line with SBTi or similar frameworks to achieve net zero before 2050
- Achieve carbon neutrality in 2024 (excluding financed emissions from funds)
Environmental Challenges
- Supply chain complexities involving social risks (human rights, labor conditions), environmental concerns (carbon footprint, biodiversity), and governance issues
- Balancing competing interests in addressing material sustainability challenges and opportunities
Mitigation Strategies
- Developing a responsible supply chain approach based on three principles: meeting and exceeding standards, due diligence and engagement with partners, and supporting industry best practices
- Active involvement in collaborative initiatives like the Solar Stewardship Initiative (SSI) to promote supply chain transparency and sustainable sourcing
- Nurturing protective, collaborative, and innovative environments to advance improved outcomes for the Group and stakeholders
Supply Chain Management
Responsible Procurement
- Adherence to Equator Principles, ILO Conventions, IFC Performance Standards, OECD Guidelines, UN Universal Declaration of Human Rights, UN Guiding Principles on Business and Human Rights, and UN Global Compact
Climate-Related Risks & Opportunities
Opportunities
- Avoiding greenhouse gas emissions
Reporting Standards
Frameworks Used: TCFD, ISSB, TNFD, EU SFDR, EU CSRD, UN SDGs, SBTi
Reporting Period: 2024
Environmental Metrics
ESG Focus Areas
- Climate Change
- Nature/Biodiversity
- Human Rights
- Community
- Governance
Environmental Achievements
- Not disclosed
Social Achievements
- Not disclosed
Governance Achievements
- Not disclosed
Climate Goals & Targets
- Not disclosed
- Not disclosed
- Not disclosed
Environmental Challenges
- End-to-end supply chain traceability and full transparency
Mitigation Strategies
- NEC’s active involvement in cross-sector engagement initiatives supports the wider solar industry to accelerate sustainable and ethical sourcing globally.
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- NextEnergy Group’s Code of Conduct for Suppliers
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: UN PRI, TCFD (now superseded by ISSB), ISSB S1 and S2 Standards, TNFD (integrated with ISSB), UN Global Compact
Certifications: Null
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Not disclosed