Powering the global green energy transition

As part of the Cushon Sustainable Investment Strategy, we invest in companies around the world that are actively working toward achieving net-zero carbon emissions by 2050.  

We invest in many such companies in the UK, but we also have a global portfolio. Investing in other markets helps support the worldwide transition to a lower-carbon economy, while reducing the climate risks that our investments are exposed to. 

NextEra Energy are at the forefront of the clean energy transition in the US. They build the infrastructure the country needs to end its reliance on coal and gas.  

A clear path to net zero – and the resources to make it happen

NextEra Energy have ambitious carbon‑reduction milestones, backed by significant investment.  

In 2023, around 70% of the company's spending went into solar panels, wind turbines, battery storage, and other renewable energy projects. They also invest in large‑scale recycling and other sustainability initiatives, to make better use of materials and reduce waste. 

These projects have already made a meaningful contribution towards cutting the US energy grid's carbon emissions.  

NextEra currently generate around 73 gigawatts of clean energy per hour – enough to meet the peak demand of a country like Germany. They also have projects in the pipeline that will allow them to increase production dramatically over the coming years.  

NextEra Energy's impact: America's 'ice cube'

Electricity production is the second largest source of greenhouse gas emissions in the US after transportation, and around 25% of the country's emissions overall. This means moving away from coal and gas toward solar, wind, and other renewable energy sources is critically important for achieving net zero.  

Between 2005 and 2025, NextEra grew their renewable energy capabilities by 80%.  

At the same time, they've closed all but one of their coal-fired power plants – they'll shut this down by 2028. Natural gas makes up only around 4% of their energy mix.  

NextEra produce 58% fewer carbon emissions per unit of electricity, with an overall carbon reduction of 25%. That's the same as taking millions of petrol and diesel cars off the road.  

As a result of this shift, NextEra are a vital 'ice cube' in America's fight against global warming. ‘Ice cube’ investments are those companies which help to cool the environment or limit global warming. Generally speaking, we like these investments, as they help drive the race to net zero while being well-positioned to benefit from the growing energy demand. 

Renewables are key to energy security

Recently, there's been political backlash against renewables in the US. Several states and the federal government have pushed laws aimed at making investing in renewables less attractive, while promoting fossil fuels.  

So why should Cushon invest in a US-based renewable energy company? 

Put simply, the political pushback doesn't change the fact that renewables make more long-term financial sense. Ultimately, countries are working towards energy security – and renewables are key to getting there.  

Government policy has changed before and will no doubt change again. But the practical reality is that renewable technologies are getting cheaper and quicker to build than fossil-fuel power plants.  

This means that, as electricity demands continue to increase from running huge AI data centres and the like, US energy companies such as NextEra will keep being pulled toward renewables. And that holds true even if current rules are less favourable than they used to be.  

Article by

NatWest Cushon