RESOLVED: Shareholders request Ameren issue a report within a year, and annually thereafter, at reasonable expense and excluding confidential information, that discloses Scopes 1 and 2 operational greenhouse gas targets in the short, medium and long-term aligned with the Paris Agreement’s goal of maintaining global temperature rise at 1.5 degrees Celsius, consistent with sector-modelled pathways, and plans to achieve them.
In 2018, the Intergovernmental Panel on Climate Change (IPCC) advised that net greenhouse gas (GHG) emissions must fall 45 percent by 2030 and reach net zero by 2050 to limit warming below 1.5 degrees Celsius and prevent the worst consequences of climate change.
Electric power is arguably the most important sector to decarbonize over the next decade. Rapid decarbonization is needed, not only to address the sector’s own substantial GHG emissions, but also to support the transition of other sectors, such as transportation and buildings, to net zero through electrification. The International Energy Agency Net Zero By 2050 report found that emissions from the power sector must reach net zero by 2035 in advanced economies and by 2040 globally.  Under this scenario, electricity generation using natural gas without carbon capture must begin falling by 2030 and is 90% lower by 2040.
While Ameren Corporation (“Ameren”) has set a target to reach net zero emissions for power generation by 2045 and has announced investments in renewables, it lags many of its peers in setting short and mid-term emissions targets aligned with a 1.5 degree pathway. For example, peer companies WEC and DTE plan to retire their coal generation by 2035; Xcel is accelerating its coal retirement schedule to 2030; and CMS Energy plans to retire its coal plants by 2025. In contrast, Ameren currently plans to continue to run two coal units at the Labadie Energy Center beyond 2040.
Many of Ameren’s peers are generating more of their electricity from renewable sources. In addition, regulated utility peers such as AEP, Xcel Energy and Dominion Energy have announced medium-term plans to deploy substantial capital into renewables and grid upgrades that will decarbonize operations while simultaneously growing assets that will support future earnings growth. Following the passage of the Inflation Reduction Act in 2022 more investment in clean energy sources is likely. However, Ameren currently plans a generation mix dominated by fossil fuels well into the future.
SUPPORTING STATEMENT: In assessing targets, we recommend, at the board’s discretion:
- Pursuing alignment with sector-modelled 1.5C aligned pathways such as those outlined by the IPCC or IEA
-Taking into consideration approaches used by groups like the Science Based Targets initiative and Transition Pathway Initiative; andDeveloping a decarbonization strategy which identifies and quantifies the set of actions Ameren intends to take to achieve its GHG reduction targets over the targeted timeframe. https://www.ipcc.ch/sr15/chapter/spm/