Climate Change

Our Approach

Climate change poses physical and transitional risks. It is a primary driver of nature loss, and it threatens livelihoods. Renewable energy is not only an economic and effective way to mitigate climate change, but also one which ensures shared prosperity.

Our approach to climate change mitigation is governed by a Climate Position Statement, which is part of NextEnergy Group’s Sustainability Policies. It is aligned with the targets of the Paris Agreement, and the ultimate aim is to facilitate investing to achieve net zero emissions on a global scale.

NextEnergy Group’s Climate Transition and Net Zero Strategy

NextEnergy Group has been avoiding carbon emissions and positively contributing to the energy transition for almost 20 years. Still, urgent, more ambitious action is needed to limit the global temperature increase and avoid the worst impacts of climate change. Renewable energy is key to this action.

Our Group Climate Strategy raises our climate ambition to continue being a critical enabler of a low-carbon future. It articulates how we will further enhance our climate-related positive impacts, strengthen our resilience to climate-related risks, and continue on our journey of being a critical enabler of a low-carbon future. For this reason, it is built upon two pillars: driving decarbonisation and building climate resilience.

NextEnergy Capital’s Climate Transition Plan

NextEnergy Capital’s Climate Transition Plan translates the Group’s Climate Transition and Net Zero Strategy into concrete action. It details how we will reduce the emissions across both NEC’s funds’ Solar+ assets and value chain. These are the most material emissions source for our business, as for all financial institutions.

The Plan cements NEC’s role as a specialist Solar+ investment manager leading the transition to clean energy – responsibly. It is aligned with emerging global standards and frameworks, including the Task Force on Climate-Related Financial Disclosures (TCFD), the International Financial Reporting Standards (IFRS), the Transition Plan Taskforce (TPT) and the Financial Institutions Net-Zero Standard developed by the Science Based Targets initiative (SBTi). It is underpinned by science-based targets which have been submitted to the SBTi for validation in October 2025.

Avoided Emissions Methodology

Our solar PV and battery energy storage assets mitigate climate change by avoiding carbon emissions and generating other positive environmental impacts. We are committed to transparency and have published an Avoided Emissions Methodology to explain how we accurately calculate and report on our positive climate impacts.