NextEnergy Solar publishes third standalone sustainability & ESG report

In addition to the publication of its annual results today (click here to see our coverage of these), NextEnergy Solar Fund (NESF) has published its third standalone annual sustainability & ESG report – also for the year ended 31 March 2024. The report, which you can read here, runs to over 70 pages and contains a lot of detail and so we would recommend shareholders take a look. It is focused on three principal sustainability topics: climate, nature and social-related issues, with supply chain considerations incorporated as part of these. The following are some of the key highlights from the report:

• NESF has maintained Article 9 Fund classification under the EU Sustainable Finance Disclosure Regulation and EU Taxonomy Regulation.
• NESF’s portfolio generated 852GWh of clean electricity during the period, contributing to the avoidance of 279.3KtCO2 emissions (31 March 2023: 899GWh, 363KtCO2 emissions).
• NESF’s portfolio powered an equivalent 301,000 homes for one year (31 March 2023: 242,000).
• NESF adopted the Taskforce on Nature-related Financial Disclosures (TNFD) to go above and beyond the company’s sustainability reporting requirements, alongside commitment to disclose under the new TNFD framework.
• Adopted the International Sustainability Standards Board (ISSB) standards S1 and S2, which covers and expands on the Taskforce for Climate-related Financial Disclosures guidance, through a dedicated ISSB aligned Sustainability and ESG Report.

NESF says that it is proud to be an early adopter of the International Sustainability Standard Board (ISSB) standards S1 and S2, citing that it is the first in its peer group to voluntarily adhere to these high-quality standards. NESF says that its latest sustainability & ESG report makes all relevant disclosures in alignment with the inaugural S1 and S2 standards of the ISSB and in alignment with ISSB requirements is designed to be read in conjunction with the NESF 2024 Annual Report to evidence the full integration of Sustainability & ESG into its financial reporting.

Comments from Josephine Bush, chairwoman of NESF Board’s ESG Committee

“The previous twelve months have seen the global energy transition gather pace, despite macroeconomic headwinds.  NESF is incredibly proud to have become an early adopter of the International Sustainability Standards Board (“ISSB”) standards S1 and S2, becoming the first in the renewable investment company peer group to voluntarily adhere to these high-quality standards.

“The standards cover and expand on the Taskforce for Climate-related Financial Disclosures guidance, through a dedicated ISSB aligned Sustainability and ESG Report. This is the first ISSB reporting year and acts as a demonstration of the Company’s transparent approach to doing business.  NESF continues to monitor with interest the UK adoption of the Standards and aims to amend its approach accordingly.

“Furthermore, NESF intends to align its nature-related reporting with the Taskforce on Nature-related Financial Disclosures (“TNFD”) in its next Sustainability and ESG Report for the year ending 31 March 2025.  NESF’s forward-thinking approach to Sustainability and ESG continues to evolve, with the purpose of supporting a more sustainable world powered by clean energy.”