Last week, NRG Energy announced it would divest its renewables business. Former NRG CEO and B Team Leader David Crane sees this news as a learning moment for businesses and the climate movement. Reflecting on NRG’s decision in GreenBiz, Crane hones in on three key takeaways from the dissolvement of NRG’s renewables sector.
He emphasises the importance of share price and investor influence in the decision for companies to go green, ultimately concluding that, “The energy industry will decarbonize only if and when big energy buyers give producers a deadline, and tell them, thereafter, they no longer will buy power from any company that combusts fossil fuels.”
Crane touches upon the importance of ensuring investors are incentivized to develop an informed and robust robust climate-conscious strategy, rather than act “climate indifferent.” He also encourages climate activists to crack down on corporate greenwashing and “demand visible and meaningful progress from companies that have embraced long-term carbon reduction goals.”
Read more about Crane’s role in developing NRG’s renewables strategy and what business and the climate movement can learn from NRG’s decision here.