We support NextEnergy Group to embed nature into their climate and energy transition strategies

 


  • Nature Positive
  • NextEnergy Group
  • Global
  • 2023-2024

We are in the midst of a pivotal energy transition. According to the International Energy Agency (IEA), “The world is on track to add more renewable energy in the next five years than has been installed since the first commercial renewable energy power plant was built more than 100 years ago”. Solar photovoltaic (PV) energy is leading the way, accounting for more than three-quarters of renewable capacity additions in 2023 and surpassing wind for the first time. Looking ahead, solar PV capacity is expected to double or triple by 2028 and become the Earth’s main energy source by 2040 (Ibid). 

The positive impacts of solar energy on mitigating climate change are evident and essential. However, like any economic activity, solar energy development both impacts and depends on nature. Solar PV land requirements will increase commensurately with demand, and photovoltaic supply chains have less-evident impacts and dependencies on mineral, metal, water, and land use, emissions, pollution, and other pressures on nature and biodiversity. In order to avoid potential trade-offs  between the climate and nature crises, we need to integrate nature in the energy transition.

The project

NextEnergy Group – in collaboration with Etifor – is developing a robust and holistic strategy to assess, manage, and disclose its nature-related risks and opportunities related to solar energy investment, development, and asset management. NextEnergy Group’s nature strategy builds on best practices and frameworks – including the Taskforce for Nature-related Financial Disclosures (TNFD) and Science Based Targets for Nature (SBTN) – to align itself with the Kunming-Montreal Global Biodiversity Framework and anticipate the growing demand for nature disclosures and due diligence.

The strategy aims to effectively and transparently manage physical and transition risks in their direct operations and supply chains, align with global nature, climate, and biodiversity targets, and demonstrate the ambition and resilience of their business model to their stakeholders. 

Out contribution

Guided by our LUCAS approach for nature positive transformation, Etifor is supporting NextEnergy Group to assess its material nature-related issues and develop an evidence-led nature strategy. This includes evaluating the pressures and states of nature for each of their sites, identifying and mapping nature-related risks in their supply chains, aggregating data to the fund- and group-levels, and prioritizing key areas for additional due diligence and management. Based on this materiality assessment, we are supporting NextEnergy Group to make strong, science-based commitments to a nature positive future and to supplement their risk management policies and processes to avoid, minimize, and restore nature impacts in line with the mitigation hierarchy.

Beyond the high-level strategy and overarching commitments, Etifor is working closely with NextEnergy to develop a practical, implementable framework that specifies how to embed nature in planning, decision-making, and management of solar energy assets. This includes collaborating on nature-based solutions, exploring the potential of developing markets for biodiversity credits, and sponsoring third-party verified positive impacts on biodiversity, carbon, and other ecosystem services through innovative programs like our BIOCLIMA initiative.