Vistra

Vistra has set a target to reduce its scope 1 and 2 emissions by 60% by 2030 and by 100% by 2050 respectively, compared to 2010. However, its targets could not be assessed as the company states that it plans to use offsets but is unclear as to what percentage of its targets will be achieved through these offsets. The company should clearly report any offsets it intends to use to allow for a complete analysis of its targets and progress against them. Further, the company should set intermediate targets no more than five years apart to incentivise near-term action on its long-term goals.

Vistra focuses its research and development (R&D) efforts on technologies such as solar power and battery storage; carbon capture, utilisation and storage (CCUS) and demand response. However, the company does not disclose financial information on its climate or non-climate related R&D spending. With the high level of gas capacity in its future scenarios, Vistra will need to research, invest in and implement carbon capture storage (CCS) at scale. R&D expenditure on low-carbon technologies will be essential for Vistra to develop a low-carbon product portfolio and be successful in a low-carbon economy.

In 2022, 12% of Vistra’s energy generation was from low-carbon sources, mainly nuclear. Vistra plans to grow its renewable and nuclear energy capacity from 3.5 gigawatt (GW) in 2022 to 8 GW by the end of 2023. It also plans to grow the capacity of its battery storage facility, the largest in the world, from 400 megawatt (MW) in 2022 to 350 MW. Vistra will retire five coal plants by 2027 and repurpose them to solar power and battery storage facilities. However, two of its plants will remain online indefinitely. Unless Vistra reconsiders its current and planned reliance on coal and fossil gas, it will not be successful in a low-carbon economy.

Vistra has set a target to reduce its scope 1 and 2 emissions by 60% by 2030 and by 100% by 2050, compared to 2010. However, it has not set sufficient intermediate targets. Setting regularly spaced intermediate targets will help the company incentivise near-term action on its longer-term goals. Vistra should also report the percentage of its targets it plans to achieve through offsets so that its targets can be assessed.

Vistra plans to grow its renewable and nuclear energy capacity from 3.5 GW in 2022 to 8 GW by the end of 2023 through the acquisition of a nuclear energy generation company. It also plans to retire five coal plants by 2027. It will repurpose its retired plants for solar power or battery storage. Vistra will also further grow the capacity of its battery storage facility, which is the largest globally, by 350 MW from 400 MW.

In 2022, Vista closed three coal plants. Further, low-carbon sources, mainly nuclear, accounted for 12% of the company’s energy generation. The company’s low-carbon capital expenditure (CapEx) in 2022, for its reporting year, accounted for only 36% of its total CapEx. Vistra focuses its R&D efforts on technologies such as solar power and battery storage; CCUS and demand response.

Vistra’s emissions intensity trend significantly decreased between 2017 and 2022. However, to align with its 1.5°C pathway in 2027, Vistra must reduce its emissions intensity by approximately 10% per year. This requires Vistra to accelerate its rate of reduction by almost 1.5 times its historical trend.

Vistra plans to grow its nuclear energy and battery storage capacities and reduce its scope 1 and 2 emissions by 100% by 2050 compared to 2010. However, the company’s emissions reduction targets and transition planning are hindered by its insufficient low-carbon CapEx and lack of R&D investment. The lack of a coal phase-out date and the company’s significant reliance on coal and fossil gas are inconsistent with its decarbonisation commitments.

No evidence was found that the company commits to social dialogue or discloses the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found to show if the company has actions to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks. The company discloses the actions it takes to provide training opportunities which embeds equality of opportunity for women and vulnerable groups. However, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders or a public commitment to help workers displaced by the transition to reskill or upskill.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting human rights and the ILO fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. However, no evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and supply chain. No evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers and external stakeholders.

The company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. However, no evidence was found of a time-bound target for paying all workers a living wage. While the company discloses the proportion of its direct workforce covered by collective bargaining agreements, no relevant disclosure was found of the company’s required working hours. The company discloses some indicators of workforce diversity, including the gender and race/ethnicity of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity. No evidence was found that the company commits to gender equality and women’s empowerment.

No evidence was found that the company commits to protecting personal data and that it has a privacy statement regarding the collection, sharing and access to personal data. Moreover, no relevant disclosure was found of the company’s global tax strategy and the corporate income tax paid for each relevant jurisdiction. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. While the company has a lobbying and political engagement policy, no evidence that it specifies that it does not make political contributions. The company, however, does disclose its expenditure on lobbying activities.