Nuclear Energy an ESG Investable Asset Class - 2021

In 2020, the Economic Modelling Work Group (EMWG) of the Generation IV International Forum (GIF) convened a finance industry task force (the Taskforce) to evaluate the nuclear industry’s capability to report on Environmental, Social, and Governance data collection and accounting metrics (ESG). The assessment aimed to determine if nuclear energy should be considered as an investable asset class, thereby enabling nuclear companies and projects to access climate finance. This report has been crafted by and for the finance community.

The report, "Nuclear Energy: An ESG Investible Asset Class," emanates from the discussions of the Taskforce, whose members are acknowledged in Appendix III. It could not have been completed without their significant contributions, along with the guidance and oversight of Fiona Reilly, Co-Chair of the EMWG and Chair of the Taskforce. GIF extends its gratitude to the Nuclear Industry Association in the United Kingdom, the Canadian Nuclear Association, the Nuclear Energy Institute in the United States, Natural Resources Canada, and both the Nuclear Innovation and Research Office and the National Nuclear Laboratory in the United Kingdom.

The report is divided into several sections:

• Climate Financing and Responsible Investment: Outlines the international policy framework surrounding climate finance, including the UN’s Principles of Responsible Investment, the rise of ESG reporting and its role in accessing climate finance, and the challenges posed by taxonomies in aligning with ESG reporting.
• Low Carbon ESG Reporting: Offers a high-level overview of how low carbon energy companies and/or projects might report against ESG metrics.
• Nuclear Disclosures Against ESG: Demonstrates the nuclear industry’s capacity to meet ESG reporting requirements and argues why it qualifies as an investable asset class, provided that projects and companies are well-managed.
• Appendix I Standard Metrics: The Taskforce has mapped the WEF ESG metrics against relevant SASB and TCFD standards to create a consolidated list of ESG metrics utilized in this report.
• Appendix II Consistent and Transparent Reporting: Provides detailed information and cross-references for the finance community and broader stakeholders. It also offers insights on how nuclear industry reporting could serve as a model for other energy companies aiming to enhance their ESG reporting capabilities.

It is hoped that this report will evolve into a living document that serves as a reference and guide for the finance industry when evaluating nuclear companies and their assets.