ClimateTicker

National Grid plc

LSE: NG.65Credible Contributor· Provisional
0 followersElectricity transmission / grid infrastructure·London, United Kingdom·Founded 1990
www.nationalgrid.com

Operates the UK's high-voltage electricity transmission network and US electricity and gas distribution businesses.

65/100
Credible Contributor· Provisional

ClimateTicker Green Score · how it's calculated

Greenwashing risk: mediumData confidence: high

Why it's on ClimateTicker

National Grid is a critical enabler of the clean energy transition — its high-voltage transmission network in the UK and regulated distribution businesses in the US are the physical infrastructure through which renewable generation reaches consumers. However, the company still operates a substantial regulated natural gas distribution business in the US Northeast, generating large Scope 1 methane emissions and Scope 3 sold-gas emissions that materially offset the transmission-side climate credentials. Investors should credit the genuine infrastructure role while remaining alert to the gas-network liability and associated litigation.

enablerNational Grid earns regulated returns by owning and operating electricity transmission and distribution networks in England/Wales and the US Northeast, plus gas distribution in New York and Massachusetts; revenue is set by regulators (Ofgem, NYPSC, DPU) under multi-year price controls, making earnings relatively stable but growth tied to capex approvals.

Commitments & Certifications

CDP: A- ↗other: GRI Standards — In Accordance ↗other: EU Taxonomy aligned capex disclosed ↗SBTi: Targets validated ↗

Controversy & Greenwashing Watch

mediumMSCI climate alignment gap (2.9°C)

Despite strong SBTi targets, MSCI's implied temperature alignment for National Grid stands at 2.9°C, indicating a material gap between stated ambition and modelled real-world trajectory — notably driven by the gas distribution business.source ↗

highMassachusetts methane leak litigation (CLF)

The Conservation Law Foundation issued a notice of intent to sue National Grid in August 2024, alleging chronic methane leaks from aging Massachusetts pipelines at 15 sites posed imminent explosion hazards and violated federal and state environmental law, with potential fines exceeding $90,000 per day per violation.source ↗

mediumUK Ofgem mains-replacement data misreporting penalty

Ofgem fined National Grid Gas plc £8 million in 2011 for inaccurately reporting gas mains replacement activity, finding it in breach of regulatory obligations.source ↗

mediumUK Competition Act fine (metering)

National Grid was fined £15 million (reduced from £41.6 million) by GEMA for breaching the UK Competition Act via anti-competitive metering term contracts entered into in 2004.source ↗

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