Energy storageNYSE: STEM

Stem Inc

48Mixed / Improving

San Francisco, CA, USFounded 20090 followers

www.stem.com

AI-driven energy storage software company whose Athena platform forecasts demand and optimises dispatch of battery storage assets for commercial and utility customers.

Green Score

48/100
Mixed / Improving
Greenwashing risk
medium
Data confidence
medium
Method
how it is calculated
Climate Impact & Solution35%68

Does the core business genuinely avoid or reduce emissions, or build climate resilience? Share of revenue that is actually 'green'. Fossil-dependent models score low.

Athena's AI optimizes battery dispatch to avoid peak fossil-fuel generation and helps customers reduce Scope 2 emissions, managing over 32 GW of solar and storage assets across 50 countries — a credible and material climate enablement role, but impact is indirect and aggregate avoided-emissions figures are not independently verified.

Decarbonization & Targets20%22

Credible, science-based targets (SBTi), a real net-zero plan with progress to date, and CDP disclosure — not just a dated press release.

No SBTi-validated targets, no CDP disclosure, and no formal net-zero pledge have been identified for Stem Inc; the company's own marketing acknowledges its business is 'strongly aligned with emissions reduction' but stops short of committing to quantified, science-based operational targets.

ESG & Operations15%38

Operational footprint, labour and social practices, and governance quality across the company's own operations and supply chain.

No standalone ESG or sustainability report is publicly available for Stem Inc; the company conducted a severe 27% workforce reduction in April 2025 amid a headquarters closure and a $854M net loss, raising social and governance concerns, and no evidence of third-party labour, diversity, or supply-chain audits was found.

Transparency & Verification15%35

Quality of disclosure, independent third-party verification, and how much hard data backs the company's claims.

Stem discloses financial results through SEC filings (10-K, 10-Q, 8-K) and issues investor press releases with some operational metrics (GW under management, ARR), but publishes no dedicated sustainability report, no Scope 1/2/3 GHG inventory, no CDP response, and no independently verified impact data on emissions avoided by its platform.

Integrity15%60

Controversies, litigation, pollution, fossil-fuel lobbying, conflict-zone involvement and governance scandals. Higher means cleaner.

No environmental violations, fossil lobbying, or major governance scandals were found; the primary integrity concerns are the sharp financial deterioration (69% revenue decline, >500% increase in net loss in 2024), the 27% workforce reduction in 2025, and unresolved questions about whether prior revenue growth guidance was realistic — none rise to the level of fraud or regulatory enforcement.

Why it's on ClimateTicker

Stem's core business — AI-optimized dispatch of battery storage and solar assets via its Athena/PowerTrack platform — genuinely enables grid decarbonization by shifting renewable energy to peak demand periods and reducing reliance on fossil-fuel peaker plants. The climate enablement value is real but indirect: Stem itself does not own or operate clean energy assets but provides the software layer that lets others do so more effectively. Financial distress (69% revenue decline in 2024, $854M net loss, 27% workforce cut in 2025) introduces execution risk that investors must weigh alongside the climate thesis.

enablerStem earns revenue through software-as-a-service (SaaS) subscriptions and managed services fees tied to its Athena and PowerTrack platforms, which optimize storage and solar assets for commercial, industrial, and utility customers; it is pivoting away from lower-margin battery hardware resale toward recurring software and services revenue.

Controversy & Greenwashing Watch

lowNo SBTi, CDP, or Verified Sustainability Disclosure

Despite marketing itself as a climate-tech enabler managing 32+ GW of clean assets globally, Stem has filed no CDP response, holds no SBTi commitment or validated targets, and has published no standalone ESG report with independently verified GHG data.sciencebasedtargets.org

medium27% Workforce Reduction and HQ Closure (2025)

Stem laid off 27% of its global workforce and closed its San Francisco headquarters in April 2025, with the CEO acknowledging the company faced 'a large debt burden, limited operating cash, and is not operationally profitable.'sfexaminer.com

medium69% Revenue Collapse and $854M Net Loss (2024)

Stem reported a 69% year-on-year revenue decline to $144.6M and a net loss of $854M in 2024, driven by a collapse in battery hardware sales and a strategic pivot that raised serious questions about prior financial guidance.energy-storage.news

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