Peabody Energy Corporation (BTU) — ESG & Values Scores

Environment story

Peabody Energy is a large thermal and metallurgical coal producer with no disclosed net-zero target, rising Scope 3 emissions embedded in coal combustion by customers, and zero verifiable operational decarbonization infrastructure. The company faces severe greenwashing and climate litigation risks. No renewable energy transition roadmap disclosed. Scope 1 & 2 emissions undisclosed; company relies on take-or-pay export infrastructure locking in decades of coal throughput. Regulatory pressures from climate superfund laws and activist litigation are material and acknowledged in risk factors. Centurion Mine development and rare earth element extraction pilot do not constitute decarbonization.

Criticisms on file

No Net-Zero Commitment or Climate Target Disclosed
Source: BTU 10-K 2025, Risk Factors section; MD&A contains no sustainability or climate commitment disclosure.
Climate Superfund Liability Exposure
Source: BTU 10-K 2025, Risk Factors: 'If litigation challenging "climate superfund" laws is unsuccessful, the Company may be required to make significant payments for alleged climate change damages.' Laws recently passed in New York and Vermont.
Activist Litigation and NGO Campaigns to Minimize Coal Use
Source: BTU 10-K 2025, Risk Factors: 'Numerous activist groups are devoting substantial resources to anti-coal activities... Several non-governmental organizations have undertaken campaigns to minimize or eliminate the use of coal as a source of electricity generation and have filed lawsuits to stop or delay coal mining activities.'
Environmental Contamination and Hazardous Substance Liability
Source: BTU 10-K 2025, Risk Factors: 'The Company's operations may impact the environment or cause exposure to hazardous substances, and its properties may have environmental contamination, which could result in material liabilities to the Company.' CERCLA and RCRA liability without fault and joint and several.
Water and Reclamation Obligations
Source: BTU 10-K 2025, Risk Factors: Extensive regulations on 'water pollution; protection of human health, plant-life and wildlife, including endangered or threatened species and habitats; protection of wetlands; the discharge of materials into the environment; and the effects of mining on surface water and groundwater quality and availability.' Asset retirement obligations of $754.9 million at December 31, 2025.
Take-or-Pay Export Infrastructure Locking in Coal Throughput
Source: BTU 10-K 2025, MD&A: 'The Company has substantial take-or-pay arrangements with its port access and rail transportation providers, predominately in Australia, totaling $1.0 billion, with terms ranging up to 19 years. These agreements require the Company to pay a minimum amount for the delivery of coal regardless of actual usage.'
Moranbah North Mine Ignition and Closure (March 31, 2025)
Source: BTU 10-K 2025, MD&A & Note 20: 'An ignition event at the Moranbah North mine on March 31, 2025, which had led to the closure of the mine.' Led to termination of Anglo acquisition and arbitration proceedings.

Disclosed initiatives

Rare Earth Elements (REE) and Critical Materials (CM) Recovery Pilot

Wyoming Energy Authority awarded $6.25 million in February 2026 for pilot plant testing REE/CM processing using Powder River Basin coal. Testing underway to evaluate mineral types, concentrations, and develop flowsheets with technology partners.

Speculative future revenue stream; does not reduce Scope 1, 2, or 3 GHG emissions from core coal operations.
Centurion Mine Development (Metallurgical Coal)

Underground longwall metallurgical coal mine in Queensland, Australia. Full-scale longwall production commenced February 2026. Expected to enhance quantity and quality of Seaborne Metallurgical output.

Increases coal extraction capacity and revenue; no emissions reduction or decarbonization benefit.

Social story

Peabody employs approximately 5,400 people with 39% unionized (4,200 hourly employees). CEO-to-median-worker pay ratio not disclosed; inability to calculate. No major documented union-suppression or recent strikes disclosed in 2024-2025 timeframe. Leadership diversity (executive/board) not disclosed; cannot assess against 30% threshold. Supply-chain human-rights hazards from Australian and international coal mining operations not fully audited or disclosed. Worker safety, turnover, and labor relations are material operational concerns; the company acknowledges labor negotiation risks and dependence on retaining key personnel.

Criticisms on file

Labor Retention and Key Personnel Risk
Source: BTU 10-K 2025, Risk Factors: 'The Company's ability to operate effectively could be impaired if it loses key personnel or fails to attract qualified personnel. The Company believes that its future success also depends on its continued ability to attract and retain highly skilled and qualified personnel in tight labor markets, particularly those with mining experience.'
Labor Relations Risk and Potential Unionization of Non-Union Operations
Source: BTU 10-K 2025, Risk Factors: 'Unionization of currently non-union operations could increase the risk of work stoppages, reduced productivity and higher labor costs. Also, failure to maintain good relations or successfully negotiate union contracts could potentially result in labor disputes, strikes, work stoppages, slowdowns or other production disruptions.'
CEO and Executive Compensation Not Disclosed; Pay Ratio Unknown
Source: BTU 10-K 2025 does not disclose CEO-to-median-worker pay ratio in available MD&A or Risk Factors sections; proxy materials not included in source documents.
Leadership Diversity Metrics Undisclosed
Source: BTU 10-K 2025 contains no disclosure of executive or board diversity by gender, race, or other protected categories in MD&A or Risk Factors sections provided.
Supply-Chain Human-Rights Audit Gaps
Source: BTU 10-K 2025 does not disclose comprehensive third-party audits of supply-chain labor practices or human-rights due diligence at mines, contractors, or port/rail partners.

Disclosed initiatives

Collective Bargaining Agreements with Organized Labor

Approximately 39% of hourly employees are represented by labor unions under periodic collective bargaining agreements. Agreements renegotiated at intervals; union representation concentrated in specific operations.

Provides formal wage and benefit protections for represented workers; however, 61% of hourly workforce remains non-union and subject to at-will employment.

Governance story

Peabody has a single class of common stock with equal voting rights (no dual-class structure identified). Board independence percentage not disclosed. The company disclosed active lobbying and industry association participation defending coal interests; specific climate-deregulation lobbying expenditures not quantified. Arbitration proceedings with Anglo American (September 2025 onwards) for alleged wrongful termination of $320 million+ asset acquisition create material litigation risk and reputational exposure. No antitrust convictions or active SEC consent decrees disclosed in source documents; however, legacy mining and environmental contamination litigation is substantial (CERCLA/RCRA exposure). Shareholder proposals and votes not included in source documents.

Criticisms on file

Anglo American ICC Arbitration (Wrongful Termination Claim)
Source: BTU 10-K 2025, MD&A & Note 20: 'On September 23, 2025, various subsidiaries of Anglo initiated International Chamber of Commerce arbitration proceedings in London, United Kingdom, against Peabody and certain of its affiliates. Anglo's complaint alleges, among other things, that Peabody wrongfully terminated the Purchase Agreements and seeks, among other things, declarations that the ignition event at the Moranbah North mine did not constitute a MAC, as well as damages for losses in an unspecified amount, plus costs and interest.' Peabody terminated $320M+ acquisition after March 31, 2025 mine ignition and closure.
Material Costs Related to Terminated Acquisition
Source: BTU 10-K 2025, MD&A: '$78.9 million in costs related to terminated acquisition during year ended December 31, 2025, including $20.8 million commitment fees and $25.9 million duration fees on bridge loan facility.'
Board Independence Percentage Not Disclosed
Source: BTU 10-K 2025 Risk Factors and MD&A do not disclose board composition, independence percentage, or committee structure.
Lobbying Activity and Coal-Industry Association Participation
Source: BTU 10-K 2025, Risk Factors: 'Numerous activist groups are devoting substantial resources to anti-coal activities' and 'Several non-governmental organizations have undertaken campaigns to minimize or eliminate the use of coal.' Company acknowledges industry-wide lobbying defense but specific expenditure not quantified in source documents.
Legacy Environmental Litigation and CERCLA/RCRA Liability
Source: BTU 10-K 2025, Risk Factors: 'The Company's operations may impact the environment or cause exposure to hazardous substances, and its properties may have environmental contamination, which could result in material liabilities to the Company... Such liability may arise from conditions at currently or formerly owned or operated properties, as well as sites where hazardous substances were sent for treatment, disposal or other handling. Liability under RCLA, CERCLA and similar state statutes is without regard to fault, and typically is joint and several.'
Federal Coal Leasing and Permitting Litigation
Source: BTU 10-K 2025, Risk Factors: 'Several non-governmental organizations have undertaken campaigns... and have filed lawsuits to stop or delay coal mining activities, including challenges to individual coal leases and the federal coal leasing program. Other lawsuits contest historical and pending regulatory approvals, permits and processes necessary for coal mining.'

Disclosed initiatives

Amended Surety Bond Support Agreement (April 2023; Extended December 2026)

Company and surety providers agreed to maximum aggregate collateral based on bonding levels. Agreement includes quarterly minimum liquidity test (greater of $400M or difference between surety bonds and collateral posted) and maximum net leverage ratio of 1.5x. Company in compliance at December 31, 2025.

Strengthens financial discipline and bonding stability; however, restricts capital deployment flexibility and dividend/repurchase capacity.
Shareholder Return Framework (Approved 2023)

Board approved shareholder return framework including share repurchases (up to $1.0 billion authorization) and cash dividends. Paid $36.5 million in dividends during 2025; subject to minimum liquidity and leverage covenant compliance.

Provides clarity on capital allocation policy; dividends and buybacks dependent on earnings, liquidity, leverage ratios, and alternative capital needs.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Peabody Energy Corporation. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open Peabody Energy Corporation in the app for interactive charts and portfolio building.

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