Eversource Energy (ES) — ESG & Values Scores

Environment story

Eversource demonstrates mixed environmental performance. The company operates primarily as an electric and natural gas utility with regulated subsidiaries across New England. Scope 1 & 2 emissions data is not fully disclosed in filings; company has not articulated a specific net-zero target year before 2045, triggering mandatory deductions. Scope 3 supply-chain emissions are undisclosed. The company faces material climate physical risks (severe storms, extreme weather) and has incurred substantial unrecovered storm restoration costs. Environmental liabilities include PFAS and lead water contamination remediation costs in regulated water business. No verified direct renewable energy decarbonization infrastructure investments beyond mandatory regulatory renewable energy credit purchases are documented. Offshore wind divestiture in 2024 (sale of Revolution Wind and South Fork Wind stakes to GIP) with ongoing contingent liability of $448.2M as of Dec 31, 2025 suggests prior green investment reversal. CHECKLIST A: No evidence of carbon-offset greenwashing detected. Company does not claim 'net-zero direct operations' while hiding supply-chain emissions >70%. No shareholder litigation blocking climate proposals identified. DEDUCTION applied for undisclosed/rising Scope 3 emissions (-15) and absence of credible pre-2045 net-zero target (-15).

Criticisms on file

Undisclosed Scope 1, 2, and 3 greenhouse gas emissions; no net-zero target year published.
Source: ES 10-K 2025, Risk Factors and MD&A sections; no emissions data or climate commitments disclosed.
Offshore Wind Contingent Liability: $448.2M accrued as of Dec 31, 2025 for Revolution Wind and South Fork Wind cost overruns and purchase price adjustments post-divestiture.
Source: ES 10-K 2025, MD&A 'Offshore Wind Sale and Contingent Liability' section, pages 31–32.
Unrecovered storm restoration costs: CL&P incurred ~$634M (2018–2021), ~$173M (2022–Jan 2023), and ~$171M (Feb–Dec 2023) in catastrophic storm costs not yet approved for full recovery by PURA; carrying charges of $246M accrued but not deferred on balance sheet.
Source: ES 10-K 2025, MD&A 'CL&P Storm Filings' section, pages 40–41.
Water supply and contamination risks: PFAS and lead contamination of water supplies; dam failure risk in Connecticut service territory; new regulations requiring increased minimum downstream releases from dams deplete supply storage.
Source: ES 10-K 2025, Risk Factors 'Adequacy of water supplies and contamination of our water supplies' section, page 19.
Climate change physical and transitional risks: Increasing severity and frequency of extreme weather events (ice storms, tornadoes, hurricanes, floods, wildfires); potential loss of natural gas market share due to environmental activist opposition.
Source: ES 10-K 2025, Risk Factors 'Effects of climate change, including severe storms' and 'Transitional impacts related to climate change' sections, pages 18–19.

Disclosed initiatives

Renewable Energy Credit Mandates

Company required to purchase renewable energy credits (REC) from state-mandated renewable portfolio standards (RPS) in Connecticut, Massachusetts, and New Hampshire. Costs recovered through regulatory mechanisms.

Compliance-driven; no discretionary emissions reduction target articulated.
Offshore Wind Divestiture

Sold 50% stake in South Fork Wind and Revolution Wind projects to Global Infrastructure Partners (GIP) on September 30, 2024. Retain contingent liability for cost overruns and purchase price adjustments.

Exited renewable energy ownership; incurs ongoing financial exposure ($448.2M liability) without operational control.
Water Quality and PFAS Remediation

Aquarion water utilities subject to compliance with PFAS and lead service line replacement regulations in Connecticut, Massachusetts, and New Hampshire.

Regulatory compliance cost; no voluntary acceleration of remediation disclosed.
Grid Modernization and Transmission Upgrades

Greater Cambridge Energy Program underground transmission substation and distribution system investments in Massachusetts. Total project cost ~$1.84B; $200.9M spent as of Dec 31, 2025.

Infrastructure resilience to climate impacts; projected in-service 2029–2031. Not quantified as emissions reduction.

Social story

Eversource demonstrates moderate social performance. CEO-to-median-worker pay ratio not disclosed in proxy materials, preventing precise calculation; proxy discloses Named Executive Officer compensation but no median worker pay baseline provided. No documented union-suppression activities or major strikes within past 24 months identified; company mentions 'labor disputes' and 'work stoppages' as general risks but does not report specific NLRB complaints or grievances in materials reviewed. Board diversity: 9 of 10 trustees (90%) are independent; gender breakdown shows at least 3 women among 10 nominees (30%), meeting minimum diversity threshold. Executive leadership diversity not explicitly stated. Supply-chain ethics: No specific human-rights audits or cobalt/lithium sourcing policies disclosed; company relies on third-party suppliers for equipment and services but does not detail audits for forced labor or conflict minerals. Plant safety metrics, turnover rates, and union standing details not provided in 10-K or proxy. No documented labor agreements or CWA/IF Metall cooperation noted.

Criticisms on file

CEO-to-median-worker pay ratio not disclosed; proxy statement lists Named Executive Officer compensation but provides no median employee salary baseline for calculation.
Source: ES Proxy Statement 2026, Executive Compensation section; pay ratio information required under SEC rules but not disclosed in available materials.
No documented human-rights or supply-chain ethics audits; company relies on third-party suppliers for equipment, materials, and services with general performance standards but no conflict minerals or forced-labor policies disclosed.
Source: ES 10-K 2025, Risk Factors 'We rely on third-party suppliers' section, page 20.
Union relations and labor disputes undisclosed; risk factors cite potential 'labor disputes, work stoppages or inability to negotiate future collective bargaining agreements' but no specific NLRB complaints, strikes, or union agreements detailed.
Source: ES 10-K 2025, Risk Factors 'Loss of key personnel' section, page 20.

Disclosed initiatives

Workforce Development and Succession Planning

Company reports strategic workforce plans to identify key functions and proactively ensure ready and qualified workforce. Focus on retaining employees with specialized skills in technical infrastructure maintenance.

Internal talent pipeline; no external labor-market transparency metrics disclosed.
Hiring Veterans

Company honored for veteran hiring initiatives; received awards for hiring veterans.

Positive social contribution to veteran employment; magnitude and diversity metrics not quantified.
Board Diversity and Refreshment

Board composition: 9 independent trustees; 8 of 10 have served ≤8 years. Female representation: 3 of 10 (30%). Board evaluation processes include assessment of skills, experience, and diversity.

Board refreshment supports governance resilience; gender diversity at minimum threshold.
Employee Recognition and Workplace Health

Company received awards from Newsweek's Most Responsible Companies list, JUST Capital's Most JUST Companies, USA Today and Statista's America's Climate Leaders, and Healthiest Employer's 100 Healthiest Workplaces in America.

Third-party workplace culture and responsibility recognition; specific program details not disclosed.

Governance story

Eversource demonstrates solid governance framework with independent board majority (90%) and no dual-class share structure. Board independence: 9 of 10 trustees (90%) are independent, exceeding 75% threshold; CEO (Joseph Nolan, Jr.) serves as Chairman and President, combining leadership roles without separation requirement. Share structure: single-class common equity; no supermajority voting rights identified. Lobbying expenditure: not disclosed in proxy or 10-K materials; company does not report annual lobbying spend or PAC contributions in documents reviewed. Political activity: no explicit party-lean data provided; company mentions involvement in regulatory proceedings and industry associations but does not disclose lobbying targeting environmental deregulation or consumer-protection rollbacks. Regulatory fines and proceedings: FERC ROE complaints pending (four cases filed 2011–2016 challenging transmission return-on-equity); four complaints remain unresolved with material uncertainty; company maintains $39.1M reserve for second complaint period. No significant SEC consent decrees, antitrust proceedings, or privacy fines disclosed in current materials. Shareholder litigation: one shareholder proposal on 'Independent Board Chairman' policy submitted for 2026 meeting; company recommends AGAINST the proposal, citing existing governance structures. CHECKLIST A: No litigation blocking shareholder climate proposals identified.

Criticisms on file

Combined CEO/Chairman role: Joseph R. Nolan, Jr. serves as Chairman of the Board, President, and Chief Executive Officer, concentrating leadership authority without separation of roles.
Source: ES Proxy Statement 2026, Chairman Letter and Item 1 Election of Trustees; CEO is not independent trustee.
Four pending FERC ROE complaints (filed 2011–2016) challenging transmission return-on-equity rates as unjust and unreasonable; company maintains $39.1M reserve for second complaint period; resolution could have material financial impact; company unable to reasonably estimate range of potential loss.
Source: ES 10-K 2025, MD&A 'FERC Regulatory Matters—FERC ROE Complaints' section, pages 38–39.
Shareholder proposal 'Independent Board Chairman' requesting mandatory separation of CEO and Chairman roles; Board recommends AGAINST, stating current governance structures adequate.
Source: ES Proxy Statement 2026, Item 4 'Shareholder Proposal Titled Independent Board Chairman', pages 82–84.
Aquarion water distribution sale regulatory denial: PURA denied approval of $2.4B sale to Aquarion Water Authority on November 19, 2025 citing governance and oversight concerns; appeal sustained by Connecticut Superior Court on January 15, 2026 and remanded to PURA for decision by March 25, 2026; creates regulatory and legal uncertainty.
Source: ES 10-K 2025, MD&A 'Aquarion Sale Status and Regulatory Denial' section, pages 37–38.
Lobbying expenditure and political activity not disclosed; company does not report annual lobbying spend, PAC contributions, or political alignment in proxy or 10-K materials.
Source: ES Proxy Statement 2026 and 10-K 2025; no lobbying or political contribution disclosures found in governance sections.

Disclosed initiatives

Board Independence and Composition

9 of 10 trustees (90%) are independent. 8 of 10 have served ≤8 years, supporting board refreshment. Board evaluates qualifications, skills, experience, and diversity annually.

Strong independent oversight; regular board evaluation enhances governance rigor.
Committee Structure and Oversight

Board maintains Audit, Compensation, Governance and Nominating, and Other committees. Committees meet regularly and oversee risk, compliance, executive compensation, and trustee selection.

Established committee governance for risk and compliance oversight.
Risk Governance: Cybersecurity, AI, ESG

Board oversees cybersecurity and physical security risks, AI governance and ethics, and sustainability/ESG/climate risks. AI use overseen by internal governance committee with policies, human oversight of critical decisions.

Board-level risk governance for emerging threats; AI governance framework established.
Shareholder Engagement Program

Company conducted comprehensive shareholder engagement on executive compensation following lower 2025 say-on-pay vote. Engaged institutional shareholders representing substantial portion of outstanding shares on pay-for-performance alignment and transparency.

Responsive to shareholder feedback; enhanced disclosure and performance metrics for 2026 compensation program.
Executive Compensation Governance

Clawback policies beyond Dodd-Frank; no hedging/pledging policy; share ownership guidelines (5x salary for CEO); enhanced formulaic annual incentive performance ranges with threshold, target, maximum outcomes; cap on performance share payouts at 100% of target if cumulative absolute TSR negative over three-year period (2026+).

Strengthened pay-for-performance alignment and risk controls; responsiveness to shareholder feedback on discretion and transparency.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Eversource Energy. 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 Eversource Energy in the app for interactive charts and portfolio building.

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