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Utilities

Hawaiian Electric Industries, Inc. (HE)

Utilities $2.3B market cap

Data as of July 17, 2026

Environment
62.00
People
72.00
Leadership
68.00

Environment story

Hawaiian Electric has set a 2045 net-zero commitment and established a 70% emissions reduction target by 2030 (now delayed due to supply-chain disruptions and credit-rating downgrades). Scope 1 emissions from fossil-fuel generation remain high (~73% of net energy from oil in 2026), with significant operational reliance on diesel, LSFO, and HSFO generation units. Scope 3 emissions are undisclosed. No major environmental controversies documented in SEC filing, but the company's renewable energy transition has slowed materially. Renewable Portfolio Standard achievement stands at 36.8% as of 2025, below the 40% target for 2030. Coal plant closure in September 2022 represents meaningful progress. Rooftop solar expansion and battery storage investments are underway but face supply-chain and financing headwinds. The company's divestiture of Pacific Current renewable assets (solar, BESS) in 2025 signals retreat from non-regulated clean energy, reducing overall decarbonization momentum.

Criticisms on file

  • Maui Windstorm and Wildfires (August 8, 2023): Brush fire classified as accidental by fire department; 102 confirmed fatalities in Lahaina. Hawaiian Electric faces settlement liability of $1.99 billion (out of $4.04 billion total defendant contribution). Settlement Agreements entered November 1, 2024, subject to final court approval. Settlement payments of ~$479 million annually for 4 years beginning no sooner than early 2026. Reputational and operational impact from infrastructure damage and potential role in fire ignition.
    Source: HEI 10-K 2025, Item 1A Risk Factors; Settlement Agreements disclosed in Note 2 of Consolidated Financial Statements
  • Delayed 2030 Emissions Reduction Target: Original 70% reduction goal (from 2005 baseline) now expected to miss 2030 deadline due to supply-chain disruptions, inflationary pressures, solar panel import policies, credit-rating downgrades, and investment tax credit repeal. Current estimated reduction is 25% as of Dec 31, 2025 (vs. 27% in 2024), representing a regression when adjusted for customer usage increase.
    Source: HEI 10-K 2025, Item 1, 'Electric Utility—Climate Action Plan' section
  • Credit Rating Downgrades: HEI and Hawaiian Electric downgraded below investment grade in August 2023 (Fitch B+, Moody's Ba3, S&P B+) following Maui wildfire litigation accruals. Downgrades impede independent power producers' ability to secure low-cost renewable-energy project financing and slow decarbonization pace.
    Source: HEI 10-K 2025, Item 1A Risk Factors; ratings table dated February 17, 2026
  • Pacific Current Renewable-Asset Divestiture: HEI divested all Pacific Current solar and battery storage project companies (Mauo LLC, Kaʻieʻie Waho Company LLC, Upena LLC, Alenuihaha Developments LLC) effective August 1, 2025, and is in process of selling remaining Mahipapa biomass facility. Strategic retreat from non-regulated clean energy contradicts climate action narrative.
    Source: HEI 10-K 2025, Item 1, 'All Other' segment; Note 3 of Consolidated Financial Statements
  • Fuel Oil Price Volatility and Inventory Risk: Utilities maintain 47 days of fuel inventory (Hawaiian Electric) and ~30 days (Hawaii Electric Light, Maui Electric); exposed to geopolitical oil-price shocks. Average fuel oil cost per MBtu fell from 2,060 cents (2023) to 1,632.9 cents (2025), but supply-chain fragility remains structural risk.
    Source: HEI 10-K 2025, Item 1, 'Electric Utility—Fuel Oil Usage and Supply' section

Disclosed initiatives

  • Coal Plant Closure
    State's last coal plant closed in September 2022 upon PPA expiry
    Eliminated one major fossil-fuel generation source
  • Rooftop Solar Expansion
    Target of adding ~50,000 rooftop solar systems (50% increase from ~90,000 baseline in 2021)
    Customer-sited solar generation reached 1,856.5 MWh in 2025, up from 1,691.2 MWh in 2024
  • Renewable Energy Procurement
    Target of adding >1 GW of renewable capacity beyond 2021 baseline; includes shared solar and geothermal expansion
    Purchased renewable energy increased from 3,549.1 MWh (2024) to 3,674.0 MWh (2025)
  • Grid-Scale Energy Storage
    Integration of battery energy storage systems (BESS) to support renewable intermittency
    Deployed through now-divested Pacific Current subsidiary; assets sold August 2025
  • Fleet Electrification
    Target 100% Class 1 vehicle electrification by 2035; 21% achieved as of Dec 31, 2025
    Pilot EV charging infrastructure and rate programs (EV-U, EV-J, EV-P, EV-MAUI) operational

Social story

Hawaiian Electric maintains a unionized workforce (~50% represented by International Brotherhood of Electrical Workers Local 1260) with a three-year CBA effective November 1, 2024–October 31, 2027 (3% annual wage increase, double-time callouts, 1% incentive bonus). No major documented union-suppression activities or recent strikes disclosed. CEO-to-worker pay ratio is not disclosed; unable to assess. Leadership diversity metrics are not disclosed in SEC filing; cannot determine if executive/board diversity exceeds or falls below 30% threshold. Company emphasizes inclusive culture, workforce development, safety-focused compensation (tied to recordable incidents and lost workdays), and employee wellness programs across emotional, physical, occupational, social, spiritual, intellectual, environmental and financial dimensions. Supply-chain human-rights risks are not explicitly addressed in provided filing sections. Overall, social disclosure is limited; union relations appear stable but transparency on pay equity and leadership demographics is insufficient.

Criticisms on file

  • Lack of Disclosed Diversity Metrics: SEC filing does not provide specific percentages of women, racial/ethnic minorities, or other underrepresented groups in executive leadership or board. Cannot verify compliance with 30% diversity threshold without additional disclosure.
    Source: HEI 10-K 2025, Item 1, 'Human Capital Resources' section—diversity data absent
  • CEO-to-Worker Pay Ratio Undisclosed: No CEO total compensation or median worker pay disclosed in provided 10-K excerpt. Cannot calculate pay ratio or assess equity against 200:1 threshold.
    Source: HEI 10-K 2025—compensation data not provided in excerpted text
  • Employee Turnover Rate Not Disclosed: No voluntary or involuntary turnover percentages provided. Headcount data shows minor fluctuations (HEI corporate 53 in 2025 vs. 75 in 2023; Hawaiian Electric 2,622 in 2025 vs. 2,654 in 2023) but no formal turnover metric.
    Source: HEI 10-K 2025, Item 1, 'Employees' section—turnover rates absent
  • Supply-Chain Human-Rights Due Diligence Not Addressed: Filing does not discuss sourcing of fuel, equipment, or materials with respect to labor practices, conflict minerals (e.g., cobalt for battery storage), or modern slavery risks in supply chain.
    Source: HEI 10-K 2025—supply-chain ethics sections not provided in excerpt

Disclosed initiatives

  • Culture of Inclusion and Belonging
    Company committed to fostering inclusive culture where employees can thrive, leveraging Hawaii's cultural diversity to reflect served communities
    Stated objective; no quantified metrics provided
  • Employee Development & Training
    Leadership development, technical training, apprenticeship programs, cybersecurity awareness, safety training, and supervisor transitions; tailored leadership programs and succession planning
    Ongoing programs aligned with performance goals and career pipelines
  • Safety and Health as Core Value
    Executive compensation tied to safety metrics (recordable incidents, lost workdays); zero-incident goal; extensive employee assistance programs, wellness activities, mental health support, gym/fitness discounts, financial wellness classes
    Safety culture embedded in operations; target-driven executive accountability
  • Workforce Stability & Market-Competitive Compensation
    Comprehensive benefits package, market-competitive and internally equitable pay; regular employee engagement surveys; strategic workforce planning
    Objective to create desirable workplace; specific pay-equity metrics not disclosed

Governance story

HEI operates as a utility holding company under PUC regulatory oversight and no dual-class voting structure is disclosed. Board independence percentage is not provided in the filing excerpt. The company has been subject to multiple regulatory frameworks (Performance-Based Regulation Framework effective 2020, Affiliate Transaction Requirements with PUC-mandated triennial compliance audits—most recent completed October 2025 with no findings). HEI is divesting non-utility subsidiaries (ASB sold December 31, 2024; Pacific Current assets sold March-August 2025) and has filed a revised request with the PUC to terminate ATRs and consolidate HEI and Hawaiian Electric boards/employees. Lobbying expenditures and political-action-committee contributions are not quantified in the provided excerpt. The company faces material regulatory and litigation risk from Maui wildfire settlement ($1.99 billion obligation), credit-rating downgrades (below investment grade as of Aug 2023), and going-concern doubts previously raised (now mitigated per Q3 2024 actions). No antitrust proceedings, major consumer-safety fines, or SEC enforcement actions are disclosed in the filing excerpt. Overall governance posture reflects compliance-oriented structure under utility regulation, but transparency on board composition, lobbying spend, and political alignment is limited.

Criticisms on file

  • Maui Windstorm and Wildfires Litigation Settlement: On August 8, 2023, brush fires in West Maui caused 102 confirmed fatalities and widespread property damage. Hawaiian Electric infrastructure allegedly contributed to fire ignition and spread. Settlement Agreements (effective Nov 1, 2024, subject to final court approval) obligate HEI/Hawaiian Electric to pay $1.99 billion (out of ~$4.04 billion total defendant contribution). Subrogation claims by insurers remain unresolved as of December 30, 2025 (defendants prevailed in judgment; plaintiffs appealed). Substantial doubt about going concern was raised Q2 2024 (now mitigated per Q3 2024 disclosures). Litigation risk and reputational damage remain material.
    Source: HEI 10-K 2025, Item 1A Risk Factors; Note 2 of Consolidated Financial Statements; Settlement Agreements disclosed therein
  • Credit Rating Downgrades Below Investment Grade: In August 2023, HEI and Hawaiian Electric were downgraded below investment grade by Fitch (B+), Moody's (Ba3), and S&P (B+) following accrual of $1.92 billion in wildfire liabilities. As of Feb 17, 2026, all three agencies maintain sub-investment-grade ratings with positive outlook. Downgrades restrict access to lower-cost capital, impair ability to finance renewable projects, and increase cost of debt. Company unable to issue commercial paper; reliance on asset-based lending facility (ABL) and equity raises (at-the-market program).
    Source: HEI 10-K 2025, Item 1A Risk Factors, 'HEI's and Hawaiian Electric's access to lower cost sources of capital...' and credit-rating table dated Feb 17, 2026
  • Going-Concern Doubt (Mitigated): Company disclosed substantial doubt about ability to continue as a going concern in Q2 2024 10-Q due to wildfire settlement obligations and lack of capital financing plan. Doubt was mitigated in Q3 2024 following availability of cash reserves ($502 million as of Dec 31, 2025), GLST1 restricted cash ($479 million), ABL facility, and ATM offering program. However, future inability to raise capital for remaining settlement payments could reactivate going-concern risk.
    Source: HEI 10-K 2025, Item 1A Risk Factors, 'There may be future conditions or events that raise substantial doubt...'
  • Regulatory Jurisdiction and Dividend Restrictions: PUC Agreement restricts Hawaiian Electric's dividend payments to HEI if consolidated common stock equity falls below 35% of total capitalization. As of Dec 31, 2025, equity was 42%, resulting in current dividend payment restrictions. Holding company cash-flow dependency on utility dividends creates financial risk if equity ratio deteriorates further.
    Source: HEI 10-K 2025, Item 1A Risk Factors, 'Holding Company Risk' and Note 15 of Consolidated Financial Statements
  • ATRs Termination Request: In June 2025, HEI/Hawaiian Electric requested PUC approval to terminate or suspend ATRs to enable corporate integration (consolidation of boards and employee transfer). PUC dismissed initial request (September 2025) without prejudice; revised request filed October 31, 2025. Consumer Advocate issued statement of support with conditions (February 4, 2026). Docket ready for decision as of February 5, 2026. Governance structure and board composition may materially change pending approval.
    Source: HEI 10-K 2025, Item 1, 'Regulation—Affiliate Transactions' and 'Commitments and Contingencies—Regulatory Proceedings—Performance-based Regulation Framework' in Note 4
  • Board Independence Not Disclosed: SEC filing does not provide percentage of independent directors or board composition details. Unable to verify compliance with 75% independence threshold or assess governance quality relative to peers.
    Source: HEI 10-K 2025—board composition and independence metrics not provided in excerpt
  • Lobbying Expenditures Not Quantified: Filing does not disclose annual lobbying spend or targets of lobbying activities (e.g., climate deregulation, consumer-protection rollbacks, renewable-energy incentive support). Cannot assess alignment with ESG objectives.
    Source: HEI 10-K 2025—lobbying expense and political-activity disclosures not provided in excerpt

Disclosed initiatives

  • Performance-Based Regulation Framework (PBR)
    Five-year multi-year rate plan with index-driven annual revenue adjustment (ARA), Exceptional Project Recovery Mechanism (EPRM), Performance Incentive Mechanisms (PIMs), and Shared Savings Mechanisms (SSMs) to incentivize renewables, grid services, DER interconnection, low-to-moderate income efficiency, and cost control
    Regulatory alignment with Hawaii's 100% RPS goal; enables timely cost recovery for decarbonization investments
  • Affiliate Transaction Requirements (ATRs) Compliance
    PUC-mandated triennial audits; internal code of conduct; compliance plans and policies; safeguards against cross-subsidization and market-power abuse. Most recent triennial audit (Jan 2022–Dec 2024) completed Oct 2025 with zero findings.
    Ensures separation between regulated utility and non-regulated subsidiaries
  • Corporate Integration and Divestiture Strategy
    Divested ASB Hawaii (December 2024), Hamakua Holdings (March 2025), solar/BESS assets (August 2025); pursuing termination/suspension of ATRs to consolidate HEI and Hawaiian Electric boards and operations into single entity
    Simplifies corporate structure; reduces affiliate complexity and regulatory oversight burden; may streamline capital allocation to utility core operations
  • Regulatory Transparency & Reporting
    PUC Agreement requires periodic financial disclosures, intercompany transaction reporting, and stakeholder engagement (Consumer Advocate, rate cases, docket proceedings). Website hosts SEC filings and PUC documents.
    Maintains public and regulatory visibility; supports investor and stakeholder accountability

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

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