MEMORANDUM

NextEra Energy, Inc. Shareholder ProposalRequest to report on the

financial risks to investors posed by sea level rise
Vote FORShareholder Proposal 7 for Sea Level Rise Risk Report (page 31
of NEE proxy materials)
https://materials.proxyvote.com/Approved/65339F/20160323/NPS_277986.
PDF
Shareholders request that beginning Dec. 1, 2016, the Board of Directors provide an
annual report, prepared at reasonable cost and omitting proprietary information, on
material risks to operations, facilities, and markets based on a range of sea level
rise scenarios projecting forward to 2100 based on best available science.
Why a FOR vote on the Shareholder Proposal:
The economic, business and societal impacts of climate change are of critical and
growing importance to investors. Recent scientific analysis predicts significantly
higher sea level rise. NEE main market, through its wholly owned subsidiary Florida
Power and Light, is among the most vulnerable in the nation. Consensus among
climate scientists is that sea level rise has been three to six feet by 2100, but new
evidence suggests that change could be more rapid and impact NEE markets and
infrastructure within planning horizons.
Sea level rise poses significant risk to NextEra shareholders in several ways:

The Companys main markets encompass low-lying parts of the nation where
life and commerce will be significantly disrupted by sea level rise,
Significant financial risk for the Companys existing and proposed electricity
and nuclear facility operations,
Hedging strategies, cash management and real risk should reflect risk to
markets and assets from sea level rise
Investment horizons for federal permitting, construction and operation of
nuclear facilities do have practical implications to 2100,
Pending licenses for new nuclear reactors in low-lying coastal areas like
Homestead, Florida fail to incorporate best available science on SLR across a
range of scenarios, and do not fully account for extraordinary risk to
investors,
Companies seen as being unable or unwilling to address sea level rise
impacts will likely face market disruptions, including public disapproval and
significant brand damage.

Vote FOR Shareholder Proposal on Sea Level Rise Report

Although NextEra Energy in its energy portfolio appeals to socially responsible
investors, and although a central aspect of its marketing to socially responsible
investors is based on being a worlds most ethical company, its actions do not
comport with either clear communication externally on the real and quantifiable
impacts of sea level rise risks. NextEras public disclosure of information related to

sea level rise is insufficient to allow investors to assess how the company is
incorporating this risk in business models.
Addressing climate change is good business
NextEra, one of the largest electric utilities in the nation, and its principal
subsidiary, Florida Power and Light, operate in the most at-risk area of the nation
with respect to sea level rise: Florida.
Boston and other coastal cities may want to batten down the hatches,
reported Newsweek, April 1, 2016. A new study from climate scientists at the
University of Massachusetts Amherst and Pennsylvania State University
warns estimates of future sea level rise may be significantly underestimated.
Boston, for example, could see about 5 feet of sea level rise in the next
100 years, according to the researchers. The most recent prediction by the
Intergovernmental Panel on Climate Change is that the sea level will rise as
much as 38 inches by the year 2100 because of melting glaciers and the fact
that warming makes water expand.
Researchers Robert DeConto and David Pollard argue that this estimate fails
to take into account atmospheric warming in Antarctica that will melt major
ice shelves and elevate sea levels another 3 feet over earlier estimates by
2100 to 6 feet total ...
http://www.newsweek.com/ice-melt-antarctica-will-raise-sea-levels-sooner-wethought-442868
NextEras asset base and markets will be severely impacted by sea level rise, even
if its facilities are hardened. Yet the Companys main business unit, Florida Power
and Light, is planning for less than one foot of sea level rise during the asset
lifetime of two planned nuclear reactors, to cost at least $20 billion. Climate change
portends increased ocean temperatures and weather extremes. The real, hard costs
will meet sea level rise realities and could impose unlimited liability on the
Company, but the Company perversely calls the shareholder proposal a waste of
time and money.
The measure proposes that NEE management should report to investors and
shareholders on the impact of sea level rise under a range of SLR scenarios,
according to best available science.
According to the National Oceanic and Atmospheric Administration (NOAA), all but
one of the hottest years ever recorded have occurred since 2000. The last two
years, 2014 and 2015, were the hottest ever. December 2015 was the warmest
month of any month in the period of record, at 1.11C (2.00F) higher than the
monthly average, breaking the previous all-time record set just two months ago in
October 2015 by 0.12C (0.21F). This is the first time in the NOAA record that a
monthly temperature departure from average exceeded 1C or reached 2F and the
second widest margin by which an all-time monthly global temperature record has
been broken For the oceans, the globally-averaged temperature anomaly of
+0.83C (+1.49F) was the highest on record for December, surpassing the
previous record set in 2009 by 0.19C (0.34F).

NextEra Energys infrastructure is extraordinarily vulnerable to sea-level rise and

weather extremes exacerbated by climate change. Failure to use best available
science to evaluate the impact of a range of sea level rise scenarios to markets,
operations, and facilities exposes the Companys shareholders to unlimited financial
risk. It also exposes the company to complaints by investors, whether or not their
investments are guided by socially responsible standards.
The risks of misjudging climate change impacts are already manifesting in NEE
business units like Florida Power and Light (FPL), its largest subsidiary. In 2008, FPL
sought and obtained uprating for two nuclear reactors at Turkey Point, ignoring
citizen concerns. Partly as a result of the uprating and partly as a result of
increasing air and water temperatures in South Florida, the facilitys 168 mile,
closed-loop cooling canal system is failing to meet NRC and state standards,
triggering civil citations and fines, threat of a federal Clean Water Act lawsuit and
intensive federal NRC review of process and procedures.
Currently, spent nuclear materials are stored above ground at Turkey Point. NextEra
assures the public that spent nuclear fuel is safe under any conditions of sea level
rise, but it is hardly a waste of time and money to assess for investors the risk to
safety when sea level rise infiltrates surrounding roads and infrastructure.
Vote FOR Shareholder Proposal on Sea Level Rise
Sea level rise is an extraordinary risk to NextEra shareholders and investors.
Management should report on the specific risk exposure and liabilities. The proposal
asks NextEra management to report to shareholders on real and quantifiable risks
from SLR on the companys markets and infrastructure assets, based on a range of
sea level rise scenarios.
NextEra faces an increasingly skeptical public and critical media.
NextEra has had problems with its public image in recent years. FPL plans to build
new power generation facilities generate steady local public opposition. Its highly
contentious state siting process for new reactors at Turkey Point triggered
complaints by local jurisdictions over high voltage power lines in urban corridors, by
environmental neighbors and advocates for Everglades National Park. The Company
shouldered aside civic opposition to financial feasibility while setting up heated
battles in local elections.
NextEras public reputation would be much ameliorated by full disclosure of sea
level rise risk.
Vote FOR Shareholder Proposal on Sea Level Rise Risk.
NextEra provides inadequate disclosure of its financial risks pertaining to climate
change, especially as it relates to the impact of sea level rise on share value, and
what actions the company intends to take to address these risks. Without improved
disclosure, shareholders cannot adequately assess the climate risks of their
investment in NextEra Energy.
In their Opposing Statement, NextEra claims that they are providing appropriate
disclosures to investors regarding climate change and its associated risks, stating

that the preparation of the requested report would be duplicative and an

unnecessary waste of company resources.
However, given the visible impact of climate change on existing
operations, none of the listed documents even mention sea level rise.
Below are what the Company lists as examples of the implementation of climate
risk assessment; these do not provide adequate disclosure or information.
Annual report on Form 10-K and quarterly reports on Form 10-Q filed with the SEC:
these documents note both regulatory and weather-related risks that may have a
material impact on the Companys business, operations and assets, but these
disclosures ignore real, quantifiable risks from sea level rise.
The Company makes available an annual corporate responsibility report, but in
failing to account for the real and quantifiable risks of sea level rise, investors and
the public are denied a clear way to assess the Companys performance, now and in
the future.

Conclusion
While we acknowledge the steps NextEra has taken to mention climate change and
weather-related risk in its 10-K and 10-Q filings, and the steps NextEra has taken to
acknowledge pending regulatory risks, the Company must do more to disclose sea
level rise risk to markets, operations, and facilities.
To adequately protect its shareholders from the financial risks of sea level
rise, NextEra should provide an annual report to investors.
The economic costs and risks of climate change continue to mount. Cities and
states across the country recognize the imminent threat of climate change, and are
beginning to mandate that utilities analyze these risks. Utilities often have better
access to science and predictive models than local and state governments. The
Company contends that a report on sea level rise impacts would be highly
speculative and confusing, but what is most confusing is the Companys
unwillingness to contribute its understanding to investors about the real,
quantifiable risks of sea level rise; hardly a waste of time and money. Utilities
have an obligation to consider the effects of climate change on their operations, and
integrate these considerations in their own planning and disclosure to investors and
shareholders.
We understand that NextEra and its markets face serious financial challenges with
regard to sea level rise. Financial and reputational risks to the companys
shareholders are numerous. Since NEE takes pride in its ethical conduct, evidenced
in a comprehensive marketing strategy as a worlds most ethical company, so
investors and shareholders should ask for the same ethical treatment by NEE.
It is our recommendation that shareholders vote FOR this resolution.

NextEra Shareholder Proposal

Filer: Alan Farago and Lisa Versaci
Year: 2016
Sector: Energy
Subject(s): Report On Range Of Projected Sea Level Rise/ Climate Change Impacts
Resolved Clause Summary: NextEra Energy Inc.'s (Company/NextEra) operations
and markets will be substantially impacted by sea level rise (SLR), a geophysical
manifestation of climate change. The Company shall provide investors and
shareholders with an assessment of extraordinary risk based on a probable range of
sea level rise according to best available science.
WHEREAS: The Securities and Exchange Commission recognized the financial
impacts of climate change when it issued Interpretive Guidance on climate
disclosure in February 2010, including: Registrants whose businesses may be
vulnerable to severe weather or climate related events should consider disclosing
material risks of, or consequences from, such events in their publicly filed disclosure
documents.
The Companys principal subsidiary, Florida Power & Light Company (FPL), is one of
the largest rate-regulated electric utilities in the United States. Its markets are
among the most vulnerable in the nation to sea level rise.
SUPPORTING STATEMENT: Sea level rise as a consequence of climate change is an
extraordinary risk to the Companys markets and facilities, leading to diminished
energy utilization rates, downtime or closure of facilities due to damage to facilities,
danger to employees, disruption in supply chains, disruption of markets and power
supply, and unlimited financial liability.
According to NOAA: In the context of risk-based analysis, some decision makers
may wish to use a wider range of (SLR) scenarios, from 8 inches to 6.6 feet by
2100. In contrast, FPL planning documents for two new nuclear reactors at its
Turkey Point facility predict less than one foot SLR by 2100. FPL planning documents
omit current federal SLR guidelines and science-based analyses such as provided by
the Southeast Florida Regional Climate Compact / Sea Level Rise Work Group
assessment. Using the lowest estimate of SLR for the Companys planning purposes
leads to inaccurate information for shareholders.
BE IT RESOLVED: Shareholders request that NextEra Energy Inc. report material
risks and costs of sea level rise to company operations, facilities, and markets based
on a range of SLR scenarios projecting forward to 2100, according to best available
science. The requested report shall be available to shareholders and investors by
December 1, 2016, be prepared annually at shoreasonable cost and omit
proprietary information.