The transmission and distribution (T&D) of electricity and natural gas are not major point sources of greenhouse gas emissions and therefore T&D activities face far fewer climate and financial risks. However, Quanta Services and Quanta’s customers are still heavily regulated with respect to the environment. Quanta Services is subject to a range of regulations, from discharges to air, water and soil, to the protection of Golden Eagles and other endangered and threatened species. Through direct communications with the company, Portfolio 21 learned that it has a strong compliance record with respect to environmental regulations and this as a competitive advantage. The company is also well positioned to service the United States’ aging electric power grids and insufficient natural gas pipelines.
Currently, just a fraction of its total revenues are derived from renewable energy projects; however, the company anticipates the future development of renewables will lead to increased sales in its electric transmission design and construction services. Quanta Services provides minimal environmental accounting. This is an area in which Portfolio 21 has asked the company to improve.
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 5/31/12 and may not reflect current opinions or subsequent events.