This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Black Hills Corporation operates a utility generation fleet that is approximately 70% fossil-fueled, predominantly coal and natural gas, serving over 1.35 million electric and gas customers across eight states. Its carbon intensity significantly exceeds that of its peer utilities, placing it among the most emissions-intensive in the U.S. electric power sector. The company has actively opposed regulatory efforts to transition away from fossil gas infrastructure, arguing in Colorado that requiring gas utilities to support building electrification constitutes an unconstitutional taking.
While the company maintains an Environmental Management System aimed at zero violations, its operational footprint and strategic direction remain anchored in high-emitting assets. There is no evidence of a company-wide Science Based Targets initiative commitment or a published plan to phase out its coal-fired generation in alignment with climate science. Leadership's treatment of emissions governance appears defensive, focusing on compliance and challenging transition mandates rather than proactively decarbonizing its energy mix.
Black Hills Corporation is a natural gas and electric utility operating in eight states. Its operations have been linked to documented environmental contamination. In 2017, a subsidiary, Black Hills Trucking, Inc., was involved in a legal dispute with the North Dakota Industrial Commission over jurisdiction for a penalty related to a discharge of produced saltwater on a public road.
The company has also been cited by federal regulators. In 2023, Black Hills agreed to a settlement with the Federal Energy Regulatory Commission (FERC), paying a $150,000 civil penalty and agreeing to submit semi-annual compliance reports. While the specific violation is not detailed in the provided evidence, the FERC action indicates a regulatory failure concerning its operations.
Furthermore, the company's namesake region, the Black Hills, faces significant and ongoing environmental threats from historical mining activity, including acid rock drainage that contaminates water systems. Although this damage is primarily linked to abandoned mines rather than the utility's direct operations, the company bears the name and operates within this environmentally compromised landscape. Current evidence specific to the company's own material environmental damage is limited, suggesting a need for further investigation into its operational record regarding spills, contamination, or habitat destruction.
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A digest of changes to our exclusion list — new additions, removals, and the evidence behind them. We review the list continuously as new evidence surfaces.
Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.
This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.
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