National Grid PLC
NGG
Utilities
2
exclusion reasons
2 themes
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.
National Grid PLC operates a natural gas distribution utility serving approximately 3.4 million customers in the Northeastern United States through its subsidiaries. Its gas business is a core segment, managing a network of over 4,000 miles of gas transmission pipelines and 37,000 miles of gas distribution mains. The company's financial statements show significant, ongoing capital investment in this gas infrastructure network.
The company has a substantial record of safety and regulatory violations related to its gas operations. ViolationTracker documents 23 separate utility safety violation cases, resulting in over $30 million in penalties. A 2007 House of Lords case documented that National Grid Gas plc was responsible for coal tar contamination beneath residential gardens, a legacy of gas manufacturing that constituted contamination "potentially harmful to health."
While National Grid has announced emissions reduction targets, its core business model remains dependent on the continued distribution and sale of natural gas. There is no announced plan to phase out its gas utility operations or transition its gas customer base to alternative energy sources, locking in fossil fuel reliance for the long term.
National Grid Gas plc, a statutory predecessor to National Grid PLC, has been held liable under UK contaminated land legislation for historical coal tar pollution. The High Court ruled the company responsible for contamination caused by its statutory predecessors, specifically concerning coal tar present beneath residential gardens, which the Environment Agency assessed as potentially harmful to human health and the environment.
In a separate incident, New York regulators cited National Grid in December 2018 following a natural gas explosion that injured three people and damaged multiple homes. The company has also been subject to an ongoing investigation by UK regulators for potential breaches of statutory environmental obligations and license conditions relating to its electricity transmission operations.
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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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