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.
RWE AG operates one of Europe's largest remaining coal-fired power generation fleets. The company's Niederaussem power station is a lignite-fired plant with a capacity of over 3,000 MW, and RWE Power AG manages its coal-fired generation segment. While the company is executing a coal phase-out plan in accordance with German law, including the shutdown of several units by the end of 2029, coal remains a primary and material part of its current business activity. RWE's own reporting indicates a significant portion of group revenue is still related to coal-fired power generation.
Investors engaging through Climate Action 100+ have acknowledged RWE's progress on phasing out coal and the validation of its climate targets. However, the company's operations continue to involve the mining and combustion of lignite, a particularly carbon-intensive fuel. The scale of its remaining coal assets and the timeline for their retirement mean coal is a dominant part of RWE's power generation mix and operational profile during the exclusion assessment period.
RWE AG is a defendant in the landmark climate liability case *Lliuya v. RWE AG*. A Peruvian farmer, Luciano Lliuya, alleges that RWE's historical greenhouse gas emissions are a substantial contributor to the melting of a glacial lake above his town of Huaraz, posing an imminent flood risk to his property. The Higher Regional Court of Hamm ruled in May 2025 that the case could proceed to the evidentiary phase, establishing a precedent that a private company can be held proportionately liable for climate change impacts far from its direct operations. The court's finding acknowledges that RWE's emissions constitute a factual contribution to environmental damage—specifically, the alteration of a hydrological system and the creation of a flood hazard—linking corporate conduct to tangible ecological harm.
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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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