American Electric Power (AEP) is participating in a voluntary industry initiative to help provide electric industry investors with more uniform and consistent environmental, social, governance, and sustainability-related (ESG/sustainability) metrics. The company is incorporating the Edison Electric Institute’s (EEI’s) pilot ESG/sustainability reporting template into its long-term program of corporate accountability reporting.
“AEP has produced an integrated Corporate Accountability Report for the last eight years to provide a comprehensive view of our performance on key financial, environmental, social, governance and sustainability issues that are important to our shareholders, customers and other stakeholders,” said Nicholas K. Akins, AEP chairman, president and chief executive officer. “We are pleased to see the industry focus on becoming a model for ESG/sustainability reporting and developing uniform industry reporting criteria.”
AEP was a member of the steering committee that helped lead the EEI ESG/sustainability reporting effort. A working group comprised of institutional investors who specialize in asset management, ESG/sustainability, investment banking, and buy-side and sell-side research as well as electric company officials from various disciplines, including accounting, environment, ESG/sustainability, finance, treasury, investor relations and legal developed the pilot metrics.
Over the past 18 months, AEP and other members of the working group helped EEI develop the template for the qualitative information, including ESG/sustainability governance and strategy, and quantitative information, including portfolio data, emissions, and human and natural resources, that investors are seeking. The template also helps to provide investors with more clarity on risks from stranded assets and regulatory issues, as well as opportunities for investments in clean energy.
Vendors mentioned in this article:
- American Electric Power
- Edison Electric Institute
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