American Electric Power (Nasdaq: AEP) issued the 2023 Corporate Sustainability Report, an annual assessment of its performance as a public company and community partner. This report marks AEP's 17th year of environmental, social and governance (ESG) disclosure, demonstrating its commitment to reporting the company's progress toward a sustainable energy future.
The report's theme, "Delivering the Power of Opportunity", reflects AEP's sustainable growth strategy, which is focused on a clean and just transition; environmental compliance and stewardship; employee well-being and engagement; social justice and equity; and strong and effective corporate governance.
In 2022, AEP adjusted its near-term carbon dioxide emission reduction target from a 2000 baseline to a 2005 baseline, upgraded its 80% reduction by 2030 target to include full Scope 1 emissions and accelerated its net zero goal by five years to 2045. The company plans to reach net zero emissions by investing in renewable generation and energy storage, supporting expanded grid development, exploring emerging low- and zero-emission generation technologies, and steadily reducing emissions over time.
"Our goal to achieve net zero greenhouse gas emissions by 2045 will require an "all of the above" strategy that is focused on investing in our people, our communities and the grid. We are already making significant progress. We've achieved a 66% reduction in Scope 1 GHG emissions since 2005 and retired or sold nearly 13,500 megawatts of coal-fueled generation over the past decade," said Julie Sloat, AEP's president and chief executive officer, in the report's introduction.
The company also is capitalizing on federal support for clean energy investments, which include the bipartisan Infrastructure Investment and Jobs Act and the Inflation Reduction Act. These grants will help support AEP's efforts to upgrade infrastructure and improve resilience, expand access to high-speed broadband for rural communities and invest in clean energy technologies.
AEP is committed to capacity building and economic diversification to create long-term sustainable growth for its customers, communities and the company. In 2022, AEP helped attract 101 new customer projects and $28 billion in capital investment across its 11-state service territory.
"We're seeing the tangible benefits of our long-term, strategic economic development program, despite global economic uncertainty and inflationary cost pressures. Normalized industrial sales were up 4.5% largely because of our efforts. This includes the added benefits of attracting jobs, tax revenue and new residents, all of which provide cascading benefits to help keep customer rates low and our communities strong," said Sloat.
The report also provides access through AEP's ESG Data Center to the most requested metrics about the company's performance.
View the 2023 Corporate Sustainability Report and learn more about AEP's sustainable development strategy.
American Electric Power, based in Columbus, Ohio, is powering a cleaner, brighter energy future for its customers and communities. AEP's approximately 17,000 employees operate and maintain the nation's largest electricity transmission system and more than 225,000 miles of distribution lines to safely deliver reliable and affordable power to 5.6 million regulated customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 30,000 megawatts of diverse generating capacity, including more than 7,000 megawatts of renewable energy. The company's plans include growing its renewable generation portfolio to approximately 50% of total capacity by 2032. AEP is on track to reach an 80% reduction in carbon dioxide emissions from 2005 levels by 2030 and has committed to achieving net zero by 2045. AEP is recognized consistently for its focus on sustainability, community engagement, and diversity, equity and inclusion. AEP's family of companies includes utilities AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. For more information, visit aep.com.
