Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Pipeline Safety
• Gas Infrastructure Modernization
• Electric Infrastructure Enhancements
• Energy Efficiency
• Community Investment
• Economic Development
• Employee Wellness

Environmental Achievements

• Reduced carbon emissions by nearly 23% since 2005
• Invested more than $400 million in emissions control equipment
• Recycled nearly 350,000 tons of waste in 2013
• Replaced oil-insulated circuit breakers with environmentally friendly gas-insulated circuit breakers
• Spent more than $1 million on energy efficiency projects at operating facilities in 2013

Social Achievements

• Contributed over $2.3 million to nonprofit organizations in 2013
• Vectren employees recorded more than 31,000 volunteer hours in 2013
• Donated nearly $730,000 to the United Way
• Offered tuition-only scholarships to economic development practitioners
• Initiated revitalization efforts in Terre Haute neighborhood
• Improved customer experience through online self-service options and mobile app
• Achieved a 69% favorable score on the 2014 employee engagement survey

Governance Achievements

• Renamed Corporate Affairs Committee to Corporate Responsibility and Sustainability Committee to elevate sustainability oversight
• 100% of management employees received anti-corruption training
• Successfully passed an OFCCP desk audit in 2014

Climate Goals & Targets

Environmental Challenges

• Compliance with EPA's Mercury and Air Toxics Standards (MATS)
• Balancing carbon reduction with customer bill impacts

Mitigation Strategies

• Proposed delaying bill impacts from power plant upgrades necessary to comply with MATS
• Continuously seeking opportunities to reduce carbon footprint and increase efficiency

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Competitive bidding processes
• Timely payments
• Supplier Diversity & Development Program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3.1, Electric Utility Sector Supplement (EUSS)

Awards & Recognition

• 2014 ReliabilityOne™ Award for Outstanding Midsize Utility
• American Heart Association’s Fit Friendly Platinum award (2013)
• Gold Wellness Council of America (WELCOA) “Well Workplace” Award (2014)

Environmental Metrics

ESG Focus Areas

• Sustainability
• Safety
• Compliance
• Community Relations
• Customer Relations
• Human Equity

Environmental Achievements

• Continued implementation of gas and electric efficiency programs
• Planned closure of certain ash ponds
• Monitoring current and emerging political and social action, and public policy and environmental issues

Social Achievements

• Ongoing measurement of customer satisfaction
• Continued focus on establishing a safety first culture
• Activities of the Vectren Foundation
• Company’s ongoing Human Equity Initiative

Governance Achievements

• Adoption of the principles embodied in the Shareholder Director Exchange (SDX) Protocol
• Annual review of the Corporate Governance Guidelines
• Establishment of rigorous processes relating to the role of the Lead Director
• Adoption of a majority Board election standard

Climate Goals & Targets

Environmental Challenges

• Potential impact of a stay of the Clean Power Plan rule and the potential for common law suits
• Compliance with the requirements imposed by the North American Electric Reliability Corporation, as well as pipeline safety matters
• Potential disruptive impacts of technology developments
• Regulatory and ratemaking matters

Mitigation Strategies

• Ongoing implementation of a Safety Management System (SMS)
• Engagement of Price Waterhouse Coopers to conduct an SMS reassessment
• Improvements to the Company’s compliance framework
• Regular reports from management and external advisors regarding potentially disruptive forces

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI)