Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Completion of the Híilangaay hydroelectric project, converting Prince of Wales Island to near-100% renewable energy.
• Gustavus Intertie project, allowing Glacier Bay National Park to switch to clean energy from AP&T's hydropower, avoiding 18,000 tons of CO2 over 30 years.
• Sale of Renewable Energy Certificates (RECs) for its entire hydropower generation fleet.

Social Achievements

• Charitable contributions totaling $23,000 to various Alaskan communities.
• Partnership with Sealaska Corporation to offer a $1,000 incentive for heat pump installations, leveraging over $500,000 in consumer investment in beneficial electrification.
• Year-long training program for Customer Service Representatives focusing on improving customer interactions.

Governance Achievements

• Integration of Enterprise Risk Management (ERM) and Environmental, Social, and Governance (ESG) best practices into the AP&T achievement framework.
• Succession management plan to identify and develop successors for key positions.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions impacting timely acquisition of materials and equipment.
• Inflationary pressures increasing the cost of operations.
• COVID-19 related impacts on travel, social distancing, and project timelines.
• Obsolescence of existing power metering systems.

Mitigation Strategies

• Aggressive stance on early ordering and building up inventories of critical items.
• Proactive cost management and expense control.
• Adaptation to remote work practices and virtual meetings.
• Evaluation of alternative metering systems, including wireless-based systems.

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and services

Sustainable Products & Innovation

• Heat pumps

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Responsibly reducing the use of fossil fuels by identifying cost-effective opportunities, promoting renewable energy sources, developing plans for interties to renewable grids, participating in the Diesel Emissions Reduction Act program, and supporting carbon credit trading.
• Improving energy efficiency efforts by promoting energy efficiency and alternative heating sources, providing heat pump incentives, and facilitating donations of heat pump systems.
• Protecting wildlife, minimizing waste, and reducing pollutant emissions by operating low-impact hydro facilities, maintaining raptor protection, responsibly monitoring fish habitats and water levels, and seeking to lower airborne and land pollutants.

Social Achievements

• Empowering rural Alaskans to participate in cost-saving programs for telecom and energy services.
• Local organization involvement/volunteerism and charitable contributions.
• Emergency Assistance Program for employees and customers in need.
• Supporting indigenous values and tribal stakeholder objectives.
• Establishing a robust apprenticeship program for workforce development.

Governance Achievements

• Maintaining a diverse seven-member board with five independent directors and three standing committees (Audit and Risk, Governance and Nominating, and Compensation).
• Ensuring transparency and accountability through company policies promoting loyalty, honesty, full disclosure, good faith, and fair dealing.
• Implementing a cybersecurity policy to protect customer and corporate data.

Climate Goals & Targets

Environmental Challenges

• Challenges in sourcing highly skilled new employees to replace retiring employees.
• Changes in Alaska’s economic environment impacting revenues and growth opportunities.
• Reliance on government subsidies for regulated electric and telecommunications customers.
• Potential financial covenant violations with CoBank.
• Risks related to operational compliance, regulatory changes, political/legal/economic instability, seasonal factors, weather-related disasters, and unforeseen tax consequences.
• Competition from alternative service providers using disruptive technologies (LEO satellites).
• Customer churn impacting telecom segments.
• Inflationary pressures impacting cost of operations.

Mitigation Strategies

• Adoption of an Enterprise Risk Management (ERM) framework.
• Proactive cost and expense management.
• Strategic investments in infrastructure and technology.
• Collaboration with stakeholders and government agencies.
• Focus on employee retention and recruitment.

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Growth in heat pump and electric vehicle adoption.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Constructed a 38kW solar project in Tok (largest to date), with plans to expand to 250kW.
• Completed a rebuild of the 5MW Híilangaay hydropower project’s exciter end, increasing long-term reliability.

Social Achievements

• Charitable contributions totaling $35,000 to various Alaskan communities.
• Continued investment in employee health and welfare, and a collaborative work environment.
• Partnering with tribal organizations for cooperative renewable energy development.

Governance Achievements

• Seven-member board, including five independent directors, oversees strategy and operations.
• Three standing committees (Audit & Risk, Compensation, and Governance & Nominating) comprised of independent directors.

Climate Goals & Targets

Environmental Challenges

• Decline in land-line telephone services due to cellular growth.
• Broadband competition from low-earth orbit satellites (e.g., Starlink), leading to price erosion.
• Challenges in sourcing highly skilled employees to replace retirees.
• Changes in Alaska's economic environment impacting revenues and growth opportunities.
• Reliance on government subsidies susceptible to legislative or regulatory changes.
• Potential financial covenant violations with CoBank.
• Risks related to operational failures, compliance changes, political instability, weather events, and tax consequences.
• Competition from alternative service providers and federally subsidized competitors.
• Loss of customers due to competition impacting telecom revenues.

Mitigation Strategies

• Investing in fiber optic infrastructure ('Fiber to the Home' - FTTH) to improve broadband service and retain customers.
• Offering new broadband packages with higher speeds and lower prices to compete with LEOs.
• Focusing on AP&T's local presence and community-mindedness as a competitive advantage.
• Developing a strong social media and marketing strategy.
• Exploring new energy sources (solar, battery) to mitigate rising diesel generation costs and emissions.
• Pursuing energy grants to support reliability, lower costs, and renewable energy goals.
• Partnering with Tanana Chiefs Conference on solar and intertie grant requests.
• Implementing an Enterprise Risk Management framework.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Weather-related disasters

Transition Risks

• Changes in government subsidies

Opportunities

• Development of renewable energy projects