Climate Change Data

The AES Corporation

Climate Impact & Sustainability Data (2017, 2018)

Reporting Period: 2017

Environmental Metrics

Total Carbon Emissions:63,497 thousand MT CO2e
Scope 1 Emissions:63,497 thousand MT CO2e
Scope 2 Emissions:226 thousand MT CO2e (location based)
Scope 3 Emissions:15,421 thousand MT CO2e
Water Consumption:6,618 million cubic meters
Waste Generated:8,879,824 metric tonnes CCPs

ESG Focus Areas

  • Financial Excellence
  • Operational Excellence
  • Environmental Performance
  • Stakeholder Engagement
  • Our People

Environmental Achievements

  • Reduced direct GHG emissions (Scope 1) from 70,339 thousand MT in 2015 to 63,497 thousand MT in 2017.
  • Increased CCPs recycled/reused from 33.9% in 2015 to 38.2% in 2017.
  • Brought online 20 megawatts of new battery-based energy storage arrays in the Dominican Republic.

Social Achievements

  • 35% decrease in Lost Time Incident (LTI) cases in 2017 compared to 2016.
  • Zero fatalities for AES people in 2017.
  • Average training hours per employee was 39 hours in 2017.

Governance Achievements

  • Eletropaulo transitioned its listing to Novo Mercado, a segment with high corporate governance standards.
  • Global Cybersecurity program implemented and regularly assessed.

Climate Goals & Targets

Environmental Challenges

  • Public fatal incidents due to contact with distribution infrastructure (27 in 2017).
  • External factors impacting customer satisfaction in El Salvador (reduced electricity subsidies and increased generation costs).
Mitigation Strategies
  • Established six key actions to strengthen workplace safety, resulting in zero fatalities for AES people and a 35% decrease in LTIs in 2017.
  • Implemented proactive safety initiatives such as safety walks and hazard identification.

Supply Chain Management

Responsible Procurement
  • Clear policies, procedures, terms and conditions
  • Supplier performance scorecards
  • Published policies and guidelines (safety, environmental, diversity)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Guidelines, version 4.0

Certifications: ISO 14001 (more than 80% of workforce in ISO 14001 certified businesses)

Third-party Assurance: Lloyd’s Register Quality Assurance Inc. (LRQA) - limited assurance for air emissions, water withdrawal and discharge, and CCP generation and recycling data.

Reporting Period: 2018

Environmental Metrics

Total Carbon Emissions:51,878 thousand MT CO2e
Scope 1 Emissions:51,878 thousand MT CO2e
Scope 2 Emissions:360 thousand MT CO2e (Location Based)
Scope 3 Emissions:10,893 thousand MT CO2e
Water Consumption:6,618 million cubic meters withdrawn
Waste Generated:8,879,824 metric tonnes CCPs generated
Carbon Intensity:0.61 MT CO2e/MWh

ESG Focus Areas

  • Financial Excellence
  • Operational Excellence
  • Environmental Performance
  • Stakeholder Engagement
  • Our People

Environmental Achievements

  • Scope 1 emissions stayed below the 2018 target. Actual Scope 1 emissions improved by 26 percent since 2015 due to emission reduction activities, conversion of coal units to gas, efficiencies, retirements and portfolio changes.
  • SO2 emissions trended down due to new installation of emission controls at some facilities.
  • IPL's Eagle Valley natural gas power plant significantly reduced its dependence on coal while delivering safe, reliable, and sustainable energy.
  • AES Colombia reduced water consumption by 33 percent since 2013 through its Program for Efficient Use and Water Saving.
  • 95% of CCPs were recycled/reused.

Social Achievements

  • Launched Global Diversity & Inclusion Program.
  • Provided 97 people with jobs at the Mong Duong 2 Power Plant and its contractors through the Livelihood Restoration Plan.
  • Trained 174 women as electrical technicians through the AES Woman program in El Salvador.
  • Educated more than 48,000 children and adolescents in El Salvador on safe and efficient electricity use through the Magical Energy program.
  • Achieved zero public fatal incidents.

Governance Achievements

  • Achieved investment grade financial metric of 3.95x Parent leverage one year early.
  • Paid down US$1 billion in Parent debt.
  • No significant cybersecurity event.

Climate Goals & Targets

Medium-term Goals:
  • Reduce carbon intensity by 70 percent from 2016 to 2030.
Short-term Goals:
  • Reduce carbon intensity by 50 percent from 2016 to 2022.

Environmental Challenges

  • Water availability is a critical risk factor for operations.
  • Cybersecurity threats to critical infrastructure.
  • Potential for public injury from contact with electrical infrastructure.
Mitigation Strategies
  • Hydrology Risk Committee identifies, monitors, and establishes best practices around hydrology risk.
  • Global Cybersecurity program reduces risk, improves cyber-hygiene, and protects privacy.
  • Public safety programs and campaigns mitigate risks of public injury.

Supply Chain Management

Responsible Procurement
  • Clear policies, procedures, terms and conditions
  • Supplier performance score cards
  • Published safety and environmental guidelines

Climate-Related Risks & Opportunities

Opportunities
  • Growth in renewables and energy storage

Reporting Standards

Frameworks Used: Global Reporting Initiative Standards, Electric Utility Sector Disclosures

Certifications: ISO 55001:2014 (Asset Management), ISO 14001 (EMS), OHSAS 18001 (SMS)

Third-party Assurance: Lloyd’s Register Quality Assurance Inc. (LRQA)

UN Sustainable Development Goals

  • Goal 4: Quality Education
  • Goal 8: Decent work and economic growth
  • Goal 17: Partnerships for the goals

Awards & Recognition

  • IndexAmericas Sustainability award for Social Innovation
  • Edison Award finalist
  • Utility Customer Champions
  • Utility Environmental Champion