Climate Change Data

Environmental Metrics

ESG Focus Areas

• Resource diversity
• Sustainability of the portfolio
• Rate stability and predictability
• Environmental sustainability
• Economic efficiency
• Community investment

Environmental Achievements

• Transitioning to a more diverse generation mix including wind, solar, and natural gas, aiming for long-term environmental sustainability and cost savings for members.
• Harnessing the power of the sun and turning landfill waste into energy.

Social Achievements

• Helped NTN Driveshaft expand its Columbus, Indiana facility by accommodating additional power needs.
• Landed more than 60 projects in 16 member system territories representing $485 million in investment, adding more than 2,500 new jobs and 23 MW of demand.
• Returned $6.5 million in patronage credits to member systems in 2019, totaling $131 million since 2000.
• Developed programs to improve energy efficiency for commercial and industrial members.

Governance Achievements

• Modernizing tariffs to ensure meeting future member needs.
• Transparent rate design promoting fairness.
• Solid A credit ratings and timely credit actions supporting a low cost of capital.

Climate Goals & Targets

Environmental Challenges

• Meeting future member needs with a changing energy landscape powered by consumer preference, technology, and sustainability.
• Balancing top performance with associated costs.
• Managing risks associated with extreme weather events and maintaining grid reliability.
• Addressing the industry shift away from fossil fuels.

Mitigation Strategies

• Developing a 20-year resource plan that includes low-cost wind, solar, natural gas, and storage resources.
• Exploring emerging technologies such as battery storage and consumer incentives.
• Implementing flexible grid operations.
• Maintaining a diversified generation portfolio.
• Modernizing rate design and tariffs.
• Working with the Indiana Legislature to improve the state's competitiveness for data center development.

Supply Chain Management

Responsible Procurement

• Long-term contracts for coal supply

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Industry shift away from fossil fuels

Opportunities

• Development of renewable energy resources

Environmental Metrics

ESG Focus Areas

• Resource diversity
• Beneficial electrification
• Cost management
• Rate competitiveness
• Renewable energy
• Grid management
• Workforce development
• Economic opportunity
• Environmental sustainability

Environmental Achievements

• Developed a long-range resource plan designed to reduce the carbon footprint by 80 percent over the next two decades.
• Transitioning to a more diverse energy generation mix that includes wind, solar, natural gas, and storage.

Social Achievements

• Implemented member assistance measures including extended payment terms for power bills, special retirement of capital credits, and cost reductions.
• Launched an electric vehicle smart charging pilot program to gather data on consumer charging patterns.
• Developed a comprehensive, interactive communications map to identify areas of potential collaboration in emerging technologies.
• Provided retraining for workers affected by the planned retirement of the Merom Generating Station.

Governance Achievements

• Board of Directors approved a new long-range resource plan.
• Constructive dialogue on challenges including power supply choice, renewable energy options, and flexible rates.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on operations and financial performance.
• Economic uncertainty associated with the COVID-19 pandemic.

Mitigation Strategies

• Adapted operations and services to ensure workforce safety while continuing to provide essential services.
• Implemented member assistance measures to cushion the blow of the pandemic.
• Quickly adapted its operations and services to ensure our workforce remained safe while continuing to provide essential services to member systems.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Site Selection Magazine named Hoosier Energy as one of the nation’s top 10 utilities in economic development for 2020.

Environmental Metrics

ESG Focus Areas

• Affordability
• Air Emissions
• Biodiversity
• Community Contributions
• Data & Cyber Security
• Financial Strength
• Good Governance
• Good Place to Work
• Greenhouse Gas Emissions
• Portfolio Metrics
• Portfolio Strategy
• Public Policy
• Reliability
• Safety
• Water Consumption
• Waste Production

Environmental Achievements

• 38% decrease in CO2 emissions since 2005
• 30% decrease in coal ash generated in 2022
• 87% decrease in NO2 emissions since 2005
• 91% decrease in SO2 emissions since 2005
• Over 64% reduction in carbon emissions since 2005

Social Achievements

• 33% increase in gender diversity among women member system CEOs as of year-end 2022
• Employee engagement and retention remained strong despite pandemic labor market impacts
• Nearly 40% improvement in safety performance since 2018
• Employees participated in volunteer programs and charitable activities (Habitat for Humanity, Hoosier Energy Endowment Fund, American Red Cross)

Governance Achievements

• Total patronage credits of $178M given back to member systems in 2022
• Maintained A credit ratings

Climate Goals & Targets

Environmental Challenges

• Rapidly rising inflation
• Ongoing global supply chain disruptions
• Shifting policy considerations around generation assets and emerging technology
• Increased volatility in the energy sector due to pandemic, rising interest rates, inflation, and supply chain disruptions

Mitigation Strategies

• Responsible decision making
• Investment in critical infrastructure
• Optimizing generation portfolio to enhance reliability at affordable rates
• Hedging activities to protect against market uncertainty
• Employing interruptible contracts to lessen capacity requirements
• Securitization discussions to protect Hoosier and its members
• Flexible strategies reflecting collective risk tolerance
• Exploring new avenues of value for resource portfolio (RECs, flexible rate design, green tariffs, DSM, energy efficiency, smart thermostats)
• Enterprise risk management program

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB