Public Service Enterprise Group Incorporated (PSEG)
Climate Impact & Sustainability Data (2018-2019, 2020, 2022)
Reporting Period: 2018-2019
Environmental Metrics
Total Carbon Emissions:13,043,184 tCO2e (2018)
Water Consumption:6.3 million cubic meters (2018)
Waste Generated:24,703 tons (2018)
Carbon Intensity:40% reduction since 2005
ESG Focus Areas
- Climate Change
- Energy Efficiency
- Cybersecurity
- Ethics
- Air Quality
- Employee Rights
- Customer Responsibility
Environmental Achievements
- Reduced PSEG Power’s carbon emission intensity by more than 40% since 2005
- Reduced absolute CH4 emissions by 21.7% from 2018 to the end of 2023 (GSMP II completion)
- Completed Phase I of Gas System Modernization Program (GSMP), replacing 450 miles of aging gas mains
- Sold its interest in Keystone and Conemaugh coal plants
- 97% of waste diverted from landfills
Social Achievements
- Received 2019 ReliabilityOne™ Award for Outstanding Reliability Performance
- Named one of America’s Most JUST Companies by Forbes
- Received a 2019 U.S. Transparency Award
- Increased spending with diverse suppliers to over $575 million (8% increase over 2017)
- Implemented a new volunteer program resulting in 19,500 additional volunteer hours
Governance Achievements
- Board of Directors actively oversees sustainability, ESG, and corporate citizenship
- Established a senior level role for sustainability (Senior Vice President for Corporate Citizenship)
- Formalized responsibility for sustainability function in 2018
- Increased transparency and disclosure by producing a climate report following the TCFD framework in 2020
- PSE&G obtained SAFETY Act liability protections from the U.S. Department of Homeland Security
Climate Goals & Targets
Long-term Goals:
- Achieve net-zero carbon emissions from PSEG Power’s generation fleet by 2050
Medium-term Goals:
- Reduce NOx, SOx, and Mercury emissions from PSEG Power’s generation fleet by 80%, 90%, and 95% respectively from 2005 levels by 2023
- Reduce Fresh water withdrawn by our generation fleet by 90% by 2023
- Reduce water that is not returned to the original water source after being withdrawn by 50% by 2023
Short-term Goals:
- Reduce CO2 emissions from PSEG Power’s generation fleet by 80% from 2005 levels by 2046
- Achieve a meaningful reduction in OSHA Recordable Incident Rate below current level by 2023
- Achieve a meaningful reduction in OSHA Days Away from work rate below current level by 2023
- Increase the percentage of total spending allocated to diverse suppliers to 30% by 2023
- Increase community investment in the PSEG Foundation’s “Clean Earth” strategic pillar to 20% of annual giving by 2023
Environmental Challenges
- Aging infrastructure requiring replacement
- Climate change impacts on infrastructure and operations
- Competition in wholesale energy markets
- Maintaining a skilled workforce in the face of an aging workforce
- Balancing the needs of various stakeholders
Mitigation Strategies
- Investing in infrastructure modernization (Energy Strong, GSMP)
- Implementing energy efficiency programs
- Investing in renewable energy sources (solar, offshore wind)
- Transitioning away from coal-fired generation
- Strengthening stakeholder engagement
Supply Chain Management
Responsible Procurement
- Rigorous pre-qualification review for new contracts
- Monitoring of key supplier performance
- Third-party compliance audits
- Supplier diversity program
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather
- Flooding
Transition Risks
- Regulatory changes
- Market shifts
Opportunities
- Development of energy-efficient products
- Growth in renewable energy
Reporting Standards
Frameworks Used: GRI Standards (Core Level), SASB Standards, TCFD framework (starting 2020)
UN Sustainable Development Goals
- Goal 7
- Goal 8
- Goal 9
- Goal 11
- Goal 13
PSEG's initiatives contribute to these goals through renewable energy, energy efficiency, infrastructure investments, community engagement, and climate action.
Sustainable Products & Innovation
- Energy efficiency programs
- Renewable energy projects
Awards & Recognition
- ReliabilityOne™ Award
- America’s Most JUST Companies
- U.S. Transparency Award
- We Value Our Veterans award
- Dow Jones Sustainability Index North America
- Most Trusted Brand by Escalent
- Investor-Owned Utility of the Year by SEPA
- Nuclear Energy Institute’s Top Innovative Practice Award
- America’s Best Employers for Diversity
- JUST 100 list
- Human Rights Council Corporate Equality Index
Reporting Period: 2020
Environmental Metrics
Total Carbon Emissions:14,243,955 tCO2e/year (Scope 1+2)
Scope 1 Emissions:13,378,214 tCO2e/year
Scope 2 Emissions:865,741 tCO2e/year
Water Consumption:7.2 million cubic meters/year
Waste Generated:593,582 tons/year
Carbon Intensity:479 lbs./MWh in 2019
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Reduction of methane emissions through PSE&G’s Gas System Modernization Program, expected to reduce emissions by up to 40,000 metric tons per year
- Elimination of coal from the fuel mix with the retirement of Bridgeport Harbor Unit 3 in June 2021
- $1 billion expansion of PSE&G’s energy efficiency programs to help customers save energy and improve air quality
- Agreement to invest in offshore wind through the Ocean Wind project
Social Achievements
- PSEG Foundation and corporate giving initiatives totaling $5 million directed to nonprofits for food security, pandemic response, and social equity
- Advancement of Diversity, Equity and Inclusion efforts
- Named to Forbes list of America's Best Employers for Diversity for the third consecutive year, and Forbes inaugural list of America’s Best Employers for Veterans
- Expansion of paid leave time benefits for employees impacted by COVID-19
Governance Achievements
- Continued enhancement of cybersecurity governance
- Robust political contributions disclosure and process controls. Ranked first tier in the 2020 CPA-Zicklin index
- ESG goals are a component of annual compensation for senior executives and employees
Climate Goals & Targets
Long-term Goals:
- Net-zero emissions by 2050
Medium-term Goals:
- Achieve zero work-related fatalities
- Meaningful reduction in OSHA Recordable Incident Rate and DART Rate
- Maintain PSE&G’s reliability performance in the first decile
- Convert all passenger vehicles, 62% of medium-duty vehicles, and 90% of heavy-duty vehicles to electric by 2030
Short-term Goals:
- Reduce CO2 emissions by 80% from 2005 levels by 2046
- Reduce NOx, SO2, and Mercury emissions by 80%, 90%, and 95% respectively from 2005 levels by 2023
- Reduce fresh water withdrawal by 90% by 2023
- Reduce water consumption by 50% by 2023
- Reduce landfill and incinerated waste to 4.78% of total waste by 2023
- Increase supplier diversity to 30% by 2023
- Increase community investment in Clean Earth pillar to 20% by 2023
Environmental Challenges
- COVID-19 pandemic impact on the economy and customers
- Social unrest following the death of George Floyd
Mitigation Strategies
- Residential shutoff moratorium
- Funding innovative policing studies
- Doubling donations to food resources
- Expanding paid leave time benefits
Supply Chain Management
Responsible Procurement
- Commitment to supplier diversity with a goal of 30% diverse supplier spend by 2023
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI, TCFD
UN Sustainable Development Goals
- 3.9
- 6.3
- 7.2
- 7.3
- 8.3
- 8.5
- 8.8
- 9.4
- 9.5
- 10.3
- 11.5
- 12.2
- 13
- 13.1
- 13.2
- 14.1
- 14.3
- 15.1
- 15.2
- 16.3
- 16.6
PSEG contributes to 11 of the 17 UN Sustainable Development Goals through its initiatives and operations.
Awards & Recognition
- Named to the Dow Jones Sustainability Index for North America for the 13th consecutive year
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:2,868,611 mt CO2e (Scope 1 & 2)
Scope 1 Emissions:1,878,390 mt CO2e
Scope 2 Emissions:990,221 mt CO2e
Scope 3 Emissions:16,803,359 mt CO2e (Category 3) + 10,377,934 mt CO2e (Category 11)
Renewable Energy Share:Not disclosed
Total Energy Consumption:6,188,548 MWh
Water Consumption:2.5 million m3
Waste Generated:631,312 mt (total solid waste)
Carbon Intensity:0.084 mt CO2e/MWh (Scope 1 & 2)
ESG Focus Areas
- Climate Change
- Diversity, Equity, and Inclusion (DEI)
- Environmental Stewardship
- Social Responsibility
- Governance
- Affordability
- Reliability
- Customer Service
- Environmental Justice
- Just Transition
Environmental Achievements
- Reduced methane emissions by approximately 22% compared to 2018 levels.
- Achieved a 303,910-metric ton reduction (CO2e) since 2011.
- Completed the sale of its 6,750 MW fossil generating fleet and Kalaeloa cogeneration facility, resulting in 100% carbon-free generation.
- Installed one millionth smart meter (with a goal of 2.3 million by end of 2024).
Social Achievements
- Donated over $12 million to charitable causes in 2022.
- Over 6,000 employees volunteered over 30,000 hours.
- Provided utility bill assistance to 220,000 customers.
- Launched Clean Energy Jobs program, placing over 2,400 people from underrepresented communities into jobs.
- Achieved its goal to spend 30% with diverse suppliers by 2023 (two years ahead of schedule).
Governance Achievements
- Board retained an independent third party to conduct an effectiveness assessment.
- Amended By-Laws to reduce the threshold needed to call a special meeting of stockholders.
- Implemented Supplier Standards of Conduct in 2021.
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Reduce Scope 1 and 2 emissions to net-zero by 2030.
Environmental Challenges
- Severe weather events impacting systems and causing service outages.
- Changes in legislation and regulation impacting business.
- Changes in customer energy preferences.
- Potential negative effects on access to capital markets due to climate change.
- Climate change lawsuits.
- Global shortage of transformers.
- Affordability concerns for customers.
Mitigation Strategies
- Investments in grid resilience (Energy Strong program, GSMP, Infrastructure Advancement Program).
- Collaboration with government officials and stakeholders.
- Investments in energy efficiency and renewable energy.
- Hedging program to limit gas price volatility.
- Accelerated production and delivery schedules with vendors.
- Diversified sourcing network.
- Expanded refurbishment program.
- Payment assistance outreach campaign.
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Supplier Standards of Conduct
- Focus on diversity in supply chain
- Emphasis on local economic development
Climate-Related Risks & Opportunities
Physical Risks
- Severe weather events
- Flooding
- Extreme heat or cold
- Wildfires
Transition Risks
- Changes in legislation and regulation
- Changes in customer energy preferences
- Impacts on access to capital markets
Opportunities
- Investments in energy efficiency and renewable energy
- Modernization of utility infrastructure
Reporting Standards
Frameworks Used: GRI, SASB, TCFD
Certifications: Null
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
PSEG's operations touch upon several SDGs, particularly those related to health and safety, DEI, community engagement, climate change, and affordability and reliability.
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- America’s Most Responsible Companies 2022
- Dow Jones Sustainability North America Index
- Drive Electric Award
- ENERGY STAR Partner of the Year Award
- ReliabilityOne® Award