Climate Change Data

American Electric Power

Climate Impact & Sustainability Data (2021)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:50,790,329 tCO2e (2021)
Scope 1 Emissions:56,401,080 tCO2e (2021)
Renewable Energy Share:20% (2021)
Total Energy Consumption:104,334,588 MWh (2021)
Water Consumption:1,560,629 million gallons (2021)
Waste Generated:3,439,697 tons (CCPs) (2021)

ESG Focus Areas

  • Decarbonization
  • Just Transition
  • Grid Modernization
  • Diversity, Equity & Inclusion
  • Customer Access & Affordability
  • Supply Chain Management
  • Safety & Health
  • Environmental Justice

Environmental Achievements

  • Reduced carbon emissions by 70% from 2000 levels by the end of 2021.
  • 20% of generation portfolio is now renewables.
  • Retired or sold more than 13,700 MW of coal-fueled generation from 2011 through 2021.
  • 1,484 MW North Central Energy Facilities (wind) completed in March 2022.
  • Reduced annual emissions of sulfur dioxide (SO2) and nitrogen oxide (NOx) by approximately 98% and 95%, respectively, since 1990.
  • Reduced annual mercury emissions by approximately 97% since 2001.

Social Achievements

  • 75% of Pirkey Plant employees found new jobs within one year of retirement announcement.
  • Partnered with Just Transition Fund to support Pirkey Plant community transition.
  • $35.1 million in contributions and grants to nonprofit organizations in 2021.
  • Launched Delivering on the Dream: Social and Racial Justice grant program ($5 million over five years).
  • Exceeded supplier diversity goal in 2021.

Governance Achievements

  • Most diverse board in history with 33% women and 25% minorities.
  • Sara Martinez Tucker elected as the first woman Lead Director.
  • Updated Principles of Business Conduct and implemented a new anti-corruption policy.
  • Published a new Human Rights Policy in May 2022.
  • Adopted a new environmental and social justice policy effective January 1, 2022.

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero emissions by 2050 (scopes 1 and 2).
Medium-term Goals:
  • Shift generation portfolio to more than 50% renewable resources by 2030.
  • Add approximately 16 gigawatts of new renewable energy by 2030.
Short-term Goals:
  • Reduce CO2 emissions 80% by 2030 (from 2005 baseline).

Environmental Challenges

  • Supply chain disruptions due to global pandemic and rising demand.
  • Economic impact of retiring coal plants (job losses, tax base reduction).
  • Extreme weather events impacting grid reliability and resilience.
  • Cyber and physical security threats to the power grid.
  • Shortage of skilled labor, particularly line mechanics.
Mitigation Strategies
  • Diversifying and expanding sources of supply for critical materials.
  • Implementing a Just Transition strategy to support affected communities and employees.
  • Investing in grid modernization to enhance reliability and resilience.
  • Implementing a multi-level security governance structure and Defense in Depth strategy.
  • Workforce development initiatives to address skilled labor shortages, including a pathway for women.

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct
  • Supplier Diversity Program
  • Participation in EcoVadis and EUISSCA

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (flooding, wildfires, drought)
  • Increased precipitation impacting substations
Transition Risks
  • Regulatory changes
  • Market shifts
  • Economic impacts of coal plant retirements
Opportunities
  • Growth of renewable energy
  • Grid modernization investments
  • Development of energy storage technologies

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB framework, TCFD recommendations

Certifications: EcoVadis Silver Rating (2022)

Third-party Assurance: AEP Audit Services (limited review)

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 9 (Industry, Innovation, and Infrastructure)
  • Goal 13 (Climate Action)

AEP's initiatives contribute to these goals through renewable energy development, grid modernization, and decarbonization efforts.

Sustainable Products & Innovation

  • Smart grid technologies
  • Energy storage systems
  • Renewable energy projects

Awards & Recognition

  • Gallup Exceptional Workplace Award (2022)
  • JUST 100 2022 list
  • EPRI Technology Transfer Awards
  • ENERGY STAR® Partner of the Year awards
  • Edison Electric Institute Advocacy Excellence Award