Southern Company
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:79 million tCO2e/year (Scope 1)
Scope 1 Emissions:79 million tCO2e/year
Scope 2 Emissions:<1%
Scope 3 Emissions:31% of total
ESG Focus Areas
- Clean Energy
- Safety and Health
- Energy Reliability and Resilience
Environmental Achievements
- Reduced Scope 1 GHG emissions by 49% relative to 2007 levels.
- Completed the expansion of Plant Vogtle (Units 3 and 4), the largest generator of clean energy in the US.
- Reduced the number of coal-fired generating units from 66 to 15 since 2007, with further reductions expected by the mid-2030s.
- Southern Company Gas reduced active leaks by over 75% since 2018 and achieved a methane intensity rate of 0.201% in 2023 (well below ONE Future’s 2025 goal).
Social Achievements
- Invested $59 million in 2023 (total of $201 million since 2021) to increase diverse spend to 29% toward a 30% goal by 2025.
- 90% of employees consider Southern Company an excellent place to work and plan to stay for at least another 12 months (based on 2023 employee survey).
- Employees volunteered over 150,000 hours in 2023.
- Alabama Power created a certified training program for connectivity lineworkers, resulting in the first US unit trained to complete all fiber infrastructure operations.
Governance Achievements
- Added five new directors to the Board over the last three years, increasing overall diversity to 54%.
- Published a Trade Association and Climate Engagement Report analyzing net-zero advocacy positions and memberships.
- Recognized as a “Trendsetter” by the 2023 CPA-Zicklin Index of Corporate Political Disclosure and Accountability.
Climate Goals & Targets
Long-term Goals:
- Achieve net-zero GHG emissions by 2050
Medium-term Goals:
- Over 20,000 MW of renewable and storage resources by 2030.
Short-term Goals:
- 50% GHG emissions reduction by 2030 relative to 2007 levels
Environmental Challenges
- Rapidly growing energy demand.
- Significant infrastructure investment needs.
- Inflationary pressures impacting customer rates.
- Evolving regulatory landscape.
- Supply chain disruptions impacting fleet vehicle electrification goals.
Mitigation Strategies
- Shifting electric generating capacity toward zero- and lower-carbon solutions.
- Maintaining expense discipline and implementing efficiency measures.
- Investing in transmission and distribution system resilience.
- Working with local and state officials and customers to improve infrastructure.
- Investing in workforce development and training.
- Engaging in scenario planning to adapt to changing energy fundamentals and regulations.
Supply Chain Management
Responsible Procurement
- Published Supplier Code of Conduct
- Goal to increase diverse spending to 30% by 2025
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
Transition Risks
- Regulatory changes
- Market shifts
Opportunities
- Development of energy-efficient products and services
- Growth in renewable energy portfolio
Reporting Standards
Frameworks Used: SASB, TCFD, GRI
Third-party Assurance: Deloitte & Touche LLP (limited assurance for Scope 1 and 2 emissions)
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 9 (Industry, Innovation, and Infrastructure)
- Goal 13 (Climate Action)
Southern Company's sustainability pillars are mapped to relevant UN SDGs to demonstrate alignment with sustainable development goals.
Sustainable Products & Innovation
- Renewable energy resources (solar, wind, nuclear)
- Energy efficiency programs
- Next Generation Natural Gas and RNG
Awards & Recognition
- Forbes Best Large Employers in America
- Forbes Best Employers for Women
- Disability Equality Index 100% score
- Human Rights Campaign Foundation Corporate Equality Index top score
- Site Selection magazine Top U.S. Utility for Economic Development