Climate Change Data

Environmental Metrics

ESG Focus Areas

• Energy Innovation
• Environmental Stewardship
• Economic Stewardship
• Committed Governance
• Social Responsibility

Environmental Achievements

• Reduced water withdrawal by 18% from 2014 to 2015 (primarily due to retirement of units with once-through condenser cooling)
• Recycled almost 50% of coal combustion residuals (CCRs) in 2015
• Reduced peak demand by more than 4,500 megawatts and avoided over 2.7 billion kilowatt-hours of energy use since 2000 through energy-efficiency programs
• Announced or completed over 4,000 megawatts of renewable energy generating capacity since January 2012
• Construction of two new nuclear units at Georgia Power, adding more than 2,200 megawatts of emission-free capacity

Social Achievements

• Employees contributed more than 200,000 volunteer hours in 2015
• Renew Our Rivers program removed more than 14.2 million pounds of trash from lakes and rivers since 2000
• 99.35% of system employees worked injury-free in 2015
• Reduced employee injury rate by 68% since 2005
• Average employee turnover of about 5.4% in 2015

Governance Achievements

• Comprehensive governance program setting high standards for employees, officers, and directors
• Fully integrated ethics and compliance framework
• Corporate Concerns program providing confidential reporting line
• Annual reporting of political spending and lobbying activities

Climate Goals & Targets

Environmental Challenges

• Meeting growing customer demand while maintaining reliability
• Reducing environmental impact of operations
• Managing workforce transitions due to retirements
• Compliance with environmental regulations

Mitigation Strategies

• Investing in diverse energy resources (nuclear, coal, natural gas, renewables, energy efficiency)
• Implementing innovative technologies (carbon capture, smart grid, water conservation)
• Partnering with high schools, technical schools, and colleges to recruit and train future employees
• Investing approximately $11.4 billion in environmental control technologies through 2015, with plans to spend an additional $1.8 billion over the next three years

Supply Chain Management

Responsible Procurement

• Purchasing from more than 3,000 small and diverse businesses annually

Climate-Related Risks & Opportunities

Awards & Recognition

• 2010-2016 World’s Most Admired Electric & Gas Utilities – Fortune magazine
• 2015 John D. Dingell Award
• 2015 Top U.S. Utility for Investor Relations – IR magazine
• 2015 Top Five Spots in Customer Value Benchmark survey
• 2015 Top Utilities in Economic Development – Site Selection magazine
• 2014 Operating companies ranked among best in nation for customer service – J.D. Power and Associates survey
• 2014 Most Trusted Residential Electric Utility in America (Alabama Power) – Lifestory Research
• 2014 National Key Accounts Customer Service Award – Edison Electric Institute
• 2012-2014 Top-ranked CEO among large cap electric utilities by buy-side analysts
• 2015 R&D 100 Awards – R&D magazine
• 2015 Electric Power Research Institute Technology Transfer Awards
• 2014 Investor-Owned Utility of the Year (Georgia Power) – Solar Electric Power Association
• 2014 Top 100 Sustainable Energy Companies in the Southeast
• 2014 Southeastern Electric Exchange Industry Excellence Chairman's Award
• 2016 Top 50 Companies for Diversity – DiversityInc
• 2016 Top 10 Companies for Opportunity – DiversityInc
• 2016 Top 10 Companies for Veterans – DiversityInc
• 2016 Best for Vets Employer – Military Times EDGE magazine
• 2015 Top 50 Employers – Careers and the disABLED magazine
• 2015 40 Best Companies for Diversity – BlackEnterprise magazine
• 2015 Top 100 Military-Friendly Employer – GI Jobs magazine
• 2015 40 Best Companies for Diversity – Black Enterprise magazine
• 2015 Most Valuable Employer for Military® – CivilainJobs.com

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced GHG emissions by 36% since 2007; total annual GHG emissions in 2017 were 97 million metric tons of CO2e.
• Reduced NOX emissions by 89% and SO2 emissions by 98% since 1990.
• Reduced mercury emissions by over 90% since 2007.
• Reduced surface water withdrawal by nearly 33% between 2013 and 2017.
• Beneficially used 62% of produced ash and gypsum.

Social Achievements

• Donated $51,687,244 and employees raised more than $1,746,000 for charitable giving.
• Employees volunteered more than 260,000 hours annually.
• Supported educational initiatives, including FIRST Robotics.
• Offered energy efficiency programs to help customers save money.
• Created an average of 18,000 new jobs and $6 billion in capital investment each year for the last five years in the Southeastern U.S.

Governance Achievements

• Board met 11 times in 2017, with an average attendance of 93%.
• 14 of 15 director nominees are independent; 33% Board diversity.
• Established an intermediate goal to reduce carbon emissions from 2007 levels by 50 percent by 2030 and a long-term goal of low- to no-carbon operations by 2050.

Climate Goals & Targets

Environmental Challenges

• Meeting evolving customer expectations and adapting to the changing regulatory environment in America’s energy landscape.
• Managing coal combustion residuals (CCR) and closing ash ponds.
• Reducing GHG emissions while maintaining reliability and affordability.

Mitigation Strategies

• Developing and maintaining a diversified energy portfolio.
• Investing in low-carbon and carbon-free resources.
• Implementing a rigorous CCR compliance program.
• Setting GHG reduction goals aligned with long-term business strategy.

Supply Chain Management

Responsible Procurement

• Making purchases based on best overall value
• Developing and maintaining relationships with suppliers based on mutual respect
• Working with suppliers to further the success of both companies
• Conducting business with honesty, integrity, fairness, and legal compliance

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards Core Option

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced GHG emissions by 35% since 2007 (54 million metric tons)
• Reduced SO2 emissions by 98% since 1990
• Reduced NOX emissions by 88% since 1990
• Reduced mercury emissions by 89% since 2007
• Beneficial use of 62% of produced ash and gypsum

Social Achievements

• More than 258,000 volunteer hours by employees and retirees
• $63.6 million in corporate and foundation giving
• $2.1 million raised by employees for community organizations
• 98.5% of employees worked injury free in 2018
• Recognized by various organizations for diversity and inclusion

Governance Achievements

• Added three new independent directors to the Board
• Board met 14 times in 2018 with 94% average attendance
• Independent directors chair each Board committee

Climate Goals & Targets

Environmental Challenges

• Meeting carbon reduction goals while maintaining reliability and affordability
• Managing the variable nature of renewables
• Addressing increasing energy demand
• Compliance with environmental regulations

Mitigation Strategies

• Investing in renewable energy, grid modernization, natural gas, and nuclear generation
• Continuing R&D efforts
• Implementing energy efficiency programs
• Engaging with policymakers and regulators
• Aggressive diversion of ash and wastewater from ash ponds

Supply Chain Management

Responsible Procurement

• Working with small and diverse businesses

Climate-Related Risks & Opportunities

Physical Risks

• Catastrophic events such as storms, droughts

Transition Risks

• Regulatory changes, competition from alternative energy sources

Opportunities

• Development of low-carbon and carbon-free resources

Reporting Standards

Frameworks Used: GRI Standards Core Option

Awards & Recognition

• Numerous awards from various organizations

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced GHG emissions by 52% in 2020 compared to 2007 levels (expecting consistent 50%+ reduction by 2025)
• Reduced NOx emissions by 93% since 1990, SO2 emissions by 99% since 1990, and mercury emissions by 97% since 2005.
• Reduced surface water withdrawals by more than 30% between 2018 and 2020.
• Stopped sending coal ash to unlined ash ponds in 2019.
• Increased renewable and carbon-free generation to nearly one-third of energy supply in 2020.

Social Achievements

• Developed new ways of communicating and connecting with employees during the COVID-19 pandemic.
• Enhanced benefits targeting physical, emotional, and financial well-being for employees.
• Committed $50 million multi-year investment in HBCUs to support career readiness of students.
• Launched the Propel Center in partnership with Apple Inc. to support HBCU students.
• Improved employee safety, achieving one of the lowest DART incident rates in the country (AGA Accident Prevention Certificate).

Governance Achievements

• Board of Directors provides substantive oversight on strategy and risk issues across the ESG spectrum.
• Board has more than 30% diverse membership.
• Implemented decision-making and oversight processes to ensure governmental relations activities are conducted in accordance with all applicable laws and regulations.

Climate Goals & Targets

Environmental Challenges

• Maintaining reliability and affordability while reducing GHG emissions.
• Balancing the continued use of natural gas with the transition to cleaner energy sources.
• Addressing the potential for stranded asset risk.
• Managing the impact of extreme weather events and natural disasters on system resilience.

Mitigation Strategies

• Investing in infrastructure and technologies to reduce methane emissions from natural gas businesses.
• Modernizing T&D infrastructure to improve system resilience.
• Investing in smart grid, energy storage, microgrids, and demand response technology.
• Exploring carbon capture, hydrogen blending, and renewable natural gas technologies.

Supply Chain Management

Responsible Procurement

• Contractually requiring suppliers to agree to compliance principles

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, natural disasters

Transition Risks

• Regulatory changes, market shifts
• Stranded asset risk

Opportunities

• Development of energy-efficient products and technologies

Reporting Standards

Frameworks Used: EEI ESG/Sustainability Reporting Template, CDP Climate Disclosure

Awards & Recognition

• American Gas Association’s (AGA) Accident Prevention Certificate (5 consecutive years)

Environmental Metrics

ESG Focus Areas

• Racial Equity and Justice

Social Achievements

• Increased diverse spend from 26 percent in 2021 to 29.1 percent in 2023.
• Launched several initiatives to increase business with and visibility of diverse suppliers, including a standardized intake process, an internal database of potential suppliers’ capabilities, and matchmaking programs.
• Continued several existing mentorship and development programs and launched new mentorship, development, and matchmaking programs and partnerships as a result of MTE.
• Hosted executive forums to share equity-related values with suppliers, included language about promoting equal opportunity in the Supplier Code of Conduct, and implemented expectations for suppliers to serve Southern Company with diverse teams.
• Implemented an informal process for providing flexible payment terms and access to equipment for diverse suppliers where necessary.
• Invested $121.1 million toward education equity (121% of goal).
• Invested $65.5 million toward economic empowerment (131% of goal).
• Invested $27.3 million toward criminal justice equity (55% of goal).
• Invested $22.1 million toward energy empowerment (89% of goal).

Governance Achievements

• Established an MTE infrastructure designed to promote buy-in for MTE from employees at all levels across the Company.
• Published an MTE framework in 2020 and has published annual reports since then.
• Maintains a website which provides updates on the Company’s progress toward MTE commitments.
• Engaged an external consulting firm in 2020 to evaluate the MTE initiative and develop metrics for each MTE pillar.
• Refreshed Our Values in 2023 to include “Intentional Inclusion” and developed a continuous feedback loop model to regularly receive employee feedback about MTE as appropriate.
• Provides employees with the opportunity to include DE&I related goals in their annual performance review plans.
• Engaged several third-party experts to develop MTE metrics based on industry benchmarks.
• A designated audit and accountability lead works with each pillar periodically to enhance metrics and data processes.

Climate Goals & Targets

Environmental Challenges

• Inconsistency in support for employee-led DE&I focused groups at mid-manager levels.
• Challenges in balancing volunteer responsibilities with paid jobs for employee-led DE&I focused group leaders.
• Lack of formal, systemwide inclusion of employee-led DE&I focused groups in developing recruitment and retention strategies.
• Need for enhanced alignment between employees across regions and operating companies and the supplier inclusion team.
• Limited opportunities for diverse suppliers in certain operating areas.
• Need for enhanced communication about Moving to Equity initiatives.
• Need for more consistent process for political engagement and policy advocacy decisions.
• Need for enhanced coordination between Legislative Affairs team and other MTE pillar teams.
• Need for additional resources for the Community Benefits team to keep up with grant applications.
• Challenges in consistently tracking impact and other metrics from grant recipients.

Mitigation Strategies

• Developed an MTE infrastructure to foster support for MTE from across operating companies and leadership levels.
• Established a communication framework to inform employees and the public about the Company’s efforts to promote equity.
• Implemented a continuous feedback loop model for MTE to receive employee feedback.
• Standardized the supplier intake process across all operating companies.
• Launched initiatives to increase subcontracting opportunities for diverse suppliers.
• Launched the Supplier Diversity Business Development Program.
• Launched the Building the Pipeline program.
• Implemented a national political strategy that incorporates Our Values.
• Partners with Quorum to incorporate values-based data analytics into political engagement decisions.
• Regularly applies for funding for Justice40 Initiative covered programs.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Expectations for diverse teams and racial equity commitments from suppliers.

Climate-Related Risks & Opportunities

Awards & Recognition

• EEI 2022 Business Diversity Excellence Award
• Fair360 top five company for supplier diversity (2021, 2023)

Environmental Metrics

ESG Focus Areas

• Serve Our Customers
• Advance Clean Energy
• Lead Through Innovation
• Invest in Our People
• Elevate Our Communities

Environmental Achievements

• Reduced GHG emissions by 46% in 2022 from 2007 baseline
• Nearly one-third of electricity generated or purchased in 2022 came from clean energy resources
• Vogtle Unit 3 began commercial operation in July 2023 – the first newly constructed nuclear unit in the U.S. in over 30 years
• Reduced the number of coal-fired generating units in the fleet from 66 in 2007 to 15 in 2022
• Renewables portfolio continues to grow, expecting approximately 20,000 MW of renewable capacity and storage in 2030

Social Achievements

• Invested approximately $120 million in grants, sponsorships, and impact investments in 2022
• Five-year $225 million commitment to advance racial equity and social justice
• Electric and gas operating companies helped bring $35 billion in investment and 60,000 jobs to service territories in 2022
• Ranked as a Top 50 Company for Diversity by DiversityInc for eight consecutive years
• Recognized by Forbes among America’s Best Large Employers and as a Best Employer for Women

Governance Achievements

• Robust succession planning processes led to leadership transitions in 2023
• Updated Corporate Values
• Ongoing commitment to transparent policy engagement and advocacy

Climate Goals & Targets

Environmental Challenges

• Severe weather, changing customer preferences, and advancements in technology transforming energy provision
• Increased generation associated with higher electricity sales slightly decreasing emissions reduction from 47% in 2021 to 46% in 2022
• Challenges in constructing Plant Vogtle Unit 4, including new technology, labor costs, and potential delays

Mitigation Strategies

• Expanding product offerings to include a broader array of energy solutions
• Investing nearly $16 billion over 2023-2027 on grid improvement projects
• Continuous monitoring and inspections of gas systems to ensure safety and resilience
• Replacing legacy infrastructure with state-of-the-art corrosion-resistant pipes
• Expanding use of technologies (drones, satellites, AI) for leak detection and emissions measurement

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: SASB (Sustainability Accounting Standards Board), TCFD (Task Force on Climate-related Financial Disclosures), GRI (Global Reporting Initiative)

Third-party Assurance: Deloitte & Touche LLP (limited assurance for 2022, 2021, 2020 Scope 1 & 2 emissions, and 2007 Scope 1 baseline)

UN Sustainable Development Goals

• 7: Affordable and Clean Energy
• 9: Industry, Innovation, and Infrastructure
• 13: Climate Action

The report details how Southern Company's initiatives contribute to these goals through clean energy generation, infrastructure investments, and emissions reductions.

Awards & Recognition

• DiversityInc Top 50 Companies for Diversity
• Forbes America’s Best Large Employers
• Forbes Best Employer for Women
• Human Rights Campaign 100% Corporate Equality Index Score
• Disability Equality Index 100% score
• Site Selection magazine Top U.S. Utility for Economic Development
• Newsweek America’s Greatest Workplaces
• Newsweek America’s Greatest Workplaces for Diversity
• Newsweek Most Trustworthy Companies in America
• CDP A- Score, Climate Change Disclosure
• CPA-Zicklin Index Trendsetter
• GI Jobs magazine Top 100 Military-Friendly Employer
• The Military Times Best for Vets

Environmental Metrics

ESG Focus Areas

• Serve Our Customers
• Advance Clean Energy
• Lead Through Innovation
• Invest in Our People
• Elevate Our Communities

Environmental Achievements

• Reduced Scope 1 GHG emissions by 49% relative to 2007 levels by 2023.
• Completed the expansion of Plant Vogtle in 2024 (Units 3 and 4).
• Reduced the number of coal-fired generating units from 66 to 15 since 2007.
• Reduced active leaks by over 75% since 2018 (Southern Company Gas).

Social Achievements

• Invested $201 million (through 2023) towards a $225 million commitment to advance racial equity and social justice.
• Increased total diverse spend to 29% (towards a 30% goal by 2025).
• Employees volunteered over 150,000 hours in 2023.
• Opened a new Workforce Development and Training Facility in Mississippi.

Governance Achievements

• Added five new directors to the Board over the last three years.
• Recognized as a “Trendsetter” by the 2023 CPA-Zicklin Index of Corporate Political Disclosure and Accountability.
• Published a Trade Association and Climate Engagement Report.

Climate Goals & Targets

Environmental Challenges

• Rapidly growing energy demand.
• Need to decarbonize while maintaining affordability.
• Inflationary pressures.
• Evolving regulatory landscape.
• Supply chain disruptions affecting fleet vehicle electrification.

Mitigation Strategies

• Shifting towards zero- and lower-carbon energy sources (renewables, nuclear, natural gas).
• Implementing efficiency measures and expense discipline.
• Significant investment in transmission and distribution system resilience.
• Working with policymakers to support durable policies.
• Investing in workforce development and training.

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

Reporting Standards

Frameworks Used: SASB, TCFD, GRI

Third-party Assurance: Deloitte & Touche LLP (limited assurance for 2020-2023 Scope 1 and 2 emissions)

Sustainable Products & Innovation

• Renewable energy resources
• Energy storage systems
• Smart Neighborhoods®

Awards & Recognition

• Forbes Best Large Employers in America
• Forbes Best Employers for Women
• Disability Equality Index 100% score
• Human Rights Campaign Foundation’s Corporate Equality Index top score
• Site Selection magazine Top U.S. Utility for Economic Development