AEP Produces 2017 Corporate Accountability Report: ‘The Power to Shape the Future’

The 2017 Corporate Accountability Report reflects disclosure about AEP’s 2016 performance as well as the company’s strategy and vision for the future. AEP’s changing business model, its transition to a clean energy future and its plan for future growth are discussed to provide clarity about the transformation of the company and the industry.

“We have a vision for American Electric Power to deliver an energy future built on diverse energy resources and an interactive power grid that is more reliable and secure. We are transforming our business to create sustainable economic, social and environmental value for all of our stakeholders. We believe the power to shape the future is in all our hands and by working together we have the ability to turn this vision into reality.”

That is how Nick Akins, AEP chairman, president and chief executive officer, introduces the 2017 AEP Corporate Accountability Report: “The Power to Shape the Future.”

“Our basic responsibility is ‘keeping the lights on.’ But because lives, lifestyles and livelihoods depend on us, we have to go beyond the basics,” Akins continues in his Chairman’s Message in the report. “We must support strong and vibrant communities, be an advocate for education and opportunity, help the less fortunate, care for our employees, exceed our customers’ expectations and protect the environment. We must also be inclusive and collaborative, while creating shared value for our customers, employees, investors and communities. Ultimately, we must balance the pace of our transition to a cleaner, modern system with our customers’ economic capacity.”

The 2017 Corporate Accountability Report marks AEP’s eighth integrated report and 11th year of reporting on its environmental, social and economic performance. The report is widely used to educate and inform AEP investors, customers,  employees and other stakeholders on AEP’s performance, initiatives and strategy for the future.

Highlights from this year’s report include:

• AEP’s commitment to developing Sustainability Goals and our Strategy for Sustainable Development, aligned with AEP’s Strategic Goals.
• AEP’s Safety & Health transformation and commitment to Zero Harm.
• AEP’s efforts to enhance the Customer Experience.
• The critical role technology and innovation will play to become a cleaner and smarter energy company.
• An interactive overview of AEP’s Performance – highlighting our energy and environment, social and economic performance.
• The ability to Build Your Own PDF of the report.

“This year’s report reflects AEP’s strong commitment to transparency and engagement,” said Sandy Nessing, managing director of corporate sustainability and co-author of the report. “Over time, this report has become much more future-focused, serving as a valuable springboard for dialogue with many different stakeholders. It tells AEP’s story – detailing our performance, our progress and our future path. This year’s report is significant because it describes our journey to becoming the energy company of the future, including  major initiatives such as the Customer Experience, our work to set new sustainability goals and AEP Ohio’s involvement with the Smart Columbus initiative. It also is the first external site to launch since AEP’s new rebranding effort.”

Sustainability Goals

The report notes that, in 2017, “AEP began the work to set new sustainability goals. AEP first set sustainability goals in 2007 around developing renewable energy and reducing the demand for electricity, as well as reducing carbon emissions. We achieved nearly all of the goals we set within the designated timeframes. Today, many of our stakeholders are asking us about setting new goals. In addition, stakeholder interests go far beyond environmental performance and carbon to include talent development, work force diversity and inclusion, water and safety and health.”

A robust, modern grid is a natural enabler of technology and innovation. The power grid of the future will be fully integrated, decentralized and digitized and will have a smaller carbon footprint.

Teams of employees are working on developing new sustainability goals; and the intent is to begin to report on them in 2018. To support this work, the Enterprise Sustainability Council framed the meaning of sustainable development and AEP’s strategy for achievement to guide the goal-setting work.

The report adds that AEP will lead by example by setting strategic performance targets and goals, and we will be guided by these key principles:

• Be a catalyst for change – We will use our knowledge, voice, skills and relationships to enable innovation, bring new technologies to market, modernize the grid to be the ultimate optimizer of all resources and technologies, and develop a diverse, inclusive work force for the 21st century. We will do this safely and efficiently and by working with our regulators.
• Support environmental stewardship – As we transition to a cleaner energy future, we will seek to continuously improve operations across our business to reduce, mitigate or eliminate the resulting impacts on the environment.
• Support strong local communities – We have a responsibility to create shared value – for our customers, employees and the communities we serve. Our investments will enable those living in our communities to develop the skills and resources they need to build a sustainable future for themselves.
• Be a trusted energy partner – We seek to be a trusted, credible partner that customers rely upon to help them navigate energy and technology choices, give them accurate and timely information they can act on, and be their provider of choice for safe, reliable electricity.

“The evolution of this report is remarkable and the value it brings is immeasurable,” Akins said. “Our audience has grown from environmental organizations to some of our largest investors who use this report to determine who they are investing in and where their dollars go. Our investors want to know they are investing in a company that not only provides strong financial returns, but also one that operates in a responsible and sustainable manner. Whether through our diversity and inclusion efforts or our smart energy initiatives, we can tell our story with confidence because of the innovative and adaptable work force we have in place to move us toward the energy company of the future.”