Sustainability Strategy & Goals

In 2016, we chartered a strategic initiative to develop AEP’s next-generation sustainability goals. The objective was to measure how we create shared value – for AEP and our stakeholders – through our investments in sustainable development of clean energy infrastructure. One of our first steps was to define the AEP Strategy Framework for Sustainable Development, which provides context for our core business and a roadmap to implement throughout our value chain. Our new sustainability goals provide the metrics and methodologies to measure performance against our business plan – across our business – providing structure to communicate the return on investment (ROI) and the shared value we create for AEP and all our stakeholders.

Our strategy for a sustainable future is to ensure that the production and delivery of energy enables positive social and economic change for our customers, employees and communities as we collaboratively shape our future. This is grounded by our culture of safety, continuous improvement and customer focus. We commit to aggressively support economic development, develop innovative solutions, champion education and make smart infrastructure investments that power our communities and improve lives. 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 workforce for the 21st century.

Advance 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.

Help to build strong local communities – We have a responsibility to create shared value – for our customers, employees and the communities we serve. Our philanthropy is focused on helping people in our communities access nutritious meals and safe, affordable housing, and develop the skills they need to build a sustainable future for themselves. Our economic development activities seek to enhance and support communities through the expansion of economic opportunity by minimizing unemployment and supporting an adequate tax base for critical community institutions.

Develop a brighter energy future – We seek to work together with our customers and communities to help them navigate energy and technology choices, give them accurate and timely information they can act on, provide safe, reliable and affordable electricity, and remain continuously engaged to ensure optimal alignment with customers’ expectations.

The goals design process is being led by a team of subject matter experts within AEP’s businesses and through partnership with The Analyst Desk, who helped us design the project, conduct benchmarking and perform expert analytics to inform goal design and implementation plans. This work is the culmination of capturing feedback from stakeholders over the past few years with investors, customers, and non-governmental organizations (NGOs). The stakeholder feedback focused on issues such as climate change, carbon risk, energy efficiency, renewable energy, advanced technologies, and diversity and inclusion.

In 2017, more than 30 employees worked in teams to develop a set of draft sustainability goals. The process was informed by three key steps:

  1. External Performance Benchmarks: External benchmarking of utility sector peer companies, global best-in-class and investor disclosure expectations (mainstream and socially responsible/ESG investors)
  2. Internal Performance Drivers: Driven by input from the Goals’ teams, numerous performance improvement opportunities were identified that could be realized through implementation of the proposed new sustainability goals. The ideation focused on measures/goals that would drive innovation, risk management and/or growth opportunities.
  3. Vetting for Alignment with AEP Business Strategy, Goals and Strategic Initiatives: Prospective goals were vetted for alignment with AEP’s strategy framework for sustainable development, its corporate goals, strategic initiatives and future outlook.

The cumulative work of our employees’ effort to set sustainability goals for the future that reflect our commitment to the environment; efficient use of energy; safety, health and well-being of our workforce and the public; supplier diversity; community building; the customer experience; and economic development was published with the launch of our 2018 Corporate Accountability Report.

On a parallel path, AEP developed new carbon reduction goals based on our current business strategy and integrated resource planning models. In February 2018, we announced our goals in February 2018, which call for reducing carbon dioxide emissions (CO2) from AEP generating facilities by 60 percent by 2030 and 80 percent by 2050 (based on a 2000 baseline). Learn more about the carbon goals and AEP’s Strategic Vision for a Clean Energy Future.

In addition to business and cultural alignment, AEP’s sustainability goals are aligned with the U.N. Sustainable Development Goals (SDGs). We believe this is important to demonstrate how AEP creates shared value for our business and for society.

View our Sustainability Goals