AEP Sustainability - Board Statement

Statement of AEP’s Board of Directors

AEP Management and the Board of Directors recognize the role of environmental, social and governance (ESG) performance in creating long-term value for our shareholders and other stakeholders. We are committed to engagement as well as transparent disclosure on ESG issues. The Board receives frequent reports from management about the company’s sustainability initiatives and financial reporting, policy matters and ESG performance. These issues are the subject of active discussion at Board meetings and Board committee meetings.

The AEP Board of Directors has assigned responsibility for overseeing the company’s ESG/sustainability initiatives to the Board’s Committee on Directors and Corporate Governance (the Committee). The 2022 Corporate Sustainability Report integrates financial with ESG/sustainability reporting to provide a comprehensive view of AEP’s forward-looking strategic commitment to the environment, employees, shareholders and the communities that we serve as well as a transparent review of our performance in these commonly recognized measures of ESG performance. Stakeholders have expressed support and appreciation for AEP’s leadership with this integrated approach to corporate reporting, as well as the company’s commitment to transparency and engagement. The Committee fully supports this approach.

The 2022 Corporate Sustainability Report provides cohesive, proactive disclosure for our stakeholders. To ensure statements are appropriately stated, AEP’s internal Audit Services team performs a limited review of selected company performance statements within the Report. This year’s Report includes the company’s ESG Data Center, which houses approximately 250 of the most relevant metrics AEP is commonly asked to disclose; AEP’s Decarbonization Strategy; and new Environmental & Social Justice Policy and Human Rights Policy. These new policies demonstrate our commitment to ensuring investment equity as we modernize the power grid and reinforce our respect for, and fair treatment of, all people without discrimination. In addition, the Report outlines AEP’s financial and operational performance, while providing a forward look of the company’s strategy to achieve net-zero carbon emissions by 2050.

The Committee believes the 2022 Corporate Sustainability Report provides a clear presentation of AEP’s strategy and ESG performance. The Board has emphasized that management will continue to be evaluated by its success in executing the company’s strategic plan, including its ability to respond to changing ESG risks and opportunities.

Sara Martinez Tucker
Lead Director of the AEP Board of Directors

Sandra Beach Lin
Chair of the Committee on Directors and Corporate Governance